Section 2835 - Commingling"Commingling" as used in Section 10176(e) of the Code is prohibited except as specified in this section. For purposes of Section 10176(e), the following shall not constitute "commingling":
(a) The deposit into a trust account of reasonably sufficient funds, not to exceed $200, to pay service charges or fees levied or assessed against the account by the bank or financial institution where the account is maintained.(b) The deposit into a trust account maintained in compliance with subdivision (d) of funds belonging in part to the broker's principal and in part to the broker when it is not reasonably practicable to separate such funds, provided the part of the funds belonging to the broker is disbursed not later than twenty-five days after their deposit and there is no dispute between the broker and the broker's principal as to the broker's portion of the funds. When the right of a broker to receive a portion of trust funds is disputed by the broker's principal, the disputed portion shall not be withdrawn until the dispute is finally settled.(c) The deposit into a trust account of broker owned funds in connection with activities pursuant to either subdivision (d) or (e) of Section 10131 of the Code or when making, collecting payments or servicing a loan which is subject to the provisions of Section 10240 of the Code provided: (1) The broker meets the criteria of Section 10232 of the Code.(2) All funds in the account which are owned by the broker are identified at all times in a separate record which is distinct from any separate record maintained for a beneficiary.(3) All broker owned funds deposited into the account are disbursed from the account not later than 25 days after their deposit.(4) The funds are deposited and maintained in compliance with subdivision (d).(5) For the purpose of this section, a broker shall be deemed to be subject to the provisions of Section 10240 of the Code if the broker delivers the statement to the borrower required by Section 10240.(d) The trust fund account into which the funds are deposited is maintained in accordance with the provisions of Section 10145 and the regulations of this article.Cal. Code Regs. Tit. 10, § 2835
1. New section filed 4-1-93; operative 5-3-93 (Register 93, No. 14). For prior history, see Register 83, No. 30.
2. Amendment of subsection (a) filed 11-13-96; operative 11-13-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 46).
3. Amendment of subsection (d) filed 3-17-2005; operative 4-16-2005 (Register 2005, No. 11). Note: Authority cited: Section 10080, Business and Professions Code. Reference: Section 10176, Business and Professions Code.
1. New section filed 4-1-93; operative 5-3-93 (Register 93, No. 14). For prior history, see Register 83, No. 30.
2. Amendment of subsection (a) filed 11-13-96; operative 11-13-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 46).
3. Amendment of subsection (d) filed 3-17-2005; operative 4-16-2005 (Register 2005, No. 11).