DIVISION 2. SAVINGS ASSOCIATION LAW [5000. - 10009.]
Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2.
§§ 5000–10009 · 387 sections
CHAPTER 1. Short Title, General Definitions, and General Provisions §§ 5000–5330 · 64 sections
ARTICLE 1. Short Title § 5000 · 1 section
- § 5000 This division may be cited as the “Savings Association Law.”
ARTICLE 2. General Definitions §§ 5100–5124 · 36 sections
- § 5100 When used in this division, the words and phrases set forth in this article shall have the meanings given in this article unless the context requires another…
- § 5100.2 For purposes of this division: (a) Any reference to regulations of the federal Office of the Comptroller of the Currency or the Federal Deposit Insurance…
- § 5100.5 “Affiliated person” of a savings association means the following: (a) A director, officer, or controlling person of the savings association. (b) A spouse of a…
- § 5100.6 “Affiliate” of a savings association, unless otherwise defined, includes any corporation, business trust, unincorporated association or other similar…
- § 5100.7 “Controlling person” of a savings association means any person or entity which (a) either directly or indirectly or acting in concert with one or more other…
- § 5100.8 “Immediate family” of any natural person means any of the following (whether by the full or half blood or by adoption): (a) The person’s spouse, father,…
- § 5100.9 “Institution-affiliated party” means any of the following: (a) Any director, officer, employee or controlling stockholder of, or agent for, a savings…
- § 5101 “Approved by the members,” in the case of a mutual association, means approved by a majority of all votes cast at a duly held regular or special meeting or by…
- § 5102 (a) “Association” or “savings association” means a mutual or stock savings association, savings and loan association or savings bank subject to the provisions…
- § 5103 “Certificate of authority” means: (a) A certificate of authority to transact the business of an association, which is issued by the commissioner pursuant to…
- § 5103.5 “Commercial paper” means any note, draft, or bill of exchange which arises out of a current transaction or the proceeds of which have been or are to be used…
- § 5104 “Commissioner” means the Commissioner of Financial Protection and Innovation.
- § 5105 “Community” means a centralized area or locality in which a body of inhabitants is gathered in one group having common residential, social, or business…
- § 5105.5 “Consumer loan” means a loan for personal, family, or household purposes, and loans reasonably incident thereto, and may be made as either open-end or…
- § 5105.8 “Corporate debt security” means a marketable obligation, evidencing the indebtedness of any corporation in the form of a bond, note, or debenture, or both note…
- § 5106 “Department” means the Department of Financial Protection and Innovation.
- § 5107 “Financial institution” means a thrift institution, commercial bank, or trust company.
- § 5108 “Impaired condition” means a condition in which the assets of an association in the aggregate do not have a value, as determined in accordance with generally…
- § 5109 “Mutual association” means an association for which the articles of incorporation do not authorize the issuance of capital stock.
- § 5110 “Member” means a person holding a savings account of a mutual association. A joint and survivorship or other multiple owner constitutes a single membership.
- § 5111 “Mutual capital certificate” means a certificate evidencing an investment in a mutual association and issued pursuant to provisions of this division.
- § 5112 “Net worth certificate” means a certificate issued by an association in accordance with Section 13i of the Federal Deposit Insurance Act, as amended (12…
- § 5113 “Person” means any individual, domestic, or foreign corporation, entity, voting trust, business trust, partnership, limited liability company, association,…
- § 5114 “Primarily residential property” means real estate on which there is located, or will be located pursuant to a real estate loan, any of the following: (a) A…
- § 5114.5 “Residential real estate” means any improved real property that is used or intended to be used as a residence and contains not more than four dwelling units.
- § 5115 “Real estate loan” means a loan or other obligation secured by a lien on real estate, if: (a) The security property is real estate as defined pursuant to…
- § 5116 “Savings account” means that part of the savings liability of an association that is credited to the holder of the account. A savings account may be referred…
- § 5117 “Savings bank” means a savings bank organized under this division.
- § 5117.5 “Savings institution” means a financial institution as defined in Section 5102.
- § 5118 “Savings liability” means the aggregate amount of savings accounts of depositors, including interest credited to the accounts, less redemptions and withdrawals.
- § 5119 “Service corporation” means a corporation, other than a wholly owned subsidiary referred to in Section 7300 or a wholly owned subsidiary doing business as a…
- § 5120 “Statutory net worth” or “net worth” means the sum of the following: (a) Issued and outstanding capital stock. (b) Issued and outstanding capital certificates.…
- § 5121 “Stock association” means an association for which the articles of incorporation authorize the issuance of capital stock.
- § 5122 “Stockholder” means the holder of one or more shares of any class of capital stock of a capital stock association which is organized and operating pursuant to…
- § 5123 “Thrift institution” means an association, a cooperative bank, a homestead association, a building and loan association, a federal association, a federal…
- § 5124 “Withdrawal value” means the amount credited to a savings account less lawful deductions, as shown by the records of the association.
