29530. (a) The prohibitions in Section 29520 shall not apply to any
transaction offered by and in which any of the following persons (or
any employee, officer, or director thereof acting solely in that
capacity) is the purchaser or seller:
(1) A person registered with the Commodity Futures Trading
Commission as a futures commission merchant or as a leverage
transaction merchant whose activities require registration.
(2) A person affiliated with, and whose obligations and
liabilities under the transaction are guaranteed by, a person
referred to in subdivision (a).
(3) A person who is a member of a contract market designated by
the Commodity Futures Trading Commission (or any clearinghouse
thereof) when the transaction at issue requires membership in and is
subject to the regulatory jurisdiction of that contract market.
(4) A financial institution.
(5) A broker-dealer licensed under Section 25211, or exempt from
licensure under Section 25200, when engaging in activities subject to
the exclusive regulatory jurisdiction of the Commodity Futures
Trading Commission.
(6) A person licensed pursuant to Chapter 14 (commencing with
Section 1800) of Division 1 of the Financial Code to receive money
for transmittal to foreign countries if (A) the license has not
expired or been surrendered, suspended, or revoked, (B) the licensed
person has a tangible net worth of at least 3 million dollars
($3,000,000) according to its audited financial statements prepared
by an independent certified public accountant for each of the
immediately preceding three fiscal years, and (C) pursuant to the
provisions of subdivision (b) of Section 29531, the licensed person
issues and a purchaser receives a certificate, document of title,
confirmation, or other instrument evidencing that the purchased
quantity of precious metals or foreign currencies has been delivered
to a depository which is a financial institution located in a state
of the United States.
(b) The exemption provided by subdivision (a) shall not apply to
any transaction or activity which is prohibited by the Commodity
Exchange Act or CFTC Rule.
29531. The prohibitions in Section 29520 shall not apply to the
following:
(a) An account, agreement, or transaction within the exclusive
regulatory jurisdiction of the Commodity Futures Trading Commission
as granted under Section 2 of Title 42 of the United States Code
(Section 2(a)(1)(A) of the Commodity Exchange Act).
(b) A commodity contract for the purchase of one or more precious
metals or foreign currencies which requires full payment in good
funds of the purchase price and under which the purchaser receives,
within 28 calendar days from the full payment in good funds of the
purchase price, substitute delivery of the quantity of the precious
metals or foreign currencies purchased, or a commodity contract for
the purchase of one or more precious metals or foreign currencies
which allows partial payment in good funds of the purchase price and
under which the purchaser receives within 28 calendar days from the
partial payment in good funds of the purchase price, substitute
delivery of the quantity of precious metals or foreign currencies
purchased by that payment; provided that, for purposes of this
subdivision, substitute delivery shall be deemed to have occurred if,
within the 28-day period, the quantity of precious metals or foreign
currencies purchased by the full or partial payment is actually
physically delivered (whether in specifically segregated or fungible
bulk form) into the possession of a depository (other than the
seller) which is either (1) a financial institution, (2) a
depository, the warehouse receipts of which are recognized for
delivery purposes for any commodity on a contract market designated
by the Commodity Futures Trading Commission, (3) a storage facility
licensed or regulated by the United States or any agency thereof, or
(4) a facility for the storage of precious metals or foreign
currencies located within a state of the United States and operated
by an armored contract carrier defined under subdivision (e), or (5)
a depository designated by the commissioner. The depository (or other
person which itself qualifies as a depository) enumerated in this
subdivision shall issue and the purchaser shall receive a
certificate, document of title, confirmation or other instrument
evidencing that the quantity of precious metals has been delivered to
the depository and is being and will continue to be held by the
depository on the purchaser's behalf, free and clear of all liens and
encumbrances, other than liens of the purchaser, tax liens, liens
agreed to by the purchaser, or liens of the depository for fees and
expenses, which have previously been disclosed to the purchaser.
(c) A commodity contract solely between persons engaged in
producing, processing, using commercially or handling as merchants,
each commodity subject thereto, or any byproduct thereof.
(d) A commodity contract under which the offeree or the purchaser
is a person referred to in Section 29530, an insurance company, or an
investment company as defined in Section 80a-3 of Title 15 of the
United States Code (Section 3 of Title I of the federal Investment
Company Act of 1940).
