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HomeFinancial CodeDiv. 1.1Ch. 6§ 1204 Securities Permit Fees

§ 1204 Securities Permit Fees

Financial Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 1204 Securities Permit Fees

This law tells the commissioner how much to charge for different kinds of permits related to securities.

Key Takeaways

  • •Negotiating permits cost $50.
  • •Permits to exchange or change securities also cost $50.
  • •Selling permits start at $100 plus 0.1% of the sale amount, but never more than $1,750.

Example

A company wants a permit to sell new shares of stock to the public.

The company must pay a base fee of $100 plus a tiny percentage of the total value of the shares they plan to sell, but the total fee can never be more than $1,750.

How to Calculate

Fee = $100 + (0.1% × Aggregate Value of Securities), but not more than $1,750

  1. Find the total dollar amount of the securities you want to sell (the aggregate value).
  2. Multiply that amount by 0.001 (which is the same as 0.1%).
  3. Add $100 to the result from Step 2.
  4. If the total you get is bigger than $1,750, the fee is capped at $1,750.

A firm plans to sell $500,000 worth of stock.

Result: Fee = $100 + $500 = $600 (which is under the $1,750 cap, so the fee is $600).

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 1204 Securities Permit Fees

The commissioner shall charge and collect fees for applications filed under this chapter as fixed in this section. (a) The fee for a negotiating permit shall be fifty dollars ($50). (b) The fee for a permit to exchange a security or to make any change in the rights, preferences, privileges, or restrictions of or on outstanding securities shall be fifty dollars ($50). (c) The fee for any permit to sell securities other than as specified in subdivision (b) shall be one hundred dollars ($100) plus one-tenth of one percent (0.1%) of the aggregate value of the securities sought to be sold, up to a maximum aggregate fee of one thousand seven hundred fifty dollars ($1,750). (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)

Last verified: January 10, 2026

Key Terms

negotiating permitpermit to exchange a securitypermit to sell securitiesaggregate value of the securities

Related Statutes

  • § 18427.3 Securities Permit Fees
  • § 1200 Security Sale Definitions
  • § 1201 Bank Security Sale Permits
  • § 1202 Bank Securities Offer Exemptions
  • § 1203 Permit Application Requirements

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Financial Code. Section 1204.
View Official Source