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Code of Federal Regulations Title 49. Transportation 49 CFR § 1201.716 716 Capital funds

Current as of January 02, 2025 | Updated by Findlaw Staff

(a) This account shall include cash and the ledger value of other assets held by trustees or by the accounting company's treasurer when segregated in distinct funds that have been (1) realized from the sale of equipment obligations or other long-term obligations and not yet applied toward the specific purposes for which the obligations were incurred, and (2) set aside in accordance with governmental, mortgage, or contractual requirements in connection with reorganizations or otherwise. This account shall also include funds deposited with trustees to be held until mortgaged property sold is replaced. This account shall also include unrealized holding gains and losses on trading and available-for-sale types of security investments.

(b) An appropriate record shall be maintained for securities issued or assumed by the accounting company and held in the funds, identifying those that are nominally issued or nominally outstanding.

Note:  Funds specifically set aside for sinking fund purposes shall be included in account 715, “Sinking funds.” If one purpose of a capital fund is to provide contributions to a sinking fund under specified conditions, the entire amount of the fund shall be included in this account until the contributions to the sinking fund are made, at which time the amounts thereof shall be transferred to account 715.

Note:  The ledger value of assets of the character indicated in paragraph (a)(2) of this section, shall be transferred to the appropriate current asset account when the assets are definitely assigned in advance of expenditure to the payment of interest or other current liabilities payable within one year.

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Cite this article: FindLaw.com - Code of Federal Regulations Title 49. Transportation 49 CFR § 1201.716 716 Capital funds - last updated January 02, 2025 | https://codes.findlaw.com/cfr/title-49-transportation/cfr-sect-49-1201-716/

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