3. Financial Qualifications

To be granted a CPCN, an applicant for authority to provide facilities-based local exchange and/or interexchange services must demonstrate that it has a minimum of $100,000 of cash or cash equivalent to meet its start-up expenses. An applicant must also demonstrate that it has sufficient additional resources to cover all deposits required by local exchange carriers (LECs) and/or interexchange carriers (IECs) in order to provide the proposed service.⁵ Shasta has provided documentation in the form of an intercorporate guarantee from affiliate North County Communications Corporation (North County), irrevocable for a period of one year following Shasta's receipt of a CPCN in this matter, covering all liabilities and obligations of Shasta due and payable prior to termination of the guarantee, up to a limit of $100,000. The guarantee is accompanied by a bank statement which demonstrates that North County has cash and cash equivalent in excess of $100,000.

⁵ The financial requirements for LECs are set forth in D.95-12-056, Appendix C. For IECs, the requirements are found in D.91-10-041 and D.93-05-010.