§ 1196
80 words·~1 min read·
/ca/insurance-code/1196A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Excess funds investments shall not be made in any stock or obligation unless:
(a)The stock or obligation qualifies as a sound investment.
(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.