N.Y. Comp. Codes R. & Regs. tit. 13 § 16.7

Current through Register Vol. 46, No. 45, November 2, 2024

Section 16.7 - Annual reports

(a) Within four months after the close of the fiscal year of all firms which have made or were required to make filings under section 352-e of the General Business Law there shall be filed with the Condominium, Theatre and Syndication Financing Bureau of the Department of Law two copies of form AR-1. Attached to such form should be a statement prepared by an independent public accountant setting forth in detail the amounts and sources of all distributions from each of the following, with details thereof:

(1) borrowed monies (secured or unsecured);

(2) loans or additional contributions from officers or partners or other principals or agents thereof;

(3) proceeds from the sale, transfer, option, exchange or other disposition (including involuntary conversion and insurance proceeds) of property or other assets, contracts, etc. (including monies received as deposit on contracts, returnable and unreturnable). In the determination of such "proceeds", deferred payments and purchase money mortgages should be treated on the basis of accepted installment accounting principles;

(4) funds generated from operations, which funds should be defined to include net income as ascertained through the use of standard accounting practices adjusted so that depreciation allowances are not treated as an expense and payment of principal due on debt is deducted. However, in the case of motels, hotels, nursing homes, furnished apartment houses, and similar properties, personalty recurrently acquired for use in connection with real property should be deducted as an expense;

(5) other sources (giving details).

(b) In the preparation of the information called for in subdivision (a) above, it may be assumed that distributions were made: first, from current earnings from the period involved to the extent available; second, from retained earnings to the extent available; and thirdly, from funds generated from operations to the extent available. In the determination of current and retained earnings for this purpose, deferred payments and purchase money mortgages should be treated on the basis of accepted installment accounting principles. In regard to distributions from sources in excess of funds generated from operations the specific sources should be determined.

(c) Together with accountant's statements specified in subdivision (a) above, there should be submitted a copy of each quarterly "Source of Distribution Statement" (described in section 16.9 below) issued to owners of securities for and during the fiscal year. The quarterly statements should be summarized or recapitulated, and where said summary or recapitulation is not fully in agreement with the accountant's statement required by subdivision (a) above, an appropriate statement of reconciliation should be supplied.

N.Y. Comp. Codes R. & Regs. Tit. 13 § 16.7

Amended New York State Register July 3, 2018/Volume XL, Issue 27, eff. 7/3/2018