State Codes and Statutes

Statutes > California > Fin > 1540-1547

FINANCIAL CODE
SECTION 1540-1547



1540.  Every trust company shall deposit with the State Treasurer
money or securities of the character described in Section 1542 as
security for its court and private trusts as follows:
   (a) If the trust company's principal place of business is situated
in a city the population of which does not exceed 100,000 persons,
it shall deposit with the State Treasurer money or securities having
a market value of at least fifty thousand dollars ($50,000) as
security for the faithful performance and execution of all court
trusts accepted by it, and money or securities having a market value
of at least fifty thousand dollars ($50,000) as security for the
faithful performance and execution of all private trusts accepted by
it.
   Whenever any such trust company receives trust funds or property,
other than real property, from court trusts accepted by it to the
amount of five hundred thousand dollars ($500,000), it shall
forthwith give the commissioner written notice thereof, and within 30
days thereafter shall make an additional deposit with the State
Treasurer of money or securities having a market value of fifty
thousand dollars ($50,000) as security for its court trusts, and
money or securities having a market value of fifty thousand dollars
($50,000) as additional security for its private trusts.
   (b) If the trust company's principal place of business is situated
in a city the population of which exceeds 100,000 persons, it shall
deposit with the State Treasurer money or securities having a market
value of at least one hundred thousand dollars ($100,000) as security
for the faithful performance and execution of all court trusts
accepted by it, and money or securities having a market value of at
least one hundred thousand dollars ($100,000) as security for the
faithful performance and execution of all private trusts accepted by
it.



1541.  Whenever any trust company receives trust funds or property,
other than real property, from court trusts accepted by it to the
amount of one million dollars ($1,000,000), it shall forthwith give
the commissioner written notice thereof, and within 30 days
thereafter shall make an additional deposit with the State Treasurer
of money or securities having a market value of fifty thousand
dollars ($50,000). For each additional five hundred thousand dollars
($500,000) of such trust funds thereafter received by any trust
company from court trusts a similar notification in writing shall
forthwith be given to the commissioner and a further deposit of money
or securities having a market value of twenty-five thousand dollars
($25,000) shall be made within 30 days thereafter by such trust
company with the State Treasurer until money or securities having a
market value of five hundred thousand dollars ($500,000) have been so
deposited.


1542.  Security deposited with the Treasurer by trust companies
pursuant to Section 1540 or 1541 shall consist of the following:
   (a) Bonds or other interest-bearing notes or obligations of the
United States or those for which the faith and credit of the United
States are pledged for the payment of principal and interest.
   (b) Bonds of the State of California or those for which the faith
and credit of the State of California are pledged for the payment of
principal and interest or in registered warrants of the State of
California.
   (c) Obligations and securities of the type described in
subdivisions (a) to (g), inclusive, of Section 1330.
   (d) Obligations and assets of the type described in subdivisions
(a) to (c), inclusive, of Section 1331.
   (e) Loans secured by a first lien on real property and otherwise
complying with the provisions of subdivision (a) of Section 1227.
   (f) Obligations issued, assumed, or guaranteed by the
International Bank for Reconstruction and Development, the
Inter-American Development Bank, the Asian Development Bank, the
International Finance Corporation, or the African Development Bank.




1543.  Such money or securities shall be approved by the
commissioner and be deposited with the Treasurer upon the written
order of the commissioner. Upon receiving any such deposit the
Treasurer shall give his or her receipt therefor and thereafter
subject to the provisions of this chapter shall hold such deposits
for the sole benefit of the beneficiaries of the class of trust
business for the security and protection of which the same were
deposited. The state is responsible for the custody and safe return
of any money or securities so deposited. The Treasurer shall deposit
any such moneys under the provisions of Sections 16370 to 16375 of
the Government Code.



1544.  Securities deposited pursuant to this article may be
exchanged from time to time, with the approval of the commissioner,
for other like securities of equal market value. Upon written request
to the commissioner, any trust company shall be entitled to withdraw
from the Treasurer, from time to time, any amount of its securities
so deposited in excess of the amount it is required to maintain on
deposit in order to conform with the requirements of this article.
Upon receiving a written request for such withdrawal or exchange, and
satisfactory proof of the facts warranting the same, the
commissioner shall forthwith deliver to the Treasurer a written order
directing the withdrawal or exchange of such securities so as to
conform with the provisions of this section. The Treasurer shall
comply with such written order. So long as the trust company so
depositing such securities shall continue solvent, it shall have the
right and shall be permitted by the Treasurer to receive the interest
and dividends on any securities deposited by it.




