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HomeFinancial CodeDiv. 7Ch. 7Art. 2§ 18498 Investment Income Distribution Rules

§ 18498 Investment Income Distribution Rules

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

§ 18498 Investment Income Distribution Rules

Key Takeaways

  • •Money made from investments goes into a special account to pay for running the company.
  • •If there's extra money after paying for expenses, it can be shared with members based on how much they have in their accounts.
  • •The boss of the company (commissioner) can ask for some of this money, even if it's already shared with members, except for the part needed to pay for running the company that year.

Example

Imagine a club where everyone puts in money to invest. The club makes $100 from investments.

The club uses $60 to pay for things like rent and supplies. The remaining $40 is shared with the members based on how much they have in their accounts. But if the club boss needs some of that $40 for something important, they can take it, except for the $60 already set aside for expenses.

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

Official Source
View on CA.gov

§ 18498 Investment Income Distribution Rules

Income from investments shall be recorded in an income account and be used to defray expenses of administration. Income from investments that exceeds an amount determined by the board of directors to be adequate to provide for current expenses may be credited to members’ accounts. Each member’s account shall receive credit ratably based on the account balance, for the amount of the excess. Income received by Guaranty Corporation, whether or not credited to members’ accounts, shall be subject to a demand of the commissioner made pursuant to Section 18490 except as to that portion reserved by the board of directors for expenses of administration during the calendar year. (Added by Stats. 1976, Ch. 964.)

Last verified: January 23, 2026

Key Terms

income from investmentsexpenses of administrationboard of directorsmembers’ accountscommissionerSection 18490

Related Statutes

  • § 18499 Member Account Expense Charges
  • § 15001 Credit Union Late Fees
  • § 18493 Commissioner Enforcement Against Guaranty Corporat
  • § 18494 Corporation Possession Court Challenge
  • § 18495 Appeals From Court Judgments

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Financial Code. Section 18498.
View Official Source