(e) For the purposes of this section, "armored contract carrier"
means a person who: (1) is operating as a carrier transporting coin,
currency, precious metals, securities, or negotiable items pursuant
to a currently effective permit as a highway contract carrier and a
city carrier issued by the Public Utilities Commission of this state
and is also operating a facility for the storage of precious metals
or foreign currencies pursuant to a commodity contract; (2) has
purchased and maintains sufficient amounts of insurance coverage for
all risks associated with the operation of a facility for the storage
of precious metals or foreign currencies from an insurance company
admitted in this state; (3) has continuously operated as a carrier
under its permit and has continuously operated a facility for the
storage of precious metals or foreign currencies for at least five
years; (4) has a tangible net worth of at least five million dollars
($5,000,000) for each of the immediately preceding five fiscal years
according to its financial statements prepared on an individual
company basis, or on a combining or consolidating basis with any
affiliates, which financial statements have been audited by an
independent certified public accountant; and (5) provides the
following disclosure to a purchaser in 10-point boldface type with
the certificate, document of title, confirmation, or other instrument
evidencing that the purchased quantity of precious metals or foreign
currencies has been delivered to or is on deposit with the storage
facility: "(Name of carrier) is not licensed, regulated, or
supervised as a depository or storage facility by the United States
Government or the State of California."
29532. The commissioner may by rule or order prescribe the terms
and conditions of all transactions and contracts covered by this law
and exempt any person or transaction from this law conditionally or
unconditionally.
29530. (a) The prohibitions in Section 29520 shall not apply to any
transaction offered by and in which any of the following persons (or
any employee, officer, or director thereof acting solely in that
capacity) is the purchaser or seller:
(1) A person registered with the Commodity Futures Trading
Commission as a futures commission merchant or as a leverage
transaction merchant whose activities require registration.
(2) A person affiliated with, and whose obligations and
liabilities under the transaction are guaranteed by, a person
referred to in subdivision (a).
(3) A person who is a member of a contract market designated by
the Commodity Futures Trading Commission (or any clearinghouse
thereof) when the transaction at issue requires membership in and is
subject to the regulatory jurisdiction of that contract market.
(4) A financial institution.
(5) A broker-dealer licensed under Section 25211, or exempt from
licensure under Section 25200, when engaging in activities subject to
the exclusive regulatory jurisdiction of the Commodity Futures
Trading Commission.
(6) A person licensed pursuant to Chapter 14 (commencing with
Section 1800) of Division 1 of the Financial Code to receive money
for transmittal to foreign countries if (A) the license has not
expired or been surrendered, suspended, or revoked, (B) the licensed
person has a tangible net worth of at least 3 million dollars
($3,000,000) according to its audited financial statements prepared
by an independent certified public accountant for each of the
immediately preceding three fiscal years, and (C) pursuant to the
provisions of subdivision (b) of Section 29531, the licensed person
issues and a purchaser receives a certificate, document of title,
confirmation, or other instrument evidencing that the purchased
quantity of precious metals or foreign currencies has been delivered
to a depository which is a financial institution located in a state
of the United States.
(b) The exemption provided by subdivision (a) shall not apply to
any transaction or activity which is prohibited by the Commodity
Exchange Act or CFTC Rule.
29531. The prohibitions in Section 29520 shall not apply to the
following:
(a) An account, agreement, or transaction within the exclusive
regulatory jurisdiction of the Commodity Futures Trading Commission
as granted under Section 2 of Title 42 of the United States Code
(Section 2(a)(1)(A) of the Commodity Exchange Act).
