523C.6  Net worth requirement.

A service company that has issued or renewed in the aggregate one thousand or less residential service contracts during the preceding calendar year shall maintain a minimum net worth of forty thousand dollars, and the minimum net worth to be maintained shall be increased by an additional twenty thousand dollars for each additional five hundred contracts or fraction thereof issued or renewed, up to a maximum required net worth of four hundred thousand dollars.

For purposes of this chapter, "net worth" means the excess of all assets over all liabilities including required reserves computed in accordance with generally accepted accounting principles. At least twenty thousand dollars of net worth shall consist of paid-in capital.

Section History: Recent form

  83 Acts, ch 87, § 7; 88 Acts, ch 1112, § 706; 92 Acts, ch 1078, § 4

Internal References

  Referred to in § 523C.3, 523C.9


Previous Section 523C.5

Next Section 523C.7


Return To Home index


© 1999 Cornell College and League of Women Voters of Iowa


Comments about this site or page? webmaster@legis.iowa.gov.
Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.

Last update: Thu Mar 18 15:00:31 CST 1999
URL: /DOCS/IACODE/1999/523C/6.html
jhf