Sec. 80.14. Books and records

Prior to the use of any funds obtained as a result of an offering of securities covered by the Intrastate Financing Act or the removal of any funds obtained as a result of such offering from any special trust account, the issuer shall have set up a system of books and records in accordance with generally accepted accounting principles. Such records shall be maintained at the principal office of the issuer. All books and records shall be posted and maintained in an orderly legible manner, in ink, by or under the direction and control of a person familiar with generally accepted bookkeeping and accounting practices. At a minimum such books and records shall consist of a cash receipts and disbursements book showing in detail all receipts and expenditures, a general ledger and general journal, a book showing the outstanding securities of the issuer and the names, addresses and holdings of each security holder and all contracts, checks, vouchers, receipts, bills and other documents pertaining to the transactions and operations of the issuer. All promoters of the issuer shall be responsible for such records. Notwithstanding anything contained herein to the contrary, the books and records of the issuer may be maintained pursuant to a system created or approved by an independent public accountant licensed and with an office in the State of New York upon certification in writing by such accountant to the Department of Law that he has set up the issuer's accounting system in accordance with generally accepted accounting principles, that he is independent of the issuer, that he has given instruction on maintenance of the system and that he verily believes that if his instructions are followed, the accounting system will be adequate. Where such a statement is provided the Department of Law the responsibility for the adequacy of the accounting system shall be preliminarily considered to have been met.