(b) A commodity contract for the purchase of one or more precious
metals or foreign currencies which requires full payment in good
funds of the purchase price and under which the purchaser receives,
within 28 calendar days from the full payment in good funds of the
purchase price, substitute delivery of the quantity of the precious
metals or foreign currencies purchased, or a commodity contract for
the purchase of one or more precious metals or foreign currencies
which allows partial payment in good funds of the purchase price and
under which the purchaser receives within 28 calendar days from the
partial payment in good funds of the purchase price, substitute
delivery of the quantity of precious metals or foreign currencies
purchased by that payment; provided that, for purposes of this
subdivision, substitute delivery shall be deemed to have occurred if,
within the 28-day period, the quantity of precious metals or foreign
currencies purchased by the full or partial payment is actually
physically delivered (whether in specifically segregated or fungible
bulk form) into the possession of a depository (other than the
seller) which is either (1) a financial institution, (2) a
depository, the warehouse receipts of which are recognized for
delivery purposes for any commodity on a contract market designated
by the Commodity Futures Trading Commission, (3) a storage facility
licensed or regulated by the United States or any agency thereof, or
(4) a facility for the storage of precious metals or foreign
currencies located within a state of the United States and operated
by an armored contract carrier defined under subdivision (e), or (5)
a depository designated by the commissioner. The depository (or other
person which itself qualifies as a depository) enumerated in this
subdivision shall issue and the purchaser shall receive a
certificate, document of title, confirmation or other instrument
evidencing that the quantity of precious metals has been delivered to
the depository and is being and will continue to be held by the
depository on the purchaser's behalf, free and clear of all liens and
encumbrances, other than liens of the purchaser, tax liens, liens
agreed to by the purchaser, or liens of the depository for fees and
expenses, which have previously been disclosed to the purchaser.
(c) A commodity contract solely between persons engaged in
producing, processing, using commercially or handling as merchants,
each commodity subject thereto, or any byproduct thereof.
(d) A commodity contract under which the offeree or the purchaser
is a person referred to in Section 29530, an insurance company, or an
investment company as defined in Section 80a-3 of Title 15 of the
United States Code (Section 3 of Title I of the federal Investment
Company Act of 1940).
(e) For the purposes of this section, "armored contract carrier"
means a person who: (1) is operating as a carrier transporting coin,
currency, precious metals, securities, or negotiable items pursuant
to a currently effective permit as a highway contract carrier and a
city carrier issued by the Public Utilities Commission of this state
and is also operating a facility for the storage of precious metals
or foreign currencies pursuant to a commodity contract; (2) has
purchased and maintains sufficient amounts of insurance coverage for
all risks associated with the operation of a facility for the storage
of precious metals or foreign currencies from an insurance company
admitted in this state; (3) has continuously operated as a carrier
under its permit and has continuously operated a facility for the
storage of precious metals or foreign currencies for at least five
years; (4) has a tangible net worth of at least five million dollars
($5,000,000) for each of the immediately preceding five fiscal years
according to its financial statements prepared on an individual
company basis, or on a combining or consolidating basis with any
affiliates, which financial statements have been audited by an
independent certified public accountant; and (5) provides the
following disclosure to a purchaser in 10-point boldface type with
the certificate, document of title, confirmation, or other instrument
evidencing that the purchased quantity of precious metals or foreign
currencies has been delivered to or is on deposit with the storage
facility: "(Name of carrier) is not licensed, regulated, or
supervised as a depository or storage facility by the United States
Government or the State of California."
29532. The commissioner may by rule or order prescribe the terms
and conditions of all transactions and contracts covered by this law
and exempt any person or transaction from this law conditionally or
unconditionally.
29530. (a) The prohibitions in Section 29520 shall not apply to any
transaction offered by and in which any of the following persons (or
any employee, officer, or director thereof acting solely in that
capacity) is the purchaser or seller:
(1) A person registered with the Commodity Futures Trading
Commission as a futures commission merchant or as a leverage
transaction merchant whose activities require registration.
(2) A person affiliated with, and whose obligations and
liabilities under the transaction are guaranteed by, a person
referred to in subdivision (a).
(3) A person who is a member of a contract market designated by
the Commodity Futures Trading Commission (or any clearinghouse
thereof) when the transaction at issue requires membership in and is
subject to the regulatory jurisdiction of that contract market.
(4) A financial institution.
(5) A broker-dealer licensed under Section 25211, or exempt from
licensure under Section 25200, when engaging in activities subject to
the exclusive regulatory jurisdiction of the Commodity Futures
Trading Commission.
(6) A person licensed pursuant to Chapter 14 (commencing with
Section 1800) of Division 1 of the Financial Code to receive money
for transmittal to foreign countries if (A) the license has not
expired or been surrendered, suspended, or revoked, (B) the licensed
person has a tangible net worth of at least 3 million dollars
($3,000,000) according to its audited financial statements prepared
by an independent certified public accountant for each of the
immediately preceding three fiscal years, and (C) pursuant to the
provisions of subdivision (b) of Section 29531, the licensed person
issues and a purchaser receives a certificate, document of title,
confirmation, or other instrument evidencing that the purchased
quantity of precious metals or foreign currencies has been delivered
to a depository which is a financial institution located in a state
of the United States.
