Cal. Code Regs. tit. 16 § 2757.2

Current through Register 2024 Notice Reg. No. 49, December 6, 2024

Section 2757.2 - Net Worth Test on Form 10-K; Defined

For purposes of complying with the requirements of Sections 9855.2(a)(1) and 9855.3(c)(1) of the Code, the term "a net worth greater than the sum of the deferred revenues from service contracts in force" shall be calculated by comparing the sum of the "deferred revenues from all service contracts in force" as of the date of the audited financial statement included in the Form 10-K (or acceptable substitute) filing with the stockholders' equity reported on the financial statement. The amount of stockholders' equity shall exceed the sum of the deferred revenues from service contracts in force in order for the requirements of Sections 9855.2(a)(1) and 9855.3(c)(1) of the Code to be met.

Cal. Code Regs. Tit. 16, § 2757.2

1. New section filed 9-21-95; operative 10-21-95 (Register 95, No. 38).

Note: Authority cited: Section 9814, Business and Professions Code. Reference: Sections 9855.2 and 9855.3, Business and Professions Code.

1. New section filed 9-21-95; operative 10-21-95 (Register 95, No. 38).