Financial Code section 5400

(a)

No funds from proposed stockholders, members, or organizers of any proposed association may be collected until a verified application for an organizing permit has been filed and a permit has been issued by the commissioner authorizing collection of funds, and then only in accordance with the terms of the permit.

(b)

As used in this chapter, the term “organizer” means a person who agrees to contribute funds to a proposed association to be used for its organization expenses.

Source: Section 5400, https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=FIN§ionNum=5400. (accessed May 10, 2025).

5400
5401
5402
5403

Last Updated

May 10, 2025

§ 5400’s source at ca.gov

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Location: https://california.public.law/codes/financial_code_section_5400

Original Source: Section 5400, https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=FIN§ionNum=5400. (last accessed May 10, 2025).