Tenn. Comp. R. & Regs. 1320-06-01-.15 - INDEBTEDNESS-ADEQUACY OF CAPITAL
The amount of indebtedness to be included pursuant to T.C.A. § 67-4-2107 shall not exceed the greater of the following amounts:
(1) Excess of indebtedness over quick assets
(cash, receivables, marketable investments),
(2) Excess of book value (cost less
accumulated depreciation) of capital assets (including inventories) per ending
balance sheet of the return over net worth (including surplus reserves). If
quick assets exceed the indebtedness to an affiliated corporation and the net
worth exceeds the capital assets, the capital is adequate and no part of such
indebtedness need be included.
Notes
Authority: T.C.A. §§ 67-1-102 (a), 67-1-102, 67-4-905(c), and 67-4-2107.
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.