ARTICLE 3. General Provisions §§ 5203–5209 · 8 sections
- § 5203 (a) The name, rights, powers, privileges, and immunities of each association in existence on the effective date of this division shall be governed by the…
- § 5204 (a) Wherever it is stated in this division that an agreement or contract contrary to any of the division’s provisions is void, the statement is limited to the…
- § 5205 Whenever the term “ association” is used in any provision of law, such term shall be deemed to include savings banks organized under this division; and…
- § 5205.5 (a) All references in this division to financial statements, balance sheets, income statements, and statements of changes in financial position of an…
- § 5206 Whenever the terms “board of directors,” “directors,” or “director” are used in any provision of law, such terms shall mean, with respect to savings banks…
- § 5207 If any provision, clause, or phrase of this division or application to any person or circumstance is held invalid, its invalidity shall not affect other…
- § 5208 This division, being a comprehensive coverage of its subject matter, shall not be deemed to be impliedly repealed, in whole or in part, by subsequent…
- § 5209 Insofar as the provisions of this division are inconsistent with any other law in effect at the time the provisions of this division are enacted, the…
ARTICLE 4. Penalties §§ 5300–5311 · 12 sections
- § 5300 Every person who willfully violates or willfully fails to comply with any of the provisions of this division is guilty of a public offense. Except where the…
- § 5301 (a) The commissioner may refer such evidence as is available concerning any violation of this division or of any regulation, order issued by the commissioner,…
- § 5302 (a) Whoever knowingly violates subdivision (a) or (b) of Section 6525.5 shall be punished by a fine of not more than one million dollars ($1,000,000) for each…
- § 5303 Any officer, director, employee, or agent of any association who (a) willfully makes or knowingly concurs in the making or publishing of a false or untrue…
- § 5304 (a) It is unlawful for any person to corruptly give, offer, or promise anything of value to any other person, with intent to influence or reward any…
- § 5305 Any institution-affiliated party who abstracts or willfully misapplies any of the money, funds, or property of the savings association, or willfully misapplies…
- § 5306 Any institution-affiliated party who knowingly executes, or attempts to execute, a scheme or artifice to defraud a savings association or to obtain any of the…
- § 5307 Whoever willfully and knowingly makes, issues, circulates, transmits, or causes or knowingly permits to be made, issued, circulated, or transmitted, any…
- § 5308 Whoever knowingly makes or causes to be made, directly or indirectly, or through any agency whatsoever, any false statement or report, or willfully overvalues…
- § 5309 (a) A person shall be sentenced to consecutive terms for each violation of Section 5303, 5304, 5305, or 5306 up to a mandatory term of 20 years in state prison…
- § 5310 (a) Any person violating or conspiring to violate Sections 5303, 5304, 5305, or 5306 shall be subject to a civil penalty in an amount assessed by the court in…
- § 5311 (a) Any fine or civil penalty imposed under this chapter shall be based upon the ability of the defendant to pay. In setting the amount of the fine or civil…
ARTICLE 5. Criminal Forfeiture §§ 5320–5325 · 6 sections
- § 5320 If a person is convicted of a violation of Section 5303, 5304, 5305, or 5306, or is convicted of a felony for a violation of Section 25540 or 25541 of the…
- § 5321 (a) The prosecuting agency shall, prior to, in conjunction with, or subsequent to the criminal proceeding, file a petition of forfeiture with the superior…
- § 5322 (a) Any person claiming an interest in the property may, at any time within 30 days from the date of the first publication of the notice of seizure, or within…
- § 5323 (a) Concurrent with, or subsequent to, the filing of the petition, the prosecuting agency may move the superior court for the following pendente lite orders to…
- § 5324 (a) If the trier of fact at the forfeiture hearing finds that the alleged property or proceeds is forfeitable pursuant to Section 5320, the court shall declare…
- § 5325 Notwithstanding that no response or claim has been filed pursuant to Section 5322, in all cases where property is forfeited pursuant to this article and, where…
ARTICLE 6. Civil Penalties § 5330 · 1 section
- § 5330 The commissioner may impose civil penalties on any savings association, and any institution-affiliated party as follows: (a) Except as provided in subdivision…
CHAPTER 2. Corporate Organization and Corporate Changes §§ 5400–5868 · 90 sections
ARTICLE 1. Organizing Permit §§ 5400–5403 · 4 sections
- § 5400 (a) No funds from proposed stockholders, members, or organizers of any proposed association may be collected until a verified application for an organizing…
- § 5401 The application for an organizing permit shall be in writing and shall be filed in the office of the commissioner. The application shall be executed and…
- § 5402 (a) The commissioner may impose conditions in an organizing permit concerning the deposit in escrow of funds collected pursuant to the permit, the manner of…
- § 5403 (a) Before filing an application for an organizing permit with the commissioner under Section 5400, an organizer shall file with the Secretary of State an…
ARTICLE 2. Petition for Certificate of Authority §§ 5500–5506 · 8 sections
- § 5500 Within 60 days after issuance of an organizing permit under Article 1 (commencing with Section 5400) any person may request authority to form a capital stock…
- § 5501 Upon receipt of a petition for a certificate of authority, the commissioner shall give written notice to each association that a petition for the issuance of a…
- § 5501.5 The articles of incorporation of each domestic association incorporated after January 1, 1984, shall include a statement that it is formed for each of the…
- § 5502 The commissioner shall not approve any petition for certificate of authority unless it is found from the data furnished with the petition, the evidence adduced…
- § 5503 (a) The commissioner shall, within a reasonable time after the petition is filed, or within a reasonable time after the hearing, if one is held, either approve…
- § 5504 Upon issuance of a certificate of approval of articles of incorporation to a proposed association, the commissioner shall attach the original signed copy of…
- § 5505 The articles of incorporation of a proposed association shall not be filed in the office of the Secretary of State unless a certificate of approval of the…
- § 5506 Within 30 days after the corporate existence of an association begins, the directors of the association shall hold an organization meeting and shall elect…
ARTICLE 3. Postincorporation Organization of Associations §§ 5600–5618 · 14 sections
- § 5600 (a) The board of directors of an association which is in the process of organization shall select a financial institution within this state as a depository for…
- § 5601 Before a certificate of authority is issued, the capital of the association shall be paid into the association and, in the case of stock, shall be the sum of…
- § 5602 In addition to the minimum capital required, the commissioner may require that the consideration for the issuance of capital stock shall be sufficient to…
- § 5603 In the case of a stock association, prior to issuance of a certificate of authority, the association shall file with the commissioner a statement in a form and…
- § 5604 (a) In the case of a stock association, on or after the date the commissioner issues the association a certificate of authority, the association shall issue…
- § 5605 (a) Any association that does not commence business within one year after the date of the issuance of its certificate of approval of articles of incorporation…
- § 5606 (a) Prior to doing business in this state, an association shall obtain and maintain insurance of its savings accounts by the Federal Deposit Insurance…
- § 5612 For the purposes of this article, “security” means any stock, subordinated debenture, warrant, or right or option to purchase any stock issued by an…
- § 5613 (a) No association shall sell, except upon a sale for a delinquent assessment made in accordance with the provisions of the General Corporation Law, or offer…
- § 5614 (a) Except as provided in subdivision (b), no issued and outstanding stock of an association shall be sold or offered for sale to the public, nor shall…
- § 5615 An application for a permit to sell securities shall be in writing, verified as provided in the Code of Civil Procedure for the verification of pleadings, and…
- § 5616 Upon the filing of the application for a permit to sell securities, the commissioner shall examine the application and other papers and documents filed…
- § 5617 Every permit to sell securities shall recite in bold type that the issuance thereof is permissive only and does not constitute a recommendation or endorsement…
- § 5618 The commissioner may amend, alter, or revoke any permit issued by the commissioner, or temporarily suspend the rights of the association under such permit.
ARTICLE 4. Issuance of Stock and Certificates §§ 5620–5624 · 5 sections
- § 5620 (a) A stock association may issue shares of common stock and preferred stock, with or without par value, and common and preferred stock may be divided into…
- § 5621 (a) With the approval of the commissioner, a mutual association may amend its articles of incorporation to authorize the issuance of stock and may issue stock.…
- § 5622 Capital stock of a stock association shall be issued pursuant to the following requirements: (a) Except for stock issued pursuant to a stock dividend, stock…
- § 5623 A mutual association may issue mutual capital certificates in accordance with regulations of the commissioner.
