Factors Not Considered in Determining Net Current Assets

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Sec. 41. In determining net current assets, an entity may not consider the following:

(1) Notes and accounts receivable from affiliated business firms as assets of the applicant unless an audited financial statement showing the debtor has sufficient liquidity to discharge the debt is attached. However, an unaudited statement certified as correct by the debtor shall be accepted if an unaudited statement is submitted for qualification.

(2) Notes and accounts receivable from partners of a co-partnership or officers and stockholders of a corporation unless an audited financial statement is attached.

As added by P.L.85-1991, SEC.3.


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