CHAPTER 14. Loans and Investments [1460. - 1522.]

Chapter 14 added by Stats. 2011, Ch. 243, Sec. 3.

§§ 1460–1522 · 40 sections

1. ARTICLE 1. General Provisions §§ 1460–1467 · 8 sections

   • § 1460 A commercial bank shall not rediscount, borrow money, or hypothecate its assets as security for money borrowed except to the extent and upon the conditions set…
   • § 1461 Assets hypothecated by a commercial bank as security for moneys borrowed shall not exceed in value the amount borrowed by more than 50 percent except with the…
   • § 1462 A commercial bank may borrow money by discounting or otherwise, and may borrow money secured by real property owned by the bank, to an amount not in excess of…
   • § 1463 A commercial bank may hypothecate its assets in any manner provided by law to secure the deposits of moneys of the United States, of postal savings funds, of…
   • § 1464 A commercial bank may borrow for the purpose of buying from the United States, United States bonds, United States Treasury certificates, or notes or other…
   • § 1465 A commercial bank may rediscount with, borrow money from, or hypothecate its assets as security for money borrowed from a Federal Reserve bank, the Federal…
   • § 1466 A commercial bank may issue negotiable certificates of deposit transferable by endorsement and delivery and nonnegotiable certificates transferable only on the…
   • § 1467 A commercial bank located in a place the population of which does not exceed 5,000 persons according to the most recent official federal or state census may…
2. ARTICLE 2. Loan and Investment Limitations §§ 1470–1473 · 4 sections

   • § 1470 (a) In this article and in Article 4 (commencing with Section 1710) of Chapter 19, “affiliate,” when used with respect to a specified person, means any person…
   • § 1471 (a) Subject to the limitations and exceptions in Sections 1481 and 1510, a bank may hold both obligations made by a person, and securities issued by that same…
   • § 1472 Subject to prior approval by the commissioner and to any limitations the commissioner may impose, the limitations in Sections 1471, 1481, and 1510 shall not…
   • § 1473 Sections 1481 and 1510 shall not apply to investments held by a bank prior to January 1, 2009. All authorizations regarding investments by a bank issued by the…
3. ARTICLE 3. Loan Limits §§ 1480–1498 · 19 sections

   • § 1480 For the purpose of this article: (a) “Obligations” means the total sums for the payment of which a person is obligated, primarily or secondarily, to a…
   • § 1481 The obligations, as defined in Section 1480, excepting the obligations described in Section 1485 and the obligations described in Section 1483, of any one…
   • § 1482 An obligation shall not be deemed secured by personal property or collateral unless the personal property or collateral held as security is of a kind which has…
   • § 1483 (a) In addition to the limitations contained in Section 1481 a commercial bank may issue letters of credit and a commercial bank may accept drafts or bills of…
   • § 1484 With the approval of the commissioner a commercial bank may accept drafts or bills of exchange drawn upon it having not more than three months’ sight to run,…
   • § 1485 The limitations of Section 1481 shall not apply to the following and the following shall not be included among the obligations of a person for the purpose of…
   • § 1486 A commercial bank may lend on the security of a first lien on real property or a first lien on a leasehold under a lease which does not expire, or which has…
   • § 1487 (a) The provisions of any deed of trust or mortgage on real property which authorize any state or nationally chartered bank to accelerate the maturity date of…
   • § 1488 The provisions of any deed of trust or mortgage on real property which authorize any state or nationally chartered bank to receive and control the disbursement…
   • § 1489 A commercial bank may lend on the security of a first lien on real property or a first lien on a leasehold under a lease which does not expire, or which has…
   • § 1490 A commercial bank shall not lend in the aggregate more than 5 percent of its assets upon the security of the stock of any one corporation or upon the security…
   • § 1491 No loan shall be made by any commercial bank upon the securities of one or more corporations, the payment of which loan is undertaken, in whole or in part,…
   • § 1492 Nothing in this chapter restricts a commercial bank in taking any lien on or pledge of any property as additional security for a loan already made in good…
   • § 1493 A commercial bank holding a first lien on real property may take, or purchase and hold, or loan upon another and immediately junior lien but all such loans…
   • § 1494 A commercial bank may lend on the security of a first security interest on stock or a membership certificate issued to a tenant-stockholder or resident-member…
   • § 1495 (a) A commercial bank may make amortized loans upon the security of residential real property to finance the purchase and installation of material or equipment…
   • § 1496 For the purpose of determining whether any loan or investment is secured by a first lien on real property as required by any provision of this division, none…
   • § 1497 No loan made by any bank in excess of any limitations contained in this division or which is made in violation of any of the provisions of this division shall…
   • § 1498 (a) Any state-chartered bank that extends consumer credit to a covered borrower, as those terms are defined in Part 232 (commencing with Section 232.1) of…
4. ARTICLE 4. Investments §§ 1510–1515 · 6 sections

   • § 1510 The total amount invested by a bank in the securities issued by a person shall not exceed 15 percent of the sum of the shareholders’ equity, allowance for loan…
   • § 1511 Section 1510 shall not apply to investments made pursuant to this section. A bank may invest in shares of an investment company (1) registered with the…
   • § 1512 Notwithstanding Section 1510, a bank may purchase, acquire, or hold the stock of any corporation pursuant to a plan of reorganization approved by the…
   • § 1513 If any commercial bank has made investments which it was authorized to make at the time they were made it shall not be required to dispose of such investments…
   • § 1514 (a) A commercial bank may organize, sponsor, operate, control, or render investment advice to, an investment company, or underwrite, distribute, or sell…
   • § 1515 A bank or trust company may acquire stock in settlement or reduction of a loan or in exchange for an investment previously made in good faith where the…
5. ARTICLE 5. Miscellaneous §§ 1520–1522 · 3 sections

   • § 1520 Whenever the public administrator becomes the administrator of the estate of a decedent who at the time of his death left money on deposit with a commercial…
   • § 1521 A commercial bank accepting savings deposits shall provide by its bylaws or by contract with its savings depositors the time and condition on which repayment…
   • § 1522 For the purposes of any law authorizing or providing for the deposit of funds with a savings bank, a commercial bank accepting savings deposits shall be deemed…