Financial Code — Part 16 | FIN — United States — California law | Esheria

Financial Code

Part 16 of 17 · provisions 3,001–3,200

This section says the act may be cited as the Financial Code.

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The commissioner must let certain debt collectors keep operating if they applied before January 1, 2023, and may issue a conditional license while an application is pending. Local governments in this state may not require a debt collector to be licensed or to register as a debt collector. This division is named the Debt Collection Licensing Act and may be cited by that name. A person may not do debt collection business in this state without first getting a license, and the license is tied to the principal place of business and cannot be transferred or assigned. This section defines key terms used in the Debt Collection Licensing Act.

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Provisions of Financial Code

Showing 200 of 3,273

  1. 648.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 3. Conservatorship of an Uninsured Licensee [640 - 652] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 2. )

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    A qualifying licensee may be reorganized only if the required consent thresholds are met.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 3. Conservatorship of an Uninsured Licensee [640 - 652] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 648. Any licensee that the commissioner has taken possession of pursuant to Section 592, and for which a conservator has been appointed pursuant to this article, may be reorganized under a plan that requires the consent of any of the following: (a) Customers and other creditors of the licensee representing at least 75 percent in amount of its total member shares or deposits and other liabilities as shown by the books of the licensee, excluding member shares or deposits and other liabilities which are to be satisfied in full under the provisions of the plan. (b) Stockholders owning at least two-thirds of the outstanding stock as shown by the books of the licensee. (c) Members of the licensee. (d) Customers and other creditors of the licensee representing at least 75 percent in amount of its total shares or deposits and other liabilities as shown by the books of the licensee, excluding shares or deposits and other liabilities that are to be satisfied in full under the provisions of the plan, and, if applicable to the licensee, of stockholders owning at least two-thirds of its outstanding stock as shown by the books of the licensee. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  2. 649.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 3. Conservatorship of an Uninsured Licensee [640 - 652] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 2. )

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    Notice of a proposed reorganization plan must be given to specified interested parties, following the commissioner’s directions on timing and manner.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 3. Conservatorship of an Uninsured Licensee [640 - 652] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 649. All customers, creditors, stockholders, if applicable, and other interested persons shall be given notice of any proposed plan of reorganization in the manner and at the times as the commissioner directs. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  3. 650.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 3. Conservatorship of an Uninsured Licensee [640 - 652] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 2. )

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    A plan of reorganization cannot take effect unless the commissioner finds it fair and equitable, in the public interest, and approves it in writing.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 3. Conservatorship of an Uninsured Licensee [640 - 652] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 650. No plan of reorganization shall become effective until the commissioner finds that the plan is fair and equitable to all customers, creditors, and stockholders, if applicable, and is in the public interest and until the commissioner approves the same in writing, subject to any conditions, restrictions, and limitations as the commissioner may prescribe. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  4. 6500.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. )

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    Associations under this division have broad powers, including activities needed for their purposes, subject to limits in the division and the General Corporation Law.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 6500. (a) Each association incorporated pursuant to or operating under the provisions of this division shall have all the powers enumerated, authorized, and permitted by this division and other rights, privileges, and powers, and may engage in any activities singly or with others, that are incidental to or reasonably necessary or appropriate for the accomplishment of the objects and purposes of the association, as provided by this division. Among others, and except as otherwise limited by the provisions of this division, each association shall have the powers set out in this chapter. Associations shall be subject to the provisions of the General Corporation Law (Division 1 (commencing with Section 100) Title 1 of the Corporations Code) and shall also have all the powers and privileges provided in the General Corporation Law of this state to other corporations except those powers and privileges that are expressly denied to associations in this division. If any provision of the General Corporation Law is inconsistent with any provision of this division, the provisions of this division shall prevail. (b) All references in this division to the General Corporation Law mean the General Corporation Law effective January 1, 1977, and any subsequent amendments thereto. (c) In the application of Chapter 23 (commencing with Section 2300) of the Corporations Code to associations, the definition of effective date in Section 2300 is January 1, 1978. (Amended by Stats. 1984, Ch. 287, Sec. 16. Effective July 6, 1984.)
  5. 6501.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. )

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    An association may have perpetual existence, use a corporate seal, and adopt or amend bylaws as provided in the division.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 bylaws as provided in this division. (Repealed and added by Stats. 1983, Ch. 1091, Sec. 2.)
  6. 6502.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. )

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    An association may sue, be sued, complain, and defend in any court.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 6502. An association may sue, be sued, complain, and defend in any court. (Repealed and added by Stats. 1983, Ch. 1091, Sec. 2.)
  7. 6502.5.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. )

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    An association may acquire, hold, sell, develop, subdivide, dispose of, convey, mortgage, pledge, or lease real or personal property, and may take property by gift, devise, or bequest.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 mortgage, pledge, or lease any real or personal property and may take the property by gift, devise, or bequest. (Added by Stats. 1990, Ch. 1118, Sec. 31.)
  8. 6503.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. )

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    An association or its subsidiary needs the commissioner’s prior written consent before entering certain transactions with an affiliated person.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 or modification of any transaction with an affiliated person to buy, lease, or sell real or personal property, or take that property by gift. (2) Any consulting contracts or contracts for services with an affiliated person. (b) As a condition to approving a transaction specified in subdivision (a), the commissioner shall make both of the following findings: (1) The terms of the transaction are fair to, and in the best interests of, the savings association or subsidiary. In the case of real or personal property transactions, this finding shall be supported by an appraisal not prepared by an affiliated person or employee of the association or subsidiary. (2) The transaction was approved in advance by a resolution duly adopted with full disclosure by at least a majority, with no director having an interest in the transaction voting, of the entire board of directors of the association or subsidiary, or alternatively, by a majority of the total votes eligible to be cast by the voting members or stockholders of the association at a meeting called for that purpose, with no votes cast by proxies not solicited for that purpose. For purposes of this subdivision, “full disclosure” shall include, but not be limited to, (A) the affiliated person’s source of financing for any real property involved in the transaction and (B) whether the association or any subsidiary thereof has a deposit relationship with any financial institution or holding company or affiliate thereof providing the financing. (Amended by Stats. 2006, Ch. 538, Sec. 165. Effective January 1, 2007.)
  9. 6504.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. )

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    A savings association in organization that is not a federal home loan bank member may borrow only up to 25% of its assets unless the commissioner gives prior written consent; a federal home loan bank member may borrow without that limit.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 from any source not more than an aggregate amount equal to 25 percent of its assets on the date of borrowing, and may pledge and otherwise encumber any of its assets to secure its debts. (b) An association that is a member of a federal home loan bank may borrow money from any source without limitation and may pledge and otherwise encumber any of its assets to secure its debts or savings accounts. (Amended by Stats. 1985, Ch. 983, Sec. 5. Effective September 26, 1985.)
  10. 6505.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. )

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    An association may issue and sell capital certificates, and may provide for their conversion into common stock if its articles of incorporation allow it.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 6505. (a) An association may issue and sell, directly or through underwriters, capital certificates that represent nonwithdrawable capital contributions, and constitute part of the reserves and statutory net worth of the association. The certificates shall have no voting rights and shall be subordinate to all savings accounts, debt obligations, and claims of creditors of the association. The certificates shall constitute a claim in liquidation against any reserves, surplus, and other statutory net worth accounts remaining after the payment in full of all savings accounts, debt obligations, and claims of creditors. The capital certificates shall be entitled to the payment of interest prior to the allocation of any income to surplus or other statutory net worth accounts of the association and may be issued with a fixed rate of interest or with a prior claim to distribution of a specified percentage of any net income remaining after required allocations to reserves, or a combination of those features. Losses may be charged against capital certificates only after reserves, surplus, and other statutory net worth accounts have been exhausted. (b) To the extent permitted by its articles of incorporation, an association authorized to issue capital stock may provide for the conversion of capital certificates into common stock. (Repealed and added by Stats. 1983, Ch. 1091, Sec. 2.)
  11. 6507.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. )

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    An association may qualify as and become a member of certain home loan banks.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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. (Repealed and added by Stats. 1983, Ch. 1091, Sec. 2.)
  12. 6508.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. )

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    An association may join, deal with, keep reserves or deposits with, or make reasonable payments or contributions to qualifying organizations or instrumentalities, and may meet reasonable eligibility conditions.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 instrumentality whether government or private, to the extent that the organization or instrumentality assists in furthering or facilitating the association’s purposes, powers, services, or community responsibilities, and it may comply with any reasonable requirements or conditions of eligibility. (Repealed and added by Stats. 1983, Ch. 1091, Sec. 2.)
  13. 6509.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. )

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    An association may act as a depository, meet related regulatory requirements, and issue accounts that are subject to immediate withdrawal.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 or regulatory requirements, including pledging of assets as collateral, payment of interest at prescribed rates, and, notwithstanding any other provision of this division, may issue the accounts subject to the right of immediate withdrawal. (Repealed and added by Stats. 1983, Ch. 1091, Sec. 2.)
  14. 651.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 3. Conservatorship of an Uninsured Licensee [640 - 652] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 2. )

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    A secured creditor’s right to enforce its security is not affected by a reorganization plan.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 3. Conservatorship of an Uninsured Licensee [640 - 652] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 651. No creditor having security for the payment of his, her, or its claim shall be affected in his, her, or its right to enforce the security by the provisions of any plan for the reorganization of the licensee. Any plan of reorganization involving the reduction of claims of creditors shall apply only to that portion of a secured creditor’s loan that is not covered by the pledged security. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  15. 6510.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. )

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    An association may sell any loan, including a participating interest in a loan, at any time.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 6510. An association may sell any loan, including a participating interest in a loan, at any time. (Repealed and added by Stats. 1983, Ch. 1091, Sec. 2.)
  16. 6511.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. )

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    Loans secured by real property may be bought directly from an association by certain pension funds, credit unions, labor union funds, and public employee associations.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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, or public employee association and may be purchased by those institutions directly from an association. Nothing in this subdivision shall be construed as altering any limits imposed by law on the extent of participation in an investment that is made by any entity covered by this subdivision. (Repealed and added by Stats. 1983, Ch. 1091, Sec. 2.)
  17. 6513.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. )

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    An association may service loans and investments for others.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 6513. An association may service loans and investments for others. (Repealed and added by Stats. 1983, Ch. 1091, Sec. 2.)
  18. 6514.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. )

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    Associations may serve as trustee or custodian for certain trusts and IRAs, but the related assets must stay in approved investments and noncash assets must be converted to cash promptly.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 stock bonus, pension, or profit-sharing plan that qualifies for specific tax treatment under Section 401 of the Internal Revenue Code of 1986 (26 U.S.C., Sec. 401), as amended. (b) It may also act, and receive compensation for so acting, as trustee or custodian of an individual retirement account within the meaning of Section 408 of the Internal Revenue Code of 1986, as amended. (c) Assets of the trust or account must be invested only in savings accounts of the association, in obligations or securities issued by the association, or in other investments that are approved by the commissioner. (d) All assets held in fiduciary capacity by any association under the authority of this section may be commingled and consolidated for appropriate purposes of investment if records reflecting each separate beneficial interest are maintained by the fiduciary or by another appropriate party who assumes that duty. (e) The trustee or custodian may accept noncash assets under this section if the assets are converted into cash as soon as practicable. (Amended by Stats. 1990, Ch. 1118, Sec. 32.5.)
  19. 6515.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. )

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    Associations may act in fiduciary roles, advertise trust services, and, when acting as trustee, are exempt from certain interest-rate restrictions.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 trusts and trust authority, subject to regulations of the commissioner, an association may act as trustee, executor, administrator, guardian, or in any other fiduciary capacity in which banks, trust companies, or other corporations are permitted to act under the laws of this state, directly or through a state or nationally chartered subsidiary. (b) All acts provided in this code to be performed by the commissioner, the State Treasurer, or other public officials for or in respect to the deposit of securities by trust companies for the protection of court and private trusts shall be performed as well for or in respect to the deposit of securities by any association or the trust companies of any association organized or doing business under the laws of this state, or by any federal association authorized to transact a trust business. An association may advertise its authority to engage in and conduct a trust business and to advertise for and solicit a trust business in this state, notwithstanding any other provision of law. (c) Pursuant to the authority contained in Section 1 of Article XV of the California Constitution, the restrictions upon rates of interest contained in Section 1 of Article XV of the California Constitution shall not apply to any obligations of, loans made by, or forbearances of, an association or federal association, or a service corporation which is authorized to exercise trust powers, when the association, federal association, or service corporation is acting in its fiduciary capacity as trustee. (d) Subdivision (c) creates and authorizes an exempt class of persons pursuant to Section 1 of Article XV of the Constitution. Notwithstanding any other provision of law, subdivision (c) does not exempt an association, federal association, or a service corporation of such associations, from complying with all other laws and regulations governing the business in which the association, federal association, or service corporation is engaged. (Amended by Stats. 1996, Ch. 1064, Sec. 552. Effective January 1, 1997. Operative July 1, 1997.)
  20. 6516.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    An association may own and use, or participate in the use or ownership and use of, remote service units, subject to regulations issued by the commissioner.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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. (b) A remote service unit is not a branch or agency. (Repealed and added by Stats. 1983, Ch. 1091, Sec. 2.)
  21. 6517.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    An association may transfer funds between savings account holders, third parties, or their designees through an electronic funds transfer system, subject to Regulation E and the commissioner’s rules.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 accounts, and third parties, or their designees, by means of an electronic funds transfer system. No system or any part of it, including terminals or processing centers, shall of itself be considered a branch office or agency. (Repealed and added by Stats. 1983, Ch. 1091, Sec. 2.)
  22. 6518.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    An association may keep and rent safes, boxes, or similar storage, and if it offers safe-deposit boxes to the public it may use the remedies in the cited article and dispose of unclaimed contents as that article provides.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 may be agreed upon. (b) An association that rents or otherwise makes safe-deposit boxes available to the public is entitled to all of the remedies set forth in Article 2 (commencing with Section 1660) of Chapter 13 of Division 1, and may dispose of the unclaimed contents of safe-deposit boxes in the manner set forth in that article. (Repealed and added by Stats. 1983, Ch. 1091, Sec. 2.)
  23. 6519.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    An association may sell money orders, travel checks, and similar instruments, including as agent for another organization, within this state.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 sell the instruments through agents within this state. (Added by Stats. 1983, Ch. 1091, Sec. 2.)
  24. 652.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 3. Conservatorship of an Uninsured Licensee [640 - 652] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 2. )

