{"code":"FIN","codeName":"Financial Code","section":"1135","citation":"Fin. Code, § 1135","status":"in-force","lawOn":"2026-09-28","headings":[{"name":"DIVISION 1.1. BANKING [1000. - 1910.]","url":"https://blackletter.si/financial-code/division-1.1"},{"name":"CHAPTER 5. Corporate Requirements [1100. - 1190.]","url":"https://blackletter.si/financial-code/division-1.1/chapter-5"},{"name":"ARTICLE 3. Distributions to Shareholders [1130. - 1135.]","url":"https://blackletter.si/financial-code/division-1.1/chapter-5/article-3"}],"history":"Added by Stats. 2011, Ch. 243, Sec. 3.   (SB 664)   Effective January 1, 2012.","effective":"2012-01-01","html":"<p>If the commissioner finds that the shareholders’ equity of a bank is not adequate or that the making by a bank or by any majority-owned subsidiary of a bank of a distribution to the shareholders of the bank would be unsafe or unsound for the bank, the commissioner may order the bank and its majority-owned subsidiaries not to make any distribution to the shareholders of the bank. In addition to the order authorized by this section, the commissioner may levy a civil penalty against the bank pursuant to Section <a href=\"/fin/329\">329</a>.</p>","text":"If the commissioner finds that the shareholders’ equity of a bank is not adequate or that the making by a bank or by any majority-owned subsidiary of a bank of a distribution to the shareholders of the bank would be unsafe or unsound for the bank, the commissioner may order the bank and its majority-owned subsidiaries not to make any distribution to the shareholders of the bank. In addition to the order authorized by this section, the commissioner may levy a civil penalty against the bank pursuant to Section 329.","otherVersions":[],"url":"https://blackletter.si/financial-code/distributions-to-shareholders-1135","source":"California Legislative Information bulk export (pubinfo)"}