                                 CODE OF VIRGINIA

APPLICATION OF EARNINGS TESTS (§ 38.2-1426)

If the issuing, assuming or guaranteeing business entity has not been in
operation for the entire period for which earnings are being applied pursuant to
§ 38.2-1424, the earnings tests shall be based upon pro forma statements
incorporating statements of any predecessor or constituent business entity for
that portion of the earnings tests period that the current business entity was
not in operation, if:

1. The current business entity was formed as a consolidation or a merger of two
or more business entities, at least one of which was in operation at the
beginning of the period; or

2. The current business entity has acquired all of the assets of a business
entity or any division or other unit of a business entity that was in operation
at the beginning of the test period.

HISTORY: 1983, c. 457, § 38.1-217.29; 1986, c. 562; 1992, c. 588; 2000, c. 155;
2002, c. 147.