What is the consequence of a broker's license being inactive regarding their trust accounts?

When a broker's license is inactive, they still have certain responsibilities regarding the management of trust accounts. The correct understanding of this situation is that they must maintain trust accounts until all deposits are dispensed. This is crucial because a trust account holds client funds that must be managed in accordance with the law and to protect the interests of those clients. Even if a broker is not actively engaged in transactions due to their inactive status, they are still responsible for ensuring that the funds in those trust accounts are accounted for and properly handled.

By requiring brokers to maintain trust accounts until all deposits have been dispensed, the law safeguards the interests of clients whose money may still be held in those accounts. This provision ensures accountability and prevents mishandling of client funds, which could lead to legal complications and violations of fiduciary duties.