(b) The exemption provided by subdivision (a) shall not apply to
any transaction or activity which is prohibited by the Commodity
Exchange Act or CFTC Rule.
29531. The prohibitions in Section 29520 shall not apply to the
following:
(a) An account, agreement, or transaction within the exclusive
regulatory jurisdiction of the Commodity Futures Trading Commission
as granted under Section 2 of Title 42 of the United States Code
(Section 2(a)(1)(A) of the Commodity Exchange Act).
(b) A commodity contract for the purchase of one or more precious
metals or foreign currencies which requires full payment in good
funds of the purchase price and under which the purchaser receives,
within 28 calendar days from the full payment in good funds of the
purchase price, substitute delivery of the quantity of the precious
metals or foreign currencies purchased, or a commodity contract for
the purchase of one or more precious metals or foreign currencies
which allows partial payment in good funds of the purchase price and
under which the purchaser receives within 28 calendar days from the
partial payment in good funds of the purchase price, substitute
delivery of the quantity of precious metals or foreign currencies
purchased by that payment; provided that, for purposes of this
subdivision, substitute delivery shall be deemed to have occurred if,
within the 28-day period, the quantity of precious metals or foreign
currencies purchased by the full or partial payment is actually
physically delivered (whether in specifically segregated or fungible
bulk form) into the possession of a depository (other than the
seller) which is either (1) a financial institution, (2) a
depository, the warehouse receipts of which are recognized for
delivery purposes for any commodity on a contract market designated
by the Commodity Futures Trading Commission, (3) a storage facility
licensed or regulated by the United States or any agency thereof, or
(4) a facility for the storage of precious metals or foreign
currencies located within a state of the United States and operated
by an armored contract carrier defined under subdivision (e), or (5)
a depository designated by the commissioner. The depository (or other
person which itself qualifies as a depository) enumerated in this
subdivision shall issue and the purchaser shall receive a
certificate, document of title, confirmation or other instrument
evidencing that the quantity of precious metals has been delivered to
the depository and is being and will continue to be held by the
depository on the purchaser's behalf, free and clear of all liens and
encumbrances, other than liens of the purchaser, tax liens, liens
agreed to by the purchaser, or liens of the depository for fees and
expenses, which have previously been disclosed to the purchaser.
(c) A commodity contract solely between persons engaged in
producing, processing, using commercially or handling as merchants,
each commodity subject thereto, or any byproduct thereof.
(d) A commodity contract under which the offeree or the purchaser
is a person referred to in Section 29530, an insurance company, or an
investment company as defined in Section 80a-3 of Title 15 of the
United States Code (Section 3 of Title I of the federal Investment
Company Act of 1940).
(e) For the purposes of this section, "armored contract carrier"
means a person who: (1) is operating as a carrier transporting coin,
currency, precious metals, securities, or negotiable items pursuant
to a currently effective permit as a highway contract carrier and a
city carrier issued by the Public Utilities Commission of this state
and is also operating a facility for the storage of precious metals
or foreign currencies pursuant to a commodity contract; (2) has
purchased and maintains sufficient amounts of insurance coverage for
all risks associated with the operation of a facility for the storage
of precious metals or foreign currencies from an insurance company
admitted in this state; (3) has continuously operated as a carrier
under its permit and has continuously operated a facility for the
storage of precious metals or foreign currencies for at least five
years; (4) has a tangible net worth of at least five million dollars
($5,000,000) for each of the immediately preceding five fiscal years
according to its financial statements prepared on an individual
company basis, or on a combining or consolidating basis with any
affiliates, which financial statements have been audited by an
independent certified public accountant; and (5) provides the
following disclosure to a purchaser in 10-point boldface type with
the certificate, document of title, confirmation, or other instrument
evidencing that the purchased quantity of precious metals or foreign
currencies has been delivered to or is on deposit with the storage
facility: "(Name of carrier) is not licensed, regulated, or
supervised as a depository or storage facility by the United States
Government or the State of California."
29532. The commissioner may by rule or order prescribe the terms
and conditions of all transactions and contracts covered by this law
and exempt any person or transaction from this law conditionally or
unconditionally.
