Cal. Code Regs. tit. 10 § 40.613

Current through Register 2024 Notice Reg. No. 43, October 25, 2024

Section 40.613 - Security Requirement for Loans Made Pursuant to Section 18208, Financial Code

A loan secured by traded securities made pursuant to Section 18208 of the Financial Code shall during its entire term be secured by such securities having a market value of not less than the amount owing on the loan. If at any time during the term of the loan the value of such securities becomes less than the amount owing on the loan, additional traded securities must be obtained in an amount sufficient to bring the market value of all of the securities up to an amount not less than the amount owing on the loan. If such additional traded securities are not obtained within three (3) business days from the date that the market value of such securities became less than the amount owing on the loan, then a valuation reserve shall be established for the deficiency.

Cal. Code Regs. Tit. 10, § 40.613

1. Change without regulatory effect renumbering former section 1170 to new section 40.613 filed 8-19-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 34).

Note: Authority cited: Section 18347, Financial Code. Reference: Section 18208, Financial Code.

1. Change without regulatory effect renumbering former section 1170 to new section 40.613 filed 8-19-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 34).