1. (a) the security is currently in default as to any principal or interest payments;

2. (b) the security or any security, lawfully issued by the same issuer, has been in default as to either principal or interest payments for more than ninety (90) days within the immediately past period of:

   1. (1) two (2) years if the issuer is a county, municipality or school district in this State or in any other state, any province of Canada, or the Commonwealth of Puerto Rico; or
   2. (2) ten (10) years if the issuer is this State or any other state.

Debt securities, as defined herein, include notes, bonds, debentures, or other instruments commonly used as instruments of indebtedness, and accounts, deposits, certificates and other investment securities issued by banks and savings and loans and specifically authorized for investment by insurers under the California Insurance Code; no debt securities will be acceptable for deposits if:

Note: Authority cited: Section 11691, Insurance Code. Reference: Section 11691, Insurance Code.

History

1. Change without regulatory effect amending Note filed 4-28-2014 pursuant to section 100, title 1, California Code of Regulations (Register 2014, No. 18).