Cal. Code Regs. Tit. 10, § 260.216.1 - Definitions

Current through Register 2022 Notice Reg. No. 16, April 25, 2022

As used in any Section of these rules adopted pursuant to subdivision (a) of Section 25216 of the Code:

(a) The term "customer" does not include a broker-dealer.
(b) The phrase "the completion of the transaction" means:
(1) In the case of a customer who purchases a security through or from a broker-dealer, except as provided in Clause (2) of this subsection, the time when such customer pays the broker-dealer any part of the purchase price, or, if payment is effected by a bookkeeping entry, the time when such bookkeeping entry is made by the broker-dealer for any part of the purchase price;
(2) In the case of a customer who purchases a security through or from a broker-dealer and who makes payment therefor prior to the time when payment is requested or notification is given that payment is due, the time when such broker-dealer delivers the security to or into the account of such customer;
(3) In the case of a customer who sells a security through or to a broker-dealer, except as provided in Clause (4) of this subsection, if the security is not in the custody of the broker-dealer at the time of sale, the time when the security is delivered to the broker-dealer, and if the security is in the custody of the broker-dealer at the time of sale, the time when the broker-dealer transfers the security from the account of such customer;
(4) In the case of a customer who sells a security through or to a broker-dealer and who delivers such security to such broker-dealer prior to the time when delivery is requested or notification is given that delivery is due, the time when such broker-dealer makes payment to or into the account of such customer.

Notes

Cal. Code Regs. Tit. 10, § 260.216.1

Note: Authority cited: Sections 25216(a) and 25610, Corporations Code. Reference: Section 25216, Corporations Code.

1. Editorial correction adding NOTE filed 4-6-83 (Register 83, No. 15).

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