Cal. Code Regs. tit. 10 § 10.16102

Current through Register 2024 Notice Reg. No. 52, December 27, 2024

Section 10.16102 - Increase or Decrease in Applicable Minimum

If the applicable minimum for a subject institution changes from one maintenance period (hereafter in this Section referred to as the "old maintenance period") to the next maintenance period (hereafter in this section referred to as the "new maintenance period"):

(a) In case the applicable minimum increases and the applicable minimum for the new maintenance period exceeds the total value of the eligible assets which the subject institution maintains in the pledge deposit, the subject institution shall deposit in the pledge deposit additional eligible assets of sufficient value to raise the total value of the eligible assets in the pledge deposit to an amount which equals or exceeds the applicable minimum for the new maintenance period and the subject institution shall make such deposit before the close of business on the last day of the old maintenance period so that the subject institution will be in compliance with Financial Code Section 1811(c) when the new maintenance period begins.

(b) In case the applicable minimum decreases and the applicable minimum for the new maintenance period is less than the total value of the eligible assets which the subject institution maintains in the pledge deposit, the subject institution may not withdraw eligible assets from the pledge deposit so as to reduce the total value of the eligible assets in the pledge deposit to an amount which is less than the applicable minimum for the old maintenance period until the old maintenance period has ended and the new maintenance period begins.

Cal. Code Regs. Tit. 10, § 10.16102

1. Change without regulatory effect amending subsection (a) and NOTE filed 8-21-2019 pursuant to section 100, title 1, California Code of Regulations (Register 2019, No. 34).

Note: Authority cited: Section 326, Financial Code. Reference: Section 1811, Financial Code.

1. Change without regulatory effect amending subsection (a) and Note filed 8-21-2019 pursuant to section 100, title 1, California Code of Regulations (Register 2019, No. 34).