Title FIN — California Fin. Code

(a) (1) Except as otherwise provided in paragraph (2): (A) No California state depository corporation may, as the selling or disappearing depository corporation, make a sale or merger pursuant to this division in which it would transfer to a California state-licensed or federally…

Subject to the provisions of Sections 4827.3 and 4827.7 but notwithstanding any other provision of law: (a) (1) If, as a result of any sale, merger, or conversion effected pursuant to the provisions of this division, a California state bank acquires any asset or liability, or bec…

A California state bank or an industrial loan company may, with the approval of the commissioner and its board and, if the transaction constitutes a reorganization as defined in Section 181 of the Corporations Code, subject to the provisions of Chapter 12 (commencing with Section…

(a) The definitions in Section 4840 apply to this section. (b) In case a California state-licensed foreign (other nation) bank sells all or substantially all of its business in this state to another California state-licensed or federally licensed foreign (other nation) bank as pa…

This division may be cited as the “Savings Association Law.”

When used in this division, the words and phrases set forth in this article shall have the meanings given in this article unless the context requires another meaning.

For purposes of this division: (a) Any reference to regulations of the federal Office of the Comptroller of the Currency or the Federal Deposit Insurance Corporation shall also be deemed to include and refer to regulations adopted by the Federal Home Loan Bank Board or the Federa…

“Affiliated person” of a savings association means the following: (a) A director, officer, or controlling person of the savings association. (b) A spouse of a director, officer, controlling person of the savings association. (c) A member of the immediate family of a director, off…

“Affiliate” of a savings association, unless otherwise defined, includes any corporation, business trust, unincorporated association or other similar organization which meets the criteria of subdivision (a), (b), or (c), as follows: (a) The savings association directly or indirec…

“Controlling person” of a savings association means any person or entity which (a) either directly or indirectly or acting in concert with one or more other persons or entities, owns, controls, or holds with power to vote, or holds proxies representing, 10 percent or more of the …

“Immediate family” of any natural person means any of the following (whether by the full or half blood or by adoption): (a) The person’s spouse, father, mother, children, brothers, sisters, and grandchildren. (b) The father, mother, brothers, and sisters of the person’s spouse. (…

“Institution-affiliated party” means any of the following: (a) Any director, officer, employee or controlling stockholder of, or agent for, a savings association. (b) Any person who has filed or is required to file an application to become a savings and loan holding company with …

“Approved by the members,” in the case of a mutual association, means approved by a majority of all votes cast at a duly held regular or special meeting or by the written consent (including consents by proxy) of a majority of the total votes of members outstanding at the close of…

(a) “Association” or “savings association” means a mutual or stock savings association, savings and loan association or savings bank subject to the provisions of this division, but excluding a federal association. (b) “Federal association” means a savings and loan association or …

“Certificate of authority” means: (a) A certificate of authority to transact the business of an association, which is issued by the commissioner pursuant to this division. (b) An uncanceled annual license issued to an association under prior law which is valid on the effective da…

“Commercial paper” means any note, draft, or bill of exchange which arises out of a current transaction or the proceeds of which have been or are to be used for current transactions, and which has a maturity at the time of issuance of not exceeding nine months, exclusive of days …

“Commissioner” means the Commissioner of Financial Protection and Innovation.

“Community” means a centralized area or locality in which a body of inhabitants is gathered in one group having common residential, social, or business interests. The term does not necessarily mean a municipal corporation or other political subdivision. A community need not be li…

“Consumer loan” means a loan for personal, family, or household purposes, and loans reasonably incident thereto, and may be made as either open-end or closed-end consumer credit, but does not include credit extended in connection with credit cards or bona fide overdraft loans.

“Corporate debt security” means a marketable obligation, evidencing the indebtedness of any corporation in the form of a bond, note, or debenture, or both note and debenture, which is commonly regarded as a debt security and is not predominantly speculative in nature. A security …

“Department” means the Department of Financial Protection and Innovation.

“Financial institution” means a thrift institution, commercial bank, or trust company.

“Impaired condition” means a condition in which the assets of an association in the aggregate do not have a value, as determined in accordance with generally accepted accounting principles, equal to or greater than the aggregate amount of liabilities of the association to its cre…

“Mutual association” means an association for which the articles of incorporation do not authorize the issuance of capital stock.

“Member” means a person holding a savings account of a mutual association. A joint and survivorship or other multiple owner constitutes a single membership.