    Verify source ↗

    When a reorganization plan becomes effective, the licensee’s books, records, and assets must be handled according to the plan, and the licensee’s board must run the business as the plan provides and any commissioner-imposed limits allow.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 3. Conservatorship of an Uninsured Licensee [640 - 652] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 652. When any plan of reorganization becomes effective, all books, records, and assets of the licensee shall be disposed of in accordance with the provisions of the plan and the affairs of the licensee shall be conducted by its board in the manner provided by the plan and under the conditions, restrictions, and limitations that may have been prescribed by the commissioner. When any plan of reorganization adopted and approved as herein provided becomes effective, all customers and other creditors and, if applicable, stockholders of the licensee, whether or not they have consented to the plan of reorganization, shall be fully and in all respects subject to and bound by the plan’s provisions and the claims of all customers and other creditors shall be treated as if they had consented to the plan of reorganization. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  25. 6520.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    An association, service corporation, or a person authorized in writing by an association may act as an agent for others, but an association may not act as an insurer or transact insurance as an agent for an insurer. Certain holding companies and service corporations acting for an insurer must follow specified Insurance Code sections.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 as an insurer or transact insurance as agent for an insurer. Any savings and loan association holding company or any service corporation that acts as an agent of an insurer shall conform to the requirements of Section 7455 and Section 770.1 of the Insurance Code. (Amended by Stats. 1985, Ch. 983, Sec. 6.5. Effective September 26, 1985.)
  26. 6521.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    An association or service corporation may act as an escrow agent for sales, transfers, encumbrances, or leases of real or personal property. If a subdivision uses a different name, the commissioner must approve that name.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 as an escrow agent in connection with the sale, transfer, encumbering or leasing of real or personal property. (b) The name for any subdivision of an association operating as an escrow agent pursuant to this section, if different from the name of the association, shall be approved by the commissioner. (Amended by Stats. 1985, Ch. 983, Sec. 7. Effective September 26, 1985.)
  27. 6522.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    An association may make certain distributions and share splits, but cash or property payments and dividend distributions are limited by retained earnings, statutory net worth, and impaired-condition rules; some distributions need commissioner approval.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 be made only if there is a sufficient balance of unappropriated retained earnings which is that portion of income retained in the business since its organization or reorganization and which has not been appropriated or reserved for some specific purpose. Dividends shall not be distributed unless the association meets its required statutory net worth before and after that distribution. No dividends shall be paid if that payment would cause the association to be in an impaired condition. (b) A stock split, as defined in Section 188 of the Corporations Code, and a reverse stock split, as defined in Section 182 of the Corporations Code, are authorized and shall not be construed to be dividends within the meaning of this section. (c) Any distribution of permanent capital or paid in surplus shall require prior approval of the commissioner. (d) Any shareholder who receives any distribution prohibited by this section with knowledge of facts indicating the impropriety thereof is liable to the association for the amount received. The commissioner may bring an action for the benefit of the association to recover the distribution from the shareholder. (Amended by Stats. 1987, Ch. 1162, Sec. 11. Effective September 26, 1987.)
  28. 6523.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    An association may use advertising only if it is accurate and not misleading, and the commissioner can require advance filing of advertising. After written notice from the commissioner that advertising is inaccurate or misleading, the association must stop issuing, circulating, or publishing it.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 6523. (a) An association may use advertising, whether printed, broadcasted by radio, televised, displayed, or communicated in any other manner or make any representation that is accurate and does not misrepresent its services, contracts, investments, or financial condition. (b) The commissioner may require an association to file a true copy of the text of any advertising in the office of the commissioner at least five days prior to its issuance, circulation, or publication. Advertising filed under this subdivision may be used upon the commissioner’s express approval or failure to disapprove it within five days of its filing. (c) Associations shall not issue, circulate, or publish any advertising after notice in writing from the commissioner that in the commissioner’s opinion the advertising is inaccurate or misrepresents the association’s services, contracts, investments, or financial condition. (Added by Stats. 1983, Ch. 1091, Sec. 2.)
  29. 6524.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    A savings association may provide investment-company services and sell securities, but selling staff must meet standards set by the Savings and Loan Commissioner.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 6524. An association may organize, sponsor, operate, control, or render investment advice to, an investment company, or underwrite, distribute, or sell securities of any investment company which has qualified to sell its securities in this state pursuant to Part 2 (commencing with Section 25100) of Division 1 of Title 4 of the Corporations Code, if the officers and employees of the association who sell these securities meet such standards with respect to training experience, and sales practices as established by the Savings and Loan Commissioner. For the purpose of this section, “investment company” means an investment company as defined in the Investment Company Act of 1940 (15 U.S.C., Sec. 80a-1 et seq.). (Added by Stats. 1983, Ch. 1091, Sec. 2.)
  30. 6525.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    An association, subsidiary, affiliate, officer, or employee may send fingerprints to law enforcement for criminal-record checks, but records requests need written consent and the returned criminal history must stay confidential.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 affiliate of an association, or any officer or employee thereof may deliver fingerprints taken of a director, an officer, an employee, or an applicant for employment to local, state, or federal law enforcement agencies for the purpose of obtaining information as to the existence and nature of a criminal record, if any, of the person fingerprinted relating to convictions, and to any arrest for which that person is released on bail or on his or her own recognizance pending trial, for the commission or attempted commission of a crime involving robbery, burglary, theft, embezzlement, fraud, forgery, bookmaking, receiving stolen property, counterfeiting, or involving checks or credit cards or using computers. (b) The Department of Justice shall, pursuant to Section 11105 of the Penal Code, and a local agency may pursuant to Section 13300 of the Penal Code, furnish to the officer of the association or subsidiary or affiliate thereof responsible for the final decision regarding employment of the person fingerprinted, or to his or her designees having responsibilities for personnel or security decisions in the usual scope and course of their employment with the association, subsidiary, or affiliate summary criminal history information when requested pursuant to this section. If, upon evaluation of the criminal history information received pursuant to this section, the association, subsidiary, or affiliate determines that employment of the person fingerprinted would constitute an unreasonable risk to the association, subsidiary, or affiliate or its customers, the person fingerprinted may be denied employment. (c) A request for records pursuant to this section made of the Department of Justice shall be on a form approved by the department. The department may charge a fee to be paid by the requesting association, subsidiary, or affiliate pursuant to subdivision (e) of Section 11105 of the Penal Code. No request shall be submitted without the written consent of the person fingerprinted. (d) Any criminal history information obtained pursuant to this section is confidential and no recipient shall disclose its contents other than for the purpose for which it was acquired. (e) “Affiliate,” as used in this section, means any corporation controlling, controlled by, or under common control with, a savings association, whether directly, indirectly, or through one or more intermediaries. (Amended by Stats. 1989, Ch. 868, Sec. 6. Effective September 26, 1989.)
  31. 6525.5.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    A savings association may not allow a person convicted of dishonesty- or breach-of-trust-related crimes to take part in its affairs unless the commissioner gives prior written consent.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 may participate, directly or indirectly, in any manner in the conduct of the affairs of a savings association. (b) A savings association shall not permit any person who has been convicted of any criminal offense involving dishonesty or breach of trust to participate, directly or indirectly, in any manner in the conduct of the affairs of the savings association. (Added by Stats. 1990, Ch. 1118, Sec. 33.)
  32. 6526.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    An association may issue commercial or standby letters of credit, but the letters and related undertakings must meet specified content and reimbursement requirements unless the commissioner’s regulations provide otherwise.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 Documentary Credits Act and may pledge collateral to secure its obligations thereunder. Except as otherwise provided by regulations of the commissioner, such issuance shall be subject to the following requirements: (a) Each letter of credit must conspicuously state that it is a letter of credit. (b) The issuer’s undertaking must contain a specified expiration date or be for a definite term, and must be limited in amount. (c) The issuer’s obligation to pay must be solely dependent upon the presentation of conforming documents as specified in the letter of credit, and not upon the factual performance or non-performance by the parties to the underlying transaction. (d) The account party must have an unqualified obligation to reimburse the issuer for payments made under the letter of credit. To the extent funds are advanced under a letter of credit without compensation from the account party, the amount shall be treated as an extension of credit subject to percentage of assets limits and other requirements under an applicable provision of this division. (Added by Stats. 1983, Ch. 1091, Sec. 2.)
  33. 6527.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    An association may choose how to classify a loan or investment when more than one section applies.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 investment has been made. Such a loan or investment may be apportioned among appropriate categories, and may be moved, in whole or in part, from one category to another. (Added by Stats. 1983, Ch. 1091, Sec. 2.)
  34. 6528.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    An association may provide correspondent services and handle certain noninterest-bearing accounts and deposits, subject to stated conditions.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 6528. An association may provide correspondent services primarily to other depository institutions to the extent that the activity does not violate other provisions of law. (a) An association may maintain a noninterest-bearing account at any institution at which accounts are insured by the Federal Deposit Insurance Corporation, if the account is necessary or incidental to a correspondent relationship. (b) An association may receive non-interest-bearing deposits from correspondent institutions for use as compensating balances, for settlement purposes, or for other purposes incidental to a correspondent relationship. These deposits may be payable on demand and subject to withdrawal by negotiable or transferable instrument, order, or authorization. These deposits shall not give rise to voting rights of membership in a state mutual association. (Amended by Stats. 1990, Ch. 1118, Sec. 34.)
  35. 6529.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    Savings associations and related persons may not pay, receive, or split referral-related fees or value tied to loan procurement or real estate closing services, except for services actually performed in one case.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 any fee or other compensation of any kind in connection with the procurement of a loan from that association or subsidiary. (b) No savings association shall give and no person shall accept any fee, kickback, or thing of value pursuant to any agreement or understanding, oral or otherwise, that business incident to or part of a real estate closing service shall be referred to any person by the savings association or by a subsidiary or affiliated person thereof, in connection with any loan on real property made by a savings association or subsidiary thereof. (c) Other than for services actually performed, no person shall give and no savings association or subsidiary or affiliated person thereof shall accept any portion, split, or percentage of any charge made or received for the rendering of a real estate closing service in connection with a transaction involving a loan on real property made by a savings association or subsidiary thereof. (d) For purposes of subdivisions (b) and (c), “real estate closing service” includes any service provided in connection with the execution of a real estate escrow transaction, including, but not limited to, title searches, title examinations, the provision of title reports, title insurance, services rendered by an attorney, the preparation of documents, property surveys, the rendering of credit reports or appraisals, pest and fungus inspections, services rendered by a real estate licensee, and the handling of the processing. (Added by Stats. 1990, Ch. 1118, Sec. 35.)
  36. 6530.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    A savings association may not retaliate against an employee for reporting possible legal violations to specified officials. An affected employee or former employee may sue in superior court within 2 years, must file a copy with the commissioner, and the court may order reinstatement, damages, or other remedies.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. General Powers [6500 - 6530] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 6530. (a) No savings association may discharge or otherwise discriminate against any employee with respect to compensation, terms, conditions, or privileges of employment because the employee (or any person acting pursuant to the request of the employee) provided information to the commissioner, the Attorney General, or any district attorney regarding a possible violation of any law or regulation by the savings association or any of its officers, directors, or employees. (b) Any employee or former employee who believes he or she has been discharged or discriminated against in violation of subdivision (a) may file a civil action in superior court before the close of the 2-year period beginning on the date of that discharge or discrimination. The plaintiff shall also file a copy of the complaint initiating the civil action with the commissioner. (c) If the court determines that a violation of subdivision (a) has occurred, it may order the association which committed the violation to do any of the following: (1) Reinstate the employee to his or her former position. (2) Pay compensatory damages. (3) Take other appropriate actions to remedy any past discrimination. (d) The protections of this section shall not apply to any employee who does either of the following: (1) Deliberately causes or participates in the alleged violation of law or regulation. (2) Knowingly or recklessly provides substantially false information to the commissioner, the Attorney General, or any district attorney. (Added by Stats. 1990, Ch. 1118, Sec. 36.)
  37. 6550.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Branching and Agency Powers [6550 - 6558] ( Article 2 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    An association may conduct business outside the state if the commissioner approves, and the activity is subject to the laws of the state where it is done.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Branching and Agency Powers [6550 - 6558] ( Article 2 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 by the board of directors and approved by the commissioner, where the business of an association may be conducted. (b) An association may, with the approval of the commissioner, conduct business outside this state, subject to the laws of the state in which the business is done. (Repealed and added by Stats. 1983, Ch. 1091, Sec. 2.)
  38. 6551.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Branching and Agency Powers [6550 - 6558] ( Article 2 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    An association may operate an agency to transact approved business, and the agency may also perform approved special duties. The agency can do only activities authorized for savings associations under this division or the commissioner’s regulations.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Branching and Agency Powers [6550 - 6558] ( Article 2 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 through which the association may transact business that is specified by the board of directors and approved by the commissioner. (b) The agency may perform other special duties and functions as may be directed from time to time by the home office or a branch office and approved by the commissioner. (c) An agency may perform only those activities, duties, or functions as are authorized for savings associations by the provisions of this division or regulations of the commissioner. (Amended by Stats. 1988, Ch. 718, Sec. 11.5.)
  39. 6552.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Branching and Agency Powers [6550 - 6558] ( Article 2 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    An association must get the commissioner’s prior written approval before establishing or maintaining a branch office or agency.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Branching and Agency Powers [6550 - 6558] ( Article 2 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 agencies may be created for individual transactions and for special temporary purposes without approval. (Repealed and added by Stats. 1983, Ch. 1091, Sec. 2.)
  40. 6553.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Branching and Agency Powers [6550 - 6558] ( Article 2 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    An application to approve a branch office or agency must include specified location, function, and other information, and it must be filed with the required fee and a budget.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Branching and Agency Powers [6550 - 6558] ( Article 2 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 location of the branch or agency. (2) The functions to be performed at the branch or agency. (3) Any additional information the commissioner deems necessary to reach a decision. (b) Each application shall be accompanied by the filing fee as prescribed pursuant to Section 9001 and by a budget of the association for the current earnings period and for the next succeeding annual period, which reflects the estimated additional expense of the maintenance of each branch or agency covered by the application. (Repealed and added by Stats. 1983, Ch. 1091, Sec. 2.)
  41. 6554.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Branching and Agency Powers [6550 - 6558] ( Article 2 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    When the commissioner receives a complete branch office application, the commissioner must send written notice of the filing to each association.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Branching and Agency Powers [6550 - 6558] ( Article 2 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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. The notice shall state the name of the association and the name of the city or community in which the branch is proposed to be located. (Amended by Stats. 1985, Ch. 983, Sec. 8. Effective September 26, 1985.)
  42. 6555.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Branching and Agency Powers [6550 - 6558] ( Article 2 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    The commissioner may hold a hearing before acting on a branch office application, and if a hearing is held it must be at least 10 days after the hearing notice is mailed.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Branching and Agency Powers [6550 - 6558] ( Article 2 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 hearing is to be held, the hearing shall not be held less than 10 days after the mailing of a notice of hearing under subdivision (a). (c) Any person may appear at the hearing in person or by agent or attorney, and, pursuant to regulations issued by the commissioner, show cause why the application should not be approved. (Amended by Stats. 1985, Ch. 983, Sec. 9. Effective September 26, 1985.)
  43. 6556.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Branching and Agency Powers [6550 - 6558] ( Article 2 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    The commissioner reviews a branch office or agency application, may hold a hearing if needed, and must approve the application if the listed criteria are met; otherwise, it must be denied.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Branching and Agency Powers [6550 - 6558] ( Article 2 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 shall determine whether all of the following criteria are met: (1) The applicant’s policies, financial condition, and operations afford no basis for supervisory objection. (2) The proposed branch office or agency will be opened within a reasonable time after approval, as determined by the commissioner. (b) If the commissioner determines that the criteria set forth in subdivision (a) are met the application shall be approved. (c) If the commissioner determines that the criteria set forth in subdivision (a) are not met the application shall be denied. (Amended by Stats. 1987, Ch. 730, Sec. 13.)
  44. 6557.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Branching and Agency Powers [6550 - 6558] ( Article 2 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    This section says the article’s branch office and agency application rules do not apply to certain branch offices or agencies acquired in specified transactions.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Branching and Agency Powers [6550 - 6558] ( Article 2 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 pursuant to a merger, consolidation, conversion, or transfer of assets. (Repealed and added by Stats. 1983, Ch. 1091, Sec. 2.)
  45. 6558.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Branching and Agency Powers [6550 - 6558] ( Article 2 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    The commissioner may make rules and regulations about actions involving branch offices and agencies covered by this article.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 4. Powers of Associations [6500 - 6558] ( Chapter 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Branching and Agency Powers [6550 - 6558] ( Article 2 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 6558. The commissioner may adopt rules and regulations relating to any action pertaining to branch offices and agencies regulated by this article. (Repealed and added by Stats. 1983, Ch. 1091, Sec. 2.)
  46. 6600.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. Savings Liability [6600 - 6603] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    An association’s savings liability is limited to its savings accounts, plus credited or earned interest, minus redemption and withdrawal payments.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. Savings Liability [6600 - 6603] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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, less redemption and withdrawal payments. (Repealed and added by Stats. 1983, Ch. 1091, Sec. 2.)
  47. 6601.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. Savings Liability [6600 - 6603] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    Account holders may add money to their savings accounts at times and in amounts they choose, unless limited by the association or by state or federal law or regulations.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. Savings Liability [6600 - 6603] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 in amounts and at times they elect. (Repealed and added by Stats. 1983, Ch. 1091, Sec. 2.)
  48. 6602.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. Savings Liability [6600 - 6603] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    Savings accounts may be opened for cash, or for eligible property if commissioner regulations allow it; the board’s valuation of property taken in payment is conclusive unless there is fraud.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. Savings Liability [6600 - 6603] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 association is authorized to invest. In the absence of fraud in the transaction, the value of the property taken in payment, as determined by the board of directors, shall be conclusive. (Repealed and added by Stats. 1983, Ch. 1091, Sec. 2.)
  49. 6603.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. Savings Liability [6600 - 6603] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    Members of a mutual association are not responsible for the association’s losses, savings accounts are not subject to assessment, and savings account holders are not liable for unpaid installments on the account.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. Savings Liability [6600 - 6603] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 is liable for any unpaid installments on the account. (Repealed and added by Stats. 1983, Ch. 1091, Sec. 2.)
  50. 6651.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Savings Accounts [6651 - 6663] ( Article 2 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    Savings accounts generally must be kept and transferred on the association’s books, except for accounts issued in marketable or bearer form.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Savings Accounts [6651 - 6663] ( Article 2 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 the books of the association, and the accounts or any interest in the accounts shall be transferable only on the books of the association and upon proper written application, and acceptance by the association of the transferee as a holder upon terms approved by the board of directors. (Added by Stats. 1983, Ch. 1091, Sec. 2.)
  51. 6652.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Savings Accounts [6651 - 6663] ( Article 2 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    If a savings account record is lost or destroyed, the association must issue a replacement evidence of account after an affidavit is filed.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Savings Accounts [6651 - 6663] ( Article 2 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 representative, of an affidavit to the effect that the evidence of account, if any, has been lost or destroyed, and that the account has not been pledged or assigned in whole or in part, the association shall issue a new evidence of account, if applicable, in the name of the holder of record. (b) The new evidence of account may state that it is issued in lieu of the one lost or destroyed and that the association shall not be liable for the loss or destruction of the original evidence of account. (c) The association may require an indemnification or a bond in an amount it deems sufficient to indemnify the association against any loss which might result from the issuance of a new evidence of account under this section. (Amended by Stats. 1984, Ch. 287, Sec. 19. Effective July 6, 1984.)
  52. 6653.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Savings Accounts [6651 - 6663] ( Article 2 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    An association may not give or allow giveaways tied to opening or increasing a savings account if the item exceeds the amount authorized by regulation; the commissioner may also set related giveaway-distribution and advertising restrictions.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Savings Accounts [6651 - 6663] ( Article 2 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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, or disposition of, for any one opening or increase anything having a cost or value in excess of the amount authorized by the commissioner by regulation. (b) Notwithstanding subdivision (a) the commissioner is authorized to impose by regulation restrictions on associations, relating to the distribution and advertising of giveaways, equivalent to those imposed on federal associations doing business in this state. (Added by Stats. 1983, Ch. 1091, Sec. 2.)
  53. 6653.5.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Savings Accounts [6651 - 6663] ( Article 2 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    A troubled savings association may not accept brokered funds into accounts, but the commissioner may waive that rule or add more restrictions.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Savings Accounts [6651 - 6663] ( Article 2 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 accounts. (b) Any renewal of a savings account in any troubled savings association and any rollover of any amount on deposit in such a savings account shall be treated as an acceptance of funds by the troubled savings association for purposes of subdivision (a). (c) The commissioner may, on a case-by-case basis and upon application by a savings association, waive the applicability of subdivision (a) upon a finding that the acceptance of these deposits does not constitute an unsafe or unsound practice with respect to that savings association. (d) The commissioner may impose, by regulation or order, such additional restrictions on the acceptance of broker deposits by any troubled savings association as the commissioner may determine to be appropriate. (e) For purposes of this section: (1) “Deposit broker,” except as otherwise provided in paragraph (2), means either of the following: (A) Any person engaged in (i) the business of placing deposits, or facilitating the placement of deposits, of third parties with financial institutions or (ii) the business of placing deposits with financial institutions for the purpose of selling interests in those deposits to third parties. (B) An agent or trustee who establishes a savings account to facilitate a business arrangement with a financial institution to use the proceeds of the account to fund a prearranged loan. (2) Subject to paragraph (3), “deposit broker” does not include any of the following: (A) A savings association with respect to funds placed with that savings association. (B) An employee of a savings association with respect to funds placed with the employing savings association. (C) A trust department of a savings association, if the trust in question has not been established for the primary purpose of placing funds with financial institutions. (D) The trustee of a pension or other employee benefit plan, with respect to funds of the plan. (E) A person acting as a plan administrator or an investment adviser in connection with a pension plan or other employee benefit plan, provided that that person is performing managerial functions with respect to the plan. (F) The trustee of a testamentary account. (G) The trustee of an irrevocable trust (other than one described in subparagraph (B) of paragraph (1), as long as the trust in question has not been established for the primary purpose of placing funds with financial institutions. (H) A trustee or custodian of a pension or profitsharing plan qualified under Section 401(d) or 403(a) of the federal Internal Revenue Code of 1986. (I) An agent or nominee whose primary purpose is not the placement of funds with financial institutions. (3) The exceptions specified in paragraph (2) do not apply to, and the term “deposit broker” includes, any savings association, and any employee of any savings association, that engages, directly or indirectly, in the solicitation of deposits by offering rates of interest (with respect to those deposits) which are significantly higher than the prevailing rates of interest on deposits offered by other associations and federal associations in the savings association’s normal market area. (4) “Employee” means any person meeting all of the following criteria: (A) The person is employed exclusively by the savings association. (B) The person’s compensation is primarily in the form of a salary. (C) The person does not share that compensation with a deposit broker. (D) The person’s office space or place of business is used exclusively for the benefit of the savings association which employs the person. (5) “Troubled savings association” means any savings association which does not meet the minimum capital requirements applicable with respect to that savings association. (Added by Stats. 1990, Ch. 1118, Sec. 37.)
  54. 6660.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Savings Accounts [6651 - 6663] ( Article 2 added by Stats. 1983, Ch. 1091, Sec. 2. )

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    This section limits an association’s setoff against a customer’s account, requires prompt written notice, and requires reversal if the customer returns the response form on time.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Savings Accounts [6651 - 6663] ( Article 2 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 6660. (a) For the purposes of this section: (1) “Account” means withdrawable or repurchasable shares, investment certificates, deposits, or savings accounts as defined in Section 561.2, 561.16, 561.28, 561.29, 561.42, or 563.6 of Title 12 of the Code of Federal Regulations pursuant to which the account holder from time to time may make deposits and effect withdrawals. (2) “Account holder” means a person who is identified on the signature card for an account, or in the absence of a signature card, a person who has an interest in an account which is reflected on the records of the association for that account to whom statements of account or other notices are normally given, or the agent of such person. (3) “Charges” means those charges which an association may, from time to time, impose on an account in the normal course of business in the operation of the account and, does not include: (A) Charges which may be imposed for extraordinary services furnished at the specific request of the account holder. (B) Charges or amounts required to be disclosed to the depositor pursuant to the Truth-in-Lending Act (15 U.S.C. Sec. 1601 et seq.) and Regulation Z (12 C.F.R. 226.1 et seq.), as amended. (4) “Customer” means one or more natural persons. (5) “Debt” means an interest-bearing obligation or an obligation that by its terms is payable in installments, which has not been reduced to judgment, arising from an extension of credit to a natural person primarily for personal, family, or household purposes, and does not mean a charge for savings and loan services, for a debit for uncollected funds, for dishonored checks cashed for a customer, or for an overdraft account imposed by an association on a savings account. (b) An association is limited in exercising any setoff for a debt claimed to be owed to the association by a customer in that a setoff shall not result in an aggregate balance of less than one thousand dollars ($1,000) as shown on the records of the association for all accounts maintained by a customer with the association or any of its branches. (c) Not later than the day following the exercise of any setoff with respect to an account for any debt claimed to be owed to the association by a customer, the association shall deliver to each customer personally or send by first-class mail postage prepaid to the address of each customer as shown on the records of the association a written notice in at least 10-point type containing the following: (1) A statement that the association has set off all or part of a debt against the customer’s account, identifying the account, and giving the respective balances before and after the setoff. (2) A statement identifying the debt setoff against the account and giving the respective balances due before and after the setoff. (3) A statement that if the customer claims that the debt has been paid or is not now owing, or that the funds in the account consist of moneys expressly exempt pursuant to Chapter 4 (commencing with Section 703.010) of Division 2 of Title 9 of Part 2 of the Code of Civil Procedure, and listed in the notice, the customer may execute and return the notice to the association by mail at the address shown or personally to the branch where the customer’s account is maintained not later than 20 days after the date of mailing or personal delivery. (4) A statement that (A) if the notice is executed and returned, the association may file an action in court to collect the debt, (B) that if a lawsuit is filed, the customer will be notified and have an opportunity to appear and defend, and (C) that if the association is successful, the customer will be liable for court costs, and attorney’s fees, if the debt so provides. (5) A response form in at least 10-point type containing substantially the following: “The debt described in the Notice of Setoff received from the savings and loan association is __ is not __ my debt or the debt of another person in whose name the account is maintained. “I claim that the debt: has been paid. is not now owing. is not subject to setoff because the money in the account is: Paid earnings (CCP 704.070) Proceeds from execution sale of or insurance for loss of a motor vehicle (CCP 704.010) Proceeds from execution sale of household furnishings or other personal effects (CCP 704.020) Relocation benefits (CCP704.180) Life insurance proceeds (CCP 704.100) Disability and health insurance benefits (CCP 704.130) Workers’ compensation benefits (CCP 704.160) Unemployment or strike benefits (CCP 704.120) Retirement benefits including, but not limited to, social security benefits (CCP 704.080, 704.110, 704.115) Public assistance benefits including welfare payments and supplemental security income (SSI) or charitable aid (CCP 704.170) Proceeds from sale of or insurance for damage or destruction of a dwelling (CCP 704.720, 704.960) Proceeds from execution sale of or insurance for loss of tools of a trade (CCP 704.060) Award of damages for personal injury (CCP 704.140) or wrongful death (CCP 704.150) Financial aid paid by an institution of higher education to a student for expenses while attending school (CCP 704.190) I declare under penalty of perjury that the foregoing is true and correct. Executed at City or County, California on _____ Date _____ _____ Signed: ” (d) If the response form described in subdivision (c) executed by the customer is received by the association not later than 20 days after the date of mailing or personal delivery of the written notice, the amount of the setoff for any debt claimed to be owed to the association by a customer, and any service charges resulting from the setoff, shall be reversed and shall be credited to the customer’s account not later than the end of the third business day following receipt of the executed response form. (e) The limitations provided in this section do not apply to accounts in which the association has a security interest expressed by a written contract as collateral for the debt owing to the association by the customer. (f) The limitations provided in this section do not apply when a customer previously has authorized an association in writing to periodically debit an account as the agreed method of payment of the debt. (g) The limitations provided in this section shall apply only to the exercise by an association of a setoff with respect to debts claimed to be owing to it by customers on or after July 1, 1976. (h) Nothing in this section shall prejudice a person’s right to assert exemptions under Chapter 4 (commencing with Section 703.010) of Division 2 of Title 9 of Part 2 of the Code of Civil Procedure, or to assert a claim or defense as to the validity of the debt, in a judicial proceeding. (Amended by Stats. 1994, Ch. 68, Sec. 8. Effective May 9, 1994.)
  55. 6661.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Savings Accounts [6651 - 6663] ( Article 2 added by Stats. 1983, Ch. 1091, Sec. 2. )

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    A savings association or federal association must ignore an adverse claim notice and continue paying the account holder, unless an affidavit or court order triggers a temporary stop or compliance duty.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Savings Accounts [6651 - 6663] ( Article 2 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 be disregarded, and the association or federal association, notwithstanding the notice, shall honor withdrawal applications and shall pay withdrawals and interest to the person or persons to whose credit the account stands or shall deliver the property to or upon the order of the person for whose account the property is held, without any liability on the part of the association or federal association; subject, however, to the exceptions provided in subdivisions (a) and (b): (a) If an adverse claimant delivers to the association or federal association at the office at which the account is carried or the property held an affidavit of the claimant stating that of the claimant’s own knowledge the person to whose credit the deposit stands or for whose account the property is held is a fiduciary for the adverse claimant and that the claimant has reason to believe the fiduciary is about to misappropriate the account or the property, and stating the facts upon which the claim of fiduciary relationship and the belief are founded, the association or federal association shall refuse to pay withdrawals or interest on the account and shall refuse to deliver the property for a period of not more than three court days (including the day of delivery) from the date that the association or federal association received the adverse claimant’s affidavit, without liability on its part and without liability for the sufficiency or truth of the facts alleged in the affidavit. (b) If at any time, either before, after, or in the absence of the filing of an affidavit by the adverse claimant, the adverse claimant procures and serves upon the association or federal association at the office at which the account is carried or the property held a restraining order, injunction, or other appropriate order against the association or federal association from a court of competent jurisdiction in an action in which the adverse claimant and all persons in whose names the account stands or for whose account the property is held are the parties, the association or federal association shall comply with the order or injunction, without liability on its part. (c) The provisions of this section shall be applicable even though the name of the person appearing on the books to whose credit the account stands or for whose account the property is held is modified by a qualifying or descriptive term such as “agent,” “trustee,” or other word or phrase indicating that the person may hold the account or property in a fiduciary capacity. (d) Nothing in the California Multiple-Party Accounts Law contained in Part 2 (commencing with Section 5100) of Division 5 of the Probate Code limits the applicability of this section. (Amended by Stats. 1990, Ch. 79, Sec. 5. Operative July 1, 1991, pursuant to Stats. 1990, Ch. 710, Sec. 46.)
  56. 6662.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Savings Accounts [6651 - 6663] ( Article 2 added by Stats. 1983, Ch. 1091, Sec. 2. )

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    An association or federal association may issue certain savings accounts authorized by law.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Savings Accounts [6651 - 6663] ( Article 2 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 6662. Nothing in this chapter shall prohibit an association or federal association from issuing tenancy in common, community property, and other types of savings accounts authorized by law. (Added by Stats. 1984, Ch. 958, Sec. 3.)
  57. 6663.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Savings Accounts [6651 - 6663] ( Article 2 added by Stats. 1983, Ch. 1091, Sec. 2. )

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    If an attachment is levied on a savings account or other property held by an association or federal association, a copy of the writ and notice must be served on the manager or another officer.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Savings Accounts [6651 - 6663] ( Article 2 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 of attachment shall be served upon the manager or any other officer of the association or federal association. Service shall be made at the office or branch at which the savings account or other property is maintained, if the office or branch is in operation at the time of the service or, if the office, agency, or branch is not in operation at the time of service, at the home office of the association or federal association. Writs and notices of attachment which are not so served are not effective as to any savings account or other property maintained with the association or federal association, irrespective of any other provision of law relating to service of attachments. (Added by Stats. 1985, Ch. 983, Sec. 10. Effective September 26, 1985.)
  58. 670.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 4. Liquidation of an Uninsured Licensee [670 - 692] ( Heading of Article 4 amended by Stats. 2015, Ch. 190, Sec. 31. )

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    The commissioner may handle certain bad or doubtful debts of an uninsured licensee, but larger debts require court approval and very small debts may be left uncollected if recovery looks unlikely.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 4. Liquidation of an Uninsured Licensee [670 - 692] ( Heading of Article 4 amended by Stats. 2015, Ch. 190, Sec. 31. ) ## 670. Upon taking possession of the property and business of a licensee that does not have federal deposit or share insurance, the commissioner may sell, compromise, or compound any bad or doubtful debt owing the licensee for a principal sum not exceeding ten thousand dollars ($10,000), upon those terms as the commissioner may deem proper. If the principal sum thereof exceeds ten thousand dollars ($10,000), the commissioner may compromise, compound, or sell the debt upon those terms as the court may approve. If it appears improbable that a recovery on a debt can be had, and that the costs of an action to collect would be lost, and the principal sum thereof does not exceed five hundred dollars ($500), the commissioner may determine that no suit thereon shall be brought. If the principal sum of that debt exceeds ten thousand dollars ($10,000), the commissioner may determine that no suit thereon be brought after obtaining approval of the court. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  59. 6700.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 3. Contracts for Savings Programs [6700 - 6702] ( Article 3 added by Stats. 1983, Ch. 1091, Sec. 2. )

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    An association may enter savings-plan contracts with certain school or institutional authorities and may accept savings accounts at the school or institution.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 3. Contracts for Savings Programs [6700 - 6702] ( Article 3 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 public or charitable institution caring for minors, for the participation and implementation by the association in any school or institutional thrift or savings plan, and it may accept savings accounts at the school or institution, either by its own collector or by any representative of the school or institution that becomes the agent of the association for that purpose. (Repealed and added by Stats. 1983, Ch. 1091, Sec. 2.)
  60. 6701.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 3. Contracts for Savings Programs [6700 - 6702] ( Article 3 added by Stats. 1983, Ch. 1091, Sec. 2. )

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    An association may contract with employers to handle employee savings by payroll deduction or direct deposit, subject to employee participation and written authorization.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 3. Contracts for Savings Programs [6700 - 6702] ( Article 3 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 credited to a designated account or accounts of its employees who voluntarily elect to participate. (b) With respect to the direct deposit of wages or salary paid to the account of the employee by electronic or other medium upon authorization in writing by the employee and designation of the association as the recipient of the deposits. (Repealed and added by Stats. 1983, Ch. 1091, Sec. 2.)
  61. 6702.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 3. Contracts for Savings Programs [6700 - 6702] ( Article 3 added by Stats. 1983, Ch. 1091, Sec. 2. )

