5. Financial Qualifications

Pursuant to Rule 4.B of D.95-12-056, an applicant for a CPCN for authority to provide facilities-based local exchange service must demonstrate that it has $100,000 cash or cash equivalent to meet the firm's start-up expenses.

In Exhibit E of its application, Shasta provided a bank statement from its affiliate, North County Communications Corporation, as well as certification from Todd Lesser, the President of North County Communications Corporation, guaranteeing that the funds would be available to Shasta. Since Shasta has provided documentation that it possesses a minimum of $100,000 that is reasonably liquid and available, it has demonstrated that it has sufficient funds to meet its start-up expenses and has fulfilled this requirement.

Shasta stated in its response to the Ruling that since it is seeking to provide service in a previously unserved territory, there is no existing local exchange carrier, therefore it will not be required to pay any deposits.