California Financial Code

§ 31220

FIN § 31220 Effective Sep 30, 2000Div. 15 · Ch. 4 · Art. 3

Statute text

Notwithstanding any other law of this state, but subject to the provisions of Section 31550:

(a)Any commercial bank, industrial bank, or trust company organized under the laws of this state may, with the prior approval of the commissioner, acquire and hold securities issued by a licensee; provided, however, that the aggregate amount of securities issued by licensees which are held by the commercial bank, industrial bank, or trust company shall not at any time exceed 212 percent of the shareholders’ equity of the commercial bank, industrial bank, or trust company. This subdivision shall not apply to any loan or other extension of credit made by a commercial bank or industrial bank organized under the laws of this state to a licensee in accordance with the Banking Law (Division 1 (commencing with Section 99)).

(b)Any savings association organized under the laws of this state may, with the prior approval of the commissioner, acquire and hold securities issued by a licensee; provided, however, that the aggregate amount of securities issued by licensees which are held by such savings association shall not at any time exceed 12 percent of the total outstanding loans of such savings association.

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Legislative history

Amended by Stats. 2000, Ch. 1015, Sec. 55. Effective September 30, 2000.