- § 5624 An association may issue net worth certificates in accordance with applicable regulations of the Office of Thrift Supervision or the Federal Deposit Insurance…
ARTICLE 5. Association Name, Office §§ 5650–5655 · 6 sections
- § 5650 Notwithstanding the provisions of subdivision (a) of Section 201 of the Corporations Code and Division 1 of the Financial Code, the name of every association…
- § 5651 (a) No certificate of approval of articles of incorporation of a proposed association having the same name as an association in existence in this state on the…
- § 5652 Except as otherwise authorized under existing law, no person, unless lawfully authorized to do business in this state under the provisions of this division and…
- § 5653 Upon application by the commissioner or any association, a court of competent jurisdiction may issue an injunction to restrain any person from violating or…
- § 5654 (a) Without the prior approval of the commissioner, as provided in this division, no association shall do any of the following: (1) Establish or maintain any…
- § 5655 No association shall advertise or hold itself out to the public as a bank. This subdivision shall not be construed to prohibit an association which is a…
ARTICLE 6. Conversions §§ 5700–5718 · 19 sections
- § 5700 A state association may convert itself into a federal association by following the procedure outlined in Sections 5701 through 5708.
- § 5701 At any regular or special meeting called to consider the conversion of an association into a federal association, in the case of a stock association, the…
- § 5702 Any executor, administrator, guardian, conservator of a natural person or receiver, and any fiduciary or trustee, and any public corporation, political…
- § 5703 Promptly after the meeting approving a conversion into a federal association, the association shall file in the office of the commissioner a certificate…
- § 5704 A certified copy of the certificate required by Section 5703 filed in the office of the Secretary of State is presumptive evidence of the holding of the…
- § 5705 After the meeting of the stockholders and members, the association shall take any action necessary to make it a federal association, and promptly after receipt…
- § 5706 At the time the conversion into a federal association becomes effective the association ceases to be supervised by this state and all of the property of the…
- § 5707 The converted federal association shall have, hold, and enjoy the property mentioned in Section 5706 in its own right as fully and to the same extent as the…
- § 5708 Where a copy of a charter of a federal association, issued by the Federal Home Loan Bank Board pursuant to the laws of the United States was filed with the…
- § 5709 Any federal association may convert itself into an association by following the procedure set forth in Sections 5710 through 5718.
- § 5710 At any regular or special meeting called to consider the action, the stockholders and members entitled to vote by an affirmative majority of the votes cast in…
- § 5711 Copies of the minutes of the proceedings of the meeting of the stockholders or members in which they vote to convert into an association, verified by the…
- § 5712 The verified copies of the minutes of the meeting, when filed as required by Section 5711, are presumptive evidence of the holding and action of the meeting.
- § 5713 After a meeting as provided for in Section 5710, the federal association shall take or cause to be taken such action as shall make it an association in the…
- § 5714 The directors of an association converted from a federal association may insert in the articles of incorporation the following statement: “This association is…
- § 5715 Promptly after the filing of the articles of incorporation with the Secretary of State, there shall be filed with the federal home loan bank of which the…
- § 5716 Upon the filing of the articles of incorporation with the Secretary of State, the federal association ceases to be a federal association and is an association…
- § 5717 The converted association shall have, hold, and enjoy the property mentioned in Section 5716 in its own right as fully and to the same extent as the property…
- § 5718 In the event stock is to be issued by the converted association, the commissioner may issue an organizing permit to the federal association or to the board of…
ARTICLE 7. Power to Reorganize, Merge, Consolidate, or Transfer Assets §§ 5750–5762 · 13 sections
- § 5750 (a) Pursuant to a plan or agreement (referred to as “agreement” in this article) adopted by the board of directors and approved by the commissioner as fair,…
- § 5751 At the sole discretion of the commissioner a public hearing may be held on applications filed under this article, in accordance with procedures established by…
- § 5752 Applications filed under this article shall be accompanied by any applicable filing fee prescribed by the commissioner pursuant to Section 9001.
- § 5753 The provisions of Chapter 13 (commencing with Section 1300) of Division 1 of Title 1 of the Corporations Code shall apply only to stockholders and shares of…
- § 5754 In a merger the agreement shall state any matters with respect to which the articles of the surviving association are deemed amended and the articles shall be…
- § 5755 When a merger or consolidation agreement has been approved by the directors and the stockholders or members of an association, the association shall mail…
- § 5756 Any amendment to a merger or consolidation agreement may be adopted, and the agreement so amended may be approved at the meeting of the stockholders or members…
- § 5757 Notwithstanding any other provision of law, the approval of transactions under this article shall not be required by any borrowers or by holders of savings…
- § 5758 The executed agreement, or an executed counterpart of it and the respective certificate of each constituent association or any other corporation and of the…
- § 5759 An association may acquire all or at least 90 percent of the issued and outstanding stock of another association, or any other corporation, with the prior…
- § 5760 (a) Any association, owning all the outstanding stock of any corporation, may merge its wholly owned subsidiary corporation if the laws under which the…
- § 5761 The directors of an association may, in their discretion, abandon a transaction under this article, subject to the rights of third parties under any contracts…
- § 5762 The commissioner may adopt rules and regulations relating to any transaction regulated by this article.
ARTICLE 8. Holding Companies and Stock Acquisitions §§ 5800–5811 · 11 sections
- § 5800 For the purposes of this article the following words and phrases shall have the following meanings: (a) “Savings and loan holding company” means any person…
- § 5801 (a) Except as provided in subdivision (b), no person may become a savings and loan holding company, or thereafter register under Section 5804, unless the…
- § 5802 The commissioner shall within 60 days after the date of filing of a completed application, unless good cause is shown why a decision to approve or deny could…
- § 5803 (a) After the decision under this article by the commissioner either approving or denying the application, upon the filing with the commissioner within 30 days…
- § 5804 (a) Within 60 days following approval, or a later date if extended by the commissioner, each savings and loan holding company shall register with the…
- § 5806 Each savings and loan holding company, which is not an individual, shall pay an initial and an annual registration fee of five hundred dollars ($500) if the…
- § 5807 When a savings and loan holding company has satisfied the requirements of this article, the commissioner shall issue the holding company a certificate of…
- § 5808 No association that is a subsidiary in this state of any savings and loan holding company that does not have in effect a certificate of registration for that…
- § 5809 (a) The commissioner from time to time may require reports from any savings and loan holding company and its subsidiaries in a format deemed necessary or…
- § 5810 The commissioner shall have the enforcement powers with respect to savings and loan holding companies and their subsidiaries that are provided with respect to…
- § 5811 This article shall not apply to an acquisition of stock made pursuant to a plan or agreement of reorganization, merger, consolidation, or transfer of assets…
ARTICLE 9. Dissolution § 5850 · 1 section
- § 5850 (a) An association may dissolve pursuant to the General Corporation Law (Division 1 (commencing with Section 100) of Title 1 of the Corporations Code). (b) In…
ARTICLE 10. Mutual Holding Companies §§ 5860–5868 · 9 sections
- § 5860 Notwithstanding any other provision of law, but subject to prior approval of the commissioner, any mutual association may reorganize so as to become a mutual…
- § 5861 Upon transfer of assets and assumption of liabilities pursuant to Section 5860, persons who prior thereto held savings accounts with, or other rights as…
- § 5862 A reorganization of a mutual association pursuant to this article shall be approved by the board of directors and by the members of the mutual association.
