California Code of Regulations
Title 10 - Investment
Chapter 3 - Commissioner of Financial Protection and Innovation
Subchapter 10 - Check Sellers, Bill Payers and Proraters
Article 2 - Applications
Section 1780 - Liquid Assets Defined

(a) Cash in hand or in bank.

(b) Cash in transit.

(c) Securities listed on the stock exchange or whose marketability and value is established by satisfactory proof.

(d) United States Bonds.

(e) Bonds of state and government units whose marketability and value is established by satisfactory proof.

(f) Investments in savings and loan associations and other financial institutions upon satisfactory proof that the funds of the licensee are readily available upon demand.

(g) Other securities and property having a market value upon satisfactory proof of marketability and value.

The Department does not favorably consider investments in securities such as second trust deeds as "liquid assets" where the determination of value requires investigation into collateral matters such as value of property securing the note, and considerations of senior liens on the property, and where there is not a clear showing of a well-established market for such securities.

The Department does not favorably consider as "liquid assets" such assets of the licensee, which if sold would affect the ability the licensee, which if sold would affect the ability of the licensee to carry on its business.

In a determination by specific ruling whether a particular asset is a liquid asset within the meaning of Section 12205 of the Financial Code, the rule to be followed is that the stated value of the asset is the price at which the asset is immediately marketable at a forced sale.