California Insurance Code 1196 – Excess funds investments shall not be made in any stock or obligation …
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Excess funds investments shall not be made in any stock or obligation unless:
(a) The stock or obligation qualifies as a sound investment.
Terms Used In California Insurance Code 1196
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
(b) In case of a purchase, the price paid for the security is not in excess of the current market value at the date of purchase.
(c) In case of a loan, the amount loaned does not exceed eighty-five per cent of the market value, at the date of the loan, of the collateral taken as security.
(Amended by Stats. 1937, Ch. 738.)