Section R20-4-612. Solvency and Minimum Liquid Assets

A.      A debt management company shall not operate if it is insol- vent. For purposes of this Section “insolvent” has the same meaning as in A.R.S. § 47-1201(23).

B.       To determine compliance with A.R.S. § 6-709(A), a debt man- agement company’s liquid assets include funds held in its trust account. Liquid assets do not include goodwill and other intan- gible assets. A debt management company’s total liquid assets shall exceed by $2,500.00 the total of all its current business liabilities together with all balances held for debtors as reflected in the company’s subsidiary ledgers.

C.      Except as otherwise provided by this Section, or in a specific ruling by the Superintendent, a debt management company shall use generally accepted accounting principles to compute assets and liabilities.

Historical Note

Adopted effective October 26, 1978 (Supp. 78-5). R20-4- 612 recodified from R4-4-612 (Supp. 95-1). Amended by final rulemaking at 8 A.A.R. 2708, effective June 6, 2002

(Supp. 02-2).