California Code of Regulations
Title 10 - Investment
Chapter 1 - Commissioner of Business Oversight, Division of Financial Institutions
Subchapter 50 - Business and Industrial Development Corporations
Article 4 - Issuance of License
Subarticle 2 - Application
Section 50.3120 - Information Regarding Legal Proceedings
Universal Citation: 10 CA Code of Regs 50.3120
Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) In this section, "subject person," when used with respect to the applicant, means:
(1)
Any individual who controls, or is proposed to control, the
applicant;
(2) Any person (other
than an individual) which controls or proposes to control the applicant or
which otherwise is, or is proposed to be, an affiliate of the applicant
(including, in case such person is a group of persons acting in concert, each
person who is a member of such group).
(b) For purposes of this section:
(1) A proceeding involving the applicant or a
subject person of the applicant shall not be deemed to be material if it is an
ordinary routine proceeding incidental to the business of the applicant or of
such subject person and if the amount of any damages (including interest and
costs) claimed against the applicant or the subject person does not exceed 10
percent of the shareholders' equity of the applicant or of the subject person,
as the case may be.
(2)
Notwithstanding the provisions of Paragraph (1) of this Subdivision (b), each
of the following proceedings shall be deemed to be material:
(A) Any proceeding in which any person who
is, or is an associate of, any (1) director, (2) officer, or (3) ten percent
(including associates) equity security owner of the applicant or a subject
person of the applicant, is a party adverse to the applicant or to any subject
person of the applicant.
(B) Any
proceeding in which the applicant, any subject person of the applicant, or any
of the persons referred to in Subparagraph (A) of this Paragraph (2) is a party
adverse to any governmental agency which regulates financial institutions, any
governmental agency which regulates the offering or selling of securities, or
any governmental agency which provides financing assistance or management
assistance to business firms.
(C)
Any proceeding brought by a shareholder of the applicant or of any subject
person of the applicant which names the applicant or such subject person as a
plaintiff or defendant.
(D) Any
proceeding involving civil rights laws.
(E) Any proceeding involving environmental
laws.
(F) Any bankruptcy,
receivership, or similar proceeding.
(c) State whether or not the applicant or any subject person of the applicant is a party to, or any property of the applicant or of any subject person of the applicant is the subject of, any material proceeding pending or threatened by or before any court or governmental agency, and, if so, describe such proceeding, including:
(1) In case the proceeding is pending:
(A) Title of the proceeding.
(B) Name and address of the court or of the
governmental agency before which the proceeding is pending.
(C) Names of the parties to the
proceeding.
(D) Date the proceeding
was commenced.
(E) Allegations and
responses made in the proceeding.
(F) Relief sought in the
proceeding.
(G) Status of the
proceeding.
(2) In case
the proceeding is threatened:
(A) Name of the
person threatening to commence the proceeding.
(B) Allegations made by such
person.
(C) Name and address of the
court or of the governmental agency before which the proceeding is threatened
to be commenced.
(D) Relief
threatened to be sought in the proceeding.
Disclaimer: These regulations may not be the most recent version. California may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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