20:10:12:15.  Financial criteria for licensing. At a minimum, the applicant's balance sheet must show a positive net worth. In determining net worth, the commission may disallow the following assets if the assets are withdrawals of equity or are uncollectible:

          (1)  Accounts and notes receivable from or advances to stockholders, owners, partners, employees, or affiliates;

          (2)  Accounts receivable over 180 days old;

          (3)  Investments or equities in cooperatives; or

          (4)  Goodwill.

          At a minimum, the balance sheet must show current assets equal to or greater than current liabilities. In determining working capital, the commission may disallow the following assets if the assets are withdrawals of equity or are uncollectible:

          (1)  Accounts and notes receivable from or advances to stockholders, owners, partners, employees, or affiliates;

          (2)  Accounts receivable over 180 days old;

          (3)  Investments or equities in cooperatives; or

          (4)  Goodwill.

          Source: 24 SDR 190, effective July 15, 1998.

          General Authority:SDCL 49-45-6(5).

          Law Implemented:SDCL 49-45-7.