§  53.203   Structural and transactional requirements.

   (a) Operational independence. A section 272 affiliate and the BOC of
   which it is an affiliate shall not jointly own transmission and
   switching facilities or the land and buildings where those facilities
   are located.

   (b) Separate books, records, and accounts. A section 272 affiliate
   shall maintain books, records, and accounts, which shall be separate
   from the books, records, and accounts maintained by the BOC of which it
   is an affiliate.

   (c) Separate officers, directors, and employees. A section 272
   affiliate shall have separate officers, directors, and employees from
   the BOC of which it is an affiliate.

   (d) Credit arrangements. A section 272 affiliate shall not obtain
   credit under any arrangement that would permit a creditor, upon
   default, to have recourse to the assets of the BOC of which it is an
   affiliate.

   (e) Arm's-length transactions. A section 272 affiliate shall conduct
   all transactions with the BOC of which it is an affiliate on an arm's
   length basis, pursuant to the accounting rules described in § 32.27 of
   this chapter, with any such transactions reduced to writing and
   available for public inspection.

   [ 62 FR 2967 , Jan. 21, 1997, as amended at  69 FR 16496 , Mar. 30, 2004;
    70 FR 55302 , Sept. 21, 2005]