- § 5863 An application to the commissioner for approval of a reorganization under this article shall contain such relevant information as the commissioner may require.…
- § 5864 In connection with reorganization pursuant to the provisions of this article, a mutual association may, subject to the approval of the commissioner, retain…
- § 5865 A mutual holding company shall be deemed to be a savings association continuing its organization under this division and may engage only in activities…
- § 5866 Sections 5801, 5802, and 5803 shall not apply to a reorganization pursuant to this article.
- § 5867 Notwithstanding any other provision of law, a reorganized stock association may exercise any and all powers, rights, and privileges of and be subject to all…
- § 5868 A reorganized stock association shall have the power to issue additional amounts of capital stock to the mutual holding company of which it is a subsidiary…
CHAPTER 3. Corporate Administration §§ 6000–6477 · 37 sections
ARTICLE 1. Meetings of Members of Mutual Associations §§ 6000–6006 · 7 sections
- § 6000 An annual meeting of the members of each mutual association shall be held at a time and place fixed in the bylaws of the association.
- § 6001 Special meetings of the members of a mutual association may be called at any time by the president or the board of directors, and shall be called by the…
- § 6002 Notice of each annual and special meeting shall be either published once a week for the two successive calendar weeks (in each instance on any day of the week)…
- § 6003 In the consideration of all questions requiring action by the members of a mutual association, each member shall be entitled to cast one vote for each one…
- § 6004 (a) In order that the association may determine the members entitled to notice of any meeting or to vote or entitled to receive any distribution or entitled to…
- § 6005 At any meeting of the members, voting may be in person or by proxy, provided that no proxy is eligible to be voted at any meeting unless it has been filed with…
- § 6006 Any number of members present at a regular or special meeting of the members shall constitute a quorum. A majority of all votes cast at any meeting of members…
ARTICLE 2. Access to Books and Records; Communication with Stockholders or Members; Derivative Actions §§ 6050–6053 · 4 sections
- § 6050 (a) The register of stockholders or members, the books of account, and the minutes of an association shall be subject to inspection upon the written demand of…
- § 6051 (a) If any member, members, stockholder or stockholders desire to communicate with other members or stockholders of an association about any question pending…
- § 6052 (a) No action may be instituted or maintained in the right of any association by any savings account holder who is not a stockholder or member of the…
- § 6053 In the case of an association which converts from a mutual association to a stock association, for a period of up to five years from the date of conversion,…
ARTICLE 3. Financial Statement Publication § 6100 · 1 section
- § 6100 Each association shall prepare and publish annually within the time prescribed by the commissioner in a newspaper of general circulation in the county in which…
ARTICLE 4. Directors §§ 6150–6157 · 8 sections
- § 6150 (a) The business of each association shall be directed by a board of directors elected by ballot by a plurality of the votes of the members or stockholders…
- § 6151 No person shall be eligible for election or shall serve as a director or officer of an association who has been convicted of a criminal offense involving…
- § 6152 (a) A director shall automatically cease to be a director upon becoming the subject of an order for relief in bankruptcy or upon conviction of a criminal…
- § 6153 Directors shall be elected for periods of three years and until their successors are elected and qualified, but provision shall be made for the election of…
- § 6154 If the members or stockholders fail to elect a director to fill each vacancy created by an increase in the number of directors, the current directors may fill…
- § 6155 Whenever the number of directors is changed and vacancies caused by the change are filled, the directors so elected shall be elected to terms in accordance…
- § 6156 (a) Any vacancy among directors, not filled by the members or stockholders, may be filled by a majority vote of the remaining directors, though less than a…
- § 6157 Every savings association subject to the new director or senior executive officer notice requirements of Section 32 of the Federal Deposit Insurance Act (12…
ARTICLE 5. Indemnity Bonds §§ 6200–6204 · 5 sections
- § 6200 Except as provided in subdivision (b) of Section 6203, all directors, officers, and employees of an association shall, before entering upon the performance of…
- § 6201 Associations that employ collection agents, who for any reason are not covered by a bond required under Section 6200, shall provide for the bonding of each of…
- § 6202 No indemnity bond coverage is required of any agent that is a financial institution insured by the Federal Deposit Insurance Corporation.
- § 6203 (a) The amounts and form of indemnity bonds and sufficiency of the surety shall be approved by the board of directors and by the commissioner. (b) In lieu of…
- § 6204 Indemnity bonds shall provide that their cancellation either by the surety or by the insured shall not become effective unless and until 10 days’ notice in…
ARTICLE 6. Records §§ 6450–6458 · 9 sections
- § 6450 Each association shall keep correct and complete books and records of accounts, as specified in Section 1500 of the Corporations Code.
- § 6451 (a) Except as provided in subdivision (b), each agency of an association, as defined in Section 6551, shall keep an original record of each transaction of…
- § 6452 Each association shall observe generally accepted accounting principles and practices except to the extent that the commissioner may require or permit…
- § 6453 Each association shall close its books at the close of business at least annually, or more often if authorized or required in writing by the commissioner.
- § 6454 No association by any system of accounting or any device of bookkeeping shall, either directly or indirectly, enter any of its assets upon its books in the…
- § 6455 (a) Each association shall maintain complete loan and investment records, and shall do so in a manner satisfactory to the commissioner. Detailed records…
- § 6456 Each mutual association shall maintain membership records which shall show the name and address of the member and the date of membership.
- § 6457 Each capital stock association shall maintain a register of stockholders.
- § 6458 (a) Any association may cause any or all records of the association to be copied or reproduced by any photostatic, photographic, or microfilming process that…
ARTICLE 7. Statutory Net Worth; Reserve Accounts §§ 6475–6477 · 3 sections
- § 6475 (a) Each association shall maintain an adequate statutory net worth appropriate for the conduct of its business and the protection of its savings account…
- § 6476 Each association shall set up and maintain the reserves required by, and may set up and maintain any additional reserves that are permitted by, this division.…
- § 6477 Any association which, for the purpose of evading provisions of this division or any order of the commissioner, knowingly participates, directly or indirectly,…
CHAPTER 4. Powers of Associations §§ 6500–6558 · 40 sections
ARTICLE 1. General Powers §§ 6500–6530 · 31 sections
- § 6500 (a) Each association incorporated pursuant to or operating under the provisions of this division shall have all the powers enumerated, authorized, and…
- § 6501 An association may have perpetual existence, adopt and use a corporate seal which may be affixed by imprint, facsimile, or otherwise, and adopt and amend…
- § 6502 An association may sue, be sued, complain, and defend in any court.
