 |
Virginia Administrative Code (Last Updated: January 10, 2017) |
 |
Title 21. Securities and Retail Franchising |
|
Agency 5. State Corporation Commission, Division of Securities and Retail Franchising |
|
Chapter 20. Broker-Dealers, Broker-Dealer Agents and Agents of the Issuer |
Section 300. Net worth
-
A. For broker-dealers not subject to the Securities Exchange Act of 1934, the term "net worth" as used in § 13.1-505 B of the Act shall be computed as total assets minus total liabilities, excluding liabilities of the broker-dealer which are subordinated to the claims of creditors pursuant to a satisfactory subordination agreement as defined in Appendix D of Rule 15c3-1 under the Securities Exchange Act of 1934 (17 CFR 240.15c3-1d).
B. If a broker-dealer applicant or registrant not subject to the Securities Exchange Act of 1934 cannot demonstrate and maintain a net worth in excess of $25,000, the commission shall require the filing of a surety bond on the form prescribed. The amount of the penal sum of the surety bond can be determined according to the following table:
NET WORTH (Rounded to nearest $1)
PENALTY AMOUNT OF SURETY BOND
Less than $5,000
$25,000
5,001-10,000
20,000
10,001-15,000
15,000
15,001-20,000
10,000
20,001-25,000
5,000
C. If the net worth of a broker-dealer registrant not subject to the Securities Exchange Act of 1934 plus the penal sum of its surety bond drops below $25,000, the registrant must so notify the Division of Securities and Retail Franchising in writing within three business days and immediately take action to establish a net worth in excess of $25,000.
Historical Notes
Derived from Rule 307, Case No. SEC810005, eff. July 1, 1981; amended by Case No. SEC890040, eff. July 1, 1989; Volume 13, Issue 25, eff. September 1, 1997; Volume 14, Issue 22, eff. July 1, 1998; Volume 15, Issue 22, eff. July 1, 1999.