1545.  Should any security deposited pursuant to this article so
depreciate in value as to reduce the deposit below the amount
required by this article, additional money or securities shall be
deposited promptly in amount sufficient to meet such requirements.
The commissioner may make an investigation of the value of any
security deposited pursuant to this article, at the time such
security is presented for deposit or at any time thereafter, whenever
in his judgment such investigation is necessary. The commissioner
may make such charge as may be reasonable and proper for such
investigation.



1545.5.  When any revaluation of securities is made by the
commissioner pursuant to Section 1545, other than at the time such
securities are presented for deposit, United States Government
securities having a maturity date less than five years from the date
of such revaluation shall be valued at not less than par.



1546.  The money and securities deposited pursuant to this article
shall be subject to sale and the same or the proceeds thereof shall
be subject to disposal by the State Treasurer only on the order of a
court of competent jurisdiction and for the benefit respectively of
the beneficiaries of that class of trust business for the security
and protection of which the securities were deposited.



1547.  The commissioner may, pursuant to Section 216.3, levy a civil
penalty against any trust company that fails to comply with this
article.

State Codes and Statutes

Statutes > California > Fin > 1540-1547

FINANCIAL CODE
SECTION 1540-1547



1540.  Every trust company shall deposit with the State Treasurer
money or securities of the character described in Section 1542 as
security for its court and private trusts as follows:
   (a) If the trust company's principal place of business is situated
in a city the population of which does not exceed 100,000 persons,
it shall deposit with the State Treasurer money or securities having
a market value of at least fifty thousand dollars ($50,000) as
security for the faithful performance and execution of all court
trusts accepted by it, and money or securities having a market value
of at least fifty thousand dollars ($50,000) as security for the
faithful performance and execution of all private trusts accepted by
it.
   Whenever any such trust company receives trust funds or property,
other than real property, from court trusts accepted by it to the
amount of five hundred thousand dollars ($500,000), it shall
forthwith give the commissioner written notice thereof, and within 30
days thereafter shall make an additional deposit with the State
Treasurer of money or securities having a market value of fifty
thousand dollars ($50,000) as security for its court trusts, and
money or securities having a market value of fifty thousand dollars
($50,000) as additional security for its private trusts.
   (b) If the trust company's principal place of business is situated
in a city the population of which exceeds 100,000 persons, it shall
deposit with the State Treasurer money or securities having a market
value of at least one hundred thousand dollars ($100,000) as security
for the faithful performance and execution of all court trusts
accepted by it, and money or securities having a market value of at
least one hundred thousand dollars ($100,000) as security for the
faithful performance and execution of all private trusts accepted by
it.



1541.  Whenever any trust company receives trust funds or property,
other than real property, from court trusts accepted by it to the
amount of one million dollars ($1,000,000), it shall forthwith give
the commissioner written notice thereof, and within 30 days
thereafter shall make an additional deposit with the State Treasurer
of money or securities having a market value of fifty thousand
dollars ($50,000). For each additional five hundred thousand dollars
($500,000) of such trust funds thereafter received by any trust
company from court trusts a similar notification in writing shall
forthwith be given to the commissioner and a further deposit of money
or securities having a market value of twenty-five thousand dollars
($25,000) shall be made within 30 days thereafter by such trust
company with the State Treasurer until money or securities having a
market value of five hundred thousand dollars ($500,000) have been so
deposited.


1542.  Security deposited with the Treasurer by trust companies
pursuant to Section 1540 or 1541 shall consist of the following:
   (a) Bonds or other interest-bearing notes or obligations of the
United States or those for which the faith and credit of the United
States are pledged for the payment of principal and interest.
   (b) Bonds of the State of California or those for which the faith
and credit of the State of California are pledged for the payment of
principal and interest or in registered warrants of the State of
California.
   (c) Obligations and securities of the type described in
subdivisions (a) to (g), inclusive, of Section 1330.
   (d) Obligations and assets of the type described in subdivisions
(a) to (c), inclusive, of Section 1331.
   (e) Loans secured by a first lien on real property and otherwise
complying with the provisions of subdivision (a) of Section 1227.
   (f) Obligations issued, assumed, or guaranteed by the
International Bank for Reconstruction and Development, the
Inter-American Development Bank, the Asian Development Bank, the
International Finance Corporation, or the African Development Bank.




