Cal. Code Regs. tit. 10 § 2509.9

Current through Register 2025 Notice Reg. No. 2, January 10, 2025

Section 2509.9 - Preferred Stock

The following preferred stock is acceptable for workers' compensation deposits subject to the requirements set forth in this Article and the following conditions:

(a) the stock must be registered and traded on a national securities exchange as provided in the Securities Exchange Act of 1934, as amended; and

(b) within the last ten (10) years there must not have been arrears of dividend payments on such preferred stock; and

(c) the issuing corporation shall have paid dividends on its common stock in each of the last five (5) years of operation; and

(d) the issuing corporation shall have a net worth of at least one hundred million dollars ($100,000,000); and

(e) the issuing corporation shall not have incurred a net loss in any more than one (1) of the last five (5) years of operation; and

(f) the issuing corporation shall not have been in default on any of its indebtedness or any of its sinking fund requirements; and

(g) except in the case of sinking fund preferred stock, the preferred stock must have a rating of at least "a3" by Moody's Investors Service, Inc. or "A-" by either Standard & Poor's or Fitch Ratings; and

(h) sinking fund preferred stock must have a rating of at least "baa3" by Moody's Investors Service, Inc., "BBB-" by Standard & Poor's or Fitch Ratings.

Cal. Code Regs. Tit. 10, § 2509.9

1. Change without regulatory effect amending subsections (g)-(h) and NOTE filed 4-28-2014 pursuant to section 100, title 1, California Code of Regulations (Register 2014, No. 18).

Note: Authority cited: Section 11691, Insurance Code. Reference: Section 11691, Insurance Code.

1. Change without regulatory effect amending subsections (g)-(h) and Note filed 4-28-2014 pursuant to section 100, title 1, California Code of Regulations (Register 2014, No. 18).