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Section 1823 Of Chapter 7. Bail Licenses From California Insurance Code >> Division 1. >> Part 2. >> Chapter 7.
1823
. All surety companies which execute undertakings of bail shall
keep any moneys collected from agents licensed pursuant to this code
as buildup or reserve funds in segregated trust accounts within the
state. These accounts shall be maintained as any of the following:
(a) A Federal Deposit Insurance Corporation (FDIC) insured account.
(b) United States government bonds and treasury certificates or other obligations for which the faith of the United States is pledged for the payment of principal and interest.
(c) Repurchase agreements collateralized by securities issued by the United States government.
(d) A money market fund that limits its portfolio to those securities listed in subdivisions (a) and (b). The accounts described in this section shall not be hypothecated or offered as collateral. The accounts described in this section shall be used to satisfy the unfulfilled obligations of the undertakings of bail written by the agents from whom the moneys have been collected and to otherwise satisfy the unfulfilled obligations which may be owing to the surety by those agents.
(a) A Federal Deposit Insurance Corporation (FDIC) insured account.
(b) United States government bonds and treasury certificates or other obligations for which the faith of the United States is pledged for the payment of principal and interest.
(c) Repurchase agreements collateralized by securities issued by the United States government.
(d) A money market fund that limits its portfolio to those securities listed in subdivisions (a) and (b). The accounts described in this section shall not be hypothecated or offered as collateral. The accounts described in this section shall be used to satisfy the unfulfilled obligations of the undertakings of bail written by the agents from whom the moneys have been collected and to otherwise satisfy the unfulfilled obligations which may be owing to the surety by those agents.
