3 AAC 14.054 - Financial statement to be submitted with mortgage license or registered depository institution application

(a) An applicant for a mortgage license or for a registration under AS 06.60.014 shall submit an unaudited financial statement for the preceding fiscal year prepared under generally accepted accounting principles.

(b) The financial statement described under (a) of this section must

(1) be prepared no earlier than 12 months before the date the department receives the initial application and no later than 90 days after the end of the applicant's fiscal year; and

(2) include at least a balance sheet and an income statement and notes relevant to each component, except that if the applicant is licensed or registered or is applying in one or more jurisdictions in addition to this state, the applicant shall submit to the department the highest level financial statement required by any jurisdiction to which the applicant is applying or in which the applicant is licensed or registered.

(c) The levels of financial statement are

(1) at the lowest level, an unaudited financial statement;

(2) at the second lowest level, an unaudited and compiled financial statement;

(3) at the second highest level, an unaudited and reviewed financial statement; and

(4) at the highest level, an audited financial statement.

(d) A financial statement prepared by a parent company of an applicant as a consolidated financial statement for the parent company and its subsidiaries is not acceptable as a financial statement of the applicant. In this subsection, "parent company" means a company that controls management and operations of another firm.

(e) in this section,

(1) "audited financial statement" means a financial statement

(A) that is certified by a certified public accountant; and

(B) the contents of which include a balance sheet, cash flow statement, and income statement;

(2) "unaudited and compiled financial statement" means a financial statement for which the financial data have been assembled by a certified public accountant but not reviewed for accuracy;

(3) "unaudited and reviewed financial statement" means an unaudited financial statement for which the financial data have been reviewed for accuracy by a certified public accountant;

(4) "unaudited financial statement" means a financial statement in which the balance sheet, cash flow statement, or income statement has not been audited,

Notes

3 AAC 14.054

Eff. 12/4/2010, Register 196; am 1/1/2017, Register 220, January 2017

Authority:AS 06.60.014

AS 06.60.020

AS 06.60.060

AS 06.60.910