“Mutual capital certificate” means a certificate evidencing an investment in a mutual association and issued pursuant to provisions of this division.

“Net worth certificate” means a certificate issued by an association in accordance with Section 13i of the Federal Deposit Insurance Act, as amended (12 U.S.C., Sec. 1823i) and regulations promulgated thereunder by the Federal Deposit Insurance Corporation.

“Person” means any individual, domestic, or foreign corporation, entity, voting trust, business trust, partnership, limited liability company, association, syndicate, organized group of persons, or similar organization, group or entity, whether incorporated or not.

“Primarily residential property” means real estate on which there is located, or will be located pursuant to a real estate loan, any of the following: (a) A structure or structures designed or used primarily for residential rather than nonresidential purposes and consisting of mo…

“Residential real estate” means any improved real property that is used or intended to be used as a residence and contains not more than four dwelling units.

“Real estate loan” means a loan or other obligation secured by a lien on real estate, if: (a) The security property is real estate as defined pursuant to Section 658 of the Civil Code. (b) The security interest of the association may be enforced as a real estate mortgage, deed of…

“Savings account” means that part of the savings liability of an association that is credited to the holder of the account. A savings account may be referred to as a deposit. For the purposes of Sections 6661, 6662, and 6663 and Article 4 (commencing with Section 6725) through Ar…

“Savings bank” means a savings bank organized under this division.

“Savings institution” means a financial institution as defined in Section 5102.

“Savings liability” means the aggregate amount of savings accounts of depositors, including interest credited to the accounts, less redemptions and withdrawals.

“Service corporation” means a corporation, other than a wholly owned subsidiary referred to in Section 7300 or a wholly owned subsidiary doing business as a finance subsidiary in accordance with the requirements of 12 C.F.R. 563.132, in which at least 80 percent of the shares of …

“Statutory net worth” or “net worth” means the sum of the following: (a) Issued and outstanding capital stock. (b) Issued and outstanding capital certificates. (c) Paid-in surplus. (d) Retained earnings. (e) Pledged savings accounts of a mutual association with the approval of th…

“Stock association” means an association for which the articles of incorporation authorize the issuance of capital stock.

“Stockholder” means the holder of one or more shares of any class of capital stock of a capital stock association which is organized and operating pursuant to the provisions of this division.

“Thrift institution” means an association, a cooperative bank, a homestead association, a building and loan association, a federal association, a federal savings bank, a state or federal credit union, an industrial loan company, and a supervised thrift and residential financing i…

“Withdrawal value” means the amount credited to a savings account less lawful deductions, as shown by the records of the association.

(a) The name, rights, powers, privileges, and immunities of each association in existence on the effective date of this division shall be governed by the provisions of this division to the same extent and effect as if the association had been incorporated pursuant to this divisio…

(a) Wherever it is stated in this division that an agreement or contract contrary to any of the division’s provisions is void, the statement is limited to the particular portion of the agreement or contract that is contrary to the provision, and the entire agreement or contract i…

Whenever the term “ association” is used in any provision of law, such term shall be deemed to include savings banks organized under this division; and wherever the term “federal association” is so used, such term shall be deemed to include federal savings banks.

(a) All references in this division to financial statements, balance sheets, income statements, and statements of changes in financial position of an association and all references to assets, liabilities, earnings, retained earnings, shareholders’ equity, and similar accounting i…

Whenever the terms “board of directors,” “directors,” or “director” are used in any provision of law, such terms shall mean, with respect to savings banks organized under this division, “board of trustees,” “trustees,” or “trustee.”

If any provision, clause, or phrase of this division or application to any person or circumstance is held invalid, its invalidity shall not affect other provisions or applications of this division that can be given effect without the invalid provisions or application, and to this…

This division, being a comprehensive coverage of its subject matter, shall not be deemed to be impliedly repealed, in whole or in part, by subsequent legislation not specifically repealing it, if that construction can be avoided.

Insofar as the provisions of this division are inconsistent with any other law in effect at the time the provisions of this division are enacted, the provisions of this division shall control. Except as provided in subdivision (a) of Section 6500, nothing within this section is i…

Every person who willfully violates or willfully fails to comply with any of the provisions of this division is guilty of a public offense. Except where the offense is declared to be a felony or a misdemeanor or a different punishment is prescribed, a person convicted under this …