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HomeFinancial CodeDiv. 1.1Ch. 16Art. 3§ 1573 Trust Fund Deposit Requirements

§ 1573 Trust Fund Deposit Requirements

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

§ 1573 Trust Fund Deposit Requirements

This law says that any money or securities that the commissioner approves must be sent to the state treasurer, who will keep it safe and only use it for the people who are supposed to benefit from it.

Key Takeaways

  • •The commissioner must approve any money or securities before they are deposited.
  • •The treasurer must give a receipt and keep the money safe for the intended beneficiaries.
  • •The state is responsible for protecting the money and must follow other rules (Sections 16370‑16375) on how to handle it.

Example

A retirement fund receives $1 million that belongs to retirees. The commissioner signs off on the money, and the fund sends it to the state treasurer.

The treasurer writes down that the money was received, holds it safely, and later makes sure it goes to the retirees, because the law says the state must protect and return the money to the right people.

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

Official Source
View on CA.gov

§ 1573 Trust Fund Deposit Requirements

Such money or securities shall be approved by the commissioner and be deposited with the Treasurer upon the written order of the commissioner. Upon receiving any such deposit the Treasurer shall give his or her receipt therefor and thereafter subject to the provisions of this chapter shall hold such deposits for the sole benefit of the beneficiaries of the class of trust business for the security and protection of which the same were deposited. The state is responsible for the custody and safe return of any money or securities so deposited. The Treasurer shall deposit any such moneys under the provisions of Sections 16370 to 16375 of the Government Code. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)

Last verified: January 11, 2026

Key Terms

commissionerTreasurerbeneficiariesGovernment Code Sections 16370 to 16375

Related Statutes

  • § 1574 Securities Exchange And Withdrawal
  • § 1571 Trust Company Deposit Requirements
  • § 1575 Security Deposit Maintenance
  • § 1577 Trust Fund Disposal Rules
  • § 1578 Trust Company Penalties

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Financial Code. Section 1573.
View Official Source