GroundRules
17 CFR 240.3a67-7: a67-7 Definition of “highly leveraged.”
Where this section sits in the code
- Title 17—Commodity and Securities Exchanges
- CHAPTER II—SECURITIES AND EXCHANGE COMMISSION
- PART 240—GENERAL RULES AND REGULATIONS, SECURITIES EXCHANGE ACT OF 1934
- Subpart A—Rules and Regulations Under the Securities Exchange Act of 1934
(a) General. For purposes of section 3(a)(67) of the Act, 15 U.S.C. 78c(a)(67), and § 240.3a67-1, the term highly leveraged means the existence of a ratio of an entity's total liabilities to equity in excess of 12 to 1 as measured at the close of business on the last business day of the applicable fiscal quarter.
(b) Measurement of liabilities and equity. For purposes of this section, liabilities and equity generally should each be determined in accordance with U.S. generally accepted accounting principles; provided, however, that a person that is an employee benefit plan, as defined in paragraphs (3) and (32) of section 3 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1002), may, for purposes of this paragraph (b):
(1) Exclude obligations to pay benefits to plan participants from the calculation of liabilities; and
(2) Substitute the total value of plan assets for equity.
Collected 2026-08-27T02:24:31Z. Source file · JSON