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HomeFinancial CodeDiv. 1.1Ch. 16Art. 5§ 1606 Court Ordered Securities Deposits

§ 1606 Court Ordered Securities Deposits

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

§ 1606 Court Ordered Securities Deposits

This law lets a trust company move securities that a court has told it to hold into a special storage place, as long as that place is either licensed or officially exempt from needing a license.

Key Takeaways

  • •A court order is required before the trust company can move the securities.
  • •The securities can be placed in a securities depository.
  • •The depository must be licensed under the rules or be officially exempt from licensing.

Example

A court orders a trust company to keep a bunch of stocks for a family estate. The trust company can put those stocks into a licensed securities depository.

Because the court gave the order, the trust company is allowed to deposit the stocks in a depository that has the proper license (or is exempt), keeping the stocks safe and following the law.

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

Official Source
View on CA.gov

§ 1606 Court Ordered Securities Deposits

Securities held by a trust company by direction of any court order issued pursuant to Section 1605 may be deposited in a securities depository, as defined in Section 30004, which is licensed under Section 30200 or exempted from licensing thereunder by Section 30005 or 30006. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)

Last verified: January 11, 2026

Key Terms

trust companycourt ordersecurities depositorySection 1605Section 30200Section 30005Section 30006

Related Statutes

  • § 1612 Fiduciary Securities Depository Rules
  • § 1600 Trust Company Fiduciary Powers
  • § 1601 Trust Company Trust Types
  • § 1602 Trust Company Disclosure Rules
  • § 1603 Trust Company Examinations

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Financial Code. Section 1606.
View Official Source