This division is known and may be cited as the “Securities Depository Law.”
Chapter 1Application of This Division
Section § 30000
This law is officially called the 'Securities Depository Law.'
Securities Depository securities storage financial securities depository law safe storage security depositories financial law securities management investment protection financial regulation depository institutions security handling California financial statues investment safekeeping securities holding
Section § 30001
This law section explains that any definitions provided in this chapter are used to interpret the rest of the division unless a different context is clearly needed.
Unless the context otherwise requires, the definitions set forth in this chapter govern the construction of this division.
definitions interpretation context division construction chapter guidelines statutory interpretation context-specific legal definitions chapter-based definitions term clarification governing definitions definition application text interpretation contextual requirement division interpretation
Section § 30002
This section defines the term "Commissioner" as referring to the Commissioner of Financial Protection and Innovation.
“Commissioner” means the Commissioner of Financial Protection and Innovation.
Commissioner of Financial Protection and Innovation financial regulation California financial commissioner state financial oversight financial innovation consumer financial protection California state financial authority financial regulatory agency financial protection commissioner financial oversight state financial regulator financial protection department financial innovation leadership
Section § 30003
This law section defines the term “Person” very broadly. It includes not only individual people but also groups, companies, partnerships, corporations, cooperatives, associations, limited liability companies, and other legal entities.
“Person” means, in addition to the singular, persons, group of persons, cooperative, association, company, firm, partnership, corporation, limited liability company, or other legal entity.
definition of person legal entity group of persons cooperative association company firm partnership corporation limited liability company legal definition entity classification business structure organization type corporate entity
Section § 30004
This law defines a 'securities depository' as a person or group who safely keeps and manages securities. They use a central system where securities from the same class or series are interchangeable. Transfers or pledges of these securities are made through bookkeeping entries, not by physically moving them.
“Securities depository” means any person or group of persons who acts as the custodian of securities in accordance with a system for the central handling of securities whereby all securities of a particular class or series of any issues deposited within the system are treated as fungible and may be transferred or pledged by bookkeeping entries effected by that person without physical delivery of such securities.
securities depository custodian of securities central handling system fungible securities bookkeeping entries transfer of securities pledge securities non-physical delivery interchangeable securities securities management centralized depository system securities class or series securities transactions securities system depository operations
Section § 30005
This section explains that certain rules in this division don’t apply to specific types of securities depositories. These exempt entities include those owned by or linked to national securities exchanges or associations that are registered under U.S. law, like the Securities Exchange Act of 1934. Additionally, depositories either registered with the Securities and Exchange Commission or regulated by federal bodies such as the Comptroller of the Currency, Federal Reserve Board, or Federal Deposit Insurance Corporation, or overseen by California's Commissioner of Financial Protection and Innovation, are not covered by this division.
This division does not apply to:
(a)CA Financial Code § 30005(a) A securities depository which is operated by a corporation, all of the capital stock (other than directors’ qualifying shares, if any) of which is held by or for a national securities exchange or association registered under a statute of the United States such as the Securities Exchange Act of 1934, or by a corporation all of the capital stock (other than directors’ qualifying shares, if any) of which is held by or for such a wholly owned subsidiary of a registered national securities exchange.
(b)CA Financial Code § 30005(b) A securities depository which is registered with the Securities and Exchange Commission pursuant to any provision of federal law or which is regulated by the Comptroller of the Currency, the
Federal Reserve Board, or the Federal Deposit Insurance Corporation pursuant to any provision of federal law, or which is regulated by the Commissioner of Financial Protection and Innovation under Division 1.1 (commencing with Section 1000) of the Financial Code.
securities depository national securities exchange Securities Exchange Act of 1934 Securities and Exchange Commission Comptroller of the Currency Federal Reserve Board Federal Deposit Insurance Corporation registered securities depository financial regulation exemption Commissioner of Financial Protection and Innovation
Section § 30006
This law allows the commissioner to create rules necessary for implementing the division's purposes. The commissioner can exempt certain securities depositories from state provisions if they are already regulated by a competent federal or state agency.
The commissioner may establish such rules and regulations as are reasonable or necessary to carry out the purposes and provisions of this division. The commissioner may, by rule, exempt from any or all of the provisions of this division any securities depository which the commissioner determines is subject to adequate regulatory supervision by an agency, office, or commission of the federal government or by any agency, office, or commission, other than the commissioner, of the State of California.
commissioner authority rules and regulations securities depository exemption regulatory supervision federal agency oversight state agency oversight exemption criteria adequate regulation California finance regulation financial oversight state provisions exemption rule establishment division implementation
