§ 17302 Trust Obligation Definition

This law defines what counts as a “trust obligation” – basically any money or stuff that a California financial member has to hold for someone else.

Key Takeaways

•A trust obligation includes any cash or property a California member (like a bank or credit union) holds for someone else.
•It covers money in escrow or joint‑control accounts.
•It also covers money the member must keep because a state or federal law or a government agency says so.

Example

A family puts money with a bank to hold while they buy a house, and the bank keeps that money safe until the sale is finished.

Because the bank is holding the cash in an escrow (a special safe‑keep account) for the family, that money is a “trust obligation” under this law.

“Trust obligation” means: (a) All money and property deposited with a member within the State of California in an escrow or joint control transaction. (b) All money and property deposited with a member to be held in trust within the State of California pursuant to a federal or state statute or requirements of a governmental agency. (Amended by Stats. 2001, Ch. 662, Sec. 1. Effective January 1, 2002.)

This law defines what counts as a “trust obligation” – basically any money or stuff that a California financial member has to hold for someone else.

Key Takeaways

•A trust obligation includes any cash or property a California member (like a bank or credit union) holds for someone else.
•It covers money in escrow or joint‑control accounts.
•It also covers money the member must keep because a state or federal law or a government agency says so.

Example

A family puts money with a bank to hold while they buy a house, and the bank keeps that money safe until the sale is finished.

Because the bank is holding the cash in an escrow (a special safe‑keep account) for the family, that money is a “trust obligation” under this law.

Key Takeaways

Example

Key Terms

References

§ 17302 Trust Obligation Definition

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References