1. (a) The term “customer” does not include a broker-dealer.

2. (b) The phrase “the completion of the transaction” means:

   1. (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. (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. (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. (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.

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

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

History

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