NSEES § 33560 Dio» Library References sand Banking 503, =STLAW Topic No. 52. 5. Banks and Banking §§ 674-676, 678 unio: > ny of ca Article 3 tno: ss ELIGIBLE SECURITIES Definitions Ownership, Declaration of ineligibility; insulficlen lguidity or quality. a Declaration of eligibility; sufficient liquidity and quality Securities rating service; declaration of eligibility Ratings of classes of securities; declaration of eligibility. Repealed, Mininzum amounts owned. Aggregate value of eligible securities owned; computation; exclusion. ‘Aggregate value of foreign currency eligible securities owned; computation; Travelers checks; licensees; aggregate value of eligible securities owned. Article 3 was added by Stats.1978, c. 1347, p. 4436, § 7. valiforscs PS 33560. Definitions a this article: “Eligible security” means any United States currency eligible security or ign currency eligible security ) “Bligible securities rating service” means any securities rating service ich the commissioner has by regulation or order declared to be an eligible rities rating service pursuant to Section 33564. co ©) “Eligible rating,” when used with respect to any security or class of curities and any eligible securities rating service, means any rating assigned prem , and =: opera: such security or class of securities by such eligible securities rating service paym: sich the commissioner has by regulation or order declared to be an eligible sured = ssting pursuant to Section 33565 c priv ) “Foreign currency eligible security” means any of the following which is, + is denominated in, a foreign currency and which the commissioner has not y regulation or order declared to be ineligible pursuant to Section 33562: (1) Any of the following which is of comparable quality to the United States urrency eligible securities specified in paragraphs (1) to (7), inclusive, of abdivision (f) (a) Cash (B) Any deposit in an office of a bank located in a foreign country (©) Any bond, note, or other obligation. (2) Any other security or class of securities which the commissioner has by cegulation or order declared to be eligible securities pursuant to Section 33563 339 angug§ 33560 PAYMENT INSTRUMENTS 4 Div } LICENSE) ch. 5 (©) “Reported outstanding payment instrument,” when used with respect te = 10) Any licensee, means any of the following: account of (J) Any payment instrument issued by the licensee which has been sc sued by t directly by the licensee and which has not yet been paid by the licens: soubtful of ) Any payment instrument issued by the licensee which has been sold by 11) Any lation « agent of the licensee, which has been reported by such agent to the licensee = having been sold (such report having been received by the licensee), and whi: “Val has not yet been paid by the licensee 1) Wher (8 “United States currency eligible security” means any of the follow:=2 censists of which is, or is denominated in, United States currency and which the comr=— count of sioner has not by regulation or order declared to be ineligible pursuant = ssued by t Section 33562: serally ac (1) Cash accouni (2) Any deposit in an insured bank or an insured savings and Joan assoc: ae deter, Leste . le and (3) Any bond, note, or other obligation which is issued or guaranteed by === >) When United States or by any agency of the United States. tice nsee: (4) Any bond, note, or other obligation which is issued or guaranteed by In ca state of the United States or by any governmental agency of or within any s ties te of the United States and which is assigned an eligible rating by an elig: ally ac securities rating service Ina ) Any bankers acceptance which is eligible for discount by a federal rese= nies bank. 1996, ¢ (6) Any commercial paper which is assigned an eligible rating by an elie: pic 1. 1997.) securities rating service (7) Any bond, note, or other obligation or preferred stock which is assig=2a er the pr an eligible rating by an eligible securities rating service. ee nvestment company t sitet (8) Any share of’an investment company that is an open-end manage: company, that is registered under the Investment Company Act of 1940 = .-1 et seq), that holds itself out to investors as a money mazi=t fund, and that operates in accordance with all provisions of the Investr- Company Act of 1940 and of the regulations of the Securities and Exche== J Commission applicable to money market funds, including Section 270.2a-~ = the regulations of the Securities and Exchange Commission (17 C.F.R. $= 270.2a-1). For purposes of this paragraph and paragraph (9), “investment compe= “management company,” and “open-end” have the meanings set fo: Sections 3, 4, and 5, respectively, of the Investment Company Act of 1940 = U.S.C. Secs. 802-3, 802-4, and 802-5, respectively). (9) Any share of an investment company that is an open-end manage=: company, that is registered under the Investment Company Act of 1940 U.S.C. Sec. 80a-1 et seq), and that invests exclusively in securities ~= constitute United States currency eligible securities under the other provis: of this subdivision. 340LICENSEES chs (10) Any account due to any licensee from any agent of such licensee on -count of the sale by such agent of reported outstanding payment instruments ssued by the licensee, if the account is current and not past due or otherwise coubtful of collection. § 33561 (11) Any other security or class of securities that the commissioner has by lation or order declared to be eligible securities pursuant to Section 33563 (g) “Value” means: (1) When used with respect to an eligible security owned by a licensee which consists of an account due to such licensee from an. agent of the licensee on count of the sale by such agent of reported outstanding payment instruments sued by the licensee, net carrying value as determined in conformity with enerally accepted accounting principles. However, in computing the value of ‘Unt due to the Ticensée, any amount due on account of the sale of a ment instrument shall be excluded if the time elapsed between the sale and date of computation exceeds the average time that elapses between the time sale and the time of payment of payment instruments issued by the licensee. (2) When used with respect to any other eligible security owned by a “eensee: (A) In case the practice and policy of such licensee is to hold eligible securities to maturity, net carrying value as determined in conformity with erally accepted accounting principles TB) In any other case, market value. ided by Stats.1978, ¢. 1347, p. 4436, § 7. od by d by ar: any sti Amended by Stats.1984, c. 957, § 9; 1996, c. 859 (A.B.3260), § 4; Stats.1996, c. 1064 (A.B. i, 1997) Historical and Statutory Notes Under the provisions of § 918 of Stas.1996, (066, the 1996 amendments of this section by (A.B 3260) and c. 1084 (AB.33 Even effect and incorporated in the Sh in § 4 of c, 859, operative until July’ thea in the form set forth In § 736.1 of ‘54 An amendment ofthis section by § 4.1 of 1996, c. 859 (A.B.3260), falled to become tive under the provisions of § 9 of that Sn amendment of this section by § 738 of ‘Stats.1996, c. 1064 (A.B.3351), failed to become ‘operative tinder provisions of § 918 of that Act Section affected by two or more acts at the the legislature, see Government Legislative findings and declerations relat to Stats 1996, ¢. 1084 (A.B.3351), see Histor land Statutory Notes under Business and Profes- sions Code §'7500.3, rary References nks and Banking @14, 15 WESTLAW Topic No, 52. CIS. Banks and Banking §9 13, 14 et seq § 33861. Ownership (a) For purposes of this article, a licensee shall be deemed to own an eligible security only if (1) The licensee owns the eligible security solely and exclusively in its own ‘ht, both of record and beneficially; (2) The eligible security is not subject to any pledge, lien, or security interest; and 341