California Code of Regulations
Title 10 - Investment
Chapter 1 - Commissioner of Business Oversight, Division of Financial Institutions
Subchapter 10 - Banks
Article 11 - Securities
Subarticle 2 - Acquisition of Bank's Own Securities
Section 10.19900 - Application for Acquisition of Own Securities by Bank or Trust Company
Universal Citation: 10 CA Code of Regs 10.19900
Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) California law permits a California state-chartered bank or trust company to acquire its own shares if the acquisition is approved in advance by the Commissioner.
(b) An application for acquisition by a bank or trust company of its own shares shall include the following information:
(1) The class and series, as appropriate, of
the shares to be acquired.
(2) The
number of such shares outstanding and the number of shares to be
acquired.
(3) The date or period
when the bank or trust company will make the acquisition.
(4) The identity of the seller of the
stock.
(5) The price which the bank
or trust company will pay for the shares, an explanation of the basis for
setting the price, and a description of any other material terms of the
acquisition.
(6) In case the bank
is an insured nonmember bank, a confirmation that the bank will obtain the
consent of the Federal Deposit Insurance Corporation pursuant to Federal
Deposit Insurance Act Section
18(i),
(12 U.S.C.
1828(i)), if applicable. In
case the bank is a member bank, a confirmation that the bank will obtain the
consent of the Board of Governors of the Federal Reserve System pursuant to
Federal Reserve Act Section
9, Paragraph 11, (12 U.S.C.
329), if applicable.
(7) A copy of all written materials used to
effect the acquisition, including the repurchase plan, if any, resolutions of
the board of directors, materials to be distributed to shareholders, and any
advertisements relating to the acquisition.
(8) An opinion of an attorney at law that the
acquisition will comply with applicable securities laws and applicable
provisions of the Financial Code.
1. New article 11, subarticle 2 (sections 10.19900-10.19901) and section filed 4-29-2008; operative 5-29-2008 (Register 2008, No. 18).
Note: Authority cited: Section 215, Financial Code. Reference: Section 3359, Financial Code.
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