### Question
How does the law define net equity?


### Answer
Under *47 U.S.C. § 1103*, **net equity** is defined as:

> the value of the total assets of the entity, less the total liabilities of the entity, as recorded under generally accepted accounting principles for the fiscal quarter ended immediately prior to the date on which the subject loan is approved

#### Citation:
  - *47 U.S.C. § 1103*
  - Heading: **CHAPTER 10-LOCAL TV**