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    An association may pay commissions or fees in cash or merchandise for soliciting deposits.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 3. Contracts for Savings Programs [6700 - 6702] ( Article 3 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 determined by the association. (Repealed and added by Stats. 1983, Ch. 1091, Sec. 2.)
  62. 671.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 4. Liquidation of an Uninsured Licensee [670 - 692] ( Heading of Article 4 amended by Stats. 2015, Ch. 190, Sec. 31. )

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    The commissioner may sell the licensee’s real or personal property for cash, credit, or other terms approved by the court.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 4. Liquidation of an Uninsured Licensee [670 - 692] ( Heading of Article 4 amended by Stats. 2015, Ch. 190, Sec. 31. ) ## 671. The commissioner may sell any real or personal property of the licensee for cash or on credit and on any other terms and conditions as the commissioner may deem proper, subject to the approval of the court. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  63. 672.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 4. Liquidation of an Uninsured Licensee [670 - 692] ( Heading of Article 4 amended by Stats. 2015, Ch. 190, Sec. 31. )

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    The commissioner may sell a licensee’s business with court approval, and certain buyers may purchase business from receivers if required approvals are obtained.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 4. Liquidation of an Uninsured Licensee [670 - 692] ( Heading of Article 4 amended by Stats. 2015, Ch. 190, Sec. 31. ) ## 672. (a) The commissioner may, with the approval of the court, sell any part or the whole of the business of a licensee to any other licensee. The purchase and sale shall be approved by the purchasing licensee, as follows: (1) If the purchasing licensee is organized under the laws of this state, by two-thirds of all of its directors. (2) If the licensee is any licensee other than a licensee organized under the laws of this state, in accordance with the laws of the jurisdiction under which the licensee is organized. (b) (1) Subject to any applicable federal statutes and regulations, any bank or credit union organized under the laws of this state may, with the approval of two-thirds of all of its directors and of the commissioner, purchase from the receiver of a national banking association or a federal credit union the whole or any part of the business of the national banking association or federal credit union. (2) Subject to any applicable federal statutes and regulations and any applicable laws of the jurisdiction under which a foreign corporation is organized, any foreign corporation or any office of a foreign corporation that is licensed by the commissioner to transact business in this state and that is authorized to accept shares or deposits in this state, may, with the approval of the commissioner, purchase from the receiver of a national banking association or federal credit union the whole or any part of the business of the national banking association or federal credit union. (c) The provisions of Chapter 12 (commencing with Section 1200) and Chapter 13 (commencing with Section 1300) of Division 1 of Title 1 of the Corporations Code shall not apply to any purchase and sale of the type described in subdivision (a) or (b). (d) When a purchase and sale of the type described in subdivision (a) or (b) becomes effective, the purchasing licensee shall, by operation of law and without further transfer, substitution, act, or deed, to the extent provided in the agreement of the purchase and sale or in the order of the court approving the purchase and sale and except as withheld or limited by the agreement or by the order: (1) Succeed to the rights, obligations, properties, assets, investments, shares, deposits, demands, and agreements of the licensee whose business is sold, subject to the right of every customer of the licensee whose shares or deposit is sold to withdraw his or her shares or deposit in full on demand after the sale, irrespective of the terms under which the deposit was made. (2) Succeed to the rights, obligations, properties, assets, investments, shares, deposits, demands, and agreements of the licensee whose business is sold under all trusts, executorships, administrations, guardianships, conservatorships, agencies, and other fiduciary or representative capacities, to the same extent as though the purchasing licensee had originally assumed, acquired, or owned the same, subject to the rights of trustors and beneficiaries under the trusts so sold to nominate another or succeeding trustee of the trust so sold after the sale. (3) Succeed to and be entitled to take and execute the appointment to executorships, trusteeships, guardianships, conservatorships, and other fiduciary and representative capacities to which the licensee whose business is sold is or may be named in wills, whenever probated, or to which it is or may be named or appointed by any other instrument. (e) For purposes of subdivision (d), any purchase and sale of the type referred to in subdivision (d) shall be deemed to be effective at the time provided in the agreement of the purchase and sale or in the order of the court approving the purchase and sale. (Amended by Stats. 2013, Ch. 334, Sec. 31. (SB 537) Effective January 1, 2014.)
  64. 6725.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 4. Powers of Attorney on Savings Accounts [6725- 6725.] ( Article 4 added by Stats. 1983, Ch. 1091, Sec. 2. )

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    A savings association or federal association may keep recognizing an attorney-in-fact’s authority on a savings account until it gets written or actual notice that the authority has been revoked.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 4. Powers of Attorney on Savings Accounts [6725- 6725.] ( Article 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 in writing to manage or to make withdrawals either in whole or in part from the savings account of a holder, whether minor or adult, until it receives written notice or is on actual notice of the revocation of authority, whether the revocation is express or by operation of law. (b) Except as provided in Division 4.5 (commencing with Section 4000) of the Probate Code, written notice of the death or adjudication of incompetency of the account holder that is delivered to the office where the account is maintained shall constitute written notice of revocation of the authority of the attorney-in-fact. (c) No association or federal association shall be liable for damages, penalty, or tax by reason of any payment made pursuant to this section. (Amended by Stats. 1994, Ch. 307, Sec. 12. Effective January 1, 1995.)
  65. 673.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 4. Liquidation of an Uninsured Licensee [670 - 692] ( Heading of Article 4 amended by Stats. 2015, Ch. 190, Sec. 31. )

    Verify source ↗

    The commissioner may, within six months after taking possession, terminate or adopt the licensee’s executory contracts, including leases. Damage claims may be filed, but a landlord’s lease-rejection damages are capped, and claims must be filed within the stated deadline.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 4. Liquidation of an Uninsured Licensee [670 - 692] ( Heading of Article 4 amended by Stats. 2015, Ch. 190, Sec. 31. ) ## 673. Within six months after taking possession of the property and business of any licensee that does not have federal deposit or share insurance, the commissioner may terminate or adopt any executory contract to which the licensee may be a party, including leases of real or personal property. Claims for damages resulting from the termination of any contract or lease may be filed and allowed, but no claim of a landlord for damages resulting from the rejection of an unexpired lease of real property or under any covenant of the lease shall be allowed in an amount exceeding the rent reserved by the lease, without acceleration, for the year succeeding the date of the surrender of the premises plus the amount of any unpaid accrued rent without acceleration. Any claim shall be filed within 30 days of the date of the termination or within the time that claims are to be filed under Section 680, whichever is longer. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  66. 674.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 4. Liquidation of an Uninsured Licensee [670 - 692] ( Heading of Article 4 amended by Stats. 2015, Ch. 190, Sec. 31. )

    Verify source ↗

    The commissioner may sign and deliver documents needed to sell property or handle liquidation, and a court-order copy must be recorded when the commissioner sells real property.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 4. Liquidation of an Uninsured Licensee [670 - 692] ( Heading of Article 4 amended by Stats. 2015, Ch. 190, Sec. 31. ) ## 674. The commissioner, in his or her own name or in the name of the licensee, may execute, acknowledge, and deliver any and all conveyances and other instruments necessary or appropriate to effectuate the sale of any real or personal property or to effectuate any other transaction in connection with the liquidation of a licensee or the distribution of its assets. Any conveyance or other instrument executed by the commissioner pursuant to this authority shall be valid and effectual for all purposes as though the same had been executed by the officers of the licensee by authority of its board of directors. Whenever the commissioner sells any real property of the licensee a certified copy of the order of the court approving the sale shall be recorded in the county in which any part of the real property is located. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  67. 675.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 4. Liquidation of an Uninsured Licensee [670 - 692] ( Heading of Article 4 amended by Stats. 2015, Ch. 190, Sec. 31. )

    Verify source ↗

    The commissioner may bring or defend legal actions needed to liquidate the licensee.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 4. Liquidation of an Uninsured Licensee [670 - 692] ( Heading of Article 4 amended by Stats. 2015, Ch. 190, Sec. 31. ) ## 675. The commissioner, in the name of the delinquent licensee or in his or her own name, may prosecute and defend any and all actions and other legal proceedings appropriate or necessary to the liquidation of the licensee. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  68. 6750.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 5. Married Persons and Minors [6750 - 6752] ( Article 5 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    An association or federal association may open and manage savings accounts for married persons, minors, and certain trusts, subject to this article’s express exceptions.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 5. Married Persons and Minors [6750 - 6752] ( Article 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 sole and absolute owner of the account, and receive payments by or for the owner, and pay withdrawals, accept pledges to the association, and act in any other manner with respect to the accounts on the order of a married person or minor. A married person or minor may establish a trust under Sections 401 and 408 of the Internal Revenue Code of 1986, as amended, and an association or federal association may issue savings accounts to the trust. (Amended by Stats. 1990, Ch. 1118, Sec. 37.5.)
  69. 6751.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 5. Married Persons and Minors [6750 - 6752] ( Article 5 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    Payments or deliveries of rights to a married person, a minor, or certain related trusts can be treated as a sufficient release of the association or federal association.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 5. Married Persons and Minors [6750 - 6752] ( Article 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 acquittance signed by a married person or by a minor who holds a savings account, shall be a sufficient release of the association or federal association for any payment made or delivery of rights to the married person or minor. (Added by Stats. 1983, Ch. 1091, Sec. 2.)
  70. 6752.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 5. Married Persons and Minors [6750 - 6752] ( Article 5 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    This section limits what parents or guardians can do with a minor’s savings account, but lets a parent or guardian of a child 13 or under request dual-signature withdrawals by written notice.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 5. Married Persons and Minors [6750 - 6752] ( Article 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 be binding upon the minor with like effect as if the minor were of full age and legal capacity. (b) Except under subdivision (c), the parent or guardian of the minor shall not have the power to attach or transfer any savings account issued to or in the name of the minor, provided that a parent or guardian of a minor aged 13 or less may require, by written notice delivered to the office where the account is maintained, that the signatures of both the minor and the parent or guardian be required for withdrawals from the account. (c) In the event of the death of a minor the receipt or acquittance of either parent, guardian, or foster parent of the minor is a sufficient discharge of the association or federal association for any sums not exceeding in the aggregate two thousand five hundred dollars ($2,500) unless the minor has given written notice to the association or federal association to accept the signature of the parent, guardian or foster parent to withdraw a greater amount. (Amended by Stats. 1984, Ch. 958, Sec. 4.)
  71. 676.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 4. Liquidation of an Uninsured Licensee [670 - 692] ( Heading of Article 4 amended by Stats. 2015, Ch. 190, Sec. 31. )

    Verify source ↗

    The commissioner must deposit money received during liquidation in one or more state banks or state credit unions, and that deposit is preferred if the depositary later fails.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 4. Liquidation of an Uninsured Licensee [670 - 692] ( Heading of Article 4 amended by Stats. 2015, Ch. 190, Sec. 31. ) ## 676. The commissioner from time to time shall deposit all moneys coming into his or her hands in the course of the liquidation of the licensee in one or more state banks or state credit unions and in the event of the suspension or insolvency of the depositary shall be preferred before all other deposits. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  72. 677.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 4. Liquidation of an Uninsured Licensee [670 - 692] ( Heading of Article 4 amended by Stats. 2015, Ch. 190, Sec. 31. )

    Verify source ↗

    The commissioner must make a duplicate inventory of the licensee’s assets and file it in the commissioner’s office and with the county clerk.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 4. Liquidation of an Uninsured Licensee [670 - 692] ( Heading of Article 4 amended by Stats. 2015, Ch. 190, Sec. 31. ) ## 677. The commissioner shall make an inventory of the assets of the licensee in duplicate and file one in the office of the commissioner and one with the clerk of the county in which the head office of the licensee is located to be filed with the papers in the liquidation proceedings. The inventory shall be open for inspection at all reasonable times. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  73. 678.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 4. Liquidation of an Uninsured Licensee [670 - 692] ( Heading of Article 4 amended by Stats. 2015, Ch. 190, Sec. 31. )

    Verify source ↗

    After claim presentation time expires, the commissioner must prepare and file a complete list of claims and, before each dividend-authorization application, file a supplemental claims list.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 4. Liquidation of an Uninsured Licensee [670 - 692] ( Heading of Article 4 amended by Stats. 2015, Ch. 190, Sec. 31. ) ## 678. When the time fixed for the presentation of claims has expired, the commissioner shall make in duplicate a full and complete list of all claims presented, including and specifying claims that have been rejected by the commissioner, and a list of all claims of customers as shown by the books or records of the licensee for which claims have not yet been presented, and shall file one copy of the list in the commissioner’s office and one with the clerk of the county in which the head office of the licensee is located to be filed with the papers in the liquidation proceedings. Before each application to the court for leave to declare a dividend, the commissioner shall file a supplemental list of claims presented since the last preceding list was filed, including and specifying any claims that have been rejected by him or her. The list of claims and of claims of customers as shown by the books or records of the licensee shall be open for inspection at all reasonable times. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  74. 679.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 4. Liquidation of an Uninsured Licensee [670 - 692] ( Heading of Article 4 amended by Stats. 2015, Ch. 190, Sec. 31. )

    Verify source ↗

    The commissioner must publish and mail notice about claims against an uninsured licensee, and claimants must present and prove claims within the stated deadlines or risk being barred.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 4. Liquidation of an Uninsured Licensee [670 - 692] ( Heading of Article 4 amended by Stats. 2015, Ch. 190, Sec. 31. ) ## 679. The commissioner shall cause notice to be given by advertisement in any newspapers of general circulation as he or she may select weekly for three consecutive months, calling on all persons who have claims against the licensee to present the same to the commissioner and make legal proof thereof at a place to be specified therein and within four months of the date of the first publication of the notice, which date shall be specified in the notice. The notice shall also state that all claims other than those of customers appearing upon the books or records of the licensee shall be forever barred if not filed within the four months’ period and that all claims of customers appearing upon the books or records of the licensee will be forever barred, except as herein provided, if not filed prior to the filing of a petition for a final dividend. The commissioner shall also mail a similar notice to all persons, including customers whose names appear as creditors upon the books of the licensee and whose addresses appear upon the books or records of the licensee, and shall enclose therewith a printed form of notice of claim. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  75. 680.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 4. Liquidation of an Uninsured Licensee [670 - 692] ( Heading of Article 4 amended by Stats. 2015, Ch. 190, Sec. 31. )

    Verify source ↗

    Claims against the licensee or its property must be filed in writing and verified with the commissioner within four months of the first notice to creditors.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 4. Liquidation of an Uninsured Licensee [670 - 692] ( Heading of Article 4 amended by Stats. 2015, Ch. 190, Sec. 31. ) ## 680. All claims of every kind against the licensee or against any property owned or held by the licensee shall be presented to the commissioner in writing verified by the claimant or someone on his or her behalf within four months of the date of the first publication of the notice to creditors. Any claim, other than the claim of a customer whose claim appears upon the books or records of the licensee, not presented within the four months’ period shall be forever barred and any claim of a customer whose claim appears upon the books or records of the licensee that is not so presented prior to the date of the filing of the petition of the commissioner with the court for approval of the payment of the final dividend shall be forever barred except as to any moneys remaining after all debts for which claims were duly filed have been paid in full with interest. If the commissioner doubts the validity of any claim, he or she may reject the claim and serve notice of the rejection upon the claimant either by mail or personally. An affidavit of the mailing or personal service of the notice shall be prima facie evidence of the receipt thereof and shall be filed with the commissioner. Any action upon a rejected claim shall be brought within three months after the date of mailing or personal service of the notice of rejection. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  76. 6800.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 6. Multiple-Party Accounts [6800 - 6805] ( Heading of Article 6 amended by Stats. 1989, Ch. 397, Sec. 7. )

    Verify source ↗

    A multiple-party account in an association or federal association is governed by Part 2 of Division 5 of the Probate Code.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 6. Multiple-Party Accounts [6800 - 6805] ( Heading of Article 6 amended by Stats. 1989, Ch. 397, Sec. 7. ) ## 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 (commencing with Section 5100) of Division 5 of the Probate Code. (Amended by Stats. 1990, Ch. 79, Sec. 6. Operative July 1, 1991, pursuant to Stats. 1990, Ch. 710, Sec. 46.)
  77. 6804.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 6. Multiple-Party Accounts [6800 - 6805] ( Heading of Article 6 amended by Stats. 1989, Ch. 397, Sec. 7. )

    Verify source ↗

    An association or federal association that pays a survivor under the Probate Code is not liable because of that payment for state estate, inheritance, or succession taxes.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 6. Multiple-Party Accounts [6800 - 6805] ( Heading of Article 6 amended by Stats. 1989, Ch. 397, Sec. 7. ) ## 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, because of the payment, be liable for any estate, inheritance, or succession taxes that may be due this state. (Amended by Stats. 1990, Ch. 79, Sec. 7. Operative July 1, 1991, pursuant to Stats. 1990, Ch. 710, Sec. 46.)
  78. 6805.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 6. Multiple-Party Accounts [6800 - 6805] ( Heading of Article 6 amended by Stats. 1989, Ch. 397, Sec. 7. )

    Verify source ↗

    A pledge or hypothecation of part or all of a multiple-party account can be valid if signed by one or more tenants, unless the account terms say otherwise.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 6. Multiple-Party Accounts [6800 - 6805] ( Heading of Article 6 amended by Stats. 1989, Ch. 397, Sec. 7. ) ## 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 Code, signed by any one or more tenants, whether minor or adult, upon whose signature or signatures withdrawals may be made from the account shall, unless the terms of the account provide specifically to the contrary, be a valid pledge and transfer to the association or federal association of that part of the account pledged or hypothecated, and shall not operate to sever or terminate all or any part of the account. (Amended by Stats. 1989, Ch. 397, Sec. 13.5. Operative July 1, 1990, by Sec. 42 of Ch. 397.)
  79. 681.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 4. Liquidation of an Uninsured Licensee [670 - 692] ( Heading of Article 4 amended by Stats. 2015, Ch. 190, Sec. 31. )

    Verify source ↗

    The commissioner may pay dividends on approved claims, but only after the claims-presentation period has expired and with court approval.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 4. Liquidation of an Uninsured Licensee [670 - 692] ( Heading of Article 4 amended by Stats. 2015, Ch. 190, Sec. 31. ) ## 681. At any time and from time to time after the expiration of the time fixed for the presentation of claims, the commissioner, after obtaining approval of the court, may declare and pay one or more dividends upon all approved claims out of the funds remaining in his or her hands after the payment of expenses and after setting aside an amount sufficient to pay to all customers, who have not yet filed claims but whose claims appear upon the books or records of the licensee, their pro rata share of the funds then available for the payment of a dividend. At any time after the expiration of one year from the date of the first publication of notice to creditors and after obtaining the approval of the court, the commissioner may declare and pay a final dividend. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  80. 682.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 4. Liquidation of an Uninsured Licensee [670 - 692] ( Heading of Article 4 amended by Stats. 2015, Ch. 190, Sec. 31. )

    Verify source ↗

    This section sets the order for paying liquidation expenses and unsecured creditor claims, then says interest follows the same priority as the underlying claim and is not paid until senior claims in the same class are fully paid or provided for.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 4. Liquidation of an Uninsured Licensee [670 - 692] ( Heading of Article 4 amended by Stats. 2015, Ch. 190, Sec. 31. ) ## 682. (a) Expenses and claims of unsecured creditors have priority in the following order: (1) Expenses of liquidation and approved claims for fees and assessments due the department. (2) Approved claims given priority under other provisions of state or federal law, including, but not limited to, Sections 676 and 710. (3) Approved claims for “deposits,” as that term is defined in 12 U.S.C. Section 1813(l), but including obligations of the type described in 12 U.S.C. Section 1813(l)(5)(A) and (B). (4) Approved claims for other general liabilities. (5) Approved claims for obligations subordinated to deposits and other general liabilities. (b) Interest shall be given the same priority as the claim on which it is based, but no interest shall be paid on any claim until the principal of all claims within the same class has been paid or adequately provided for in full. (c) Any funds remaining shall be paid to the members or shareholders, as appropriate. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  81. 683.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 4. Liquidation of an Uninsured Licensee [670 - 692] ( Heading of Article 4 amended by Stats. 2015, Ch. 190, Sec. 31. )

    Verify source ↗

    A person interested may file objections to an un-rejected claim, and the commissioner must send the objection to court. The court must handle the objections, and the commissioner may not allow the claim until the claimant proves it by judgment if the objections are sustained.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 4. Liquidation of an Uninsured Licensee [670 - 692] ( Heading of Article 4 amended by Stats. 2015, Ch. 190, Sec. 31. ) ## 683. Objections to any claim not rejected by the commissioner may be made by any person interested by filing a copy of the objection with the commissioner, who shall present the copy to the court at the time of the next application for approval of the declaration of a dividend. The court shall thereupon dispose of the objections or may order a reference for that purpose, and should the objections to any claim be sustained by the court or by the referee, the claim shall not be allowed by the commissioner until the claimant has established the claim by judgment. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  82. 684.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 4. Liquidation of an Uninsured Licensee [670 - 692] ( Heading of Article 4 amended by Stats. 2015, Ch. 190, Sec. 31. )

    Verify source ↗

    Unpaid dividends and unclaimed shares or deposits still held by the commissioner six months after a final dividend order must be deposited in the State Treasury.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 4. Liquidation of an Uninsured Licensee [670 - 692] ( Heading of Article 4 amended by Stats. 2015, Ch. 190, Sec. 31. ) ## 684. Dividends remaining unpaid and any sums available for payment of shares or deposits for which no claim was filed, which remain in the hands of the commissioner six months after the order for the payment of a final dividend, shall be deposited in the State Treasury. The shares or deposits shall be deemed to have been received under Chapter 7 (commencing with Section 1500) of Title 10 of Part 3 of the Code of Civil Procedure, and shall be subject to claim or other disposition as provided in that chapter. The commissioner may pay over the moneys held by him or her to the persons respectively entitled thereto at any time prior to depositing the shares or deposits in the State Treasury, upon being furnished satisfactory evidence of the persons’ right to the same. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  83. 685.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 4. Liquidation of an Uninsured Licensee [670 - 692] ( Heading of Article 4 amended by Stats. 2015, Ch. 190, Sec. 31. )

