Verification For Registration As Securities Dealers Form - State Of Hawaii

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STATE OF HAWAII
DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS
Business Registration Division
335 Merchant Street, Room 203, Honolulu, Hawaii 96813
(808) 586-2722
INFORMATION FOR APPLICANTS FOR REGISTRATION AS SECURITIES DEALERS
Rules to implement the Sale of Securities Act were amended on October 12, 1985, and the following new
requirements are provided in the Rules:
§16-38-5.2 (b) (Balance Sheet)
An application for registration as a securities dealer must be submitted with a balance sheet as follows:
A.
If the applicant has been engaged in business one year or more preceding, a balance sheet
certified by an independent public accountant as of the last fiscal year, together with a
balance sheet verified* by the applicant as of a date within 30 days of such filing.
B.
If the applicant has not been engaged in business one year or more, the balance sheet
must be verified* by the applicant as of a date within 30 days of filing.
§16-38-5.3 (b) (Minimum Capital)
To be eligible for registration as a dealer, an applicant must have a minimum net capital of not less than
$5,000.00, which shall mean net worth, or the difference between total assets and total liabilities or
indebtedness, after adjustment to eliminate or revise assets of doubtful or uncertain value and to reflect true
liabilities in accordance with the following schedule:
A.
Asset items not allowable:
(1)
Furniture, fixtures and equipment.
(2)
Intangible items, such as goodwill, prepaid preincorporation or organizational
expenses, etc.
B.
Asset items to be adjusted or substantiated:
(1)
Securities owned shall be adjusted to market value.
(2)
Value of real estate shall be attested to by qualified and disinterested persons.
(3)
Property in joint ownership shall be limited to applicant's interest therein.
(4)
Value of unsecured notes, accounts receivable, or advanced commissions due
from a salesperson, officer, director, partner or affiliate may be required by the
commissioner to be substantiated by an opinion of a bank, finance company, or
other lending institution satisfactory to the commissioner.
Rev. 03/04
(CONTINUED)

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