Made available by Touch N' Go Systems, Inc., and the
Law Offices of James B. Gottstein.

You can also go to The Alaska Legal Resource Center or search the entire website search.

Touch N' Go, the DeskTop In-and-Out Board makes your office run smoother. Visit Touch N' Go's Website to see how.
Title 3 . Commerce, Community, and Economic Development
Chapter 8 . Land Sales
Section 220. Debentures

3 AAC 08.220. Debentures

(a) Repealed 4/19/2000.

(b) The administrator will, in the administrator's discretion, determine that an offer or sale of debt securities, including debentures, notes, and bonds of an issuer, does not protect investors, is not in the public interest, and involves unreasonable participation by any promoters holding equity securities if

(1) the cash flow of the issuer for the last year before the public offering, or the average cash flow of the issuer over the last three years before the public offering, exclusive of non-recurring items and adjusted for the issuance of debt securities or the substantiated future cash flow capability of the issuer, is insufficient to cover the interest on the securities proposed to be offered to the public; or

(2) the ratio of debt to equity on the balance sheet of the issuer exceeds two to one unless the administrator finds that participation in the public interest and consistent with the protection of the investors in the debt security proposed to be offered.

(c) If the issuer makes a material acquisition after the latest year for which actual figures are stated in the prospectus, the issuer shall make the computation of earnings or cash flow in this section on a pro forma basis to include those acquisitions.

(d) The issuance of debentures by an issuer in the promotional or developmental stage will not be permitted unless justified by the applicant as protective of investors or in the public interest.

(e) This section does not apply to the issuance of

(1) debt securities by a non-profit issuer;

(2) industrial development revenue bonds;

(3) securities under a voluntary or involuntary corporate reorganization; or

(4) securities by an issuer whom a federal or state governmental authority regulates with respect to the issuer's financial structure or the issuance of those securities.

History: Eff. 2/20/72, Register 41; am 4/19/2000, Register 154

Authority: AS 45.55.120

AS 45.55.950

Note to HTML Version:

The Alaska Administrative Code was automatically converted to HTML from a plain text format. Every effort has been made to ensure its accuracy, but neither Touch N' Go Systems nor the Law Offices of James B. Gottstein can be held responsible for any possible errors. This version of the Alaska Administrative Code is current through June, 2006.

If it is critical that the precise terms of the Alaska Administrative Code be known, it is recommended that more formal sources be consulted. Recent editions of the Alaska Administrative Journal may be obtained from the Alaska Lieutenant Governor's Office on the world wide web. If any errors are found, please e-mail Touch N' Go systems at E-mail. We hope you find this information useful. Copyright 2006. Touch N' Go Systems, Inc. All Rights Reserved.

Last modified 7/05/2006