Section 445.506. Delays; updated statement or information.

(1) If amendments or other delays cause a financial statement to become more than 4  months  old as  of  the   effective   date  of   the registration statement:

(a)   An updated financial statement, as of a date within 4 months of the effective date, shall  be  filed   if  the  franchisor  fails  to  have   an established record of earnings or is currently showing losses  or  a   weak financial condition.

(b)    A paragraph containing later information as to sales, net income, and financial condition may be added in lieu of updating the financial statement, in the discretion of the administrator, when the franchisor has an established record of earnings and is in sound financial condition.

(2)   A financial statement shall be not more than 6 months old as of the effective date of the registration statement.

(3)   If a delay carries the effective date  beyond  the   end  of  the franchisor's fiscal year, and by applying due diligence the registrant and accountant may complete the audit prior to the effective date, a certified statement shall be filed as of the end of the fiscal year.

History: 1979 AC.