    Verify source ↗

    If the commissioner must send unclaimed property to the State Treasury, the commissioner must also send the Controller any available signature cards and identifying information on request.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 4. Liquidation of an Uninsured Licensee [670 - 692] ( Heading of Article 4 amended by Stats. 2015, Ch. 190, Sec. 31. ) ## 685. Whenever, under the provisions of this article, the commissioner is required to transmit unclaimed money or other unclaimed property to any state officer for deposit in the State Treasury, the commissioner, upon request of the Controller, shall transmit to the Controller all signature cards and any other identifying information available from the records of the licensee, covering the money or other property. Upon receipt by the Controller of the signature cards or other identifying information, the licensee and the commissioner shall be relieved of all responsibility therefor. The signature cards and other identifying information may be destroyed or otherwise disposed of by the Controller whenever, in his or her discretion, their further retention by him or her is no longer required in the interest of the customers or the state. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  84. 6850.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 7. Accounts of Administrators, Executors, Guardians, Custodians, Trustees, and Other Fiduciaries [6850 - 6856] ( Article 7 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    An association may accept fiduciary savings accounts for named beneficiaries when the account is opened in the name of a fiduciary such as an administrator, executor, custodian, conservator, guardian, or trustee.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 7. Accounts of Administrators, Executors, Guardians, Custodians, Trustees, and Other Fiduciaries [6850 - 6856] ( Article 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 6850. Any association may accept fiduciary savings accounts in the name of any administrator, executor, custodian, conservator, guardian, trustee, or other fiduciary for a named beneficiary or beneficiaries. (Added by Stats. 1983, Ch. 1091, Sec. 2.)
  85. 6851.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 7. Accounts of Administrators, Executors, Guardians, Custodians, Trustees, and Other Fiduciaries [6850 - 6856] ( Article 7 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    A fiduciary can receive payment or delivery of the withdrawal value, interest, or other rights in a fiduciary account while the fiduciary is living, and the association is released by that payment, delivery, or a signed receipt or acquittance.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 7. Accounts of Administrators, Executors, Guardians, Custodians, Trustees, and Other Fiduciaries [6850 - 6856] ( Article 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 fiduciary without regard to any notice to the contrary as long as the fiduciary is living. (b) The payment or delivery to the fiduciary or a receipt or acquittance signed by a fiduciary to whom payment or delivery of rights is made shall be a sufficient release of an association for the payment or delivery. (Added by Stats. 1983, Ch. 1091, Sec. 2.)
  86. 6852.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 7. Accounts of Administrators, Executors, Guardians, Custodians, Trustees, and Other Fiduciaries [6850 - 6856] ( Article 7 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    An association may, in some cases, pay or deliver a deceased fiduciary account’s withdrawal value, interest, or related rights to the beneficiary or beneficiaries, and may presume equal beneficial shares unless notified otherwise.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 7. Accounts of Administrators, Executors, Guardians, Custodians, Trustees, and Other Fiduciaries [6850 - 6856] ( Article 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 been given to an association and the association has no written notice of any other disposition of the beneficial estate, the withdrawal value of the account, and interest on it, or other rights relating to it, may, at the option of an association, be paid or delivered, in whole or in part, to the beneficiary or beneficiaries. (b) In the absence of written notice to the contrary an association may presume that each beneficiary of an account with two or more beneficiaries has an undivided equal beneficial interest in the account. (Added by Stats. 1983, Ch. 1091, Sec. 2.)
  87. 6855.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 7. Accounts of Administrators, Executors, Guardians, Custodians, Trustees, and Other Fiduciaries [6850 - 6856] ( Article 7 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    An association that pays a fiduciary, beneficiary, or designated person under this article or the specified Probate Code law is not liable for state estate, inheritance, or succession taxes because of that payment.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 7. Accounts of Administrators, Executors, Guardians, Custodians, Trustees, and Other Fiduciaries [6850 - 6856] ( Article 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 6855. No association paying any fiduciary, beneficiary, or designated person in accordance with this article or the California Multiple-Party Accounts Law contained in Part 2 (commencing with Section 5100) of Division 5 of the Probate Code shall, because of the payment, be liable for any estate, inheritance, or succession taxes that may be due this state. (Amended by Stats. 1990, Ch. 79, Sec. 8. Operative July 1, 1991, pursuant to Stats. 1990, Ch. 710, Sec. 46.)
  88. 6856.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 7. Accounts of Administrators, Executors, Guardians, Custodians, Trustees, and Other Fiduciaries [6850 - 6856] ( Article 7 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    This article applies to federal associations, but only where doing so does not conflict with federal laws governing them.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 7. Accounts of Administrators, Executors, Guardians, Custodians, Trustees, and Other Fiduciaries [6850 - 6856] ( Article 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 federal associations. (Added by Stats. 1983, Ch. 1091, Sec. 2.)
  89. 686.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 4. Liquidation of an Uninsured Licensee [670 - 692] ( Heading of Article 4 amended by Stats. 2015, Ch. 190, Sec. 31. )

    Verify source ↗

    Approved customer and creditor claims earn interest at the judgment rate starting when the commissioner takes possession of the licensee’s property and business.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 4. Liquidation of an Uninsured Licensee [670 - 692] ( Heading of Article 4 amended by Stats. 2015, Ch. 190, Sec. 31. ) ## 686. All approved claims of customers and other creditors shall bear interest at the rate provided by law on judgments from the date that the commissioner takes possession of the property and business of the licensee. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  90. 687.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 4. Liquidation of an Uninsured Licensee [670 - 692] ( Heading of Article 4 amended by Stats. 2015, Ch. 190, Sec. 31. )

    Verify source ↗

    If a licensee is holding certain property or renting vaults, safes, or safe-deposit boxes, the commissioner must send a registered notice to the known owner or named person telling them to remove the property within at least 60 days.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 4. Liquidation of an Uninsured Licensee [670 - 692] ( Heading of Article 4 amended by Stats. 2015, Ch. 190, Sec. 31. ) ## 687. If the licensee has in its possession for safekeeping or storage any jewelry, plate, money, specie, bullion, stocks, bonds, securities, valuable papers, or other valuable personal property, or has rented any vaults, safes, or safe-deposit boxes, the commissioner shall cause to be mailed, by registered mail, postage prepaid, to any known person claiming to be or appearing on the books of the licensee to be the owner of the property or to the person in whose name the safe, vault, or box stands a notice notifying the person to remove all of the personal property within a specified fixed period of not less than 60 days. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  91. 688.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 4. Liquidation of an Uninsured Licensee [670 - 692] ( Heading of Article 4 amended by Stats. 2015, Ch. 190, Sec. 31. )

    Verify source ↗

    When the notice period ends, or the property is removed, or the box is surrendered, the contract ends and any unearned prepaid rent or charges become a debt owed by the licensee to the person.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 4. Liquidation of an Uninsured Licensee [670 - 692] ( Heading of Article 4 amended by Stats. 2015, Ch. 190, Sec. 31. ) ## 688. On the last day fixed in the notice for the removal of the property or on the date when the property is removed or the box surrendered, any contract between the person owning the property or holding the box and the licensee shall cease and the amount of the unearned prepaid rent or charges, if any, shall become a debt of the licensee to the person. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  92. 689.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 4. Liquidation of an Uninsured Licensee [670 - 692] ( Heading of Article 4 amended by Stats. 2015, Ch. 190, Sec. 31. )

    Verify source ↗

    The commissioner may dispose of unremoved property after the notice period, and may have safes, vaults, or boxes opened under specified witnesses. A notary must seal and label any contents and attach a list and description.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 4. Liquidation of an Uninsured Licensee [670 - 692] ( Heading of Article 4 amended by Stats. 2015, Ch. 190, Sec. 31. ) ## 689. If any property is not removed within the time fixed by the notice mailed by the commissioner, the commissioner may dispose of the property as the court, on application thereto, shall direct. The commissioner may cause any safe, vault, or box to be opened in his or her presence or in the presence of one of the special deputy commissioners and of a notary not an officer or employee of the licensee or of the commissioner. The contents thereof, if any, shall be sealed by the notary in a package upon which the notary shall distinctly mark the name and address of the person in whose name the safe or box stands upon the books of the licensee and shall attach thereon a list and a description of the property within the package. The package so sealed and addressed, together with the list and description may be kept by the commissioner in one or more of the safes or boxes of the licensee or elsewhere until delivered to the person whose name it bears or until otherwise disposed of as directed by the court. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  93. 690.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 4. Liquidation of an Uninsured Licensee [670 - 692] ( Heading of Article 4 amended by Stats. 2015, Ch. 190, Sec. 31. )

    Verify source ↗

    After liquidation is completed, the commissioner must ask the court to declare the licensee wound up and dissolved; the court may issue that order, and the commissioner must then file a certified copy with the Secretary of State.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 4. Liquidation of an Uninsured Licensee [670 - 692] ( Heading of Article 4 amended by Stats. 2015, Ch. 190, Sec. 31. ) ## 690. (a) When the commissioner has completed the liquidation of the licensee, he or she shall petition the court for an order declaring the licensee duly wound up and dissolved. (b) After any notice as the court may direct and a hearing, the court may make an order declaring the licensee duly wound up and dissolved. The order shall declare all of the following: (1) The licensee has been duly wound up. (2) A final franchise tax return, if any, as described by Section 23332 of the Revenue and Taxation Code, has been filed with the Franchise Tax Board as required under Part 10.2 (commencing with Section 18401) of Division 2 of the Revenue and Taxation Code, and any tax or penalty due under the Corporation Tax Law has been paid, and the licensee’s known debts and liabilities have been paid or adequately provided for, or any taxes, penalties, debts, and liabilities have been paid so far as the licensee’s assets permitted, as the case may be. If there are known debts or liabilities for the payment of which adequate provision has been made, the order shall describe the provision, setting forth any information necessary to enable the creditor or other person to whom payment is to be made to appear and claim payment of the debt or liability. (3) All known assets of the licensee have been distributed to its shareholders or wholly applied on account of the licensee’s debts and liabilities. (4) The licensee is dissolved. (c) The court may make additional orders and grant further relief as it deems proper upon the evidence submitted. (d) Upon the making of the order declaring the licensee dissolved, the corporate existence of the licensee shall cease, except for the purposes of any necessary further winding up. (e) Upon the making of the order declaring the licensee dissolved, the commissioner shall file with the Secretary of State a copy of the order, certified by the clerk of the court. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  94. 6900.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 8. Accounts of Incompetents [6900- 6900.] ( Article 8 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    An association or federal association may pay or deliver savings-account funds to the account holder if it has no written notice, and no actual notice, that the holder has been adjudicated incompetent.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 8. Accounts of Incompetents [6900- 6900.] ( Article 8 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 incompetent, it may pay or deliver funds to the account holder in accordance with the provisions of the savings account contract, and the receipt or acquittance of the holder shall be a sufficient release of that association or federal association for the payment or delivery. (Amended by Stats. 1984, Ch. 958, Sec. 11.)
  95. 691.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 4. Liquidation of an Uninsured Licensee [670 - 692] ( Heading of Article 4 amended by Stats. 2015, Ch. 190, Sec. 31. )

    Verify source ↗

    When this article needs court approval for a liquidation step, the court must give approval after a hearing with notice as the court directs.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 4. Liquidation of an Uninsured Licensee [670 - 692] ( Heading of Article 4 amended by Stats. 2015, Ch. 190, Sec. 31. ) ## 691. Whenever this article requires court approval of any step in the liquidation proceedings, approval shall be given after a hearing upon notice as the court may direct. At the hearing, the court may by order approve the actions of the commissioner for which he or she has petitioned the court’s approval or it may, by appropriate order, otherwise direct the commissioner in the matter in connection with which the petition was filed. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  96. 692.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 4. Liquidation of an Uninsured Licensee [670 - 692] ( Heading of Article 4 amended by Stats. 2015, Ch. 190, Sec. 31. )

    Verify source ↗

    The commissioner may borrow money for a licensee in liquidation or reorganization, and may secure those borrowings by pledging the licensee’s assets if the court approves.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 4. Liquidation of an Uninsured Licensee [670 - 692] ( Heading of Article 4 amended by Stats. 2015, Ch. 190, Sec. 31. ) ## 692. Whenever, in the opinion of the commissioner, the liquidation or reorganization of any licensee taken in charge by him or her would be facilitated, or the public interests and the interests of customers or stockholders would be served, the commissioner may borrow money on behalf of the licensee from any federal agency authorized to lend money to receivers, trustees, liquidating agents, or other agents or supervisory authorities in charge of licensees that are closed or in process of liquidation and, with approval of the court, the commissioner may secure any borrowings by the pledge of the assets of the licensee in any manner and amount the commissioner deems necessary, proper, or expedient. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  97. 6950.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 9. Accounts of Deceased Nonresidents [6950 - 6951] ( Article 9 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    Certain deceased nonresident savings accounts are exempt from state taxation, and for sister-state decedents the account must be paid to the proper personal representative or claimant if required Probate Code documents are provided.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 9. Accounts of Deceased Nonresidents [6950 - 6951] ( Article 9 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 account, together with additions and interest, or any part of it, shall be exempt from any taxation otherwise imposed by this state. (b) When a savings account is held in any association or federal association by a person who dies while domiciled in a sister state, the account, together with additions and interest, or any part of it, shall be paid to the sister state personal representative or other claimant under the Probate Code, provided the personal representative or other claimant has furnished the association or federal association with all of the documentation required under applicable provisions of the Probate Code and evidence of ownership of the account, if any, issued under Section 6652. (c) Upon payment or delivery to the personal representative or other claimant after receipt of the documents specified in subdivision (b), the association or federal association is released and discharged to the same extent as if the payment or delivery had been made to a legally qualified local personal representative, and is not required to account for the application or disposition of the property. (Amended by Stats. 1988, Ch. 1199, Sec. 14. Operative July 1, 1989, by Sec. 119 of Ch. 1199.)
  98. 6951.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 9. Accounts of Deceased Nonresidents [6950 - 6951] ( Article 9 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    A lawsuit cannot be maintained against an association or federal association for a payment made in accordance with this article.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 9. Accounts of Deceased Nonresidents [6950 - 6951] ( Article 9 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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. (Amended by Stats. 1984, Ch. 958, Sec. 12.)
  99. 7.

    ## Financial Code - FIN ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1951, Ch. 364. )

    Verify source ↗

    A reference to a part of this code or another law includes all current and future amendments and additions.

    ## Financial Code - FIN ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1951, Ch. 364. ) ## 7. Whenever any reference is made to any portion of this code or of any other law, the reference applies to all amendments and additions thereto, now or hereafter made. (Enacted by Stats. 1951, Ch. 364.)
  100. 700.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 5. Disposal of Unclaimed Trust Property [700 - 702] ( Article 5 added by Stats. 2011, Ch. 243, Sec. 2. )

    Verify source ↗

    If a licensee is being liquidated or has stopped its trust business, and the owners cannot be found, the commissioner or the licensee may, with superior court approval, transfer money to the Treasurer and other property to the Controller for deposit in the State Treasury.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 5. Disposal of Unclaimed Trust Property [700 - 702] ( Article 5 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 700. Whenever any licensee is being liquidated or whenever the trust business of any licensee has been discontinued and the licensee has in its possession money or other property held by it in trust or for safekeeping and the beneficiaries or persons entitled thereto are unknown or cannot be found, the commissioner or the licensee, upon obtaining approval of the superior court of the county in which the liquidation proceedings are pending or in which the head office of the licensee is situated, may do the following: (a) In the case of money, deliver it to the Treasurer. (b) In the case of other property, deliver it to the Controller for deposit in the State Treasury. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  101. 7000.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 10. Savings Accounts as Legal Investments and as Security; Public Funds [7000 - 7002] ( Article 10 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    This section lets listed fiduciaries and organizations invest funds in savings accounts, and lets associations act as depositaries or fiscal agents for public funds. It also limits how much public money an association may hold on deposit and creates conflict-of-interest exceptions.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 10. Savings Accounts as Legal Investments and as Security; Public Funds [7000 - 7002] ( Article 10 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 7000. (a) Administrators, executors, custodians, conservators, guardians, trustees, and other fiduciaries, insurance companies, business and manufacturing companies, banks, trust companies, credit unions, and other types of similar financial organizations, charitable, educational, eleemosynary and public corporations, funds and organizations, and municipalities and other public corporations and bodies, and public officials are specifically authorized and empowered to invest funds held by them, without any order of any court, in savings accounts of associations and federal associations and the investments are legal investments for those funds. (b) No association shall have on deposit at any one time funds of the State of California, of the cities, counties, and other political subdivisions of the state, and of the public corporations and districts of the state, that, in the aggregate, exceed in amount 400 percent of its statutory net worth. The amount of funds on deposit secured by surety bonds shall not at any time, in the aggregate, exceed 100 percent of statutory net worth. The limitations of this subdivision as to the amount of funds which may be on deposit at any one time shall not apply to negotiable certificates of deposit. (c) An association or federal association may act as a depositary or fiscal agent for the holding or handling of public funds notwithstanding the fact that a member of the legislative body or an officer or employee of the depositor is an officer, employee, or stockholder of the association or federal association, or of a savings and loan holding company or service corporation of the association or federal association. (d) Under this section a member of a legislative body, or an officer or employee shall not be deemed “interested in any contract” as that phrase is used in Section 1090 of the Government Code, if that person’s sole interest is the fact that the person is an officer, employee, or stockholder of the association or federal association selected to act as depositary, paying agent, or fiscal agent or of its savings and loan holding company or service corporation. (e) An officer or employee of a local public agency shall be deemed to have only a “remote interest” in a contract, as that term is used in Section 1091 of the Government Code, where the contract is entered into without competitive bidding under a procedure established by law, if the sole interest is that of an officer, director, or employee, of an association or federal association or savings and loan holding company or service corporation of the association or federal association with which a party to the contract has the relationship of borrower or depositor, debtor, or creditor, and if the conditions of subdivision (a) of Section 1091 of the Government Code are met. (Amended by Stats. 1985, Ch. 983, Sec. 10.5. Effective September 26, 1985.)
  102. 70000.

    ## Financial Code - FIN ## DIVISION 22. CALIFORNIA FINANCIAL LITERACY FUND [70000 - 70004] ( Division 22 added by Stats. 2011, Ch. 612, Sec. 1. )

    Verify source ↗

    For this division, “fund” means the California Financial Literacy Fund.

    ## Financial Code - FIN ## DIVISION 22. CALIFORNIA FINANCIAL LITERACY FUND [70000 - 70004] ( Division 22 added by Stats. 2011, Ch. 612, Sec. 1. ) ## 70000. For purposes of this division, “fund” means the California Financial Literacy Fund. (Added by Stats. 2011, Ch. 612, Sec. 1. (AB 597) Effective January 1, 2012.)
  103. 70001.

    ## Financial Code - FIN ## DIVISION 22. CALIFORNIA FINANCIAL LITERACY FUND [70000 - 70004] ( Division 22 added by Stats. 2011, Ch. 612, Sec. 1. )

    Verify source ↗

    The California Financial Literacy Fund is established in the State Treasury and administered by the Controller.

    ## Financial Code - FIN ## DIVISION 22. CALIFORNIA FINANCIAL LITERACY FUND [70000 - 70004] ( Division 22 added by Stats. 2011, Ch. 612, Sec. 1. ) ## 70001. (a) The California Financial Literacy Fund is hereby established in the State Treasury. The fund shall be administered by the Controller. (b) The purpose of the fund is to enable partnerships with the financial services community and governmental and nongovernmental stakeholders to improve Californians’ financial literacy. (c) Funds not appropriated within 18 months of being contributed to the fund shall be returned in full to the contributor. (Added by Stats. 2011, Ch. 612, Sec. 1. (AB 597) Effective January 1, 2012.)
  104. 70002.

    ## Financial Code - FIN ## DIVISION 22. CALIFORNIA FINANCIAL LITERACY FUND [70000 - 70004] ( Division 22 added by Stats. 2011, Ch. 612, Sec. 1. )

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    The Controller may accept private donations and put them into the fund. The fund is available only if appropriated in the annual Budget Act, and donations cannot be used to promote or market a contributor’s financial products.

    ## Financial Code - FIN ## DIVISION 22. CALIFORNIA FINANCIAL LITERACY FUND [70000 - 70004] ( Division 22 added by Stats. 2011, Ch. 612, Sec. 1. ) ## 70002. The Controller may accept private donations and deposit those donations into the fund, which shall be made available upon appropriation in the annual Budget Act. Donations shall not be used to promote or market the financial products of any contributor. (Added by Stats. 2011, Ch. 612, Sec. 1. (AB 597) Effective January 1, 2012.)
  105. 70003.

    ## Financial Code - FIN ## DIVISION 22. CALIFORNIA FINANCIAL LITERACY FUND [70000 - 70004] ( Division 22 added by Stats. 2011, Ch. 612, Sec. 1. )

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    The Controller may convene a financial literacy advisory committee. If the committee is convened, it must comply with the Bagley-Keene Open Meeting Act.

    ## Financial Code - FIN ## DIVISION 22. CALIFORNIA FINANCIAL LITERACY FUND [70000 - 70004] ( Division 22 added by Stats. 2011, Ch. 612, Sec. 1. ) ## 70003. The Controller may convene a financial literacy advisory committee to provide additional oversight of the fund and develop strategies to improve financial literacy. If convened, the committee shall comply with the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code). (Added by Stats. 2011, Ch. 612, Sec. 1. (AB 597) Effective January 1, 2012.)
  106. 70004.

    ## Financial Code - FIN ## DIVISION 22. CALIFORNIA FINANCIAL LITERACY FUND [70000 - 70004] ( Division 22 added by Stats. 2011, Ch. 612, Sec. 1. )

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    The Controller must give the listed legislative committee chairs a brief annual summary on use of the funds, if the funds are appropriated, by August 30 each year.

    ## Financial Code - FIN ## DIVISION 22. CALIFORNIA FINANCIAL LITERACY FUND [70000 - 70004] ( Division 22 added by Stats. 2011, Ch. 612, Sec. 1. ) ## 70004. Beginning in 2013, the Controller shall provide to the respective chairpersons of the Assembly Committee on Banking and Finance and the Senate Committee on Banking and Financial Institutions a brief annual summary on the use of the funds, when appropriated. This summary shall be submitted no later than August 30 of each year. (Added by Stats. 2011, Ch. 612, Sec. 1. (AB 597) Effective January 1, 2012.)
  107. 7001.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 10. Savings Accounts as Legal Investments and as Security; Public Funds [7000 - 7002] ( Article 10 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    Savings accounts made legal investments under this article must be accepted as deposits or as security when a deposit of securities or a bond with security is required.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 10. Savings Accounts as Legal Investments and as Security; Public Funds [7000 - 7002] ( Article 10 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 investments by this article shall be acceptable deposits. (b) Whenever, under the laws of this state or otherwise, a bond is required with security, the bond may be furnished, and the savings accounts and accounts made legal investments by this article in the amount of the bond shall be acceptable as security without other security. (Added by Stats. 1983, Ch. 1091, Sec. 2.)
  108. 7002.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 10. Savings Accounts as Legal Investments and as Security; Public Funds [7000 - 7002] ( Article 10 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    This article supplements other laws on what counts as a legal investment and on deposits of securities and bonds.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 10. Savings Accounts as Legal Investments and as Security; Public Funds [7000 - 7002] ( Article 10 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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, corporations, organizations’ funds, municipalities, bodies, and officials referred to in this article and supplement the laws relating to the deposit of securities and the making and filing of bonds for any purpose. (Added by Stats. 1983, Ch. 1091, Sec. 2.)
  109. 701.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 5. Disposal of Unclaimed Trust Property [700 - 702] ( Article 5 added by Stats. 2011, Ch. 243, Sec. 2. )

    Verify source ↗

    When money is delivered to the Treasurer or property is delivered to the Controller, a court order copy must be sent to the Controller, and a notice of money delivered must be filed. The Treasurer or Controller must also issue a receipt for what is received.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 5. Disposal of Unclaimed Trust Property [700 - 702] ( Article 5 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 701. Upon the delivery of any money to the Treasurer or upon the delivery of any property to the Controller, a certified copy of the order of the court approving the delivery shall be given to the Controller, and upon the delivery of any money to the Treasurer a notice giving the amount delivered shall be filed with the Controller. Upon the receipt of any money or other properties, the Treasurer or the Controller, as the case may be, shall issue a receipt for the same and the receipt shall be deemed a voucher in favor of the licensee to the same extent as though executed by the beneficiary or other person entitled thereto. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  110. 702.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 5. Disposal of Unclaimed Trust Property [700 - 702] ( Article 5 added by Stats. 2011, Ch. 243, Sec. 2. )

    Verify source ↗

    Money or other property delivered to the Treasurer or Controller under this article is treated as deposited in the State Treasury and is subject to claim or other disposition under the cited chapter.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 5. Disposal of Unclaimed Trust Property [700 - 702] ( Article 5 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 702. All money or other property delivered to the Treasurer or Controller pursuant to this article shall be deemed to be delivered for deposit in the State Treasury under the provisions of Chapter 7 (commencing with Section 1500) of Title 10 of Part 3 of the Code of Civil Procedure and shall be subject to claim or other disposition as provided in that chapter. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  111. 7050.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 11. Interest [7050 - 7055] ( Article 11 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    An association may issue savings accounts with different interest rates, and the annual rate can be fixed when the account is issued or vary based on terms set when the account is accepted.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 11. Interest [7050 - 7055] ( Article 11 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 fixed at the time the account is issued or may vary on any basis specified at the time the account is accepted. (Added by Stats. 1983, Ch. 1091, Sec. 2.)
  112. 7051.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 11. Interest [7050 - 7055] ( Article 11 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    An association may classify its savings accounts on any basis.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 11. Interest [7050 - 7055] ( Article 11 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 additions, or location of origin of the account. (Added by Stats. 1983, Ch. 1091, Sec. 2.)
  113. 7052.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 11. Interest [7050 - 7055] ( Article 11 added by Stats. 1983, Ch. 1091, Sec. 2. )

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    Interest for savings accounts must be calculated using the account’s withdrawal value at the start of the accounting period, plus additions during the period, with certain prior withdrawals deducted; accounts under a specified contractual time or notice period are excepted.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 11. Interest [7050 - 7055] ( Article 11 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 savings account at the beginning of the accounting period, plus additions made during the period (less amounts previously withdrawn and noticed for withdrawal, which for interest purposes shall be deducted from the latest previous additions) computed at the rate for the time the funds have been invested, determined as provided in Section 7053. (Added by Stats. 1983, Ch. 1091, Sec. 2.)
  114. 7053.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 11. Interest [7050 - 7055] ( Article 11 added by Stats. 1983, Ch. 1091, Sec. 2. )

