Prior to the initial public offering, the adjusted net worth of the trust shall be no less than the lower of (a) 10% of the adjusted net worth upon completion of such public offering, or (b) $200,000. The adjusted net worth of the trust shall not be less than $1 million upon completion of the initial public offering. “Adjusted net worth” shall mean the amount obtained by subtracting the trust's total liabilities from its total assets as adjusted. The total asset figure used shall be calculated by deduction of any reasonable reserves but before provision for depreciation. All figures used shall be as shown on the trust's books in accordance with generally accepted accounting principles.

Note: Authority cited: Section 25610, Corporations Code. Reference: Section 25140, Corporations Code.

History

1. Renumbering and amendment of Section 260.140.91 to Section 260.140.90, and renumbering and amendment of former Section 260.140.93 to Section 260.140.91 filed 1-28-82; effective thirtieth day thereafter (Register 82, No. 5).