Unless the provision or the context otherwise requires, the definitions set forth in this chapter govern the construction of this division.
Chapter 1Definitions
Section § 29000
This section says that the definitions provided in this chapter are used to interpret this part of the law unless the context or other provisions specify differently.
definitions construction interpretation context importance legal terms provision requirements context-specific interpretation guidelines guiding definitions definitions usage
Section § 29001
In this section, 'person' refers to various entities like individuals, partnerships, corporations, LLCs, or associations, whether local or international. It also includes people acting on behalf of others, like officers or agents.
“Person” means an individual, partnership, corporation, limited liability company, or association, either domestic or foreign, whether acting in his or her own right or as the officer, agent, servant, employee, correspondent, or representative of another or as trustee.
individual partnership corporation limited liability company association domestic foreign officer agent servant employee correspondent representative trustee entity definition
Section § 29002
This law defines two key terms for business-related trusts. A 'trustee' is the person responsible for managing the trust, and a 'trust' is an arrangement, documented in writing (not including a will or court orders), created voluntarily to conduct business or manage financial obligations such as loans.
(a)CA Corporations Code § 29002(a) “Trustee” means a person executing a trust, as defined in this section.
(b)CA Corporations Code § 29002(b) “Trust” means any voluntary trust expressly created by or declared in an instrument in writing, other than a will or a judicial writ, order, decree, or judgment, to carry on any business or to secure the payment or repayment of money.
trustee definition voluntary trust written trust instrument non-will trust business trust financial obligations trust management business operations payment security loan repayment
Section § 29003
The term 'contract' covers all types of agreements, trades, or business transactions between parties.
“Contract” includes any agreement, trade, or transaction.
agreement trade transaction business deal contract definition legal agreement commercial transaction contractual obligations trade agreements business transactions contractual terms agreement scope business contract transactional contract
Section § 29004
This section defines what is considered a "security." It includes shares in corporations, bonds, rights to profits, evidence of debt, and options to buy or sell these items. Essentially, if it represents financial interest or investment, it's likely a security.
“Securities” means all shares in any corporation or association or of trustees, bonds, coupons, scrip, rights, choses in action, and other evidences of debt or property and options for the purchase or sale thereof or of any right entitling the holder thereof to participate in profits or a division of assets.
securities shares corporations bonds coupons scrip rights choses in action evidences of debt property options purchase profits division of assets
Section § 29005
This section defines 'commodities' as any movable items that can be traded or sold.
“Commodities” means anything movable that is bought and sold.
commodities movable items goods trading bought and sold movable property trade goods market goods movable goods buying and selling transportable items saleable items commercial goods
Section § 29006
A "bucket shop" is any location where people make or offer to make contracts that involve bucketing or bucket shopping.
“Bucket shop” means any room, office, store, building, or other place where any bucketing or bucket shopping contract is made or offered to be made.
bucket shop bucketing bucket shopping contracts location room office store building offer contracts made financial transactions speculative trading contract definition trading location
Section § 29007
This law defines a 'keeper' as anyone who owns, manages, operates, promotes, or helps with these tasks for a bucket shop.
“Keeper” means any person owning, keeping, managing, operating, or promoting a bucket shop, or assisting to keep, manage, operate, or promote a bucket shop.
keeper bucket shop owning managing operating promoting assisting bucket shop activities person owning person managing
Section § 29008
This section defines 'bucketing' or 'bucket shopping' as making fake deals involving securities or commodities where the transactions are based on market price predictions rather than actual buying or selling. It's about pretending to make a transaction with the intention of settling based on price changes, without intending real ownership exchange. These actions can also include taking someone's order to buy or sell without properly applying the proceeds or providing written confirmation of transactions immediately after they occur.
“Bucketing” or “bucket shopping” means any of the following:
(a)CA Corporations Code § 29008(a) Making or offering to make any contract respecting the purchase or sale of any securities or commodities, wherein both parties intend, or the keeper intends, that the contract shall be, or may be, terminated, closed, or settled according to or upon the basis of the public market quotations of prices made on any board of trade or exchange upon which the securities or commodities are dealt in, without a bona fide purchase or sale of the securities or commodities.
(b)CA Corporations Code § 29008(b) Making or offering to make any contract respecting the purchase or sale of any securities or commodities, wherein both parties intend, or the keeper intends, that the contract shall be, or may be, deemed terminated, closed, or settled when the public market quotations of prices for the securities or commodities named in the contract reach a certain figure without a bona fide purchase or sale of the securities or commodities.
(c)CA Corporations Code § 29008(c) Making or offering to make any contract respecting the purchase or sale of any securities or commodities, wherein both parties do not intend, or such keeper does not intend, the actual or bona fide receipt or delivery of the securities or commodities, but do intend, or the keeper does intend, a settlement of the contract based upon the differences in the public market quotations of prices at which the securities or commodities are or are asserted to be bought and sold.
(d)CA Corporations Code § 29008(d) The sale by a keeper of any security or commodity purchased by him for the account of or upon the order of another when the proceeds of the sale are not immediately credited by the keeper to the account of the other person and when a report or statement in writing of the sale is not rendered to the other person by the keeper on the next business day following the sale.
bucketing bucket shopping fake transactions securities commodities market price quotations bona fide purchase contract settlement public market prices order execution financial scams price speculation receipt or delivery proceeds handling transaction confirmation