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    A savings association must use the actual receipt date to set the investment date, unless it makes a different monthly-interest determination allowed by this section.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 11. Interest [7050 - 7055] ( Article 11 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 that if the association shall so determine, accounts in one or more classifications or additions received by the association on or before a date not later than the 20th day of the month (unless the day determined is not a business day, in which case it may be the next succeeding business day) shall receive interest as if invested on the first day of the month in which the payments were received. (b) If the association makes a determination under subdivision (a) it also shall determine that payments received subsequent to that determination date shall either receive interest as if invested on the first day of the next succeeding month, or receive interest from the date of actual receipt by the association, except as provided by Section 866.3. (Amended by Stats. 1985, Ch. 983, Sec. 11. Effective September 26, 1985.)
  115. 7054.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 11. Interest [7050 - 7055] ( Article 11 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    The board of directors may, by resolution, set certain interest rules for savings accounts.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 11. Interest [7050 - 7055] ( Article 11 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 which withdrawals may be made upon demand or by negotiable and transferable order or authorization. (b) That an association may establish minimum balance requirements for savings accounts to be eligible for distribution of interest. (c) That, subject to applicable maximum regulatory limitations, an association may pay interest on a savings account at a rate or anticipated rate of return determined at the time that the account is accepted. (Added by Stats. 1983, Ch. 1091, Sec. 2.)
  116. 7055.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 11. Interest [7050 - 7055] ( Article 11 added by Stats. 1983, Ch. 1091, Sec. 2. )

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    Directors must set how interest is calculated on savings account classifications and decide when interest is paid or credited.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 11. Interest [7050 - 7055] ( Article 11 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 time or times when the interest is to be paid or credited. (Added by Stats. 1983, Ch. 1091, Sec. 2.)
  117. 710.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 6. Priorities [710- 710.] ( Article 6 added by Stats. 2011, Ch. 243, Sec. 2. )

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    A holder or transferor may have a preferred claim against a licensee for a negotiable instrument collected by the licensee, unless the person was a voluntary depositor whose collection proceeds were credited to their account at their request.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 7. Liquidation and Conservation [600 - 710] ( Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2. ) ## ARTICLE 6. Priorities [710- 710.] ( Article 6 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 710. The holder or transferor of a negotiable instrument transferred to a licensee for collection has a preferred claim in the amount of the liability of the licensee on the instrument if the instrument was forwarded to the licensee by any person or by any other financial institution for collection and remittance, if payment therefor has not been made and if the same has been collected either in whole or in part by the licensee, unless the holder or transferor is a voluntary depositor in the licensee and the proceeds of the collection, at his or her request, have been credited by the licensee to his or her account. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  118. 7100.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 12. Withdrawals [7100- 7100.] ( Article 12 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    An association may allow withdrawals by negotiable or transferable instruments to make transfers to third parties, and may offer automatic funds transfer services at an account holder’s direction, subject to a special limitation for interest- or dividend-bearing accounts.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 12. Withdrawals [7100- 7100.] ( Article 12 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 by negotiable or transferable instruments for the purpose of making transfers to third parties. (b) With respect to deposits or accounts on which interest or dividends are paid, subdivision (a) shall apply only to the deposits or accounts which consist solely of funds in which the entire beneficial interest is held by one or more individuals or by an organization which is operated primarily for religious, philanthropic, charitable, educational, political, or other similar purposes and which is not operated for profit. (c) Notwithstanding any other provision of law, an association may provide for the automatic transfer of funds services at the direction of an account holder. (Amended by Stats. 1988, Ch. 718, Sec. 12.)
  119. 7150.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 13. Redemption [7150 - 7154] ( Article 13 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    An association may redeem all or part of its savings accounts on an interest date if it has funds available and gives 30 days’ notice by registered mail to each affected account holder.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 13. Redemption [7150 - 7154] ( Article 13 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 or any part of any of its savings accounts on an interest date by giving 30 days’ notice by registered mail addressed to each affected account holder at the holder’s last address as recorded on the books of the association. (Repealed and added by Stats. 1983, Ch. 1091, Sec. 2.)
  120. 7151.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 13. Redemption [7150 - 7154] ( Article 13 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    An association may not redeem savings accounts if it is in an impaired condition and has withdrawal applications unpaid for more than 14 days, unless the commissioner gives prior consent.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 13. Redemption [7150 - 7154] ( Article 13 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 when it has applications for withdrawal that have been on file more than 14 days and have not been reached for payment. (Repealed and added by Stats. 1983, Ch. 1091, Sec. 2.)
  121. 7152.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 13. Redemption [7150 - 7154] ( Article 13 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    Redemption price for redeemed savings accounts is the account’s full value, and it cannot be set below the withdrawal value.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 13. Redemption [7150 - 7154] ( Article 13 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 shall the redemption price be less than the withdrawal value. (Repealed and added by Stats. 1983, Ch. 1091, Sec. 2.)
  122. 7153.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 13. Redemption [7150 - 7154] ( Article 13 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    After a redemption notice, if the needed funds are set aside and remain available by the redemption date, interest stops accruing and most rights in the accounts end after that date.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 13. Redemption [7150 - 7154] ( Article 13 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 aside and continue to be available for the redemption, interest upon the accounts called for redemption shall cease to accrue from and after the interest date specified as the redemption date and all rights with respect to those accounts shall terminate after the redemption date, except only as to any right of the account holder of record to receive the redemption price without interest. (Repealed and added by Stats. 1983, Ch. 1091, Sec. 2.)
  123. 7154.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 13. Redemption [7150 - 7154] ( Article 13 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    Certificates of ownership for redeemed former savings accounts must be tendered for payment within the deadline referenced by the Civil Procedure Code; if they are not, the savings accounts escheat to the state.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 5. Savings Operations [6600 - 7154] ( Chapter 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 13. Redemption [7150 - 7154] ( Article 13 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 specified in subdivision (b) of Section 1513 of the Code of Civil Procedure for escheat of unclaimed funds. (b) Savings accounts that are not tendered for payment as set forth in this section shall escheat to the state as provided in the Unclaimed Property Law, Chapter 7 (commencing with Section 1500) of Title 10 of Part 3 of the Code of Civil Procedure. (Repealed and added by Stats. 1983, Ch. 1091, Sec. 2.)
  124. 720.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 8. Voluntary Liquidation [720 - 721] ( Chapter 8 added by Stats. 2011, Ch. 243, Sec. 2. )

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    A licensee that stops doing the licensed business must immediately notify the commissioner and liquidate its affairs.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 8. Voluntary Liquidation [720 - 721] ( Chapter 8 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 720. Any licensee that voluntarily has ceased to do the business for which it is licensed shall immediately notify the commissioner and proceed to liquidate its affairs. Any share or deposit or other sum that has not been paid to the person entitled thereto within six months after the licensee ceased to conduct a business shall be paid into the State Treasury. The deposits with the State Treasury shall be deemed to have been received under the provisions of Chapter 7 (commencing with Section 1500) of Title 10 of Part 3 of the Code of Civil Procedure and shall be subject to claim or other disposition as provided in that chapter. If the commissioner has reason to conclude that the liquidation of the licensee is not being safely or expeditiously conducted, he or she may take possession of the business and property of the licensee in the same manner and with the same effect and subject to the same rights accorded the licensee as if he or she had taken possession pursuant to Chapter 7 (commencing with Section 600), and he or she may proceed to liquidate the licensee’s affairs in the same manner as provided in that article. When the licensee has been completely liquidated, its corporate existence shall be dissolved in the manner provided by law. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  125. 7200.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. Required Liquidity [7200- 7200.] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. )

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    An association may not invest in securities or loans if it does not meet the minimum liquidity requirements, unless the commissioner gives prior written approval.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. Required Liquidity [7200- 7200.] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 minimum liquidity requirements prescribed by Section 566.2 of Title 12 of the Code of Federal Regulations, unless the commissioner has issued prior written approval. “Liquid assets,” as used in this section, has the same meaning as defined by the regulations codified in Section 566.1 of Title 12 of the Code of Federal Regulations. (Amended by Stats. 1990, Ch. 1118, Sec. 37.8.)
  126. 721.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 8. Voluntary Liquidation [720 - 721] ( Chapter 8 added by Stats. 2011, Ch. 243, Sec. 2. )

    Verify source ↗

    If a state-chartered credit union is taken into possession by the commissioner, the commissioner may appoint a liquidating agent or three-member liquidating committee, and must file a commencement certificate and countersign certain liquidation certificates when liquidation is involuntary.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 8. Voluntary Liquidation [720 - 721] ( Chapter 8 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 721. If the licensee referred to in Section 720 is a state-chartered credit union and the commissioner has taken possession of the business and property of the credit union, the commissioner may appoint a liquidating agent or a liquidating committee of three members of the credit union to liquidate the business and assets of the credit union in the manner provided in Article 2 (commencing with Section 15250) of Chapter 9 of Division 5, except that, in lieu of the certificate required under Section 15252, the commissioner shall prepare and file in the office of the Secretary of State a certificate of commencement of liquidation proceedings upon taking possession of the business and assets, and the commissioner or his or her authorized deputy shall countersign the certificate referred to in Sections 15257 and 15258 whenever liquidation is involuntary. The commissioner may, however, prepare and file a final certificate whenever he or she retains possession of the assets of any credit union for the purpose of liquidation. The liquidating agent need not be a member of the credit union to be liquidated and may be a person, firm, or corporation, as determined by the commissioner. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  127. 7250.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Investment in Securities [7250 - 7252] ( Article 2 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    An association may invest in listed securities without limit, and may invest up to 5% of its assets in other securities it considers prudent.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Investment in Securities [7250 - 7252] ( Article 2 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 percent of its assets in other securities that are deemed prudent by the association: (a) Bonds or other interest bearing notes and obligations of the United States and those for which the faith and credit of the United States are pledged for the payment of principal and interest, or obligations that are fully guaranteed as to principal and interest by, the United States, any state, or any state’s political subdivisions, including its agencies, corporations and instrumentalities. (b) Stock, bonds or obligations of any federal home loan bank. (c) Stock or obligations of any international home loan bank or similar agency incorporated by authority of an act of Congress. (d) Stock, obligations, participations, or other instruments of or issued by, or fully guaranteed as to principal and interest by, the Federal National Mortgage Association, the Student Loan Marketing Association, Government National Mortgage Association, Federal Home Loan Mortgage Corporation, or any other agency of the United States and an association may issue and sell securities that are guaranteed under paragraph (g) of Section 306 of the National Housing Act (12 U.S.C. Sec. 1701 et seq.). (e) Bonds, other evidences of indebtedness or obligations of, or guaranteed as to principal and interest by, the Dominion of Canada or any of its provinces, provided that the principal and interest of the obligations are payable in United States funds. (f) Obligations issued or guaranteed by the International Bank for Reconstruction and Development, by the Inter-American Development Bank, or by the Asian Development Bank. (g) Demand, time or savings deposits, shares or accounts, or other obligations of any financial institution the accounts of which are insured by a federal agency. (h) Commercial paper and corporate debt securities. Investments under this subdivision in the paper or securities of any one obligor or maker shall not exceed the greater of (1) the amount a national bank having identical total capital and surplus could so invest in the paper or securities of any one obligor or maker, or (2) the amount a commercial bank, as defined in Section 105, having an identical shareholders’ equity could so invest in the paper or securities of any one obligor or maker. (i) Shares or certificates in any open-end management investment company that is registered with the Securities and Exchange Commission under the Investment Company Act of 1940 and the portfolio of which is restricted by the management company’s investment policy, changeable only if authorized by shareholder vote, primarily to investments authorized under this section. (j) Bankers’ acceptances of the kind, character, and maturity eligible for rediscount with a Federal Reserve bank, and such other bonds and securities as authorized by Article 2.5 (commencing with Section 7260) or as the commissioner may authorize by rules and regulations. (Amended by Stats. 1990, Ch. 1118, Sec. 38.)
  128. 7250.5.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Investment in Securities [7250 - 7252] ( Article 2 added by Stats. 1983, Ch. 1091, Sec. 2. )

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    A savings association may not directly or indirectly acquire or keep a corporate debt security unless it has a qualifying rating.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Investment in Securities [7250 - 7252] ( Article 2 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 highest rating categories by at least one nationally recognized rating service. (Added by Stats. 1990, Ch. 1118, Sec. 39.)
  129. 7251.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Investment in Securities [7250 - 7252] ( Article 2 added by Stats. 1983, Ch. 1091, Sec. 2. )

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    An association with commissioner-approved investments does not have to dispose of them or set up a reserve account if the commissioner later rescinds approval.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Investment in Securities [7250 - 7252] ( Article 2 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 later the commissioner rescinds approval of the investments. (Repealed and added by Stats. 1983, Ch. 1091, Sec. 2.)
  130. 7252.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Investment in Securities [7250 - 7252] ( Article 2 added by Stats. 1983, Ch. 1091, Sec. 2. )

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    A savings association may invest in certain service corporation securities, but the investments under this section cannot exceed 10% of the association’s total assets.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Investment in Securities [7250 - 7252] ( Article 2 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 7252. (a) Notwithstanding any other provisions of this chapter, an association may, subject to regulations of the commissioner, invest in the capital stock, obligations, or other securities of service corporations. (b) The total of all investments under this section shall not exceed 10 percent of the total assets of the savings association. (c) A service corporation in which a savings association may invest shall only engage in those activities reasonably related to the activities of savings associations as the commissioner may approve. (d) An association may make an investment under this section notwithstanding that the service corporation in which investment is authorized has invested in any other corporation (1) that is not incorporated in this state, or (2) that has stock available for purchase by persons other than associations. (Amended by Stats. 1990, Ch. 1118, Sec. 40.)
  131. 7260.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2.5. Other Authorized Investments in Bonds and Securities [7260 - 7275] ( Article 2.5 added by Stats. 1988, Ch. 718, Sec. 14. )

    Verify source ↗

    This section concerns stock of a Federal Reserve bank.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2.5. Other Authorized Investments in Bonds and Securities [7260 - 7275] ( Article 2.5 added by Stats. 1988, Ch. 718, Sec. 14. ) ## 7260. Stock of a Federal Reserve bank. (Added by Stats. 1988, Ch. 718, Sec. 14.)
  132. 7261.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2.5. Other Authorized Investments in Bonds and Securities [7260 - 7275] ( Article 2.5 added by Stats. 1988, Ch. 718, Sec. 14. )

    Verify source ↗

    This section lists California state bonds and registered warrants as authorized investments.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2.5. Other Authorized Investments in Bonds and Securities [7260 - 7275] ( Article 2.5 added by Stats. 1988, Ch. 718, Sec. 14. ) ## 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 registered warrants of the State of California. (Added by Stats. 1988, Ch. 718, Sec. 14.)
  133. 7262.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2.5. Other Authorized Investments in Bonds and Securities [7260 - 7275] ( Article 2.5 added by Stats. 1988, Ch. 718, Sec. 14. )

    Verify source ↗

    This section lists types of bonds that may be authorized investments, and notes an exception for bonds the commissioner declares ineligible for investment by commercial banks.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2.5. Other Authorized Investments in Bonds and Securities [7260 - 7275] ( Article 2.5 added by Stats. 1988, Ch. 718, Sec. 14. ) ## 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 million dollars ($1,000,000), county, city and county, city, metropolitan water district, municipal utility district, any special district established by and within any municipal utility district, transit district, rapid transit district, including sales tax revenue bonds of that district of the State of California (herein referred to generally as public corporations) except the bonds of any particular such public corporation which may be declared ineligible for investment by commercial banks by regulations of the commissioner. (Amended by Stats. 1996, Ch. 1064, Sec. 553. Effective January 1, 1997. Operative July 1, 1997.)
  134. 7263.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2.5. Other Authorized Investments in Bonds and Securities [7260 - 7275] ( Article 2.5 added by Stats. 1988, Ch. 718, Sec. 14. )

    Verify source ↗

    Some California public corporation bonds are covered only if the issuer’s net direct and overlapping debt stays within the stated 25% limit.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2.5. Other Authorized Investments in Bonds and Securities [7260 - 7275] ( Article 2.5 added by Stats. 1988, Ch. 718, Sec. 14. ) ## 7263. Bonds of any other political subdivision, public corporation, or district of the State of California (herein referred to generally as public corporations) having the power, without limit as to rate or amount, to levy taxes to pay the principal and interest of those bonds upon all property within its boundaries subject to taxation by the public corporation, if the net direct debt of that public corporation together with its net overlapping debt does not exceed 25 percent of the assessed valuation of the taxable property within its boundaries according to the last official equalized county assessment roll. (Amended by Stats. 2006, Ch. 538, Sec. 166. Effective January 1, 2007.)
  135. 7264.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2.5. Other Authorized Investments in Bonds and Securities [7260 - 7275] ( Article 2.5 added by Stats. 1988, Ch. 718, Sec. 14. )

    Verify source ↗

    This section allows certain bonds and debt instruments as investments only if they meet specified debt, default, population, tax, and debt-service tests.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2.5. Other Authorized Investments in Bonds and Securities [7260 - 7275] ( Article 2.5 added by Stats. 1988, Ch. 718, Sec. 14. ) ## 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 Puerto Rico, or any state of the United States other than California, for the payment of both principal and interest of which in United States dollars, the faith and credit of that entity is pledged; in limited obligations; and in the bonds or other evidences of indebtedness of any city, county, political subdivision, public corporation, or district (herein referred to generally as public corporations) of any state of the United States other than California, or of the State of Israel, or of the United States of Mexico, or of the Commonwealth of Puerto Rico, having the power without limit as to rate or amount to levy taxes to pay the principal and interest of those bonds upon all property within its boundaries subject to taxation by that public corporation; subject to the following: (a) In the case of bonds constituting general obligations of any such state, commonwealth, dominion, or country, the state, commonwealth, dominion, or country has not within 10 years prior to that investment defaulted for a period of more than 90 days in the payment of any part of either principal or interest of any of its debts. (b) In the case of limited obligations of any such state or commonwealth, (1) that the state or commonwealth has not within 10 years prior to the date of the investment defaulted for a period of more than 90 days in the payment of either principal or interest of any of its debts; (2) the special taxes pledged for the payment of the limited obligations shall have been collected for five fiscal years next preceding any investment and during the five fiscal years shall have averaged at least 11/2 times the debt service requirements, including those for principal, interest, and sinking fund, on all such special obligations existing at the time; and (3) the special taxes for each of those five fiscal years shall have equaled at least the amount of all the debt service requirements on those special obligations. (c) In the case of bonds or other evidences of indebtedness of any public corporation of any state other than California, or of such commonwealth: (1) The public corporation has had a corporate existence or been otherwise established and functioning for at least 10 years prior to the time of the investment. (2) The public corporation has a population of at least 50,000 inhabitants according to the last federal or state census. (3) The public corporation for a period of at least 10 years prior to the investment has not defaulted in the payment of any part of the principal or interest of any of its debts for a period of more than 90 days. (4) The net direct debt together with the net overlapping debt of the public corporation does not exceed 10 percent of the assessed valuation of the property subject to taxation by the public corporation according to the last, official equalized assessment roll or list upon the basis of which taxes for debt service are based. For the purposes of this subdivision: (A) The term “net direct debt” of any public corporation means all indebtedness of every kind after deducting from that indebtedness sinking funds available for the payment thereof, any indebtedness evidenced by tax anticipation notes for the payment of which nondelinquent taxes are pledged, obligations payable only from special assessments, revenue obligations payable only from special revenues pledged for their payment, and the proportion of any indebtedness issued for revenue-producing works, properties, or utilities which have been in operation for at least one year as the amount of the annual net revenue therefrom bears to the amount of the annual debt service requirements of those bonds. (B) The term “net overlapping debt” of any public corporation means that proportion of the net direct debt, as defined, of any other public corporation (herein called overlapping corporation) which lies wholly or partially within the boundaries of the public corporation as the assessed valuation of the taxable property of the overlapping public corporation lying within the boundaries of the public corporation as shown by the last official equalized county assessment roll bears to the assessed valuation of all taxable property of the overlapping public corporation as shown by the last official equalized county assessment roll. (Added by Stats. 1988, Ch. 718, Sec. 14.)
  136. 7265.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2.5. Other Authorized Investments in Bonds and Securities [7260 - 7275] ( Article 2.5 added by Stats. 1988, Ch. 718, Sec. 14. )

    Verify source ↗

    This section describes which irrigation- and water-related district bonds are covered and sets conditions they must meet, including a 50% indebtedness cap.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2.5. Other Authorized Investments in Bonds and Securities [7260 - 7275] ( Article 2.5 added by Stats. 1988, Ch. 718, Sec. 14. ) ## 7265. Bonds of any irrigation district, water, storage district, water conservation district, county water district, reclamation district, drainage district, and any district the primary function of which is the irrigation, reclamation, or drainage of land within its boundaries, located in California, other than bonds referred to in Section 7262, subject to any of the following: (a) The bonds qualify under Section 7263. (b) The bonds have been certified as legal securities pursuant to Chapter 1 (commencing with Section 20000) of Division 10 of the Water Code and the certification remains unrevoked. (c) The total outstanding bonded indebtedness of the district, including bonds authorized, but not issued, but excluding bonds payable solely from revenues and not directly or indirectly from assessments, does not exceed 50 percent of the aggregate of the assessed value of the lands, exclusive of improvements, subject to assessment by the district, and the value of the property owned by the district or to be acquired or constructed with the proceeds of the bonds under consideration. (Added by Stats. 1988, Ch. 718, Sec. 14.)
  137. 7266.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2.5. Other Authorized Investments in Bonds and Securities [7260 - 7275] ( Article 2.5 added by Stats. 1988, Ch. 718, Sec. 14. )

    Verify source ↗

    This section lists certain bonds, debentures, and similar securities related to federal land banks, Farm Credit institutions, and specified federal mortgage and student-loan entities.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2.5. Other Authorized Investments in Bonds and Securities [7260 - 7275] ( Article 2.5 added by Stats. 1988, Ch. 718, Sec. 14. ) ## 7266. Bonds, consolidated bonds, collateral trust debentures, consolidated debentures, or other obligations issued by federal land banks or federal intermediate credit banks established under the Federal Farm Loan Act, as amended, the Farm Credit Act of 1971, in debentures and consolidated debentures issued by the Central Bank for Cooperatives and banks for cooperatives established under the Farm Credit Act of 1933, as amended, and the Farm Credit Act of 1971, and in stocks, bonds, debentures, participations, and other obligations of, or issued by, the Federal National Mortgage Association, the Student Loan Marketing Association, the Government National Mortgage Association, and the Federal Home Loan Mortgage Corporation. (Amended by Stats. 1990, Ch. 1118, Sec. 40.5.)
  138. 7267.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2.5. Other Authorized Investments in Bonds and Securities [7260 - 7275] ( Article 2.5 added by Stats. 1988, Ch. 718, Sec. 14. )

    Verify source ↗

    This section lists certain bonds, notes, and other obligations that are authorized investments.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2.5. Other Authorized Investments in Bonds and Securities [7260 - 7275] ( Article 2.5 added by Stats. 1988, Ch. 718, Sec. 14. ) ## 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 Reconstruction and Development, the Tennessee Valley Authority, the Inter-American Development Bank, the Government Development Bank for Puerto Rico, the Asian Development Bank, or the African Development Bank. (Added by Stats. 1988, Ch. 718, Sec. 14.)
  139. 7268.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2.5. Other Authorized Investments in Bonds and Securities [7260 - 7275] ( Article 2.5 added by Stats. 1988, Ch. 718, Sec. 14. )

    Verify source ↗

    The section allows certain tax-anticipation and grant-anticipation notes, but only within stated maturity limits and percentage caps.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2.5. Other Authorized Investments in Bonds and Securities [7260 - 7275] ( Article 2.5 added by Stats. 1988, Ch. 718, Sec. 14. ) ## 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 other moneys of the State of California or any city, county, city and county, or school district, therefore, provided the notes and warrants and the interest thereon shall be a first lien and charge against, and shall be payable from, the first moneys received by the local agency from the pledged moneys, provided the total amount of the notes issued at any one time or during any specified period does not exceed 85 percent of the receipts or revenues. (b) Grant anticipation notes issued by the agencies and payable not later than 36 months after the date of issue, provided that the total amount of the notes and interest payable thereon issued at any one time or during any specified period does not exceed 80 percent of the grant funds stated in writing by the granting authority as committed, appropriated and shall be paid on a specified date or dates within a 36-month period from the dating of the notes. (Added by Stats. 1988, Ch. 718, Sec. 14.)
  140. 7269.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2.5. Other Authorized Investments in Bonds and Securities [7260 - 7275] ( Article 2.5 added by Stats. 1988, Ch. 718, Sec. 14. )