1543.  Such money or securities shall be approved by the
commissioner and be deposited with the Treasurer upon the written
order of the commissioner. Upon receiving any such deposit the
Treasurer shall give his or her receipt therefor and thereafter
subject to the provisions of this chapter shall hold such deposits
for the sole benefit of the beneficiaries of the class of trust
business for the security and protection of which the same were
deposited. The state is responsible for the custody and safe return
of any money or securities so deposited. The Treasurer shall deposit
any such moneys under the provisions of Sections 16370 to 16375 of
the Government Code.



1544.  Securities deposited pursuant to this article may be
exchanged from time to time, with the approval of the commissioner,
for other like securities of equal market value. Upon written request
to the commissioner, any trust company shall be entitled to withdraw
from the Treasurer, from time to time, any amount of its securities
so deposited in excess of the amount it is required to maintain on
deposit in order to conform with the requirements of this article.
Upon receiving a written request for such withdrawal or exchange, and
satisfactory proof of the facts warranting the same, the
commissioner shall forthwith deliver to the Treasurer a written order
directing the withdrawal or exchange of such securities so as to
conform with the provisions of this section. The Treasurer shall
comply with such written order. So long as the trust company so
depositing such securities shall continue solvent, it shall have the
right and shall be permitted by the Treasurer to receive the interest
and dividends on any securities deposited by it.




1545.  Should any security deposited pursuant to this article so
depreciate in value as to reduce the deposit below the amount
required by this article, additional money or securities shall be
deposited promptly in amount sufficient to meet such requirements.
The commissioner may make an investigation of the value of any
security deposited pursuant to this article, at the time such
security is presented for deposit or at any time thereafter, whenever
in his judgment such investigation is necessary. The commissioner
may make such charge as may be reasonable and proper for such
investigation.



1545.5.  When any revaluation of securities is made by the
commissioner pursuant to Section 1545, other than at the time such
securities are presented for deposit, United States Government
securities having a maturity date less than five years from the date
of such revaluation shall be valued at not less than par.



1546.  The money and securities deposited pursuant to this article
shall be subject to sale and the same or the proceeds thereof shall
be subject to disposal by the State Treasurer only on the order of a
court of competent jurisdiction and for the benefit respectively of
the beneficiaries of that class of trust business for the security
and protection of which the securities were deposited.



1547.  The commissioner may, pursuant to Section 216.3, levy a civil
penalty against any trust company that fails to comply with this
article.


State Codes and Statutes

State Codes and Statutes

Statutes > California > Fin > 1540-1547

FINANCIAL CODE
SECTION 1540-1547



1540.  Every trust company shall deposit with the State Treasurer
money or securities of the character described in Section 1542 as
security for its court and private trusts as follows:
   (a) If the trust company's principal place of business is situated
in a city the population of which does not exceed 100,000 persons,
it shall deposit with the State Treasurer money or securities having
a market value of at least fifty thousand dollars ($50,000) as
security for the faithful performance and execution of all court
trusts accepted by it, and money or securities having a market value
of at least fifty thousand dollars ($50,000) as security for the
faithful performance and execution of all private trusts accepted by
it.
   Whenever any such trust company receives trust funds or property,
other than real property, from court trusts accepted by it to the
amount of five hundred thousand dollars ($500,000), it shall
forthwith give the commissioner written notice thereof, and within 30
days thereafter shall make an additional deposit with the State
Treasurer of money or securities having a market value of fifty
thousand dollars ($50,000) as security for its court trusts, and
money or securities having a market value of fifty thousand dollars
($50,000) as additional security for its private trusts.
   (b) If the trust company's principal place of business is situated
in a city the population of which exceeds 100,000 persons, it shall
deposit with the State Treasurer money or securities having a market
value of at least one hundred thousand dollars ($100,000) as security
for the faithful performance and execution of all court trusts
accepted by it, and money or securities having a market value of at
least one hundred thousand dollars ($100,000) as security for the
faithful performance and execution of all private trusts accepted by
it.



