Section 5950.
Cal. Government Code - GOV § 5950.
in effectAs used in this chapter:
(a)
“Accredited investor” has the meaning specified in Rule 501 of the Securities Act of 1933.
(b)
“In this state” has the meaning specified in Section 25008 of the Corporations Code.
(c)
“Issuer” has the meaning specified in Section 25010 of the Corporations Code.
(d)
“Issuer transaction” means any transaction directly or indirectly for the benefit of the issuer. A transaction is indirectly for the benefit of the issuer if any portion of the purchase price of any security constituting a fractional interest in a lease, installment sale, or other obligation of a local agency involved in the transaction will be received indirectly by the issuer. An offer or sale that involves both an issuer transaction and a transaction that is not an issuer transaction shall be treated as separate transactions.
(e)
“Knowingly” means that a person, with respect to an offer or sale of a security constituting a fractional interest in a lease, installment sale, or other obligation of a local agency, does any of the following:
(1)
Has actual knowledge that the local agency has not consented to the offer or sale of such security.
(2)
Acts in deliberate ignorance of whether or not the local agency has consented to the offer or sale of that security.
(3)
Acts in reckless disregard of whether or not the local agency has consented to the offer or sale of that security.
Proof of specific intent to violate Section 5951 is not required.
(f)
“Local agency” means a city, county, city and county, school district, special district, public corporation, or other public entity of this state.
(g)
“Person” has the meaning specified in Section 25013 of the Corporations Code.
(h)
“Qualified institutional buyer” has the meaning specified in Rule 144A of the Securities Act of 1933.
(i)
“Sale,” “sell,” “offer,” and “offer to sell” have the respective meanings specified in Section 25017 of the Corporations Code.
(j)
“Security” has the meaning specified in Section 25019 of the Corporations Code.
(k)
“Securities Act of 1933” and “Investment Company Act of 1940” means the federal statutes of those names as amended before or after the effective date of this chapter.
References
referencesCal. Corporations Code - CORP § 25008.
referencesCal. Corporations Code - CORP § 25010.
referencesCal. Corporations Code - CORP § 25013.
referencesCal. Corporations Code - CORP § 25017.
referencesCal. Corporations Code - CORP § 25019.
referencesCal. Government Code - GOV § 5951.
Source: CA Legislative Counsel Bulk DataURL: https://downloads.leginfo.legislature.ca.gov/pubinfo_2025.zipFetched: 6/27/2026