With the director's approval, you may use a bond substitute,
as defined in WAC
208-620-010, that meets the
following requirements:
(1) Your
company must be a Washington business corporation.
(2) Your company must maintain unimpaired
capital in an amount so that the aggregate sum of the company's debt, including
outstanding promissory notes or other evidences of debt, does not at any time
exceed three times the amount of its bond substitute.
(3) You may exclude long-term subordinated
debt, as defined in WAC
208-620-010, for purposes of
calculating the bond substitute only if any claim by the subordinate debtholder
on the company's assets is junior to claims by the state or a consumer under
the act. You must file with the director a subordination agreement in favor of
the state.
(4) You must not
consider bad debts and uncollectible judgments as assets for purposes of
calculating the bond substitute. A bad debt is any debt owed to you upon which
any payment is six months or more past due. An uncollectible judgment is any
judgment which is more than two years old and which has not been
paid.
Notes
Wash. Admin.
Code §
208-620-340
Amended by
WSR
13-24-024, filed 11/22/13, effective
1/1/2014
Statutory Authority:
RCW
43.320.040,
31.04.165,
2009 c
120, and
2009 c
149. 09-24-090, § 208-620-340, filed 12/1/09,
effective 1/1/10. Statutory Authority:
RCW
31.04.165,
31.04.015,
31.04.045,
31.04.075,
31.04.085,
31.04.093,
31.04.102,
31.04.115,
31.04.145,
31.04.155, and
31.04.175. 06-04-053, §
208-620-340, filed 1/27/06, effective
2/27/06.