- § 6502.5 An association may, acquire, hold, sell, develop, subdivide, dispose of, and convey real and personal property consistent with its objects and powers. It may…
- § 6503 (a) No association or subsidiary thereof, without the prior written consent of the commissioner, shall enter into either of the following: (1) Any transaction…
- § 6504 (a) Except by the prior written consent of the commissioner, an association in organization that is not a member of a federal home loan bank may borrow money…
- § 6505 (a) An association may issue and sell, directly or through underwriters, capital certificates that represent nonwithdrawable capital contributions, and…
- § 6507 An association may qualify as and become a member of a federal home loan bank and a home loan bank established as an agency or instrumentality of this state.
- § 6508 An association may become a member of, deal with, maintain reserves or deposits with, or make reasonable payments or contributions to any organization or…
- § 6509 An association may act as depository for receipt of payments of federal or state taxes and loan funds, and may satisfy any related federal or state statutory…
- § 6510 An association may sell any loan, including a participating interest in a loan, at any time.
- § 6511 Loans secured by real property may be sold to, and are legal investments for, among others, any public or private pension fund, credit union, labor union fund,…
- § 6513 An association may service loans and investments for others.
- § 6514 (a) An association may act, and receive compensation for so acting, as trustee of any trust created or organized in the United States and forming a part of a…
- § 6515 (a) Notwithstanding any provisions of Division 1 (commencing with Section 99), Section 202 of the Corporations Code, or any other provisions of law relating to…
- § 6516 (a) Subject to regulations issued by the commissioner, an association may own and use or participate in the use or ownership and use of remote service units.…
- § 6517 Subject to Regulation E (12 CFR Part 205) and to rules and regulations of the commissioner, an association may transfer funds between holders of savings…
- § 6518 (a) An association may maintain and rent safes, boxes, or other receptacles or premises for the safekeeping of personal property upon terms and conditions that…
- § 6519 An association may sell money orders, travel checks, and similar instruments drawn by it on its bank accounts or as agent for any organization empowered to…
- § 6520 An association, service corporation, or a person authorized in writing by an association may act as an agent for others except that an association may not act…
- § 6521 (a) Notwithstanding the provisions of Division 6 (commencing with Section 17000) or any other provision of law, an association or service corporation may act…
- § 6522 (a) An association that declares and pays dividends may distribute its own shares or may make payments in cash or property. Payment of cash or property shall…
- § 6523 (a) An association may use advertising, whether printed, broadcasted by radio, televised, displayed, or communicated in any other manner or make any…
- § 6524 An association may organize, sponsor, operate, control, or render investment advice to, an investment company, or underwrite, distribute, or sell securities of…
- § 6525 (a) Notwithstanding the provisions of Sections 1051, 1052, and 1054 of the Labor Code and Section 2947 of the Penal Code, an association, a subsidiary or…
- § 6525.5 Except with the prior written consent of the commissioner: (a) No person who has been convicted of any criminal offense involving dishonesty or breach of trust…
- § 6526 An association may issue commercial and standby letters of credit in conformance with the Uniform Commercial Code or the Uniform Customs and Practice for…
- § 6527 If a loan or other investment is authorized under more than one section of this division an association may designate under which section the loan or…
- § 6528 An association may provide correspondent services primarily to other depository institutions to the extent that the activity does not violate other provisions…
- § 6529 (a) No affiliated person of a savings association may receive, either directly or indirectly, from the association, a subsidiary thereof, or any other source…
- § 6530 (a) No savings association may discharge or otherwise discriminate against any employee with respect to compensation, terms, conditions, or privileges of…
ARTICLE 2. Branching and Agency Powers §§ 6550–6558 · 9 sections
- § 6550 (a) A branch office is a legally established place of business of an association other than the home office, a remote service unit, or any agency, authorized…
- § 6551 (a) An agency of an association is a place or facility, stationary or mobile, other than the home office, a remote service unit, or a branch office, at or…
- § 6552 No association may establish or maintain a branch office or agency without the prior written approval of the commissioner, except that temporary and incidental…
- § 6553 (a) Each application for approval of the establishment and maintenance of a branch office or one or more agencies shall include the following: (1) The proposed…
- § 6554 Upon receipt of a complete application for a branch office, the commissioner shall give written notice of the filing of the application to each association.…
- § 6555 (a) Before acting on an application for a branch office, the commissioner may hold a hearing at a time and place specified in a notice of hearing. (b) If a…
- § 6556 (a) Upon review of the application for a branch office or agency and after a hearing on the branch application, if one is deemed necessary, the commissioner…
- § 6557 The provisions of this article relating to branch office and agency applications do not apply to a branch office or agency of an existing association acquired…
- § 6558 The commissioner may adopt rules and regulations relating to any action pertaining to branch offices and agencies regulated by this article.
CHAPTER 5. Savings Operations §§ 6600–7154 · 45 sections
ARTICLE 1. Savings Liability §§ 6600–6603 · 4 sections
- § 6600 The savings liability of an association shall consist only of the aggregate amount of its savings accounts, plus interest earned or credited to the accounts,…
- § 6601 Except as limited by the association from time to time or by state or federal law or regulations, account holders may make additions to their savings accounts…
- § 6602 Savings accounts may be opened for cash or, subject to any limitations or restrictions in regulations issued by the commissioner, for property in which the…
- § 6603 No member of a mutual association is responsible for any losses of the association, no savings account is subject to assessment, and no savings account holder…
ARTICLE 2. Savings Accounts §§ 6651–6663 · 8 sections
- § 6651 Except for savings accounts issued in marketable or bearer form, savings accounts shall be represented only by the account of each savings account holder on…
- § 6652 (a) Upon the filing with an association by the savings account holder of record as shown by the books of the association, or by the holder’s legal…
- § 6653 (a) No association shall, directly or indirectly, for the opening or increasing of any savings account, give, sell, dispose of, or permit the giving, selling,…
- § 6653.5 (a) A troubled savings association may not accept funds obtained, directly or indirectly, by or through any deposit broker for deposit into one or more…
- § 6660 (a) For the purposes of this section: (1) “Account” means withdrawable or repurchasable shares, investment certificates, deposits, or savings accounts as…
- § 6661 Notice to an association or federal association of an adverse claim to a savings account of, or to personal property held for the account of, any person shall…
- § 6662 Nothing in this chapter shall prohibit an association or federal association from issuing tenancy in common, community property, and other types of savings…
- § 6663 If any attachment is levied upon any savings account or any other property maintained with an association or federal association, a copy of the writ and notice…
ARTICLE 3. Contracts for Savings Programs §§ 6700–6702 · 3 sections
- § 6700 An association may contract with the proper authorities of any public or nonpublic elementary or secondary school or institution of higher learning, or any…
- § 6701 An association may contract with any employer, as follows: (a) With respect to the solicitation, collection, and receipt of savings by payroll deduction to be…