1541.  Whenever any trust company receives trust funds or property,
other than real property, from court trusts accepted by it to the
amount of one million dollars ($1,000,000), it shall forthwith give
the commissioner written notice thereof, and within 30 days
thereafter shall make an additional deposit with the State Treasurer
of money or securities having a market value of fifty thousand
dollars ($50,000). For each additional five hundred thousand dollars
($500,000) of such trust funds thereafter received by any trust
company from court trusts a similar notification in writing shall
forthwith be given to the commissioner and a further deposit of money
or securities having a market value of twenty-five thousand dollars
($25,000) shall be made within 30 days thereafter by such trust
company with the State Treasurer until money or securities having a
market value of five hundred thousand dollars ($500,000) have been so
deposited.


1542.  Security deposited with the Treasurer by trust companies
pursuant to Section 1540 or 1541 shall consist of the following:
   (a) Bonds or other interest-bearing notes or obligations of the
United States or those for which the faith and credit of the United
States are pledged for the payment of principal and interest.
   (b) Bonds of the State of California or those for which the faith
and credit of the State of California are pledged for the payment of
principal and interest or in registered warrants of the State of
California.
   (c) Obligations and securities of the type described in
subdivisions (a) to (g), inclusive, of Section 1330.
   (d) Obligations and assets of the type described in subdivisions
(a) to (c), inclusive, of Section 1331.
   (e) Loans secured by a first lien on real property and otherwise
complying with the provisions of subdivision (a) of Section 1227.
   (f) Obligations issued, assumed, or guaranteed by the
International Bank for Reconstruction and Development, the
Inter-American Development Bank, the Asian Development Bank, the
International Finance Corporation, or the African Development Bank.




1543.  Such money or securities shall be approved by the
commissioner and be deposited with the Treasurer upon the written
order of the commissioner. Upon receiving any such deposit the
Treasurer shall give his or her receipt therefor and thereafter
subject to the provisions of this chapter shall hold such deposits
for the sole benefit of the beneficiaries of the class of trust
business for the security and protection of which the same were
deposited. The state is responsible for the custody and safe return
of any money or securities so deposited. The Treasurer shall deposit
any such moneys under the provisions of Sections 16370 to 16375 of
the Government Code.



1544.  Securities deposited pursuant to this article may be
exchanged from time to time, with the approval of the commissioner,
for other like securities of equal market value. Upon written request
to the commissioner, any trust company shall be entitled to withdraw
from the Treasurer, from time to time, any amount of its securities
so deposited in excess of the amount it is required to maintain on
deposit in order to conform with the requirements of this article.
Upon receiving a written request for such withdrawal or exchange, and
satisfactory proof of the facts warranting the same, the
commissioner shall forthwith deliver to the Treasurer a written order
directing the withdrawal or exchange of such securities so as to
conform with the provisions of this section. The Treasurer shall
comply with such written order. So long as the trust company so
depositing such securities shall continue solvent, it shall have the
right and shall be permitted by the Treasurer to receive the interest
and dividends on any securities deposited by it.




1545.  Should any security deposited pursuant to this article so
depreciate in value as to reduce the deposit below the amount
required by this article, additional money or securities shall be
deposited promptly in amount sufficient to meet such requirements.
The commissioner may make an investigation of the value of any
security deposited pursuant to this article, at the time such
security is presented for deposit or at any time thereafter, whenever
in his judgment such investigation is necessary. The commissioner
may make such charge as may be reasonable and proper for such
investigation.



1545.5.  When any revaluation of securities is made by the
commissioner pursuant to Section 1545, other than at the time such
securities are presented for deposit, United States Government
securities having a maturity date less than five years from the date
of such revaluation shall be valued at not less than par.



1546.  The money and securities deposited pursuant to this article
shall be subject to sale and the same or the proceeds thereof shall
be subject to disposal by the State Treasurer only on the order of a
court of competent jurisdiction and for the benefit respectively of
the beneficiaries of that class of trust business for the security
and protection of which the securities were deposited.



1547.  The commissioner may, pursuant to Section 216.3, levy a civil
penalty against any trust company that fails to comply with this
article.

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