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HomeFinancial CodeDiv. 2Ch. 2Art. 1§ 5400 Organizing Permit Fund Collection

§ 5400 Organizing Permit Fund Collection

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

§ 5400 Organizing Permit Fund Collection

Key Takeaways

  • •You can't collect money from people to start a group until you get permission from the government.
  • •You must apply for a permit first and wait for it to be approved before taking any money.
  • •An 'organizer' is someone who promises to give money to help start the group.

Example

You and your friends want to start a club that needs money to rent a place and buy supplies.

You can't ask your friends for money to start the club until you get a permit from the government. If you collect money before getting the permit, you're breaking the law.

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

Official Source
View on CA.gov

§ 5400 Organizing Permit Fund Collection

(a) No funds from proposed stockholders, members, or organizers of any proposed association may be collected until a verified application for an organizing permit has been filed and a permit has been issued by the commissioner authorizing collection of funds, and then only in accordance with the terms of the permit. (b) As used in this chapter, the term “organizer” means a person who agrees to contribute funds to a proposed association to be used for its organization expenses. (Added by Stats. 1983, Ch. 1091, Sec. 2.)

Last verified: January 23, 2026

Key Terms

organizercommissionstockassociationapplicationcollectionaccordanceorganization

Related Statutes

  • § 5401 Organizing Permit Application
  • § 5403 Name Reservation For Associations
  • § 5402 Organizing Permit Financial Conditions
  • § 5705 Federal Association Conversion
  • § 5802 Savings Association Acquisition Approval

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Financial Code. Section 5400.
View Official Source