    Verify source ↗

    This section allows investment in certain revenue securities only if specified revenue, debt-service, contract, and default conditions are met.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2.5. Other Authorized Investments in Bonds and Securities [7260 - 7275] ( Article 2.5 added by Stats. 1988, Ch. 718, Sec. 14. ) ## 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 subdivision, public corporation, or district (herein referred to generally as public corporations) of any such state or commonwealth and of any department, board, agency, or authority of any such state or commonwealth or of any public corporation subject to the following: (a) The revenue securities constitute obligations payable out of the revenues from a revenue-producing property owned, controlled, or operated by the state, commonwealth, public corporation, or by a department, board, agency, or authority thereof and are secured by those revenues. (b) Either: (1) The new income from the property available for the payment of the securities for the five fiscal years next preceding any such investment, shall have averaged at least one and one-tenth times all debt service requirement for principal, interest, and sinking fund of all revenue securities payable only out of the revenues from the property during each of those fiscal years, and for each of those five fiscal years shall have equaled at least all debt service requirements for principal, interest, and sinking fund of those securities, and for the last fiscal year shall have amounted to at least the maximum annual debt service requirement for any fiscal year thereafter on all such securities which were outstanding during the last fiscal year and which will be outstanding in any fiscal year thereafter. The gross income from the property, the net income from which is pledged for the payment of those securities, in the last fiscal year prior to that investment was not less than one million dollars ($1,000,000), is located in California, and was not less than five million dollars ($5,000,000) if located elsewhere. The issuer is obligated to maintain rates at least sufficient to meet debt service requirements and those obligations are legally enforceable. (2) The issuer of the securities is entitled to receive under a legally enforceable contract with a corporation any of the securities of which are a legal investment for commercial banks under Division 1, annual payments averaging not less than nine hundred thousand dollars ($900,000) a year commencing with the completion of a project or projects as fixed in the construction contract therefore and continuing during the maximum term for which those revenue securities are to mature. The issuer of the securities is obligated to maintain rates to produce revenue, or will receive contract payments, either or both of which will be sufficient to meet debt service requirements and that obligation contract is legally enforceable. (c) The public corporation or any department, board, agency, or authority thereof which issues the securities, if existing elsewhere than in California, has not within 10 years prior to that investment defaulted for a period of more than 90 days in the payment of principal or interest on any of its debts. (Added by Stats. 1988, Ch. 718, Sec. 14.)
  141. 7270.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2.5. Other Authorized Investments in Bonds and Securities [7260 - 7275] ( Article 2.5 added by Stats. 1988, Ch. 718, Sec. 14. )

    Verify source ↗

    This section allows bonds of a local public housing agency to qualify if they are secured by specified housing administration arrangements or pledges.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2.5. Other Authorized Investments in Bonds and Securities [7260 - 7275] ( Article 2.5 added by Stats. 1988, Ch. 718, Sec. 14. ) ## 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 the public housing agency and the Public Housing Administration in which the public housing agency agrees to borrow from the Public Housing Administration, and the Public Housing Administration agrees to lend to the public housing agency, prior to the maturity of those obligations (which obligations shall have a maturity of not more than 18 months), moneys in an amount which (together with any other moneys irrevocably committed to the payment of interest on the obligations) will suffice to pay the principal of those obligations with interest to maturity thereon, which moneys under the terms of that agreement are required to be used for the purpose of paying the principal of, and the interest on, those obligations at their maturity, or (b) by a pledge of annual contributions under an annual contributions contract between the public housing agency and the Public Housing Administration if the contract shall contain the covenant by the Public Housing Administration which is authorized by subsection (b) of Section 22 of the United States Housing Act of 1937, as amended, and if the maximum sum and the maximum period specified in the contract pursuant to subsection (b) of Section 22 of the United States Housing Act of 1937 shall not be less than the annual amount and the period for payment which are requisite to provide for the payment when due of all installments of principal and interest on those obligations. (Added by Stats. 1988, Ch. 718, Sec. 14.)
  142. 7271.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2.5. Other Authorized Investments in Bonds and Securities [7260 - 7275] ( Article 2.5 added by Stats. 1988, Ch. 718, Sec. 14. )

    Verify source ↗

    This section concerns bonds secured by an insurance commitment of the Federal Housing Administration.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2.5. Other Authorized Investments in Bonds and Securities [7260 - 7275] ( Article 2.5 added by Stats. 1988, Ch. 718, Sec. 14. ) ## 7271. Bonds secured by an insurance commitment of the Federal Housing Administration. (Added by Stats. 1988, Ch. 718, Sec. 14.)
  143. 7272.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2.5. Other Authorized Investments in Bonds and Securities [7260 - 7275] ( Article 2.5 added by Stats. 1988, Ch. 718, Sec. 14. )

    Verify source ↗

    This section allows certain investments in company debt and related bonds only if the issuer meets specified financial and balance-sheet tests.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2.5. Other Authorized Investments in Bonds and Securities [7260 - 7275] ( Article 2.5 added by Stats. 1988, Ch. 718, Sec. 14. ) ## 7272. Evidences of indebtedness of companies incorporated in the United States and, directly or indirectly, engaged in manufacturing, extraction, merchandising, or commercial financing and in bonds of authorities established pursuant to the California Industrial Development Financing Act (Title 10 (commencing with Section 91500) of the Government Code), to which those institutions are obligated with respect to payment, provided: (a) Any unsecured evidences of indebtedness shall be issued by a company substantially all of whose property is free of mortgage and shall carry a covenant by the obligor that they will be secured equally with any mortgage bond, except a purchase money mortgage, which may be later issued. (b) The company is of such size as to attract at least statewide interest in its publicly held securities and its gross income shall have averaged not less than ten million dollars ($10,000,000) and its net income shall have averaged not less than one million dollars ($1,000,000) for the five fiscal years preceding the investment and its gross income was not less than one million dollars ($1,000,000) for at least three of those five fiscal years. (c) Working capital as measured by consolidated current assets less consolidated current liabilities as shown in the latest published balance sheet shall exceed 150 percent of the total of consolidated debt due in longer than one year and “minority interest” (i.e., any outstanding interest in a subsidiary having a prior claim on the earnings of the subsidiary), except that the foregoing ratio requirement shall not apply in the case of evidences of indebtedness of any corporation whose consolidated gross assets less any valuation reserves exceed five hundred million dollars ($500,000,000) and whose consolidated current assets exceed consolidated current liabilities by at least one hundred million dollars ($100,000,000) as shown by the latest published balance sheet. When new financing is involved, the changes in gross assets, capital structure, and working capital shall be considered and reliance may be placed on the representations made in the official prospectus prepared under the rules of the Securities and Exchange Commission as to the application of the proceeds of that financing. (d) The total consolidated debt of the company including current liabilities and “minority interest” (i.e. any outstanding interest in a subsidiary having a prior claim on the earnings of the subsidiary), as shown on the latest published balance sheet, does not exceed 331/3 percent of its gross assets less valuation reserves. (e) The consolidated annual net income for the five fiscal years next preceding the investment, before deductions of state and federal taxes imposed on or measured by income or profits but after deducting all charges (including reserves, regularly recurring charges for amortization of discount, and expense allocable to funded debt) (1) shall have averaged not less than six times the annual consolidated interest charges existing at the time the investment is made; (2) in at least three of those five fiscal years shall have been at least four times the annual consolidated interest charges for the same year; and (3) for the fiscal year next preceding the investment shall have been not less than six times the consolidated interest charges for that year and not less than six times the annual consolidated charges on the funded debt outstanding at the time of the investment. (Added by Stats. 1988, Ch. 718, Sec. 14.)
  144. 7273.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2.5. Other Authorized Investments in Bonds and Securities [7260 - 7275] ( Article 2.5 added by Stats. 1988, Ch. 718, Sec. 14. )

    Verify source ↗

    This section sets conditions for certain railroad bonds and railroad equipment trust certificates to qualify as authorized investments.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2.5. Other Authorized Investments in Bonds and Securities [7260 - 7275] ( Article 2.5 added by Stats. 1988, Ch. 718, Sec. 14. ) ## 7273. Fixed interest railroad bonds meeting the requirements of subdivisions (a) and (b), bonds secured by a mortgage on jointly operated railroad facilities meeting the requirements of subdivision (c), and railroad equipment trust certificates meeting the requirements of subdivision (d), as follows: (a) The railroad bonds are issued by or are assumed, guaranteed, or provision is made unconditionally for the payment of principal and interest on specified dates, by a solvent railroad company: (1) That operates at least 500 miles of standard gauge road within the continental United States and that has had average annual operating revenues of at least ten million dollars ($10,000,000) during the five years next preceding the investment. (2) Whose average annual balance of income available for fixed charges for the last 15 years for which the necessary statistical data are available, when divided by an amount equal to its fixed charges for the last fiscal year, shall produce a quotient that is at least 15 percent higher than the quotient obtained by dividing the average annual balance of income available for fixed charges of all class 1 railroads for the same 15-year period by an amount equal to the fixed charges of all class 1 railroads for the last year in the period. (3) Whose average “balance of net income” (computed by deducting the sum of its fixed charges and contingent interest charges for the latest fiscal year from the average annual balance available for fixed charges for the latest 15 years for which the necessary statistical data are available) when divided by its average annual railroad operating income for the same 15-year period, shall produce a quotient at least 15 percent greater than the quotient obtained by dividing the average balance of income of all class 1 railroads, computed in the same manner, by the average annual railway operating income of all class 1 railroads for the same 15-year period. (4) Whose average balance of income available for fixed charges for the last three fiscal years preceding the investment, or for the lesser number of fiscal years that may have elapsed since December 31, 1946, has not been less than one and one-half times its fixed charges for the last fiscal year. (b) The railroad bonds are secured by any of the following: (1) A mortgage, either direct or collateral, that shall be a first mortgage on not less than 75 percent of the mileage subject to the mortgage. (2) A first mortgage on terminal properties comprising the company’s principal freight or passenger terminal in a city of not less than 250,000 population according to the latest federal or state census. (3) A refunding mortgage on not less than 75 percent of the railroad mileage owned or operated by the issuing company under which bonds may be issued for retirement or refunding of all debts secured by prior liens on all or any part of the property, other than liens on equipment, subject to the mortgage, if the amount of debt senior to the refunding mortgage is not more than 50 percent of the sum of all senior debt and the refunding mortgage or if underlying mortgage bonds in an amount equal to at least 50 percent of the debt outstanding under the refunding mortgage are pledged as security under that refunding mortgage. (4) A first mortgage on railroad property leased to and operated by the company if the lease extends beyond the maturity date of the bonds and the company has guaranteed, assumed, or committed itself under the terms of the lease to pay principal and interest on the bonds. (c) Bonds secured by a mortgage on jointly operated railroad facilities shall be secured by a first mortgage on a terminal, depot, tunnel, or bridge used by or leased to two or more railroads that have jointly and severally agreed unconditionally to pay the interest and principal payment, one of which railroads shall meet the requirements set forth in subdivision (a). (d) Railroad equipment trust certificates shall be issued by a solvent class 1 railroad whose average balance of income available for fixed charges for the last three fiscal years preceding the investment, or for the lesser number of fiscal years that may have elapsed since December 31, 1946, shall be not less than one and one-half times its fixed charges for the last fiscal year. Those certificates shall be issued to provide funds for the construction or acquisition of new standard gauge railroad equipment made with the approval of the federal Surface Transportation Board and secured by an equipment trust, lease, conditional sales contract, or first lien on the equipment. The aggregate principal amount of the obligations shall not exceed 80 percent of the purchase price of the equipment and the certificates shall mature within 15 years of the date of issuance in equal annual, semiannual, or monthly installments, beginning not later than one year after the date of issuance. (e) As used in this section, “balance of income available for fixed charges,” “fixed charges,” “contingent interest,” and “railway operating income” shall have the same meaning as in the accounting reports filed by common carriers by rail pursuant to regulations of the federal Surface Transportation Board, except that “balance of income available for payment of fixed charges” shall be computed before deduction of federal income of excess profits taxes, and “fixed charges” and “contingent interest” of the railroad shall be those charges existing as of the time the computation is made, excluding charges with respect to debt that has been retired or will be retired within six months and for the payment of which funds have been or are contemporaneously being set aside in trust but including charges with respect to new debt issued or in the process of being issued. (Amended by Stats. 2019, Ch. 143, Sec. 58. (SB 251) Effective January 1, 2020.)
  145. 7274.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2.5. Other Authorized Investments in Bonds and Securities [7260 - 7275] ( Article 2.5 added by Stats. 1988, Ch. 718, Sec. 14. )

    Verify source ↗

    This section sets conditions under which certain utility company bonds and debentures may qualify, including minimum issue size, mortgage security, revenue, debt, earnings, and population tests.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2.5. Other Authorized Investments in Bonds and Securities [7260 - 7275] ( Article 2.5 added by Stats. 1988, Ch. 718, Sec. 14. ) ## 7274. Bonds and debentures of gas, electric, or gas and electric companies meeting the requirements of subdivision (a), bonds and debentures of telephone companies meeting the requirements of subdivision (b), and the bonds and debentures of water companies meeting the requirements of subdivision (c), as follows: (a) Bonds or debentures of gas, electric, or gas and electric companies shall be of an issue that originally amounted to not less than one million dollars ($1,000,000) and, if bonds, be secured by a mortgage on substantially all of its physical property, and, if debentures, shall be issued by a company substantially all of whose physical property is free of mortgage and shall carry a covenant to be secured equally with any mortgage indebtedness, except a purchase money mortgage, subsequently issued, and both bonds and debentures shall be issued by a public utility corporation, which does all of the following: (1) Derives more than 50 percent of its gross operating revenue from the business of supplying electricity, artificial gas, or natural gas or all or any of these services, and at least 80 percent of its gross operating revenue from all or any of the public utility businesses enumerated in this section. (2) Has a gross operating revenue of not less than seven million five hundred thousand dollars ($7,500,000) for its most recent fiscal year. (3) Has a funded debt not exceeding two-thirds of the value of its physical property as shown by the books of the corporation or by a statement of a certified public accountant issued within one year, which statement may be based upon the books of the corporation, less the amount of any reserves for depreciation, retirement, or amortization of the physical property. Physical property of a corporation shall include the physical property of a subsidiary corporation if the corporation owns not less than 90 percent of the outstanding voting shares of the subsidiary corporation. (4) Has had earnings, including earnings of subsidiaries mentioned in paragraph (3), available for interest payments, before deduction of state and federal taxes imposed on or measured by income or profits, during four of the five most recent fiscal years and during the most recent fiscal year equal to at least twice the existing annual interest charges on the corporation’s total funded debt during those respective fiscal years. (b) Bonds or debentures of telephone companies shall be of an issue originally amounting to at least one million dollars ($1,000,000) and, if bonds, secured by a mortgage on substantially all of the physical property of the company, and, if debentures, be issued by a company substantially all of whose physical property is free of mortgage and shall carry a covenant to be secured equally with any mortgage indebtedness, except a purchase money mortgage, subsequently issued, and both bonds and debentures shall be issued by a company subject to the following: (1) The company has during its last fiscal year had gross revenues of at least seven million five hundred thousand dollars ($7,500,000), more than 50 percent of which was derived from owned properties used in furnishing telephone and other communication services and at least 80 percent of its gross revenues from all or any of the public utility businesses enumerated in this section. (2) The funded debt does not exceed two-thirds of the value of its physical property as shown by the books of the corporation or by a statement of a certified public accountant issued within one year, which statement may be based upon the books of the corporation, less the amount of any reserves shown on the statement for depreciation, retirement, or amortization as the physical property. Physical property of a corporation shall include the physical property of a subsidiary corporation if the corporation owns not less than 90 percent of the outstanding voting shares of the subsidiary corporation. (3) For four of the five most recent fiscal years and for the last fiscal year has had earnings, including earnings of subsidiaries mentioned in paragraph (2), available for the payment of interest charges, before deduction of state and federal taxes imposed on or measured by income or profits, at least equal to twice the interest charges on the company’s total funded debt during those respective fiscal years. (c) Water company bonds or debentures shall be of an issue originally amounting to at least one million dollars ($1,000,000) and, if bonds, secured by a first mortgage on the company’s property, and, if debentures, issued by a company substantially all of whose property is free of mortgage and carry a covenant to be secured equally with any mortgage indebtedness, except a purchase money mortgage, subsequently issued, and both bonds and debentures shall be issued by a company subject to the following: (1) The company is the supplier of substantially all water for domestic use in a community or communities having a population of not less than 25,000. (2) The funded debt of the company does not exceed two-thirds of the value of its physical property as shown by the published statement of the company for its next preceding fiscal period, less the amount of any reserves shown for depreciation, retirement, or amortization of the physical property. Physical property of a corporation shall include the physical property of a subsidiary corporation if the corporation owns not less than 90 percent of the outstanding voting shares of the subsidiary corporation. (3) For four out of the five most recent fiscal years and for the most recent fiscal year has had earnings, including those of subsidiaries mentioned in paragraph (2), available for the payment of interest charges, before deduction of state and federal taxes imposed on or measured by income or profits, of at least one and one-half times the interest charges on the company’s total funded debt during those respective fiscal years. (Amended by Stats. 2006, Ch. 538, Sec. 168. Effective January 1, 2007.)
  146. 7275.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2.5. Other Authorized Investments in Bonds and Securities [7260 - 7275] ( Article 2.5 added by Stats. 1988, Ch. 718, Sec. 14. )

    Verify source ↗

    This section defines “funded debt” for this article.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2.5. Other Authorized Investments in Bonds and Securities [7260 - 7275] ( Article 2.5 added by Stats. 1988, Ch. 718, Sec. 14. ) ## 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. (Added by Stats. 1988, Ch. 718, Sec. 14.)
  147. 730.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 9. Approval of Names of Nonbank Corporations [730 - 734] ( Chapter 9 added by Stats. 2011, Ch. 243, Sec. 2. )

    Verify source ↗

    This section defines “nonbank corporation” and “subject name” for Chapter 9.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 9. Approval of Names of Nonbank Corporations [730 - 734] ( Chapter 9 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 730. In this chapter: (a) “Nonbank corporation” means any corporation incorporated or proposed to be incorporated under the laws of this state, other than (1) any bank or (2) any corporation incorporated or proposed to be incorporated under the laws of this state for the purpose of transacting business under Article 1 (commencing with Section 1850) of Chapter 21 of Division 1.1. (b) “Subject name,” means a name of a nonbank corporation which, as set forth, or as proposed to be set forth, in the articles of such nonbank corporation, includes “bank,” “trust,” “trustee,” or related words. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  148. 7300.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 3. Investment in Business Property [7300- 7300.] ( Heading of Article 3 amended by Stats. 1984, Ch. 287, Sec. 23. )

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    An association may invest in specified property for its business or service corporation, but it may not deal in gold or silver bullion or related instruments unless it has the commissioner’s written approval.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 3. Investment in Business Property [7300- 7300.] ( Heading of Article 3 amended by Stats. 1984, Ch. 287, Sec. 23. ) ## 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 the association, or its service corporation, which power shall include the ownership of stock of a wholly owned subsidiary corporation having as its exclusive activity the ownership and management of the property or interests. (b) As used in this section, the term “real property” includes structures or buildings located on land owned in fee or held under a lease or sublease by the association with an unexpired term, including extensions or renewals that are automatically effective or may be exercised at the association’s option, of 25 years at the date of execution by the association of the lease or sublease. (c) No association may without written approval of the commissioner purchase, sell, or pay interest on or dividends involving, gold or silver bullion or related instruments or securities except gold coins minted and issued by the United States Treasury pursuant to Public Law 99-185, 99 Stat. 1177 (1985). (Amended by Stats. 1987, Ch. 1162, Sec. 12. Effective September 26, 1987.)
  149. 731.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 9. Approval of Names of Nonbank Corporations [730 - 734] ( Chapter 9 added by Stats. 2011, Ch. 243, Sec. 2. )

    Verify source ↗

    A nonbank corporation’s application for a certificate of approval of its name must follow the required form, information, signature, and any verification requirements set by the commissioner.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 9. Approval of Names of Nonbank Corporations [730 - 734] ( Chapter 9 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 731. An application for a certificate of approval of the subject name of a nonbank corporation shall be in such form, shall contain such information, shall be signed in such manner, and shall (if the commissioner so requires by regulation or order) be verified in such manner, as the commissioner may by regulation or order require. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  150. 732.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 9. Approval of Names of Nonbank Corporations [730 - 734] ( Chapter 9 added by Stats. 2011, Ch. 243, Sec. 2. )

    Verify source ↗

    A filing fee of $25 applies to an application for a certificate approving the subject name of a nonbank corporation.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 9. Approval of Names of Nonbank Corporations [730 - 734] ( Chapter 9 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 732. The fee for filing with the commissioner an application for a certificate of approval of the subject name of a nonbank corporation shall be twenty-five dollars ($25). (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  151. 733.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 9. Approval of Names of Nonbank Corporations [730 - 734] ( Chapter 9 added by Stats. 2011, Ch. 243, Sec. 2. )

    Verify source ↗

    The commissioner must approve a nonbank corporation’s name if it does not suggest the business is banking, industrial banking, or trust business; otherwise the application must be denied.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 9. Approval of Names of Nonbank Corporations [730 - 734] ( Chapter 9 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 733. If the commissioner finds, with respect to an application for a certificate of approval of the subject name of a nonbank corporation, that the subject name does not indicate that the nonbank corporation is engaged in the banking, industrial banking, or trust business, the commissioner shall issue a certificate of approval of the subject name. If the commissioner finds otherwise, the commissioner shall deny the application. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  152. 734.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 9. Approval of Names of Nonbank Corporations [730 - 734] ( Chapter 9 added by Stats. 2011, Ch. 243, Sec. 2. )

