§ 1572 Trust Company Security Requirements

This law tells trust companies what kinds of safe investments (like government bonds) they have to put with the state treasurer as a security deposit.

Key Takeaways

•Only certain types of bonds and securities are allowed as security deposits.
•The list includes U.S. government bonds, California state bonds, and specific international development bank obligations.
•Loans that are first‑lien on real property can also be used if they follow other rules.

Example

A trust company wants to do business with the state, so it deposits U.S. Treasury bonds with the Treasurer.

Because the bonds are backed by the U.S. government, they count as an approved security under this law.

Security deposited with the Treasurer by trust companies pursuant to Section 1570 or 1571 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 1510. (d) Obligations and assets of the type described in subdivisions (a) to (c), inclusive, of Section 1511. (e) Loans secured by a first lien on real property and otherwise complying with the provisions of subdivision (a) of Section 1486. (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. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)

This law tells trust companies what kinds of safe investments (like government bonds) they have to put with the state treasurer as a security deposit.

Key Takeaways

•Only certain types of bonds and securities are allowed as security deposits.
•The list includes U.S. government bonds, California state bonds, and specific international development bank obligations.
•Loans that are first‑lien on real property can also be used if they follow other rules.

Example

A trust company wants to do business with the state, so it deposits U.S. Treasury bonds with the Treasurer.

Because the bonds are backed by the U.S. government, they count as an approved security under this law.

Key Takeaways

Example

Key Terms

References

§ 1572 Trust Company Security Requirements

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References