Cal. Code Regs. Tit. 10, § 2831 - Trust Fund Records to be Maintained

Current through Register 2021 Notice, Register No. 40, October 1, 2021

(a) Every broker shall keep a record of all trust funds received, including uncashed checks held pursuant to instructions of his or her principal. This record, including records maintained under an automated data processing system, shall set forth in chronological sequence the following information in columnar form:
(1) Date trust funds received.
(2) From whom trust funds received.
(3) Amount received.
(4) With respect to funds deposited in an account, date of said deposit.
(5) With respect to trust funds previously deposited to an account, check number and date of related disbursement.
(6) With respect to trust funds not deposited in an account, identity of other depository and date funds were forwarded.
(7) Daily balance of said account.
(b) For each bank account which contains trust funds, a record of all trust funds received and disbursed shall be maintained in accordance with subdivision (a) or (c).
(c) Maintenance of journals of account cash receipts and disbursements, or similar records, or automated data processing systems, including computer systems and electronic storage and manipulation of information and documents, in accordance with generally accepted accounting principles, shall constitute compliance with subdivision (a) provided that such journals, records, or systems contain the elements required by subdivision (a) and that such elements are maintained in a format that will readily enable tracing and reconciliation in accordance with Section 2831.2.
(d) Nothing in this section shall be construed to permit a violation of Section 10145 of the Code.
(e) A broker is not required to keep records pursuant to this section of checks which are written by a principal, given to the broker and made payable to third parties for the provision of services, including but not limited to escrow, credit and appraisal services, when the total amount of such checks for any transaction from that principal does not exceed $1,000. Upon request of the Bureau or the maker of such checks, a broker shall account for the receipt and distribution of such checks. A broker shall retain for three years copies of receipts issued or obtained in connection with the receipt and distribution of such checks.

Notes

Cal. Code Regs. Tit. 10, § 2831

Note: Authority cited: Section 10080, Business and Professions Code. Reference: Sections 10145 and 10148, Business and Professions Code.

1. Amendment filed 10-16-58; effective thirtieth day thereafter (Register 58, No. 19).
2. Amendment filed 8-21-63; designated effective 9-20-63 (Register 63, No. 14).
3. Amendment filed 7-9-80; designated effective thirtieth day thereafter (Register 80, No. 28).
4. Amendment filed 7-1-83; effective thirtieth day thereafter (Register 83, No. 30).
5. Amendment of subsection (a) filed 4-2-86; effective thirtieth day thereafter (Register 86, No. 14).
6. Amendment of subsection (a) filed 3-18-88; operative 4-17-88 (Register 88, No. 14).
7. New subsections (b) and (d), subsection relettering, and amendment of subsections (a)-(a)(7) and newly designated subsection (c) filed 11-8-93; operative 12-8-93 (Register 93, No. 46).
8. Amendment of subsection (c) and new subsection (e) filed 11-13-96; operative 11-13-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 46).
9. Amendment of subsections (b)-(e) filed 12-30-97; operative 1-29-98 (Register 98, No. 1).
10. Change without regulatory effect amending subsection (e) filed 6-30-2014 pursuant to section 100, title 1, California Code of Regulations (Register 2014, No. 27).

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