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 5 - Corporate Matters
Subarticle 5 - Distribution to Shareholders
Section 50.4402 - Application: Contents

Universal Citation: 10 CA Code of Regs 50.4402

Current through Register 2024 Notice Reg. No. 38, September 20, 2024

An application by a licensee for approval pursuant to Article 4 (commencing with Section 31230), Chapter 4 of the Business and Industrial Development Corporations Law to make, or to obligate itself to make, a distribution to its shareholders shall contain the following information:

(a) Describe the proposed distribution, including:

(1) In case the proposed distribution is to consist of a dividend on shares of the licensee, identify the class or series of such shares, state the amount of the dividend per share, and state the aggregate amount of the dividend.

(2) In case the proposed distribution is to consist of a purchase or redemption of shares, identify the class or series of such shares to be purchased or redeemed, state the amount to be paid per share, and state the aggregate amount to be paid.

(b) State the date on which the licensee is to make the proposed distribution, including:

(1) In case the proposed distribution consists of a dividend on shares of the licensee, state the record date, the date of declaration of the dividend, and the date of payment of the dividend.

(2) In case the proposed distribution consists of a purchase or redemption of shares of the licensee, state the date of the purchase or redemption.

(d) Provide a pro forma balance sheet of the licensee as of the date of the balance sheet called for in Subdivision (c) of this Section, adjusted to give effect to the proposed distribution.

(e) Show that the proposed distribution will comply with applicable provisions of the Corporations Code and any applicable provisions of the articles and the by-laws of the licensee.

(f) State whether the proposed distribution will comply with all applicable contractual restrictions, including restrictions in lending agreements or in indenture agreements.

1. Repealer of subsection (e), subsection relettering, repealer of subsections (g) and (h), and new NOTE filed 4-7-97; operative 4-7-97 pursuant to Government Code section 11343.4(d) (Register 97, No. 15).
2. New subsection (f) filed 4-14-98; operative 5-14-98 (Register 98, No. 16).

Note: Authority cited: Section 31101, Financial Code. Reference: Sections 31107 and 31231, Financial Code.

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