- § 6702 An association may pay commissions or fees in cash or merchandise for soliciting deposits to any employee of the association or to any broker or agent as…
ARTICLE 4. Powers of Attorney on Savings Accounts § 6725 · 1 section
- § 6725 (a) Notwithstanding any other provision of law, an association or federal association may continue to recognize the authority of an attorney-in-fact authorized…
ARTICLE 5. Married Persons and Minors §§ 6750–6752 · 3 sections
- § 6750 Except as otherwise expressly provided in this article, an association or federal association may issue savings accounts to any married person or minor as the…
- § 6751 Any payment or delivery of rights to a married person, to any minor, or to a trust established by or for a married person, or a minor, or a receipt or…
- § 6752 (a) In the case of a minor, the receipt, acquittance, pledge, or other action required by the association or federal association to be taken by the minor shall…
ARTICLE 6. Multiple-Party Accounts §§ 6800–6805 · 3 sections
- § 6800 An account in an association or federal association that is a multiple-party account as defined in Section 5132 of the Probate Code is governed by Part 2…
- § 6804 No association or federal association paying any survivor in accordance with Part 2 (commencing with Section 5100) of Division 5 of the Probate Code shall,…
- § 6805 The pledge or hypothecation to any association or federal association of all or part of a multiple party account, as defined in Section 5132 of the Probate…
ARTICLE 7. Accounts of Administrators, Executors, Guardians, Custodians, Trustees, and Other Fiduciaries §§ 6850–6856 · 5 sections
- § 6850 Any association may accept fiduciary savings accounts in the name of any administrator, executor, custodian, conservator, guardian, trustee, or other fiduciary…
- § 6851 (a) The withdrawal value of a fiduciary account, and interest on it, or other rights relating to it, may be paid or delivered, in whole or in part, to the…
- § 6852 (a) Whenever a person holding an account in a fiduciary capacity dies and no written notice of the revocation or termination of the fiduciary relationship has…
- § 6855 No association paying any fiduciary, beneficiary, or designated person in accordance with this article or the California Multiple-Party Accounts Law contained…
- § 6856 The provisions of this article apply to federal associations to the extent that they are not inconsistent with and do not infringe upon federal laws governing…
ARTICLE 8. Accounts of Incompetents § 6900 · 1 section
- § 6900 If an association or federal association has received no written notice and is not on actual notice that the savings account holder has been adjudicated…
ARTICLE 9. Accounts of Deceased Nonresidents §§ 6950–6951 · 2 sections
- § 6950 (a) When a savings account is held in any association or federal association by a person who dies while domiciled in a sister state or foreign nation, the…
- § 6951 No action at law or in equity shall be maintained against an association or federal association for payment made in accordance with this article.
ARTICLE 10. Savings Accounts as Legal Investments and as Security; Public Funds §§ 7000–7002 · 3 sections
- § 7000 (a) Administrators, executors, custodians, conservators, guardians, trustees, and other fiduciaries, insurance companies, business and manufacturing companies,…
- § 7001 (a) Whenever, under the laws of this state or otherwise, a deposit of securities is required for any purpose, the savings accounts and accounts made legal…
- § 7002 The provisions of this article supplement any and all other laws relating to and declaring what shall be legal investments for the persons, fiduciaries,…
ARTICLE 11. Interest §§ 7050–7055 · 6 sections
- § 7050 An association may issue savings accounts earning interest at different rates of return. The annual rate of return paid on a savings account may either be…
- § 7051 An association may classify its savings accounts on any basis including, but not limited to, character, amount, or duration of the account, regularity of…
- § 7052 Except for accounts that are classified according to a specified contractual time or notice period, interest shall be based on the withdrawal value of each…
- § 7053 (a) The date of investment in a savings account shall be the date of actual receipt by the association of the account or an addition to the account, except…
- § 7054 The board of directors, by resolution, may determine any of the following: (a) That interest shall not be paid on designated types of savings accounts from…
- § 7055 The directors shall determine the method of calculating the amount of any interest on any savings account classification as provided in this article and the…
ARTICLE 12. Withdrawals § 7100 · 1 section
- § 7100 (a) Notwithstanding any other provision of law, but subject to subdivision (b), an association may permit the owner of a deposit or account to make withdrawals…
ARTICLE 13. Redemption §§ 7150–7154 · 5 sections
- § 7150 At any time funds are on hand for the purpose, an association shall have the right to redeem by lot or otherwise, as the board of directors may determine, all…
- § 7151 Except with the prior consent of the commissioner, no association shall redeem any of its savings accounts when the association is in an impaired condition and…
- § 7152 The redemption price of savings accounts redeemed shall be the full value of the account redeemed, as determined by the board of directors, but in no event…
- § 7153 If the notice of redemption under Section 7150 has been given, and if on or before the redemption date the funds necessary for the redemption have been set…
- § 7154 (a) All certificates of ownership evidencing former savings accounts that have been called for redemption must be tendered for payment within the time limit…
CHAPTER 6. Investment Operations §§ 7200–7800 · 57 sections
ARTICLE 1. Required Liquidity § 7200 · 1 section
- § 7200 No association shall invest in any security under this chapter, other than in liquid assets, or in any loan at any time if the association fails to meet the…
ARTICLE 2. Investment in Securities §§ 7250–7252 · 4 sections
- § 7250 Notwithstanding any other provision of law, an association may invest in the following securities without limit, and in addition may invest not in excess of 5…
- § 7250.5 No savings association may directly or indirectly acquire or retain any corporate debt security unless the corporate debt security is rated in one of the four…
- § 7251 An association holding investments which have been approved by the commissioner shall not be required to dispose of them or to establish a reserve account if…
- § 7252 (a) Notwithstanding any other provisions of this chapter, an association may, subject to regulations of the commissioner, invest in the capital stock,…
ARTICLE 2.5. Other Authorized Investments in Bonds and Securities §§ 7260–7275 · 16 sections
- § 7260 Stock of a Federal Reserve bank.
- § 7261 Bonds of the State of California and those for which the faith and credit of the State of California are pledged for the payment of principal and interest, and…
- § 7262 Bonds of any flood control and water conservation districts, or any zone thereof, having an assessed valuation on taxable real property of not less than one…
- § 7263 Bonds of any other political subdivision, public corporation, or district of the State of California (herein referred to generally as public corporations)…
- § 7264 Bonds or other evidences of indebtedness of, or which are unconditionally guaranteed by the State of Israel, the United States of Mexico, the Commonwealth of…
- § 7265 Bonds of any irrigation district, water, storage district, water conservation district, county water district, reclamation district, drainage district, and any…
- § 7266 Bonds, consolidated bonds, collateral trust debentures, consolidated debentures, or other obligations issued by federal land banks or federal intermediate…
- § 7267 Bonds, notes, or other obligations issued by the Federal Financing Bank, the United State Postal Service, or issued or assumed by the International Bank for…
- § 7268 (a) Notes with a maturity not exceeding 15 months after the date of issue, issued in anticipation of uncollected taxes, income, revenue, cash receipts, and…
- § 7269 In revenue securities of any state of the United States, or of the Commonwealth of Puerto Rico, and of any city, county, city and county, political…
- § 7270 Bonds of any local public housing agency (as defined in the United States Housing Act of 1937, as amended) as are secured either, (a) by an agreement between…
- § 7271 Bonds secured by an insurance commitment of the Federal Housing Administration.
