17 NCAC 05B .1105 — Investment In Subsidiary

For purposes of G.S. 105-122, the net worth base shall not be reduced by the amount invested in a subsidiary. 17 NCAC 05B .1106 BORROWED CAPITAL TREATMENT: DEBTOR CORPORATION 17 NCAC 05B .1107 BORROWED CAPITAL TREATMENT: CREDITOR CORPORATION 17 NCAC 05B .1108 EXCLUSION PROVISION LIMITED TO INDEBTEDNESS OWED The exclusion from the net worth base of indebtedness owed that is permitted the debtor corporation and the deduction permitted the creditor corporation in G.S. 105-122 are applicable only to indebtedness owed to or due from a parent, subsidiary, or affiliated corporation. These provisions do not apply where the indebtedness is only endorsed or guaranteed.