    Verify source ↗

    A nonbank corporation must promptly file a Secretary of State–certified copy of its articles with the commissioner after the articles and approved name certificate are filed with the Secretary of State.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 9. Approval of Names of Nonbank Corporations [730 - 734] ( Chapter 9 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 734. Promptly after the articles of a nonbank corporation, with the certificate of approval of the subject name of such nonbank corporation attached thereto, are filed with the Secretary of State, such nonbank corporation shall file with the commissioner a copy of such articles certified by the Secretary of State. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  153. 7350.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 4. Purchase of Real Estate [7350- 7350.] ( Article 4 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    An association may invest in real property and in stock of real-property-investment corporations, but the investments are capped unless the commissioner approves a higher percentage in writing.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 4. Purchase of Real Estate [7350- 7350.] ( Article 4 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 event the sum of (1) investments made by an association pursuant to the authority of this subdivision, (2) any loans and guarantees extended by an association to, or for the benefit of, corporations the stock of which it holds pursuant to the authority of this subdivision, and (3) real property investments made pursuant to the authority of subdivision (b), unless a higher percentage is approved by the commissioner in writing, shall not exceed 10 percent of the total assets of the association. (b) An association may engage in real property investment. The total of all real property investments made pursuant to the authority of this subdivision, unless a higher percentage is approved by the commissioner in writing, shall not exceed the total shareholders’ equity of the association. (c) Prior to initially engaging in real property investment activities authorized by subdivision (a) or (b), an association shall make application with the commissioner for approval of its general plan of real property investment. The application for approval shall be in letter form, shall contain a copy of the general plan for real property investment as approved or adopted by the board of directors of the association, which shall include a brief description of either the activities of the corporations the association will invest in or the activities the association will engage in, or both, the approximate amount to be invested, the extent, if any, of diversification of those activities or investment, and the approximate date of the initial investment, and shall be signed by the chief executive officer of the association. Unless the commissioner finds (1) that the capital, assets, management, earnings, and liquidity of the association are, on a composite basis, not satisfactory or (2) that the plan for the association to engage in real property investment or to acquire and hold the stock of one or more real property investment corporations is unsafe or unsound, the commissioner shall approve the application. An application for approval shall be deemed approved on the 46th day after the application is filed with the commissioner, unless the commissioner earlier makes a final decision on the application or extends the period for approving or denying the application. For purposes of this subdivision, an application for approval shall be deemed to be filed with the commissioner on the date when the application, substantially in compliance with the requirements of this subdivision, is received by the commissioner. Upon the filing of the application for approval, the applicant shall pay to the commissioner a filing fee of five hundred dollars ($500). (d) As used in this section, “real property investment” means all forms of investing in real property, whether direct or in the form of partnerships, joint ventures, or other methods of investment. It includes, but is not limited to, the purchasing, subdividing, and developing of real property or any interest therein, the building of residential housing or commercial improvements, and the owning, renting, leasing, managing, operating for income, or selling of that property. (e) The legality of any investment lawfully made pursuant to former Section 7350, as repealed by the act enacting this section, shall not be affected by this section, nor shall this section be construed to require the changing of any investments lawfully made prior to January 1, 1991. (Repealed and added by Stats. 1990, Ch. 1118, Sec. 41.5.)
  154. 7450.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 5. Investment in Loans [7450 - 7462] ( Article 5 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    A savings association may make authorized loans, but only after determining the loan is financially sound, likely to be repaid, and not otherwise unlawful. It may also make or acquire loans to or from directors, officers, affiliated persons, parents, or subsidiaries, subject to the commissioner’s regulations.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 5. Investment in Loans [7450 - 7462] ( Article 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 provisions of the loan in relation to the borrower’s resources and credit standing support the reasonable belief that the loan will be financially sound and will be repaid according to its terms, and that the loan is not otherwise unlawful. (b) Subject to any regulations of the commissioner, an association may make or acquire loans directly or indirectly to or from any director, officer, affiliated person, or any parent or subsidiary. Loans made or acquired, directly or indirectly, the proceeds of which are intended to inure or have inured to the benefit of these parties are subject to the same regulations. (Amended by Stats. 1987, Ch. 1162, Sec. 13. Effective September 26, 1987.)
  155. 7450.2.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 5. Investment in Loans [7450 - 7462] ( Article 5 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    An association may not make certain loans to corporations tied to its insiders, unless the commissioner gives prior written consent.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 5. Investment in Loans [7450 - 7462] ( Article 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 the stock is owned or controlled individually or collectively by any one or more of the directors, officers, employees, or substantial stockholders of the association. As used in this subdivision, “substantial stockholder” means a person who has a real or beneficial ownership of more than 10 percent of the outstanding stock of the association. For this purpose, stock owned by the person’s immediate family shall be deemed owned by that person. (b) Any loan the proceeds of which are intended to inure to the benefit of any corporation specified in subdivision (a). (Added by Stats. 1986, Ch. 1158, Sec. 6. Effective September 26, 1986.)
  156. 7451.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 5. Investment in Loans [7450 - 7462] ( Article 5 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    An association may not make or buy loans to one borrower or one project above 25% of the association’s net worth, unless the commissioner provides otherwise.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 5. Investment in Loans [7450 - 7462] ( Article 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 amount exceeding 25 percent of the net worth of the association. As used in this section, “one borrower” has the meaning defined in Section 7453. (Amended by Stats. 1990, Ch. 1118, Sec. 42.)
  157. 7452.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 5. Investment in Loans [7450 - 7462] ( Article 5 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    An association may make consumer loans, but the total of those loans cannot exceed 30% of the association’s assets.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 5. Investment in Loans [7450 - 7462] ( Article 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 association may include loans to dealers in consumer goods to finance inventory and floor planning in the total investment as part of the 30-percent limitation described in subdivision (a). For purposes of the limitations on loans to one borrower, loans to dealers in consumer goods to finance inventory and floor planning shall be treated as commercial loans. (Amended by Stats. 1984, Ch. 225, Sec. 5. Effective June 21, 1984.)
  158. 7453.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 5. Investment in Loans [7450 - 7462] ( Article 5 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    An association may invest in certain loans, but its total investment in those loans cannot exceed 10% of its assets. It also cannot exceed the one-borrower lending limit unless the commissioner approves in writing or an exception applies.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 5. Investment in Loans [7450 - 7462] ( Article 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 7453. (a) An association may make, invest in, sell, purchase, participate in, or otherwise deal in secured or unsecured loans for agricultural, business, commercial, or corporate purposes, provided that the total investment in such loans does not exceed 10 percent of the assets of the association. (b) An association may invest in, sell, purchase, participate in, or otherwise deal in loans specified in subdivision (a) which are originated by any savings association, federal association, holding company of a federally insured savings association, commercial bank, bank holding company, subsidiary of a bank holding company, or insurance company, provided that the total investment in such loans shall not exceed 10 percent of the association’s assets. (c) For the purposes of this section, the term “loan” does not include any corporate debt security unless it is rated in one of the four highest rating categories by at least one nationally recognized rating service. (d) No association shall make, invest in, purchase, or participate in a loan for agricultural, business, commercial, or corporate purposes to one borrower, except as the commissioner may approve in writing, if the sum of the amount of the association’s interest in the loan and the total balance of the association’s interest in all outstanding loans for those purposes owed to the association by that borrower exceed the greater of (1) the amount a national bank having an identical total capital and surplus could lend to one borrower, or (2) the amount a commercial bank, as defined in Section 105, having an identical total shareholders’ equity, capital notes, and debentures, could lend to one borrower. This subdivision shall not apply to loans (1) secured by real property, (2) sold without recourse, (3) on the security of the association’s deposit accounts, or (4) of unsecured day funds, including federal funds or similar unsecured loans. (e) As used in this section the term “one borrower” means: (1) Any person that is, or upon the making of a loan will become, an obligor on the loans. However, a guarantor shall not be included within the meaning of “obligor” if, in connection with a loan the association has determined, in good faith, that the primary obligor has qualified for the loan irrespective of the existence of the guarantor. In the case of a loan that has been assumed by a third party with the consent of the association, the former debtor and any guarantor shall not be deemed to be an “obligor.” (2) Nominees of the obligor. (3) All persons, trusts, syndicates, partnerships and corporations of which the obligor is a nominee, a beneficiary, a member, a general partner, a limited partner owning an interest of 10 percent or more based on the value of his or her capital contribution, or a record or beneficial stockholder owning 10 percent or more of the capital stock. (4) If the obligor is a trust, syndicate, partnership or corporation, all trusts, syndicates, partnerships and corporations of which any beneficiary, member, general partner, limited partner owning an interest of 10 percent or more based on the value of his or her capital contribution, or record or beneficial stockholder owning 10 percent or more of the capital stock, is also a beneficiary, member, general partner, limited partner owning an interest of 10 percent or more based on the value of his or her capital contribution, or record or beneficial stockholder owning 10 percent or more of the capital stock of the obligor. (Amended by Stats. 1990, Ch. 1118, Sec. 43.)
  159. 7454.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 5. Investment in Loans [7450 - 7462] ( Article 5 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    Associations may issue credit cards, extend credit tied to those cards, and take part in credit card operations.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 5. Investment in Loans [7450 - 7462] ( Article 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 operations. The provisions of Title 2 (commencing with Section 1801) of the Civil Code shall not apply to any credit extended by an association pursuant to the provisions of this section. (Amended by Stats. 1985, Ch. 983, Sec. 12.4. Effective September 26, 1985.)
  160. 7455.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 5. Investment in Loans [7450 - 7462] ( Article 5 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    An association, or its director, officer, or employee, may not require a borrower or other person to buy insurance from a specific company, agency, or individual as a condition for a loan or other service.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 5. Investment in Loans [7450 - 7462] ( Article 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 service by the association, that the borrower or any other person undertake a contract of insurance with any specific company, agency, or individual. (Added by Stats. 1984, Ch. 287, Sec. 27. Effective July 6, 1984.)
  161. 7456.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 5. Investment in Loans [7450 - 7462] ( Article 5 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    An association must count its loan commitments as investments, and include them in total assets only for funds actually advanced and not repaid.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 5. Investment in Loans [7450 - 7462] ( Article 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 funds have been advanced (and not repaid) pursuant to the commitment. For the purposes of this section, the term “loan commitment” includes a loan in process, a letter of credit, or any other commitment to extend credit. (Added by Stats. 1984, Ch. 225, Sec. 7. Effective June 21, 1984.)
  162. 7457.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 5. Investment in Loans [7450 - 7462] ( Article 5 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    An association may make loans secured by its savings accounts, even if the borrower does not own the account, subject to this article’s limits.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 5. Investment in Loans [7450 - 7462] ( Article 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 this article. (Added by Stats. 1984, Ch. 868, Sec. 11.2.)
  163. 7458.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 5. Investment in Loans [7450 - 7462] ( Article 5 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    An association may make overdraft loans tied to transaction accounts, if commissioner regulations allow it.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 5. Investment in Loans [7450 - 7462] ( Article 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 7458. An association may make overdraft loans specifically related to transaction accounts, subject to regulations issued by the commissioner. (Added by Stats. 1984, Ch. 868, Sec. 11.3.)
  164. 7459.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 5. Investment in Loans [7450 - 7462] ( Article 5 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    An association or federal association may create a separate loan reserve account for losses from borrower fraud and may recover those losses from the borrower.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 5. Investment in Loans [7450 - 7462] ( Article 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 reserve account regarding losses resulting from fraud by a borrower and may recover any of those losses from that borrower. (Added by Stats. 1985, Ch. 656, Sec. 2.)
  165. 7460.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 5. Investment in Loans [7450 - 7462] ( Article 5 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    Some financial institutions and related entities may sue a borrower for damages, including limited exemplary damages, if the loan was secured by real property and the borrower’s fraud induced the loan.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 5. Investment in Loans [7450 - 7462] ( Article 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 affiliate of an association or federal association, a service corporation, or any successor in interest thereto, that originates, acquires, or purchases, in whole or in part, any loan secured directly or collaterally, in whole or in part, by a mortgage or deed of trust on real property, or any interest therein, may bring an action for recovery of damages, including exemplary damages not to exceed 50 percent of the actual damages, against a borrower where the action is based on fraud under Section 1572 of the Civil Code and the fraudulent conduct by the borrower induced the original lender to make that loan. (b) The provisions of this section shall not apply to loans secured by single-family, owner-occupied residential real property, when the property is actually occupied by the borrower as represented to the lender in order to obtain the loan and the loan is for an amount of one hundred fifty thousand dollars ($150,000) or less, as adjusted annually, commencing on January 1, 1987, to the Consumer Price Index as published by the United States Department of Labor. (c) Any action maintained under this section for damages shall not constitute a money judgment for deficiency or a deficiency judgment within the meaning of Section 580a, 580b, or 580d of the Code of Civil Procedure. (Amended by Stats. 1986, Ch. 173, Sec. 2.)
  166. 7461.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 5. Investment in Loans [7450 - 7462] ( Article 5 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    A deed of trust or mortgage may be enforced according to its terms even if the property security was not impaired by the missed payment.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 5. Investment in Loans [7450 - 7462] ( Article 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 association or federal association, or any successor in interest thereto, to accelerate the maturity date of the principal and interest on any loan secured thereby or to exercise any power of sale or other remedy contained therein upon the failure of the trustor or mortgagor to pay, at the times provided for under the terms of the deed of trust or mortgage, any taxes, rents, assessments, or insurance premiums with respect to the property or the loan, or any advances made by the association, federal association, affiliate or service corporation of an association or federal association, or any successor in interest thereto, shall be enforceable whether or not impairment of the security interest in the property has resulted from the failure of the trustor or mortgagor to so pay the taxes, rents, assessments, insurance premiums, or advances. (Added by Stats. 1987, Ch. 397, Sec. 3.)
  167. 7462.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 5. Investment in Loans [7450 - 7462] ( Article 5 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    A deed of trust or mortgage may be enforced to let covered associations or related entities receive and control hazard-insurance proceeds for the property, even if the security interest was not impaired by the insured event.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 5. Investment in Loans [7450 - 7462] ( Article 5 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 association or federal association, or any successor in interest thereto, to receive and control the disbursement of the proceeds of any policy of fire, flood, or other hazard insurance respecting the property shall be enforceable whether or not impairment of the security interest in the property has resulted from the event that caused the proceeds of the insurance policy to become payable. (Added by Stats. 1987, Ch. 397, Sec. 4.)
  168. 7500.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 6. Real Estate Loans [7500 - 7509] ( Article 6 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    An association may make certain real estate-related loans and investments, but it must first obtain required appraisal reports and satisfy appraisal and inspection requirements.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 6. Real Estate Loans [7500 - 7509] ( Article 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 7500. (a) Subject to limitations, if any, within this chapter, an association may originate, invest in, sell, purchase, service, participate, or otherwise deal in (including brokerage or warehousing) loans, including construction loans, made on the security of residential or nonresidential real property, or interests in these loans. (b) No investment in real property or a real estate loan shall be made by an association until one or more written appraisal reports, prepared at the request of an association or its agent, have been submitted to the association by a person or persons meeting the qualification standards for an appraiser as set forth in the commissioner’s regulations. No commitment to disburse shall be made by the association until the person or persons have been duly appointed and qualified as appraisers by the association. Such a person or persons shall have made a physical inspection and submitted to the association a fully documented appraisal of the real estate that would secure the loan or constitute the investment, or, in the case of a purchased loan, the person or persons have reviewed and approved an appraisal report in support of the loan. If the balance of any purchased loan is one million dollars ($1,000,000) or more, the person or persons reviewing and approving the appraisal report shall have inspected the real estate. Each appraisal report submitted to an association pursuant to this subdivision shall be signed and shall include the tax identification number, social security number, or other form of verifiable identification of the person or persons signing the appraisal report. (c) For the purpose of determining appraised value, unimproved property without offsite improvements shall be evaluated as though offsite improvements have been installed if a subdivision map has been recorded and a bond or other instrument guaranteeing installation of the offsite improvements has been accepted by the governing authorities in connection with the recording of the subdivision map. (Amended by Stats. 1988, Ch. 718, Sec. 15.)
  169. 7501.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 6. Real Estate Loans [7500 - 7509] ( Article 6 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    A real estate loan must be documented by a note or other instrument of obligation showing the loan amount.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 6. Real Estate Loans [7500 - 7509] ( Article 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 terms of repayment including any penalty or charge for late payment, and may contain all other terms of the loan contract. (Added by Stats. 1983, Ch. 1091, Sec. 2.)
  170. 7502.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 6. Real Estate Loans [7500 - 7509] ( Article 6 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    Real estate loans must be secured by a deed of trust, mortgage, or similar lien instrument on the real estate, and the mortgage must specifically protect the association for the loan and any additional advances.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 6. Real Estate Loans [7500 - 7509] ( Article 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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, upon the real estate securing the loan, according to any lawful and recognized practice that is suited to the transaction. Any deed of trust or other instrument or transaction constituting a lien or claim is included in the term “mortgage” in this division. (b) A mortgage shall provide specifically for full protection to the association with respect to the loan and additional advances, including any terms and conditions that the association deems necessary and appropriate to state the agreement between the parties. (Added by Stats. 1983, Ch. 1091, Sec. 2.)
  171. 7503.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 6. Real Estate Loans [7500 - 7509] ( Article 6 added by Stats. 1983, Ch. 1091, Sec. 2. )

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    An association generally does not have to pay interest on certain borrower funds held in impound, trust, or similar accounts, or invest those funds for the borrower, except where the loan contract, Civil Code section 2954.8, or an interest-bearing savings account under the loan contract applies.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 6. Real Estate Loans [7500 - 7509] ( Article 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 funds credited to an impound, trust, or other type of account for payment of taxes, insurance, or other charges relating to the property, or to invest them for the benefit of the borrower, unless the funds have been placed in an interest bearing savings account under the terms of the loan contract. (Amended by Stats. 1984, Ch. 287, Sec. 29. Effective July 6, 1984.)
  172. 7504.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 6. Real Estate Loans [7500 - 7509] ( Article 6 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    An association may adjust certain real-property loan terms and may receive part of the loan consideration as a share of property appreciation, but home loans must meet specified limits.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 6. Real Estate Loans [7500 - 7509] ( Article 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 property as authorized by the loan contract, and may receive a portion of the consideration for making a real estate loan in the form of a percentage of the amount by which the current market value of the property during the loan term or at maturity exceeds the original appraised value, subject to the limitations of subdivision (b) and Section 341 of P.L. 97-320 (H.R. 6267, the Garn-St. Germain Depository Institutions Act of 1982). (a) For the purposes of this section: (1) “Fully amortized loan” means a loan in which, at inception of the loan, the entire principal balance, together with accrued interest, shall be payable with the scheduled term of the loan in substantially equal installments (excepting the last payment, which may be smaller than a regular scheduled payment). (2) “Home loans” means loans made on the security of one- to four-unit residential dwellings (including condominiums and cooperatives), combinations of these dwellings and business property (where no more than 20 percent of the total appraised value of the real estate is attributable to the business use), farm residences and combinations of farm residences and commercial farm real property. (3) “Nonamortized loan” means a loan in which none of the principal balance shall be payable prior to the maturity of the loan. (4) “Open end line of credit” means a loan plan in which the association reasonably contemplates repeated transactions; the association may impose interest from time to time on the unpaid principal of the loan plan, and the amount of credit that may be extended to the borrower during the term of the loan plan (up to any limit set by the association) is generally made available to the extent that any outstanding principal balance is repaid. (5) “Partially amortized loan” means a loan in which some but not all of the principal balance, together with accrued interest, shall be payable prior to the maturity of the loan. (6) “Reverse annuity mortgage” means an instrument which provides for periodic payments to be made to a homeowner based on accumulated equity. The payments are made monthly directly by the association, or are made through the purchase of an annuity from an insurance company. The loan becomes due on a specified date after disbursement of the entire principal amount of the loan or when a specified event occurs, such as sale of the property or death of the borrower. The interest rate on this instrument may be fixed, or may be adjusted periodically as provided by this section. (b) Adjustments to the interest rate, payment, balance, or term-to-maturity on home loans shall be subject to the limitations of this subdivision. (1) The loan term shall not exceed 40 years, with interest payable at least semiannually, except as expressly authorized by this section. (2) The loan balance for other than nonamortized and open end line of credit loans shall be repayable in at least semiannual installments; provided, that loans on the security of farm residences and combinations of farm residences and commercial farm real property may be repayable in annual installments. (3) The loan may be fully amortized, partially amortized, nonamortized, a reverse annuity mortgage, or an open end line of credit loan. The loan contract may provide for the deferral of principal and capitalization of a portion of interest, or of all interest, in the case of loans to natural persons secured by borrower-occupied real property and on which periodic advances are being made. (4) (A) At origination, the loan-to-value ratio may not exceed the maximum permitted by Section 7509, as determined by the association’s board of directors (but not more than 100 percent). During the term of the loan, the loan-to-value ratio may increase above the maximum percentage otherwise permissible if the increase results from an adjustment described in paragraph (3) or (5). The commissioner shall assume continued compliance with applicable loan-to-value limitations where the original loan-to-value ratio met the requirements of this paragraph, but in no event may the loan balance exceed 125 percent of the original appraised value of the security property during the term of the loan unless pursuant to clause (i) of subparagraph (B) of paragraph (5) of subdivision (b) or unless the loan contract provides that the payment shall be adjusted at least once every five years, beginning no later than the 10th year of the loan, to a level sufficient to amortize the loan at the then existing interest rate and loan balance over the remaining term of the loan. However, this 125 percent limitation shall not apply to the portion of a loan balance that is interest received in the form of a percentage of the appreciation in value of the security property. (B) If, at maturity of a loan secured by a home that provides for adjustments pursuant to paragraph (3) or (5), the ratio of the loan balance to the current market value of the security property exceeds the maximum permissible amount under Section 7509, the association may offer to refinance the loan if (i) the refinanced loan complies with subdivision (b) of Section 7509 and (ii) the loan contract for the refinanced loan requires that, in addition to full or partial amortization of the loan, the pro rata portion, based on the number of installments due annually, of estimated annual taxes and assessments on the security property be paid in advance to the association with each installment payment. (5) For any home loan secured by borrower-occupied property or property to be occupied by the borrower, adjustments to the interest rate, payment, balance, or term-to-maturity shall comply with the limitations of this paragraph. (A) Adjustments to the interest rate shall correspond directly to the movement of an interest rate index or of a national or regional index that measures the rate of inflation or the rate of change in consumer disposable income, which index is readily available to, and verifiable by, the borrower and is beyond the direct control of the association. An association also may increase the interest rate pursuant to a formula or schedule that specifies the amount of the increase and the time at which it may be made and which is set forth in the loan contract. An association, in its sole discretion, may decrease the interest rate at any time. (B) Adjustments to the payment and the loan balance that do not reflect an interest rate adjustment may be made if: (i) the adjustments reflect a change in a national or regional index that measures the rate of inflation or the rate of change in consumer disposable income, is readily available to and verifiable by the borrower, and is beyond the direct control of the association; (ii) in the case of a payment adjustment, the adjustment reflects a change in the loan balance or is made pursuant to a formula, or to a schedule specifying the percentage or dollar change in the payment as set forth in the loan contract; or (iii) in the case of an open end line of credit loan, the adjustment reflects an advance taken by the borrower under the line of credit, or a payment made by the borrower, that is permitted by the loan contract. (C) Any combination of indices or a moving average of index values may be used as an index, and an association (i) may use more than one index during the term of a loan, if set forth in the loan contract and (ii) may provide for the selection of a substitute index by the association in the event the index being used is no longer available to or verifiable by the borrower or as otherwise provided in the loan contract. (D) The loan term may be adjusted only to reflect a change in the interest rate, the payment or the loan balance. A loan contract may provide an association with the right to call the loan due and payable either after a specified period of time has elapsed following the date of the loan contract or as specified in a reverse annuity mortgage. (6) For any home loan secured by borrower-occupied property and on which the interest rate may be adjusted pursuant to paragraph (5), an association may not impose a prepayment charge on any prepayment made within 90 days of a required notice of an interest-rate increase with respect to the loan. (c) Disclosure and notices for loans made pursuant to this section shall comply with the regulations codified in Section 563.99 of Title 12 of the Code of Federal Regulations. (Amended by Stats. 1990, Ch. 1118, Sec. 43.5.)
  173. 7505.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 6. Real Estate Loans [7500 - 7509] ( Article 6 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    An association may make and deal in certain real-estate-secured loans, but its aggregate investment in nonresidential real property loans under this section cannot exceed 40% of assets.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 6. Real Estate Loans [7500 - 7509] ( Article 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 7505. (a) Notwithstanding any other provision of law, an association may originate, invest in, sell, purchase, service, participate, or otherwise deal in loans (including construction loans) on the security of real property for primarily residential (other than a one- to four-unit dwelling) or nonresidential use, subject to the limitations of this article. (b) An association’s aggregate investment in real property loans for primarily nonresidential use under this section shall not exceed 40 percent of assets. (Amended by Stats. 1987, Ch. 730, Sec. 15.)
  174. 7505.5.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 6. Real Estate Loans [7500 - 7509] ( Article 6 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    A savings association may make certain residential real estate loans, but its aggregate investment in those loans must not exceed 5% of its assets.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 6. Real Estate Loans [7500 - 7509] ( Article 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 residential real estate, for which the association relies substantially on the borrower’s general credit standing and projected future income for repayment, without other security, or relies on other assurances for repayment, including guarantees or other obligations of third parties. (b) An association’s aggregate investment in residential real estate loans described in subdivision (a) shall not exceed an amount equal to 5 percent of the association’s assets. (Added by Stats. 1990, Ch. 1118, Sec. 44.)
  175. 7506.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 6. Real Estate Loans [7500 - 7509] ( Article 6 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    An association may make a loan secured by an assignment of a loan or loans, but only to the extent it could lawfully make or purchase the underlying assigned loan or loans.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 6. Real Estate Loans [7500 - 7509] ( Article 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 applicable law and regulations, make or purchase the underlying assigned loan or loans. (Added by Stats. 1983, Ch. 1176, Sec. 9.)
  176. 7507.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 6. Real Estate Loans [7500 - 7509] ( Article 6 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    An association may make certain real-property-secured loans, advances of credit, or related investments, but investments under this section are capped at 5% of total assets and must be fully documented; applicable Section 7504 requirements also apply where relevant.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 6. Real Estate Loans [7500 - 7509] ( Article 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 investments are not otherwise authorized under the law because of the following reasons: (1) The loan-to-value ratio, stated maturity, or loan amount is in excess of the maximum allowable limits. (2) Lack of any required borrower certification or required private mortgage insurance. (3) The loan would cause an applicable percentage-of-assets category to be exceeded. (4) A combination of the foregoing factors. (b) Investments made under the authority of this section are subject to the following restrictions: (1) No association shall have investments under this section aggregating at any one time more than 5 percent of its total assets. (2) Each investment made under this section shall be fully documented to support the conclusion that it was made on a prudent basis. (3) Loans made pursuant to this section shall comply with subparagraph (D) of paragraph (5), and paragraph (6), of subdivision (b), of Section 7504, where applicable. (Amended by Stats. 1990, Ch. 1118, Sec. 45.)
  177. 7509.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 6. Real Estate Loans [7500 - 7509] ( Article 6 added by Stats. 1983, Ch. 1091, Sec. 2. )

