The phrase “bona fide secured party,” as used in subdivision (e) of Section 25104 of the Code, does not include a secured party who takes securities in pledge without any intention or expectation that they will be redeemed but merely as a step in the distribution thereof to the public.

Note: Authority cited: Section 25610, Corporations Code. Reference: Section 25104, Corporations Code.

History

1. Editorial correction adding Note filed 3-9-83 (Register 83, No. 11).