69W-700.010. Preferred Stock or Debt Securities

(1) An issuer of preferred stock shall have earnings after provision for federal income taxes and excluding extraordinary items for its last fiscal year, or of the average of its last three (3) fiscal years sufficient to pay the dividends for one (1) year on the securities to be offered to the public and there shall be no indication that during the current fiscal year, earnings, excluding extraordinary items, will be less than the amount required to pay dividends on the securities to be offered to the public.

(2) An issuer of debt securities shall have earnings before provision for federal income taxes but after exclusion of extraordinary items for its last fiscal year, or the average of its last three (3) fiscal years sufficient to pay the interest for one (1) year on the securities to be offered to the public and there shall be no indication that during the current fiscal year, earnings, excluding extraordinary items, will be less than the amount required to pay interest on the securities to be offered to the public.

(3) The earnings requirements of this rule shall be revealed in a financial statement(s) in compliance with subsection 69W-700.001(2), F.A.C.

(4) All debt securities must be issued under a trust indenture with a bank acting as trustee. The indenture must contain a provision for a sinking fund sufficient to retire approximately 75% of the debt prior to maturity.

Rulemaking Authority 517.03 FS. Law Implemented 517.081(7) FS. History–(Formerly 3E-20.09) New 9-20-82, Formerly 3E-700.10, 3E-700.010, Amended 9-22-14, 11-15-16.