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HomeFinancial CodeDiv. 1.1Ch. 16Art. 3§ 1577 Trust Fund Disposal Rules

§ 1577 Trust Fund Disposal Rules

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

§ 1577 Trust Fund Disposal Rules

This law says that any money or securities put into a trust can only be sold or used by the State Treasurer if a court tells them to, and the money must go to the people the trust is meant to help.

Key Takeaways

  • •Only a court can tell the State Treasurer to sell or use the trust assets.
  • •The State Treasurer is the only one who can actually sell or handle the money.
  • •All proceeds must go to the people the trust was created for.

Example

A community trust holds stocks to fund a local park. The park board wants to use the money to build a playground.

The board must get a court order before the State Treasurer can sell the stocks, and the money from the sale can only be used for the park, the trust’s intended beneficiary.

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

Official Source
View on CA.gov

§ 1577 Trust Fund Disposal Rules

The money and securities deposited pursuant to this article shall be subject to sale and the same or the proceeds thereof shall be subject to disposal by the State Treasurer only on the order of a court of competent jurisdiction and for the benefit respectively of the beneficiaries of that class of trust business for the security and protection of which the securities were deposited. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)

Last verified: January 11, 2026

Key Terms

money and securitiesState Treasurercourt of competent jurisdictionbeneficiariestrust business

Related Statutes

  • § 1550 Corporate Trust Business Requirements
  • § 1571 Trust Company Deposit Requirements
  • § 1573 Trust Fund Deposit Requirements
  • § 1608 Trust Business Withdrawal Rules
  • § 1551 Bank Trust Business Authorization

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Financial Code. Section 1577.
View Official Source