SECTIONS 3700-3707 - California Statutes

FINANCIAL CODE

SECTION 3700-3707

3700. "Bank holding company" means:
(a) Any person or company which:
(1) Directly or indirectly owns, controls, or holds with power to
vote, 10 percent or more of the outstanding stock of any domestic
bank, or 10 percent or more of the outstanding stock of any domestic
bank together with 10 percent or more of the shares or proxy of
shares of any national bank located in California.
(2) Controls in any manner whether by the holding of proxy, or
otherwise, the election of a majority of the directors of any
domestic bank, or of both any domestic bank and any national bank
located in California.
(3) The commissioner determines, after reasonable notice and
opportunity for hearing, directly or indirectly exercises, or has
power to exercise, a controlling influence over the management and
policies of any domestic bank, or of both any domestic bank and any
national bank located in California.
(b) Any company which controls in any manner any company which is
or becomes a bank holding company by virtue of this chapter.
(c) Bank holding company does not include a trust company
controlled by or under common control with a title insurance company.

3701. "Company" means any domestic or foreign corporation, voting
trust, business trust, limited partnership, partnership fund, joint
stock company, association, syndicate, organized group of persons, or
similar organization or group, whether incorporated or not.

3702. "Subsidiaries", with respect to a specified bank holding
company, means:
(1) Any company 10 percent or more of whose voting securities are
directly or indirectly owned or controlled by such bank holding
company;
(2) Any company a majority of whose directors are controlled in
any manner by such holding company;
(3) Any company 10 percent or more of whose voting securities are
held by trustees or nontrustees for the benefit of the stockholders,
shareholders, or members of such holding company; or
(4) Any company 10 percent or more of the legal or beneficial
ownership of which is directly or indirectly owned or controlled by
such holding company.

3703. The commissioner may from time to time require, under oath or
otherwise, reports from any bank holding company and its
subsidiaries in such form and as to such matters as the commissioner
may deem necessary and appropriate, and which are relevant to the
jurisdiction and responsibilities of the commissioner under this
division.

3704. Each bank holding company and its subsidiaries shall be
subject to examination by the commissioner. The commissioner may use,
for this purpose, his or her own examiners or independent public
accountants who are disinterested persons. In lieu of making an
examination, the commissioner may accept the examination of any
holding company made by any federal agency, any other agency of this
state, or any agency of any other state of the United States and may
examine any such holding company in conjunction with these agencies.
If the commissioner examines a bank holding company or any of its
subsidiaries, other than a domestic bank, using the commissioner's
own examiners, the bank holding company shall pay, within 10 days
after receipt of a statement from the commissioner, a fee of two
hundred dollars ($200) per day for each examiner engaged in the
examination plus, in the event it is necessary for any examiner
engaged in the examination to travel outside this state, the travel
expenses of the examiner. If the commissioner examines a bank holding
company or any of its subsidiaries, other than a domestic bank,
using independent public accountants, the bank holding company shall
pay, within 10 days after receipt of a statement from the
commissioner, the fee of the independent public accountants.

3705. With respect to a trust company controlled by or under common
control with a title insurance company, the commissioner in
cooperation with the Insurance Commissioner shall adopt reasonable
rules and regulations for the conduct of the inspection and
examination authorized by Sections 3702 and 3704. Any such
examination or inspection shall be conducted pursuant to the
provisions of Article 4.7 (commencing with Section 1215) of Chapter
2, Part 2, of Division 1 of the Insurance Code.

3706. Nothing in this chapter shall be construed to authorize the
commissioner to require reports from a national bank or to examine a
national bank contrary to federal law.

3707. 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 or arranged by, a bank holding
company or a subsidiary of a bank holding company which is not a
bank. As used in this section, the terms "bank holding company" and
"subsidiary" mean a bank holding company or subsidiary as defined in
Chapter 17 (commencing with Section 1841) of Title 12 of the United
States Code.
This section creates and authorizes an exempt class of persons
pursuant to Section 1 of Article XV of the Constitution. This section
does not exempt a bank holding company or a subsidiary of a bank
holding company from complying with all other applicable provisions
of law regulating the business of these companies.
This section does not exempt a bank holding company or a
subsidiary thereof from complying with all other laws or regulations
governing the business in which the bank holding company or
subsidiary is engaged.