- § 7272 Evidences of indebtedness of companies incorporated in the United States and, directly or indirectly, engaged in manufacturing, extraction, merchandising, or…
- § 7273 Fixed interest railroad bonds meeting the requirements of subdivisions (a) and (b), bonds secured by a mortgage on jointly operated railroad facilities meeting…
- § 7274 Bonds and debentures of gas, electric, or gas and electric companies meeting the requirements of subdivision (a), bonds and debentures of telephone companies…
- § 7275 As used in this article, “funded debt” means all interest-bearing indebtedness of a corporation not maturing within one year of the date it was incurred.
ARTICLE 3. Investment in Business Property § 7300 · 1 section
- § 7300 (a) Each association shall have power to invest in real property, tangible personal property and interests in real property for the conduct of the business of…
ARTICLE 4. Purchase of Real Estate § 7350 · 1 section
- § 7350 (a) An association may acquire and hold stock of one or more corporations the primary activities of which are engaging in real property investment, in which…
ARTICLE 5. Investment in Loans §§ 7450–7462 · 14 sections
- § 7450 (a) An association may make any loan authorized by this division, but the association shall first determine that the type, amount, purpose, and repayment…
- § 7450.2 Except with the prior written consent of the commissioner, no association shall knowingly make: (a) Any loan to any corporation of which 10 percent or more of…
- § 7451 Except as otherwise provided by the commissioner, an association shall not make or acquire total loans with respect to one borrower or on one project in an…
- § 7452 (a) An association may make consumer loans, provided that the total of such loans shall not exceed 30-percent of the assets of the association. (b) An…
- § 7453 (a) An association may make, invest in, sell, purchase, participate in, or otherwise deal in secured or unsecured loans for agricultural, business, commercial,…
- § 7454 Each association is authorized to issue credit cards, extend credit in connection with the cards, and otherwise engage in or participate in credit card…
- § 7455 No association or director, officer, or employee of an association shall require, as a condition to the granting of any loan or the extension of any other…
- § 7456 Any loan commitment made by an association shall be counted as an investment and shall be included in total assets of the association only to the extent that…
- § 7457 An association may make loans on the security of its savings accounts, whether or not the borrower is the owner of the account, subject to the limitations of…
- § 7458 An association may make overdraft loans specifically related to transaction accounts, subject to regulations issued by the commissioner.
- § 7459 In addition to establishing reserves pursuant to Section 6476, an association or federal association, as defined in Section 5102, may establish a separate loan…
- § 7460 (a) Notwithstanding Section 726 of the Code of Civil Procedure or any other provision of law to the contrary, an association, a federal association, an…
- § 7461 The provisions of any deed of trust or mortgage on real property which authorize an association, federal association, affiliate or service corporation of an…
- § 7462 The provisions of any deed of trust or mortgage on real property which authorize an association, federal association, affiliate or service corporation of an…
ARTICLE 6. Real Estate Loans §§ 7500–7509 · 10 sections
- § 7500 (a) Subject to limitations, if any, within this chapter, an association may originate, invest in, sell, purchase, service, participate, or otherwise deal in…
- § 7501 Each real estate loan shall be evidenced by a note or instrument of obligation for the amount of the loan. The note or instrument shall specify the amount and…
- § 7502 (a) Each real estate loan shall be secured by a deed of trust, mortgage, or other transaction or instrument constituting a lien or claim, or its equivalent,…
- § 7503 Except as specified by the loan contract or by Section 2954.8 of the Civil Code, an association shall have no obligation to pay interest to the borrower upon…
- § 7504 Notwithstanding any other provision of law, an association may adjust the interest rate, payment, balance, or term-to-maturity on any loan secured by real…
- § 7505 (a) Notwithstanding any other provision of law, an association may originate, invest in, sell, purchase, service, participate, or otherwise deal in loans…
- § 7505.5 (a) A savings association may make loans the principal purpose of which is to provide financing with respect to what is, or what is to become, primarily…
- § 7506 Notwithstanding any other provision of the law, an association may make a loan secured by an assignment of a loan or loans to the extent that it could, under…
- § 7507 (a) An association may make loans or advances of credit, or invest in interests therein, on the security of real property, which loans, advances of credit, or…
- § 7509 (a) (1) At the time of origination, a real estate loan may not exceed 100 percent of the market value of security property. An association shall, by vote of…
ARTICLE 7. Successors in Interest in Loans § 7600 · 1 section
- § 7600 In the case of any investment made by an association in a real estate loan, in the event all or part of the ownership of the real estate security becomes…
ARTICLE 8. Salvage of Loans and Investments § 7650 · 1 section
- § 7650 (a) Except as provided in subdivision (b), nothing in this division or the laws of this state shall be construed as denying to an association the right to…
ARTICLE 9. Usury Exemption § 7675 · 1 section
- § 7675 (a) Pursuant to the authority contained in Section 1 of Article XV of the California Constitution, the restrictions upon rates of interest contained in Section…
ARTICLE 10. Finance Leasing §§ 7700.3–7704 · 5 sections
- § 7700.3 An association may engage in leasing activities that are the functional equivalent of lending, subject to the limitations of Sections 7701 to 7704, inclusive.
