SECTIONS 1210-1213 - California Statutes

FINANCIAL CODE

SECTION 1210-1213

1210. (a) In this article and in Article 4 (commencing with Section
3860) of Chapter 22, "affiliate," when used with respect to a
specified person, means any person controlling, controlled by, or
under common control with, the specified person, directly or
indirectly, through one or more intermediaries.
(b) "Control" has the meaning set forth in Section 700.
(c) "Regulated corporation" means any corporation or limited
liability company or similar entity in which a bank makes an equity
investment and which the bank controls.
(d) "Securities issued by a person" means any debt, equity, or
other security issued by a person, and any and all affiliates of that
person, issued for the benefit of that person or for the benefit of
an affiliate of that person.

1211. (a) Subject to the limitations and exceptions in Sections
1221 and 1330, a bank may hold both obligations made by a person, and
securities issued by that same person.
(b) The total amount of obligations and securities held by a bank
pursuant to subdivision (a) shall not exceed 25 percent of the sum of
the shareholders' equity, allowance for loan and lease losses,
capital notes and debentures of the bank.

1212. Subject to prior approval by the commissioner and to any
limitations the commissioner may impose, the limitations in Sections
1211, 1221, and 1330 shall not apply to loans made by a bank to, and
the bank's investments in securities of, its regulated corporations.

1213. Sections 1211 and 1330 shall not apply to investments held by
a bank prior to the operative date of this section. All
authorizations regarding investments by a bank issued by the
commissioner prior to the operative date of this section are
terminated.