§ 1571 Trust Company Deposit Requirements

Financial Code·California

AI SummaryVerified

This law tells trust companies to tell the state when they get big amounts of trust money and to put a set amount of cash or securities into the state treasury.

Key Takeaways

•Trust companies must write to the commissioner as soon as they get $1 million or more of trust money.
•They must deposit $50,000 with the State Treasurer within 30 days of that first $1 million.
•For every extra $500,000 they receive, they add another $25,000 deposit, until they have deposited a total of $500,000.

Example

A trust company receives $2,200,000 in trust money from a court trust.

The company must quickly write to the commissioner, then within 30 days put $100,000 (the required deposits) into the State Treasurer’s account.

How to Calculate

Deposit = $50,000 + $25,000 × floor((TotalTrustFunds – $1,000,000) ÷ $500,000), capped so total deposits never exceed $500,000.

Check if the trust company received at least $1,000,000. If yes, start with a $50,000 deposit.
Subtract $1,000,000 from the total trust funds received.
Divide the remaining amount by $500,000 and round down to the nearest whole number. Multiply that number by $25,000.
Add the $25,000 amount from Step 3 to the $50,000 from Step 1.
If the total you get is more than $500,000, limit it to $500,000.

Trust company receives $2,200,000.

Result: Total deposit = $50,000 (base) + $50,000 (increments) = $100,000.

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

Official Source

View on CA.gov

§ 1571 Trust Company Deposit Requirements

Whenever any trust company receives trust funds or property, other than real property, from court trusts accepted by it to the amount of one million dollars ($1,000,000), it shall forthwith give the commissioner written notice thereof, and within 30 days thereafter shall make an additional deposit with the State Treasurer of money or securities having a market value of fifty thousand dollars ($50,000). For each additional five hundred thousand dollars ($500,000) of such trust funds thereafter received by any trust company from court trusts a similar notification in writing shall forthwith be given to the commissioner and a further deposit of money or securities having a market value of twenty-five thousand dollars ($25,000) shall be made within 30 days thereafter by such trust company with the State Treasurer until money or securities having a market value of five hundred thousand dollars ($500,000) have been so deposited. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)

Last verified: January 11, 2026

Key Terms

trust company trust funds or property court trusts commissioner State Treasurer one million dollars ($1,000,000)fifty thousand dollars ($50,000)five hundred thousand dollars ($500,000)twenty-five thousand dollars ($25,000)

References

Official text at leginfo.legislature.ca.gov
California Legislature. Financial Code. Section 1571.

§ 1571 Trust Company Deposit Requirements

Financial Code·California

AI SummaryVerified

§ 1571 Trust Company Deposit Requirements

This law tells trust companies to tell the state when they get big amounts of trust money and to put a set amount of cash or securities into the state treasury.

Key Takeaways

•Trust companies must write to the commissioner as soon as they get $1 million or more of trust money.
•They must deposit $50,000 with the State Treasurer within 30 days of that first $1 million.
•For every extra $500,000 they receive, they add another $25,000 deposit, until they have deposited a total of $500,000.

Example

A trust company receives $2,200,000 in trust money from a court trust.

The company must quickly write to the commissioner, then within 30 days put $100,000 (the required deposits) into the State Treasurer’s account.

How to Calculate

Deposit = $50,000 + $25,000 × floor((TotalTrustFunds – $1,000,000) ÷ $500,000), capped so total deposits never exceed $500,000.

Check if the trust company received at least $1,000,000. If yes, start with a $50,000 deposit.
Subtract $1,000,000 from the total trust funds received.
Divide the remaining amount by $500,000 and round down to the nearest whole number. Multiply that number by $25,000.
Add the $25,000 amount from Step 3 to the $50,000 from Step 1.
If the total you get is more than $500,000, limit it to $500,000.

Trust company receives $2,200,000.

Result: Total deposit = $50,000 (base) + $50,000 (increments) = $100,000.

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

Official Source

View on CA.gov

§ 1571 Trust Company Deposit Requirements

Last verified: January 11, 2026

Key Terms

References

Official text at leginfo.legislature.ca.gov
California Legislature. Financial Code. Section 1571.

Key Takeaways

Example

How to Calculate

Key Terms

Related Statutes

References

Key Takeaways

Example

How to Calculate

Key Terms

Related Statutes

References