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    An association must set board-approved maximum loan-to-value ratios for real estate loans, and several higher-risk loans are limited or require extra safeguards.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 6. Real Estate Loans [7500 - 7509] ( Article 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 its board of directors, establish maximum loan-to-value ratios for loans made on the security of real estate, and the resolution adopting those ratios shall be included in the minutes of the directors’ meeting. Home loans, as defined in Section 7504, made on the combined security of real estate and savings accounts may be made in excess of the maximum loan-to-value ratios adopted pursuant to this subdivision with the excess secured by the savings account. (2) However, for loans originated in excess of 90 percent of the initial appraised value of the security property, the savings account shall consist only of funds belonging to the borrower, the borrower’s family, or the borrower’s employer, and the loans shall not exceed the appraised value of the real estate. (b) With respect to home loans originated or refinanced in excess of 90 percent of the appraised value of the security property, that part of the unpaid balance that exceeds 80 percent of the property value shall be insured or guaranteed by a mortgage insurance company that the Federal Home Loan Mortgage Corporation has determined to be a “qualified private insurer.” (c) With respect to all other loans on the security of real estate originated in excess of 90 percent of the appraised value of the security property, an association’s board of directors shall approve each of these loans prior to its origination and that approval shall be recorded in the minutes of its meeting. (d) An association shall not make a loan secured by unimproved real property if the loan-to-value ratio would exceed 80 percent of the appraised value of the unimproved real property securing the loan. (e) In determining compliance with maximum loan-to-value-ratio limitations for real estate loans, at the time of making a loan, an association shall add together the unpaid amount, or in the case of a line-of-credit loan, the approved credit limit, of all recorded loans secured by prior mortgages, liens, or other encumbrances on the security property that would have priority over the association’s lien, and shall not make the loan unless the total amount of those loans, including the loan to be made but excluding loans that will be paid off out of the proceeds of the new loan, does not exceed the applicable maximum loan-to-value-ratio limitations prescribed in this subdivision. In determining the value of the real estate security, an association shall use the current appraised value of the security property, which may include any expected value of improvements to be financed. (f) “Value” for a real estate loan means the market value of the real estate. (Amended by Stats. 2006, Ch. 538, Sec. 169. Effective January 1, 2007.)
  178. 7600.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 7. Successors in Interest in Loans [7600- 7600.] ( Article 7 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    An association may, in certain real estate loan cases, deal with a successor in interest instead of the original borrower, and may also forbear, extend payment time, or modify the debt.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 7. Successors in Interest in Loans [7600- 7600.] ( Article 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 vested in a person other than the party or parties originally executing the security instruments and if there is not an agreement in writing to the contrary, an association may, without notice to the party or parties, deal with a successor in interest to the mortgage and debt in the same manner as with the original party or parties, and may forbear to sue or may extend time for payment of or otherwise modify the terms of the debt, without discharging or in any way affecting the original liability of the party or parties or their debt. (Amended by Stats. 2006, Ch. 538, Sec. 170. Effective January 1, 2007.)
  179. 7650.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 8. Salvage of Loans and Investments [7650- 7650.] ( Article 8 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    An association may invest funds, run a business, manage property, and take needed action to avoid loss on good-faith loans or investments, unless subdivision (b) applies.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 8. Salvage of Loans and Investments [7650- 7650.] ( Article 8 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 invest its funds, operate a business, manage or deal in property, or take any other action over whatever period of time may reasonably be necessary to avoid loss on a loan or investment made or an obligation created in good faith. (b) Associations which do not meet the requirements of Section 6475, or have been issued an order pursuant to Section 8200, shall not take any action pursuant to this section without first obtaining approval, in writing, from the commissioner. (Amended by Stats. 1985, Ch. 983, Sec. 12.7. Effective September 26, 1985.)
  180. 7675.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 9. Usury Exemption [7675- 7675.] ( Article 9 added by Stats. 1983, Ch. 1091, Sec. 2. )

    Verify source ↗

    This section exempts certain savings-related entities from state interest-rate restrictions on specified obligations, loans, and forbearances, but keeps them subject to other applicable laws and regulations.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 9. Usury Exemption [7675- 7675.] ( Article 9 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 1 of Article XV of the California Constitution shall not apply to any obligations of, loans made or arranged by, or forbearances of, an association; a federal association; a qualified foreign savings association; an entity that is a savings and loan holding company; a subsidiary of a savings and loan holding company that is not an association; or a service corporation which is a subsidiary of an association, a federal association, or a qualified foreign savings association. As used in this section, the terms “savings and loan holding company” and “subsidiary” mean a savings and loan holding company or a subsidiary, as defined in Section 10 of the Home Owners Loan Act, as amended (12 U.S.C. Sec. 1467a), and the term “service corporation” means a service corporation described in Section 5(c)(4)(B) of the Home Owners’ Loan Act of 1933 (12 U.S.C. Sec. 1464), as amended, or Section 7252, or a wholly owned subsidiary referred to in Section 7300. (b) Subdivision (a) creates and authorizes an exempt class of persons pursuant to Section 1 of Article XV of the California Constitution. Notwithstanding any other provision of law, subdivision (a) does not exempt an association; a federal association; a foreign savings association; a savings and loan holding company, a subsidiary of a savings and loan holding company; a service corporation which is a subsidiary of an association; a federal association, or foreign savings association from complying with all other law and regulations governing the business in which the association, federal association, foreign savings association, savings and loan holding company, subsidiary of a savings and loan holding company, or service corporation which is a subsidiary of an association, a federal association, or a foreign savings association is engaged. (c) For purposes of this section, “foreign savings association” means a foreign savings association as defined in Chapter 10 (commencing with Section 10000) or Chapter 10.1 (commencing with Section 10010) and “qualified foreign savings association” means a foreign savings association that has been authorized to conduct the business of an association in this state by the commissioner. (Amended by Stats. 1990, Ch. 1118, Sec. 46.5.)
  181. 7700.3.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 10. Finance Leasing [7700.3 - 7704] ( Article 10 added by Stats. 1984, Ch. 225, Sec. 8. )

    Verify source ↗

    An association may do leasing business that is the functional equivalent of lending, but only within the limits of Sections 7701 to 7704.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 10. Finance Leasing [7700.3 - 7704] ( Article 10 added by Stats. 1984, Ch. 225, Sec. 8. ) ## 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. (Added by Stats. 1985, Ch. 983, Sec. 13. Effective September 26, 1985.)
  182. 7701.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 10. Finance Leasing [7700.3 - 7704] ( Article 10 added by Stats. 1984, Ch. 225, Sec. 8. )

    Verify source ↗

    An association may own property for leasing, take an assignment of a lessor’s interest, and incur related obligations, if the lease meets the stated conditions.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 10. Finance Leasing [7700.3 - 7704] ( Article 10 added by Stats. 1984, Ch. 225, Sec. 8. ) ## 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 assignment of a lessor’s interest in a lease of such property, and may incur obligations incidental to its position as the legal or beneficial owner and lessor of the leased property, if: (1) The lease is a net, full-payout lease representing a noncancelable obligation of the lessee, notwithstanding the possible early termination of the lease. (2) At the expiration of the lease, the association’s interest in the property shall be liquidated or released on a net basis as soon as practicable. (Added by Stats. 1984, Ch. 225, Sec. 8. Effective June 21, 1984.)
  183. 7702.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 10. Finance Leasing [7700.3 - 7704] ( Article 10 added by Stats. 1984, Ch. 225, Sec. 8. )

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    Certain leases under this section must follow the same investment-limit rules that apply to the relevant type of association loan.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 10. Finance Leasing [7700.3 - 7704] ( Article 10 added by Stats. 1984, Ch. 225, Sec. 8. ) ## 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 limitations applicable to the amount of an association’s investment in consumer loans. (b) A lease made for commercial, corporate, business, or agricultural purposes pursuant to this section shall be subject to all limitations applicable to the amount of an association’s investment in commercial loans. (c) A lease of residential or nonresidential real property made pursuant to this section shall be subject to all limitations applicable to the amount of an association’s investment in real estate loans. (Added by Stats. 1984, Ch. 225, Sec. 8. Effective June 21, 1984.)
  184. 7703.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 10. Finance Leasing [7700.3 - 7704] ( Article 10 added by Stats. 1984, Ch. 225, Sec. 8. )

    Verify source ↗

    This section defines “net lease” and “full-payout lease” for finance leasing.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 10. Finance Leasing [7700.3 - 7704] ( Article 10 added by Stats. 1984, Ch. 225, Sec. 8. ) ## 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 for: (1) The servicing, repair, or maintenance of the leased property during the lease term. (2) The purchasing of parts and accessories for the leased property; provided that improvements and additions to the leased property may be leased to the lessee upon its request in accordance with the full pay-out requirement of this section. (3) The loan of replacement or substitute property while the leased property is being serviced. (4) The purchasing of insurance for a lessee, except where the lessee has failed to discharge a contractual obligation to purchase or maintain insurance. (5) The renewal of any license, registration, or filing for the property unless such action by the association is necessary to protect its interest as an owner or financer of the property. (b) A “full-payout” lease is one from which the lessor can reasonably expect to realize a return of its full investment in the leased property, plus the estimated cost of financing the property over the term of the lease, from rentals, estimated tax benefits, and the estimated residual value of the property at the expiration of the initial term of the lease; provided that no more than 20 percent of the return may be realized from the residual value of the property at the expiration of the initial term of the lease. Both the estimated residual value of the property and that portion of the estimated residual value relied upon by the lessor to satisfy the requirements of a full-payout lease must be reasonable in light of the nature of the leased property and all relevant circumstances so that realization of the lessor’s full investment plus the cost of financing the property depends primarily on the creditworthiness of the lessee, and not on the residual market value of the leased property. The maximum term of a full-payout lease shall be 40 years. (Added by Stats. 1984, Ch. 225, Sec. 8. Effective June 21, 1984.)
  185. 7704.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 10. Finance Leasing [7700.3 - 7704] ( Article 10 added by Stats. 1984, Ch. 225, Sec. 8. )

    Verify source ↗

    If an association in good faith believes an unexpected change threatens its financial position, Sections 7702 and 7703 do not stop it from taking protective lease-related actions.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 10. Finance Leasing [7700.3 - 7704] ( Article 10 added by Stats. 1984, Ch. 225, Sec. 8. ) ## 7704. If, in good faith, an association believes that there has been an unanticipated change in conditions that threatens its financial position by significantly increasing its exposure to loss, the provisions of Sections 7702 and 7703 of this article shall not prevent the association: (a) As the owner and lessor under a net, full pay-out lease, from taking reasonable and appropriate action to salvage or protect the value of the property or its interest arising under the lease. (b) As the assignee of a lessor’s interest in a lease, from becoming the owner and lessor of the leased property pursuant to its contractual right, or from taking any reasonable and appropriate action to salvage or protect the value of the property or its interest arising under the lease. (c) From including any provisions in a lease, or from making any additional agreements, to protect its financial position or investment in the circumstances set forth in subdivisions (a) and (b) of this section. (Added by Stats. 1984, Ch. 225, Sec. 8. Effective June 21, 1984.)
  186. 7720.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 10.5. Leasing [7720- 7720.] ( Heading of Article 10.5 renumbered from Article 10 (as added by Stats. 1984, Ch. 287) by Stats. 1990, Ch. 216, Sec. 24. )

    Verify source ↗

    An association may invest in tangible personal property and may hold it for rental or sale, but the investment is capped at 10% of the association’s total assets.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 10.5. Leasing [7720- 7720.] ( Heading of Article 10.5 renumbered from Article 10 (as added by Stats. 1984, Ch. 287) by Stats. 1990, Ch. 216, Sec. 24. ) ## 7720. (a) An association may invest in tangible personal property, including without limitation, vehicles, mobilehomes, machinery, equipment, or furniture, and may hold the property for rental or sale. (b) Investment under this section is limited to not in excess of 10 percent of the total assets of the association. (Added by renumbering Section 7700 by Stats. 1990, Ch. 216, Sec. 25.)
  187. 7800.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 11. Hazard Insurance [7800- 7800.] ( Article 11 added by Stats. 1988, Ch. 718, Sec. 17. )

    Verify source ↗

    Boards of associations and related service corporations must set hazard insurance standards for loan real estate security, and borrowers must be allowed reasonable choice of insurer if they comply with those standards.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 6. Investment Operations [7200 - 7800] ( Chapter 6 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 11. Hazard Insurance [7800- 7800.] ( Article 11 added by Stats. 1988, Ch. 718, Sec. 17. ) ## 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 association shall establish standards for the maintenance of hazard insurance which are considered necessary to protect the institution’s interest in real estate security for its loans. The standards may include establishment of criteria based on such factors as recognized financial ratings of insurers and coverage forms, but those standards may not be based on the insurer’s corporate structure. Subject to compliance with these standards, an association, an affiliate or service corporation of an association shall permit a borrower to have reasonable freedom of choice in selecting the insurer to provide hazard insurance coverage on the real estate security. (Added by Stats. 1988, Ch. 718, Sec. 17.)
  188. 8.

    ## Financial Code - FIN ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1951, Ch. 364. )

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    The code defines “writing” broadly and requires certain required notices, reports, petitions, permits, statements, and records to be in writing in English.

    ## Financial Code - FIN ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1951, Ch. 364. ) ## 8. “Writing” includes any form of recorded message capable of comprehension by ordinary visual means. Whenever any notice, report, petition, permit, statement, or record is required by this code, it shall be made in writing in the English language. Wherever any notice or other communication is required by this code to be mailed by registered mail by or to any person or corporation, the mailing of such notice or other communication by certified mail shall be deemed to be a sufficient compliance with the requirements of law. (Amended by Stats. 1959, Ch. 426.)
  189. 800.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 10. Legal Investments for Nonbank Licensees [800 - 819] ( Chapter 10 added by Stats. 2011, Ch. 243, Sec. 2. )

    Verify source ↗

    This section defines “net direct debt,” “net overlapping debt,” and “funded debt” for this chapter.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 10. Legal Investments for Nonbank Licensees [800 - 819] ( Chapter 10 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 800. As used in this chapter, unless the context requires otherwise, the following terms have the following meanings: (a) “Net direct debt” of any public corporation means all indebtedness of every kind after deducting from the indebtedness sinking funds available for the payment thereof, any indebtedness evidenced by tax anticipation notes for the payment of which nondelinquent taxes are pledged, obligations payable only from special assessments, revenue obligations payable only from special revenues pledged for their payment, and such proportion of any indebtedness issued for revenue producing works, properties, or utilities that have been in operation for at least one year as the amount of the annual net revenue therefrom bears to the amount of the annual debt service requirements of those bonds. (b) “Net overlapping debt” of any public corporation means the proportion of the net direct debt as above defined of any other public corporation (herein called overlapping corporation) that lies wholly or partially within the boundaries of the public corporation as the assessed valuation of the taxable property of the overlapping public corporation lying within the boundaries of the public corporation as shown by the last official equalized county assessment roll bears to the assessed valuation of all taxable property of the overlapping public corporation as shown by the last official equalized county assessment roll. (c) “Funded debt,” as used in this chapter, means all interest-bearing indebtedness of a corporation not maturing within one year of the date the indebtedness was incurred. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  190. 80000.

    ## Financial Code - FIN ## DIVISION 23. BANK ON CALIFORNIA PROGRAM [80000 - 80001] ( Division 23 added by Stats. 2015, Ch. 750, Sec. 1. )

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    This section states that Bank on California is a voluntary collaborative initiative and creates the Bank on California Program within the department.

    ## Financial Code - FIN ## DIVISION 23. BANK ON CALIFORNIA PROGRAM [80000 - 80001] ( Division 23 added by Stats. 2015, Ch. 750, Sec. 1. ) ## 80000. (a) The Legislature finds and declares that “Bank on California” is a voluntary collaborative initiative that assists Californians in opening a bank or credit union account and saving for the future. (b) There is hereby established within the department the Bank on California Program. (Added by Stats. 2015, Ch. 750, Sec. 1. (AB 1292) Effective January 1, 2016.)
  191. 80001.

    ## Financial Code - FIN ## DIVISION 23. BANK ON CALIFORNIA PROGRAM [80000 - 80001] ( Division 23 added by Stats. 2015, Ch. 750, Sec. 1. )

    Verify source ↗

    This section defines “Department” and “Program” for this division.

    ## Financial Code - FIN ## DIVISION 23. BANK ON CALIFORNIA PROGRAM [80000 - 80001] ( Division 23 added by Stats. 2015, Ch. 750, Sec. 1. ) ## 80001. For purposes of this division, the following terms shall have the following meanings: (a) “Department” means the Department of Financial Protection and Innovation. (b) “Program” means the Bank on California Program. (Amended by Stats. 2022, Ch. 16, Sec. 5. (SB 577) Effective April 28, 2022.)
  192. 8009.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. Department of Savings and Loan [8009 - 8010] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. )

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    The commissioner and department employees generally must not disclose information they obtain in their official duties, unless disclosure is required by law, regulation, or court order, or allowed under subdivision (b).

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. Department of Savings and Loan [8009 - 8010] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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 not disclose any information acquired by them in the discharge of their duties as prescribed by this division. (b) The commissioner may furnish information relating to the condition or operation of any association or other person to state and federal authorities that supervise financial institutions, to state, local and federal law enforcement agencies, and state agencies that are engaged in any investigation of an unsafe or unsound business practice. (c) No record or document in the possession or custody of the department which contains information specified in subdivision (a) shall be produced pursuant to a subpoena duces tecum addressed to the commissioner or any employee of the department except upon a determination of a court of competent jurisdiction that disclosure of the information in the record or document would serve the public interest and assist the department in conducting the duties prescribed by this subdivision. With respect to each item subject to the subpoena duces tecum, the court shall either make this determination or shall determine that the item is not subject to disclosure. The court’s determination shall be made upon hearing on a motion by the subpoenaing party under this subdivision to compel production of the document or record. (Amended by Stats. 1989, Ch. 868, Sec. 9. Effective September 26, 1989.)
  193. 801.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 10. Legal Investments for Nonbank Licensees [800 - 819] ( Chapter 10 added by Stats. 2011, Ch. 243, Sec. 2. )

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    Savings banks may treat securities or other assets described in Sections 803 to 819 as legal investments.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 10. Legal Investments for Nonbank Licensees [800 - 819] ( Chapter 10 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 801. Any securities or other assets that are described in Sections 803 to 819, inclusive, are legal investments for savings banks. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  194. 8010.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. Department of Savings and Loan [8009 - 8010] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. )

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    The commissioner may order overvalued assets to be written off or a reserve to be created after the required value determination.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 1. Department of Savings and Loan [8009 - 8010] ( Article 1 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## 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, individually or in the aggregate, to the extent that the assets are overvalued on an association’s books, be charged off against current operations, or that a special reserve or reserves equal to the overvaluation be set up by transfers from retained earnings or reserves. (Amended by Stats. 1989, Ch. 868, Sec. 10. Effective September 26, 1989.)
  195. 802.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 10. Legal Investments for Nonbank Licensees [800 - 819] ( Chapter 10 added by Stats. 2011, Ch. 243, Sec. 2. )

    Verify source ↗

    State laws covering certain public or fund monies are treated as authorizing or requiring investment in specified securities.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 10. Legal Investments for Nonbank Licensees [800 - 819] ( Chapter 10 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 802. Where any laws of this state provide that the moneys of any pension fund, retirement plan, trust fund, or the moneys of any special fund the investment of which is governed by law, or the funds of any political subdivision or public corporation may or shall be invested in securities which are a legal investment for savings banks, that law shall be deemed to authorize or require, as the case may be, that those moneys be invested in securities in which savings banks were authorized to invest their funds by the provisions of the Bank Act as it read prior to January 1, 1949, other than paragraph (f) of subdivision 5 of Section 61 of that act, or in bonds, debentures, and notes legal for investments for savings banks in the State of New York or the State of Massachusetts as of the time the investment is made or in securities in which commercial banks are authorized to invest their funds by the provisions of Sections 803 to 819, inclusive. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  196. 803.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 10. Legal Investments for Nonbank Licensees [800 - 819] ( Chapter 10 added by Stats. 2011, Ch. 243, Sec. 2. )

    Verify source ↗

    This section is titled “Gold and silver bullion and United States mint certificates of ascertained value.”

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 10. Legal Investments for Nonbank Licensees [800 - 819] ( Chapter 10 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 803. Gold and silver bullion and United States mint certificates of ascertained value. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  197. 8030.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Savings and Loan Account [8030 - 8037] ( Heading of Article 2 amended by Stats. 1996, Ch. 1064, Sec. 562.3. )

    Verify source ↗

    The commissioner must require associations doing business in the state to pay an annual assessment in advance to cover operating costs and expenses.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Savings and Loan Account [8030 - 8037] ( Heading of Article 2 amended by Stats. 1996, Ch. 1064, Sec. 562.3. ) ## 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 association business, for the payment of which no provision is otherwise made, the commissioner shall require each association doing business in this state to pay in advance an annual assessment for its pro rata share of all operating costs and expenses as estimated by the commissioner for the ensuing year. (b) As used in this article, “association” includes a foreign savings association doing business in this state under an approval issued by the commissioner. (Amended by Stats. 1996, Ch. 1064, Sec. 562.5. Effective January 1, 1997. Operative July 1, 1997.)
  198. 8031.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Savings and Loan Account [8030 - 8037] ( Heading of Article 2 amended by Stats. 1996, Ch. 1064, Sec. 562.3. )

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    The commissioner sets by regulation what proportion of operating costs and expenses each association must be assessed, and total assessments plus any surplus cannot exceed the next fiscal year’s budget plus a reasonable contingency reserve.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Savings and Loan Account [8030 - 8037] ( Heading of Article 2 amended by Stats. 1996, Ch. 1064, Sec. 562.3. ) ## 8031. The proportion of operating costs and expenses to be assessed against each association shall be determined and prescribed by the commissioner by regulation. The total amount assessed for all associations, together with any existing surplus, shall not exceed the amount of the budget for the ensuing fiscal year plus a reasonable reserve for contingencies. (Amended by Stats. 1984, Ch. 287, Sec. 35. Effective July 6, 1984.)
  199. 8032.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Savings and Loan Account [8030 - 8037] ( Heading of Article 2 amended by Stats. 1996, Ch. 1064, Sec. 562.3. )

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    The commissioner must mail each association its assessed amount by June 20 each year, and each association must pay the assessment in two parts by July 10 and January 10, unless this article provides otherwise.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Savings and Loan Account [8030 - 8037] ( Heading of Article 2 amended by Stats. 1996, Ch. 1064, Sec. 562.3. ) ## 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) Except as provided in this article, an association shall pay one-half or more of the amount assessed so as to be received by the commissioner not later than the 10th day of July and shall pay the remainder so as to be received by the commissioner not later than the following 10th day of January. (c) If payment is not received by the commissioner on time, the commissioner shall assess and collect in addition to the annual assessment, a penalty of 5 percent of the unpaid assessment for each month or part of a month that the payment is delinquent. (Added by Stats. 1983, Ch. 1091, Sec. 2.)
  200. 8033.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Savings and Loan Account [8030 - 8037] ( Heading of Article 2 amended by Stats. 1996, Ch. 1064, Sec. 562.3. )

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    If an association ends because of a merger, consolidation, conversion, asset acquisition, or similar transaction, any unpaid assessment must be paid by the day before that transaction takes effect.

    ## Financial Code - FIN ## DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009] ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) ## CHAPTER 7. Supervision [8009 - 8254] ( Chapter 7 added by Stats. 1983, Ch. 1091, Sec. 2. ) ## ARTICLE 2. Savings and Loan Account [8030 - 8037] ( Heading of Article 2 amended by Stats. 1996, Ch. 1064, Sec. 562.3. ) ## 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 unpaid assessment for the fiscal year ended June 30 in which the conversion, merger, or acquisition occurs shall be due and payable on or before the day preceding the date of the conversion, merger, or acquisition. Payment of the unpaid assessment under this section shall be a condition of approval of any transaction requiring the commissioner’s approval. (Added by Stats. 1983, Ch. 1091, Sec. 2.)

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