Section 731 Of Article 2. Yacht And Ship Brokers From California Harbors And Navigation Code >> Division 3. >> Chapter 5. >> Article 2.
731
. (a) A cash deposit given instead of the bond required by
Section 730 shall be held by the department during the life of the
license and for a period of four years after the expiration of the
license.
(b) If an action is commenced on the cash deposit of a licensed
broker pursuant to subdivision (a), the department may require the
filing of an additional cash deposit, and immediately, upon the
recovery in any action on the deposit, the broker described therein
shall file a new cash deposit, equal to the amount specified in the
action or recovery, but no greater than the amount specified in
subdivision (a) of Section 730, whichever is less. Failure to file an
additional cash deposit within 30 days after notification that an
additional cash deposit is required by reason of an action filed
against the cash deposit, or after the recovery on a cash deposit,
shall constitute a failure to comply with this article, in which case
the department may suspend the license of the licensed broker whose
cash deposit has been acted on, or where a cash deposit recovery has
been made.