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HomeCorporations CodeCh. 7§ 28504 Outsourcing Financial Records

§ 28504 Outsourcing Financial Records

Corporations Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 28504 Outsourcing Financial Records

Key Takeaways

  • •A company can let someone else handle its important papers, but only if the company's bosses say it's okay.
  • •If someone else is handling the company's papers, they have to follow the same rules as the company would.
  • •Even if the helper isn't part of the company, they still have to follow the rules when dealing with the company's papers.

Example

A bank hires an outside company to keep track of its money records.

The outside company has to follow all the same rules the bank follows when handling those records, just like they were the bank.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 28504 Outsourcing Financial Records

(a) A licensee may, after the approval of the board of directors, executive committee, or other policy body of the licensee, cause or permit any other person to make or keep any of its books, accounts, or other records. (b) If any person other than a licensee makes or keeps any of the books, accounts, or other records of the licensee, the provisions of this division and of any regulation or order issued under this division shall apply to the person with respect to the performance of those services and with respect to those books, accounts, and other records to the same extent as if the person were the licensee. (c) If any person other than an affiliate of a licensee makes or keeps any of the books, accounts, or other records of the affiliate or, in the case of an affiliate other than a parent or subsidiary of the licensee, the books, accounts, and other records of the affiliate that relate to transactions between the affiliate and the licensee, the provisions of this division and of any regulation or order issued under this division shall apply to the person with respect to those books, accounts, and other records to the same extent as if the person were the affiliate. (Added by Stats. 1998, Ch. 668, Sec. 3. Effective January 1, 1999. Operative July 1, 1999, by Sec. 4 of Ch. 668.)

Last verified: January 23, 2026

Key Terms

licenseebooks, accounts, or other recordsaffiliateboard of directorsexecutive committeepolicy body

Related Statutes

  • § 28210 Licensee Governing Body Requirements
  • § 28211 Annual Licensee Board Meetings
  • § 28212 Investment Advisor Contract Approval
  • § 28502 Licensee Reporting Requirements
  • § 28500 Licensee Recordkeeping Requirements

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Corporations Code. Section 28504.
View Official Source