Section 1320-06-01-.15 - INDEBTEDNESS-ADEQUACY OF CAPITALThe 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.Tenn. Comp. R. & Regs. 1320-06-01-.15
Original rule certified June 7, 1974. Amendment filed August 13, 1974; effective September 12, 1974. Repealed and refiled July 22, 1977; effective August 22, 1977. Amendment filed November 6, 1984; effective December 6, 1984; Amendments filed June 28, 2016; effective 9/26/2016.Authority: T.C.A. §§ 67-1-102 (a), 67-1-102, 67-4-905(c), and 67-4-2107.