California Code of Regulations
Title 10 - Investment
Chapter 1 - Commissioner of Business Oversight, Division of Financial Institutions
Subchapter 10 - Banks
Article 7 - Acquiring and Holding Equity Securities of Corporations
Subarticle 2 - Investing in Corporations
Part 2 - Regulated Corporations
Section 10.19107 - Applicable Provisions of Banking Law

(a) Except as otherwise provided in subdivision (c) of this section, a regulated corporation shall be subject to, and both a regulated corporation and its controlling subject institution shall comply with, (i) the following provisions of the Banking Law which are applicable to the controlling subject institution, (ii) any provisions of the Banking Law which authorize exceptions to, impose sanctions for violations of, or are otherwise related to, the provisions referred to in clause (i), and (iii) any regulations issued under the provisions referred to in clause (i) or (ii), as if the regulated corporation were an operating division of the controlling subject institution and not a separate entity:

(b) For purposes of the statutes and regulations referred to in subdivision (a) of this section, the pertinent loans and securities of, collateral held b), acceptances made by, and obligations to, a regulated corporation and its controlling subject institution shall be combined. For example, in case the controlling subject institution is a commercial bank, for purposes of Financial Code Section 1481, the obligations of any person to the regulated corporation shall be combined with any obligations of the same person to the controlling subject institution.

(c) The statutes and regulations referred to in subdivision (a) of this section which prohibit or restrict certain types of transactions between a subject institution and a person who has a specified relationship, directly or indirectly, with the subject institution (for example, a person who is a director or executive officer of the subject institution or of a bank holding company of the subject institution) shall apply to such types of transactions between a regulated corporation and a person who has such a relationship with the controlling subject institution of the regulated corporation. However, the statutes and regulations shall not apply to such types of transactions between the regulated corporation or the controlling subject institution and a person who has such a relationship with the regulated corporation but not with the controlling subject institution. For example, an extension of credit by a regulated corporation to an executive officer of the controlling subject institution of the regulated corporation would be subject to Article 2 (commencing with Section 1360) of Chapter 10 of the Banking Law, but an extension of credit by a regulated corporation or by its controlling subject institution to an executive officer of the regulated corporation would not be subject to Article 2 of Chapter 10 of the Banking Law unless the extension of credit was otherwise subject to Article 2 of Chapter 10 of the Banking Law (e.g., unless the person was also an executive officer of the controlling subject institution).