California Financial Code Section 33560

In this article: (a) Eligible security means any United States currency eligible security or foreign currency eligible security. (b) Eligible securities rating service means any securities rating service which the commissioner has by regulation or order declared to be an eligible securities rating service pursuant to Section 33564. (c) Eligible rating, when used with respect to any security or class of securities and any eligible securities rating service, means any rating assigned to such security or class of securities by such eligible securities rating service which the commissioner has by regulation or order declared to be an eligible rating pursuant to Section 33565. (d) Foreign currency eligible security means any of the following which is, or is denominated in, a foreign currency and which the commissioner has not by regulation or order declared to be ineligible pursuant to Section 33562: (1) Any of the following which is of comparable quality to the United States currency eligible securities specified in paragraphs (1) to (7), inclusive, of subdivision (f): (A) Cash. (B) Any deposit in an office of a bank located in a foreign country. (C) Any bond, note, or other obligation. (2) Any other security or class of securities which the commissioner has by regulation or order declared to be eligible securities pursuant to Section 33563. (e) Reported outstanding payment instrument, when used with respect to a licensee, means any of the following: (1) Any payment instrument issued by the licensee which has been sold directly by the licensee and which has not yet been paid by the licensee. (2) Any payment instrument issued by the licensee which has been sold by an agent of the licensee, which has been reported by such agent to the licensee as having been sold (such report having been received by the licensee), and which has not yet been paid by the licensee. (f) United States currency eligible security means any of the following which is, or is denominated in, United States currency and which the commissioner has not by regulation or order declared to be ineligible pursuant to Section 33562: (1) Cash. (2) Any deposit in an insured bank or an insured savings and loan association. (3) Any bond, note, or other obligation which is issued or guaranteed by the United States or by any agency of the United States. (4) Any bond, note, or other obligation which is issued or guaranteed by any state of the United States or by any governmental agency of or within any state of the United States and which is assigned an eligible rating by an eligible securities rating service. (5) Any bankers acceptance which is eligible for discount by a federal reserve bank. (6) Any commercial paper which is assigned an eligible rating by an eligible securities rating service. (7) Any bond, note, or other obligation or preferred stock which is assigned an eligible rating by an eligible securities rating service. (8) Any share of an investment company that is an open-end management company, that is registered under the Investment Company Act of 1940 (12 U.S.C. Sec. 80a-1 et seq.), that holds itself out to investors as a money market fund, and that operates in accordance with all provisions of the Investment Company Act of 1940 and of the regulations of the Securities and Exchange Commission applicable to money market funds, including Section 270.2a-7 of the regulations of the Securities and Exchange Commission (17 C.F.R. Sec. 270.2a-7). For purposes of this paragraph and paragraph (9), investment company, management company, and open-end have the meanings set forth in Sections 3, 4, and 5, respectively, of the Investment Company Act of 1940 (12 U.S.C. Secs. 80a-3, 80a-4, and 80a-5, respectively). (9) Any share of an investment company that is an open-end management company, that is registered under the Investment Company Act of 1940 (12 U.S.C. Sec. 80a-1 et seq.), and that invests exclusively in securities that constitute United States currency eligible securities under the other provisions of this subdivision. (10) Any account due to any licensee from any agent of such licensee on account of the sale by such agent of reported outstanding payment instruments issued by the licensee, if the account is current and not past due or otherwise doubtful of collection. (11) Any other security or class of securities that the commissioner has by regulation or order declared to be eligible securities pursuant to Section 33563. (g) Value means: (1) When used with respect to an eligible security owned by a licensee which consists of an account due to such licensee from an agent of the licensee on account of the sale by such agent of reported outstanding payment instruments issued by the licensee, net carrying value as determined in conformity with generally accepted accounting principles. However, in computing the value of the account due to the licensee, any amount due on account of the sale of a payment instrument shall be excluded if the time elapsed between the sale and the date of computation exceeds the average time that elapses between the time of sale and the time of payment of payment instruments issued by the licensee. (2) When used with respect to any other eligible security owned by a licensee: (A) In case the practice and policy of such licensee is to hold eligible securities to maturity, net carrying value as determined in conformity with generally accepted accounting principles. (B) In any other case, market value.