California Financial Code

§ 17320

FIN § 17320 Effective Jan 1, 2023Div. 6 · Ch. 2.5 · Art. 3

Statute text

Fidelity Corporation shall establish and maintain the following funds for payment of claims and for payment of costs of administration: the membership fund, the operations fund, and the fidelity fund.

(a)An applicant or a licensee shall, at the time an application is filed for a license, pay to Fidelity Corporation a membership fee of three thousand dollars ($3,000) for each location for which a license is applied. If the application is denied, withdrawn, or abandoned, Fidelity Corporation may retain two hundred dollars ($200) from the membership fee to cover costs of administration.

(1)The membership fund shall be reserved for payment of claims which exceed the fidelity fund balance and for payment of extraordinary operational costs.

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Legislative history

Amended by Stats. 2022, Ch. 452, Sec. 124. (SB 1498) Effective January 1, 2023.