Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a)
In this Subarticle:
(1) To "invest," when used
with respect to a corporation, means:
(A) To
invest in equity securities of the corporation;
(B) To become or be the owner of any other
securities of the corporation;
(C)
To make a loan or otherwise extend credit to or for the benefit of the
corporation; or
(D) To become or be
an obligee of the corporation with respect to the payment of
money.
(2) To "invest in
equity securities," when used with respect to a corporation, means:
(A) To become or be the owner of any equity
securities of the corporation;
(B)
To make a contribution to the capital of the corporation; or
(C) To effect any transaction which
constitutes in substance, though not in form, becoming the owner of equity
securities of the corporation or making a contribution to the capital of the
corporation.
(3)
"Regulated corporation" means any corporation in which a subject institution
invests under Financial Code Section
1472 and
which the subject institution controls, unless the Commissioner designates the
corporation as a non-regulated corporation.
(b) For purposes of this Subarticle, a
subject institution shall be deemed to "control" a corporation in which it
invests under Financial Code Section
1472 in any
of the following cases:
(1) In case the
subject institution owns, directly or indirectly, a majority of the voting
power of the corporation.
(2) In
case the subject institution owns, directly or indirectly, 25 percent or more
(but less than a majority) of the voting power of the corporation, unless the
Commissioner determines, upon application, that the subject institution does
not control the corporation.
(3) In
case the Commissioner determines, with the consent of the subject institution
and the corporation, that it is appropriate or necessary that the subject
institution be treated as controlling the corporation, and that the corporation
be treated as controlled by the subject institution, for purposes of Part 3
(commencing with Section
10.19090) of this
Subarticle.
1.
Change without regulatory effect amending section filed 8-19-97 pursuant to
section 100, title 1, California Code of
Regulations (Register 97, No. 34).
2. Change without regulatory
effect amending section and NOTE filed 8-21-2019 pursuant to section
100, title 1, California Code of
Regulations (Register 2019, No. 34).
Note: Authority cited: Section
326,
Financial Code. Reference: Section
1472,
Financial Code.
