2835. Commingling.
“Commingling” as used in Section 10176(e) of the Code is prohibited except as specified in this section. For purposes
of Section 10176(e), the following shall not constitute “commingling”:
(a) The deposit into a trust account of reasonably sufficient funds, not to exceed $200, to pay service charges or fees
levied or assessed against the account by the bank or financial institution where the account is maintained.
(b) The deposit into a trust account maintained in compliance with subdivision (d) of funds belonging in part to the
broker’s principal and in part to the broker when it is not reasonably practicable to separate such funds, provided the
part of the funds belonging to the broker is disbursed not later than twenty-five days after their deposit and there is no
dispute between the broker and the broker’s principal as to the broker’s portion of the funds. When the right of a broker
to receive a portion of trust funds is disputed by the broker’s principal, the disputed portion shall not be withdrawn until
the dispute is finally settled.
(c) The deposit into a trust account of broker owned funds in connection with activities pursuant to either subdivision
(d) or (e) of Section 10131 of the Code or when making, collecting payments or servicing a loan which is subject to the
provisions of Section 10240 of the Code provided:
(1) The broker meets the criteria of Section 10232 of the Code.
(2) All funds in the account which are owned by the broker are identified at all times in a separate record which is
distinct from any separate record maintained for a beneficiary.
(3) All broker owned funds deposited into the account are disbursed from the account not later than 25 days after
their deposit.
(4) The funds are deposited and maintained in compliance with subdivision (d).
(5) For the purpose of this section, a broker shall be deemed to be subject to the provisions of Section 10240 of the
Code if the broker delivers the statement to the borrower required by Section 10240.
(d) The trust fund account into which the funds are deposited is maintained in accordance with the provisions of Section
10145 and the regulations of this article.