CHAPTER 6. Investment Operations [7200. - 7800.]
Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2.
§§ 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…