This law states that it's illegal for anyone to run a securities depository or persuade people in the state to use such a depository, inside or outside the state, unless it's a corporation officially licensed by the commissioner to do so.

This law specifies who can operate a securities depository. It must be run by a corporation where at least 90% of its stock is owned by regulated entities like banks, insurance companies, registered brokers, dealers, investment companies, or securities exchanges. No single entity outside of a securities exchange can own more than 20% of the stock.

The remaining stock can be owned by individuals, but only if they purchase it to qualify as directors of the corporation. This ensures that the people in control have relevant regulatory oversight or industry registration.

This section of the law outlines the fees that must be paid to the commissioner for matters related to securities depository licenses. First, applying for a securities depository license costs $2,500. Additionally, if a hearing is required as part of the application process, the applicant must cover the actual costs incurred. Finally, maintaining an active securities depository license requires a $2,500 fee each year, paid every two years by December 15th of odd-numbered years. If a license is issued in an even-numbered year, a $2,500 fee must be paid within 60 days of receiving the license.

This law states that any money collected by the commissioner must be deposited into the State Treasury and credited to the State Corporations Fund.

If you're applying for a securities depository license, you need to fill out a form as per the commissioner's directives. The form should include details about the people involved, like the incorporators and officers, and explain their qualifications to run the depository. You must also show that your operations will protect investors.

Additionally, list everyone who owns stock in the corporation and their ownership percentages. Share the locations where your facilities will be, what they'll do there, and any other businesses operating on-site. Include your company's articles of incorporation, bylaws, and financial statements from the last three years, certified by an accountant. Finally, be ready to provide any extra information the commissioner might ask for.

When someone applies for a license, including payment of all fees, the commissioner must look into details about the applicant and their organization, such as stockholders and management, and how they plan to handle and safeguard securities. The commissioner might ask the applicant to attend a hearing, where anyone interested can speak for or against the application.

This law states that the commissioner can deny a license application if certain negative conditions are found after an investigation and hearing. A license won't be issued if those applying, including incorporators and officers, lack the right character or experience, have inadequate security programs for investor protection, fail to meet stock ownership requirements, or if the applicant risks going bankrupt.

This law states that people or businesses with certain licenses can't ask to collect securities or run their business using fake, misleading, or deceptive statements. They also can't leave out important information or claim that they have been endorsed by the commissioner. If these rules are broken, the commissioner has the authority to stop the violator from continuing those actions.

A securities depository license in California cannot be transferred or given to someone else. You also can't take over a license by buying stock in a company or using other methods unless you have the approval of the commissioner.

If you run a securities depository or ask people to use one in California, you must ensure it has the proper license. Doing this without a license is a crime and could land you in jail for three to twelve months, cost you a fine ranging from $250 to $1,000, or both.

This section requires anyone who runs securities depositories to maintain detailed and accurate records. These records must help the commissioner verify that their operations follow all relevant rules and regulations.

If you are licensed under this division, the commissioner can inspect your business, accounts, and records at any time without warning.

The law states that if someone is inspected or examined by the commissioner, they must pay for the cost of that inspection. If they don't pay, the commissioner can take legal action to recover those costs.

This section requires people who are governed by this division to submit financial statements, following accepted accounting principles, to the commissioner. These statements must cover the calendar or fiscal year, and be submitted within 105 days after year-end. An independent accountant must verify these statements. Additionally, a month's end financial statement before the audited one must also be submitted. The audited financial statements should include key financial information like net worth and income. Audits must meet accepted standards, and the commissioner can set rules on audit details.

The second part requires these people to submit, at their own expense, additional reports about their financial condition, operations, or securities ownership as required by the commissioner, with a minimum notice of 10 days.

If someone who is supposed to follow this financial law doesn't provide a report that's required by the law or the commissioner, the commissioner will immediately conduct a detailed review of their financial records and activities. The commissioner can hire an independent accountant to help, and the person who failed to report has to pay for this service.

This law says if the commissioner finds that a person running a securities depository is insolvent or operating unsafely, they can immediately order them to stop their activities. This order can require stopping the depository's operations or soliciting security holders in California. The order remains until the commissioner decides to change it.

This law allows the commissioner to stop anyone from running a securities depository or asking people to use one without the proper license. If someone receives such an order and wants to dispute it, they can ask for a hearing. If the hearing doesn’t happen within 60 days, the order is canceled.

This law allows a commissioner to make, change, or eliminate rules, forms, and orders needed to apply the law effectively. The commissioner can also define terms, as long as those definitions don't contradict existing laws. They can create different requirements for different groups or situations. The commissioner can waive certain rules if they believe it's not needed for public interest or investor protection. Any rules that affect the public must follow a specific legal process in the Government Code.

This section makes it illegal for anyone to knowingly alter, destroy, or hide records or documents to interfere with the enforcement or management of financial regulations. It also prohibits making false statements to the commissioner with the intent to affect the administration or enforcement of these rules.