- § 7701 An association may become the legal or beneficial owner of tangible personal property or real property for the purpose of leasing such property, may obtain an…
- § 7702 (a) A lease of tangible personal property made to a natural person for personal, family, or household purposes pursuant to this section shall be subject to all…
- § 7703 For the purposes of this article: (a) A “net lease” is a lease under which the association will not, directly or indirectly, provide or be obligated to provide…
- § 7704 If, in good faith, an association believes that there has been an unanticipated change in conditions that threatens its financial position by significantly…
ARTICLE 10.5. Leasing § 7720 · 1 section
- § 7720 (a) An association may invest in tangible personal property, including without limitation, vehicles, mobilehomes, machinery, equipment, or furniture, and may…
ARTICLE 11. Hazard Insurance § 7800 · 1 section
- § 7800 Subject to the provisions of Section 2955.5 of the Civil Code, the board of directors of every association and affiliate or service corporation of an…
CHAPTER 7. Supervision §§ 8009–8254 · 41 sections
ARTICLE 1. Department of Savings and Loan §§ 8009–8010 · 2 sections
- § 8009 (a) Except where required by law, regulation, or court order, or permitted under subdivision (b), the commissioner, and all employees of the department, shall…
- § 8010 The commissioner, after a determination of value made in accordance with Article 4 (commencing with Section 8150) of Chapter 7, may order that assets,…
ARTICLE 2. Savings and Loan Account §§ 8030–8037 · 9 sections
- § 8030 (a) To meet the operating costs and expenses of the department in administering this division and other laws relating to savings associations or the savings…
- § 8031 The proportion of operating costs and expenses to be assessed against each association shall be determined and prescribed by the commissioner by regulation.…
- § 8032 (a) On or before the 20th day of June of each year the commissioner shall notify each association by mail of the amount assessed and levied against it. (b)…
- § 8033 If an association ceases to be an association by reason of merger, consolidation, conversion, acquisition of assets, or a similar type of transaction, any…
- § 8034 (a) If a new domestic association is formed during a fiscal year, the initial assessment provided for by this article shall be computed on the same basis as if…
- § 8035 If any domestic association proposes to acquire the assets of any federal association or any state or national bank by transfer, conversion, or otherwise, the…
- § 8035.5 As of the operative date of this section: (a) The Savings Association Special Regulatory Fund is converted into a separate account in the Financial…
- § 8036 All money collected or received by the commissioner under this division or any other law relating to savings associations or the savings association business,…
- § 8037 All expenses of the department in administering the division and other laws relating to savings associations or to the savings association business shall be…
ARTICLE 3. General Supervisory Powers and Duties of Commissioner §§ 8050–8055 · 5 sections
- § 8050 (a) The commissioner shall have general supervision over all (1) associations, (2) savings and loan holding companies, (3) service corporations, (4) finance…
- § 8051 Each decision, order, or instruction shall be in writing signed by the commissioner or a deputy commissioner and shall be sent by registered or first-class…
- § 8053 The commissioner may from time to time issue, amend and rescind any rules, regulations, forms, and orders that are necessary to carry out the provisions of…
- § 8054 (a) Notwithstanding any other provision of law, whenever by statute or regulation there is extended to federal associations doing business in this state any…
- § 8055 Every final decision of the commissioner is subject to judicial review in accordance with law. An action or proceeding for judicial review pursuant to this…
ARTICLE 4. Reports and Examinations §§ 8150–8160 · 11 sections
- § 8150 (a) On or before the last day of January in each year, or within 30 days following the end of the fiscal year, each association, savings and loan holding…
- § 8151 Each association, savings and loan holding company and subsidiary of any association or savings and loan holding company that is required to file an annual…
- § 8152 From time to time the commissioner may, without previous notice, examine or cause an examination to be made into the affairs of each association, and any…
- § 8153 (a) In lieu of a report or an examination under Section 8150 or 8152, the commissioner may accept any report made to, or examination made by, a federal or…
- § 8154 (a) Whenever, in the judgment of the commissioner, the condition of any association, savings and loan holding company, or any of their subsidiaries renders it…
- § 8155 (a) The commissioner is authorized in connection with any examination or audit of any association or any subsidiary to cause to be made appraisals of real…
- § 8156 (a) Each association shall at least annually cause its books and accounts to be audited at its own expense by a certified public accountant or firm of…
- § 8157 (a) The commissioner may prescribe the scope of the annual audit and may require the auditor to furnish information in addition to that contained in the audit…
- § 8158 (a) The commissioner, or any department employee authorized by the commissioner, shall have free access to all books and records of an association, savings and…
- § 8159 For each department examination or appraisal made outside this state, a reasonable fee and the actual traveling expenses incurred shall be paid to the…
- § 8160 If an association, savings and loan holding company, or any subsidiary of an association or savings and loan holding company fails to report to the…
ARTICLE 5. Enforcement §§ 8200–8202 · 3 sections
- § 8200 The commissioner may issue cease and desist orders which may order affirmative action in accordance with the following: (a) If the commissioner, as a result of…
- § 8201 (a) Whenever the commissioner determines that any institution-affiliated party or any director, officer, or employee of a savings and loan holding company or…
- § 8202 (a) The commissioner shall publish and make the following available to the public: (1) Any final order issued with respect to any administrative enforcement…
ARTICLE 6. Conservatorship §§ 8225–8230 · 6 sections
- § 8225 (a) Whenever the commissioner deems it necessary in order to conserve the assets of any association for the benefit of the depositors and other creditors, or…
- § 8226 Any conservator shall have all the rights, powers, and privileges possessed by the officers, directors, members and stockholders of the association.
- § 8227 Except as authorized by the commissioner, the conservator shall not retain special counsel or other experts, incur any expense other than normal operating…
- § 8228 The directors and officers shall remain in office and the employees shall remain in their respective positions, but the conservator may remove any director,…
- § 8229 (a) While the association is in the charge of a conservator, savings account holders, borrowers, and other obligors of the association shall continue to make…
- § 8230 Whenever a conservator has taken possession of the property and business of any association pursuant to this article, that association, within 10 days after…
ARTICLE 7. Receivership §§ 8250–8254 · 5 sections
- § 8250 (a) If the commissioner finds that any association (1) is in an impaired condition, (2) is engaging in practices that threaten to result in an impaired…
- § 8251 (a) In the case of an insured association, the appointment by the commissioner of a receiver under this article shall constitute an official determination of a…
- § 8252 If the commissioner or a department employee is appointed receiver, no additional compensation shall be paid, but if another person is appointed, then the…
- § 8253 If the association is an institution insured by the Federal Deposit Insurance Corporation, the Federal Deposit Insurance Corporation shall be tendered…
- § 8254 Whenever a receiver has taken possession of the property and business of any association pursuant to this article, that association, within 10 days after the…
CHAPTER 8. Federal Associations §§ 8500–8501 · 2 sections
- § 8500 (a) Every federal association and the holders of stock, shares, share accounts, savings accounts, and certificate accounts issued by any federal association…
- § 8501 No director of a federal association shall be liable for monetary damages to the federal association, its stockholders or members, based upon the laws of this…
CHAPTER 9. Fees §§ 9000–9001 · 2 sections
CHAPTER 10. Foreign (National) Savings Companies §§ 10000–10009 · 9 sections
- § 10000 Terms not expressly defined in this chapter have the meaning given in Chapter 1 (commencing with Section 5000) or as the commissioner may provide by…
- § 10001 (a) No person, other than a California savings association or other person authorized by this division, shall do any business of an association. (b) No foreign…
- § 10002 Notwithstanding Section 10001, and subject to Section 10003, on and after January 1, 1991, a foreign savings association may conduct the business of an…
- § 10003 No foreign savings association may conduct the business of an association in California, and no foreign savings association or foreign holding company may…
- § 10004 Except as expressly provided for in this chapter, any person who, as principal, agent, salesperson, solicitor, or in any other capacity, solicits or conducts…
- § 10005 For the purposes of this article and any other law of this state prohibiting, limiting, or regulating the doing of business or the selling, taking, or…
- § 10006 Except as provided by regulation, this division applies to a foreign savings association or its holding company as if business conducted in this state were…
- § 10007 If a foreign savings association is controlled by a foreign holding company, the requirements under this chapter applicable to both a foreign savings…
- § 10009 This chapter shall become operative on January 1, 1991.