California Code of Regulations
Title 10 - Investment
Chapter 3 - Commissioner of Financial Protection and Innovation
Subchapter 9 - Escrow Agents
Article 4 - Books, Records and Accounts
Section 1740.3 - Current Liabilities Defined

The term "current liabilities" as used in Section 17210 of the Financial Code includes (a) all liabilities due within one (1) year after the date as of which the balance sheet making reference thereto is prepared; together with (b) all liabilities due to officers, directors, stockholders, affiliated companies, and employees of the escrow agent, regardless of the due date thereof, except that such liabilities need not be included as current liabilities, if not due within said one-year period, to the extent they are the subject of a subordination agreement executed by the creditor subordinating such liability to the claims of all other creditors for a period of not less than said one-year period, if such agreement has been approved by the Commissioner. Any such subordination agreement shall provide that it may be rescinded or amended only upon thirty (30) days prior notice to the Commissioner.

1. New section filed 11-24-65; effective thirtieth day thereafter (Register 65, No. 23).
2. Editorial correction adding NOTE filed 4-6-83 (Register 83, No. 15).
3. Editorial correction of printing error in section (Register 96, No. 52).

Note: Authority cited: Sections 17400 and 17401, Financial Code. Reference: Sections 17210 and 17415, Financial Code.