California Financial Code

§ 17314

FIN § 17314 Effective Jan 1, 2005Div. 6 · Ch. 2.5 · Art. 2

Statute text

(a)Fidelity Corporation shall pay a member for loss of trust obligations subject to the limitations set forth in this chapter. Fidelity Corporation shall pay or deny the claim within 90 days of receipt of the proof of loss filed by a member, or a member’s successor in interest. Notwithstanding any other provision of this article, the protection to members provided by Fidelity Corporation and by the fidelity bond or insurance policy, if any, shall not extend to any transaction involving any member at any branch or business location outside the State of California, but shall extend only to escrow trust obligations and trust funds located within the State of California.

(b)Coverage shall be provided to members in accordance with the following schedule: MONTHLY AVERAGE ESCROW LIABILITY PER LOCATION COVERAGE $0 - $ 1,000,000 $1,000,000 over $1,000,000 - $ 3,000,000 $2,000,000 over $3,000,000 - $ 5,000,000 $3,000,000 over $5,000,000 - $ 7,500,000 $4,000,000 over $7,500,000 - $10,000,000 $5,000,000 Pursuant to the schedule, the minimum coverage by Fidelity Corporation for each licensed location shall be one million dollars ($1,000,000) and the maximum coverage for each licensed location shall be five million dollars ($5,000,000).

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Legislative history

Amended by Stats. 2004, Ch. 180, Sec. 1. Effective January 1, 2005.