SECTIONS 31220 - California Statutes

FINANCIAL CODE

SECTION 31220

31220. Notwithstanding any other law of this state, but subject to
the provisions of Section 31550:
(a) Any commercial bank, industrial bank, or trust company
organized under the laws of this state may, with the prior approval
of the commissioner, acquire and hold securities issued by a
licensee; provided, however, that the aggregate amount of securities
issued by licensees which are held by the commercial bank, industrial
bank, or trust company shall not at any time exceed 2 1/2 percent of
the shareholders' equity of the commercial bank, industrial bank, or
trust company. This subdivision shall not apply to any loan or other
extension of credit made by a commercial bank or industrial bank
organized under the laws of this state to a licensee in accordance
with the Banking Law (Division 1 (commencing with Section 99)).
(b) Any savings association organized under the laws of this state
may, with the prior approval of the commissioner, acquire and hold
securities issued by a licensee; provided, however, that the
aggregate amount of securities issued by licensees which are held by
such savings association shall not at any time exceed 1/2 percent of
the total outstanding loans of such savings association.
(c) Any insurance company admitted to transact insurance business
in this state may, with the approval of the Insurance Commissioner,
acquire and hold securities issued by a licensee; provided, however,
that the aggregate amount of securities issued by licensees which are
held by such insurance company shall not at any time exceed 2 1/2
percent of the unassigned surplus of such insurance company.
(d) Any public utility licensed or regulated by the Public
Utilities Commission may, with the approval of the Public Utilities
Commission, acquire and hold securities issued by a licensee;
provided, however, that the aggregate amount of securities issued by
licensees which are held by such public utility company shall not at
any time exceed 1/2 percent of the total assets of such public
utility company.