California Financial Code

§ 51007

FIN § 51007 Effective Jul 15, 2011Div. 20.5

Statute text

(a)A person who engages in business as an exchange facilitator shall at all times comply with either of the following:

(1)Maintain a policy of errors and omissions insurance in an amount not less than two hundred fifty thousand dollars ($250,000), executed by an insurer authorized to do business in this state or an eligible surplus line insurer pursuant to Section 1765.1 of the Insurance Code.

(2)Deposit an amount of cash or securities or irrevocable letters of credit in an amount not less than two hundred fifty thousand dollars ($250,000) in an interest-bearing deposit account or a money market account with the financial institution of the person’s choice. Interest on that amount shall accrue to the exchange facilitator.

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Legislative history

Amended by Stats. 2011, Ch. 83, Sec. 3. (AB 315) Effective July 15, 2011. Operative July 21, 2011, by Sec. 34 of Stats. 2011, Ch. 83.