Section 10.16131 - Deficiencies-Subject Institution(a) A subject institution shall monitor its pledge deposit at least once each month to ensure that it is in compliance with the requirements of Financial Code Section 1811 and this Part, including the requirements that all assets in such pledge deposit be eligible assets and that the total value of the eligible assets in the pledge deposit be no less than the applicable minimum.(b) Whenever a subject institution finds that the total value of the eligible assets in its pledge deposit is less than the applicable minimum, it shall immediately report the matter to the Commissioner by telephone, immediately deposit in its pledge deposit eligible assets having a value sufficient to correct the deficiency, and promptly thereafter serve a written report regarding the matter on the Commissioner.(c) Whenever a subject institution finds that any asset in its pledge deposit is not an eligible asset: (1) In case, after deducting the value of such non-eligible asset, the total value of the eligible assets in the pledge deposit is less than the applicable minimum, the subject institution shall comply with the provisions of Subdivision (b) of this Section and, in addition, shall promptly withdraw the non-eligible asset from the pledge deposit.(2) In any other case, the subject institution shall promptly withdraw the non-eligible asset from the pledge deposit.Cal. Code Regs. Tit. 10, § 10.16131
1. Change without regulatory effect amending section filed 8-19-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 34).
2. Amendment of subsection (a) filed 4-14-98; operative 5-14-98 (Register 98, No. 16).
3. Change without regulatory effect amending subsection (a) and NOTE filed 8-21-2019 pursuant to section 100, title 1, California Code of Regulations (Register 2019, No. 34). Note: Authority cite: Section 326, Financial Code. Reference: Sections 1758 and 1811, Financial Code.
1. Change without regulatory effect amending section filed 8-19-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 34).
2. Amendment of subsection (a) filed 4-14-98; operative 5-14-98 (Register 98, No. 16).
3. Change without regulatory effect amending subsection (a) and Note filed 8-21-2019 pursuant to section 100, title 1, California Code of Regulations (Register 2019, No. 34).