73-2

73-2

May 17, 1973

Re: Definition of Money Within the Meaning of Sections 1540 and 1543 of the
Financial Code.

Dear Mr. ____________:

This is in reply to your letter of May 11, 1973 to _______________ of this Office.

In your letter, you requested this Office to supply a definition of the word “money” as used in Sections 1540 and 1543 of the Financial Code. “Money” is defined in Section 1201(24) of the Uniform Commercial Code as adopted in California. It is defined therein as

“A medium of exchange authorized or adopted by a domestic or foreign government as part of its currency.

In relation to this Section, the official comments of the Code state,

“The test adopted is that of sanction of government, whether by authorization before issue or adoption afterward, which recognizes the circulating medium as a part of the official currency of the government.”

It is our opinion that since time certificates of deposit are not part of the official currency of the United States government, they cannot be pledged as security to the State Treasurer.

We hope that the above information has sufficiently answered your question.

Very truly yours,