Code of Federal Regulations Title 49. Transportation 49 CFR § 1201.751 751 Loans and notes payable

Note A:  Loans and notes payable to affiliated companies which are subject to current settlement shall be included in account 757, “Payables to affiliated companies,” and noncurrent obligations in account 769, “Accounts payable;  Affiliated companies.”

Note B:  This account shall not include obligations due within one year which are intended to be refinanced on a long-term basis. Long-term refinancing of short-term obligations means:  (1) Replacement with long-term obligations or equity securities, or (2) renewal, extension, or replacement with short-term obligations for an uninterrupted period extending beyond one year from the balance sheet date.

The intention to refinance on a long-term basis shall be supported by the ability to refinance. Evidence of this ability includes either:  (1) The actual issuance of an obligation, after the balance sheet date but before the balance sheet is issued, or (2) before the balance sheet is issued, the existence of a financing agreement which is long-term and based on terms readily determinable with no existing violations of its provisions, and with a lender which is financially capable of honoring the agreement.