[Code of Federal Regulations]
[Title 17, Volume 2]
[Revised as of April 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 17CFR210.6-06]

[Page 273-274]
 
              TITLE 17--COMMODITY AND SECURITIES EXCHANGES
 
             CHAPTER II--SECURITIES AND EXCHANGE COMMISSION
 
PART 210--FORM AND CONTENT OF AND REQUIREMENTS FOR FINANCIAL STATEMENTS,
 
Sec. 210.6-06  Special provisions applicable to the balance sheets of issuers of face-amount certificates.

    Balance sheets filed by issuers of face-amount certificates shall 
comply with the following provisions:

                                 Assets

    1. Investments. State separately each major category: such as, real 
estate owned, first mortgage loans on real estate, other mortgage loans 
on real estate, investments in securities of unaffiliated issuers, and 
investments in and advances to affiliates.
    2. Cash. Include under this caption cash on hand and demand 
deposits. Provide in a note to the financial statements the information 
required under Sec. 210.5-02.1 regarding restrictions and compensating 
balances.
    3. Receivables. (a) State separately amounts receivable from (1) 
sales of investments; (2) dividends and interest; (3) directors and 
officers; and (4) others.
    (b) If the aggregate amount of notes receivable exceeds 10 percent 
of the aggregate amount of receivables, the above information shall be 
set forth separately, in the balance sheet or in a note thereto, for 
accounts receivable and notes receivable.
    4. Total qualified assets. State in a note to the financial 
statements the amount of qualified assets on deposit classified as to 
general categories of assets and as to general types of depositories, 
such as banks and states, together with a statement as to the purpose of 
the deposits.
    5. Other assets. State separately: (a) Investments in securities of 
unaffiliated issuers not included in qualifying assets in item 1 above; 
(b) investments in and advances to affiliates not included in qualifying 
assets in item 1 above; and (c) any other significant item not properly 
classified in another asset caption.
    6. Total assets.

                               Liabilities

    7. Certificate reserves. Issuers of face-amount certificates shall 
state separately reserves for: (a) Certificates of the installment type; 
(b) certificates of the fully-paid type; (c) advance payments; (d) 
additional amounts accrued for or credited to the account of certificate 
holders in the form of any credit, dividend, or interest in addition to 
the minimum amount specified in the certificate; and (e) other 
certificate reserves. State in an appropriate manner the basis used in 
determining the reserves, including the rates of interest of 
accumulation.
    8. Notes payable, bonds and similar debt. (a) State separately 
amounts payable to: (1) Banks or other financial institutions for 
borrowings; (2) controlled companies; (3) other affiliates; and (4) 
others, showing for each category amounts payable within one year and 
amounts payable after one year.
    (b) Provide in a note the information required under Sec. 210.5-
02.19(b) regarding unused lines of credit for short-term financing and 
Sec. 210.5-02.22(b) regarding unused commitments for long-term financing 
arrangements.
    9. Accounts payable and accrued liabilities. State separately (a) 
amounts payable for investment advisory, management and service fees; 
and (b) the total amount payable to: (1) Officers and directors; (2) 
controlled companies; and (3) other affiliates, excluding any amounts 
owing to noncontrolled affiliates which arose in the ordinary course of 
business and which are subject to usual trade terms. State separately 
the amount of any other liabilities which are material.
    10. Total liabilities.
    11. Commitments and contingent liabilities.

                          Stockholders' Equity

    12. Capital shares. Disclose the title of each class of capital 
shares or other capital units,

[[Page 274]]

the number authorized, the number outstanding and the dollar amount 
thereof. Show also the dollar amount of any capital shares subscribed 
but unissued, and show the deduction for subscriptions receivable 
therefrom.
    13. Other elements of capital. (a) Disclose any other elements of 
capital or residual interests appropriate to the capital structure of 
the reporting entity.
    (b) A summary of each account under this caption setting forth the 
information prescribed in Sec. 210.3-04 shall be given in a note or 
separate statement for each period in which a statement of operations is 
presented.
    14. Total liabilities and stockholders' equity.