California Code of Regulations
Title 10 - Investment
Chapter 2 - Savings and Loan Commissioner
Subchapter 4 - Operations-General
Article 6 - Foreign Savings Associations
Section 104.609 - Suspension or Revocation of Certificate of Authority

Universal Citation: 10 CA Code of Regs 104.609

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

(a) The Commissioner may suspend or revoke any certificate of authority issued to a foreign savings association if it appears that:

(1) The foreign savings association is in an impaired, or unsafe or unsound condition.

(2) The foreign savings association is engaging in safe or unsound business practices which threaten its viability or the interests of the depositors, or borrowers of its California office(s).

(3) The foreign savings association has violated or is violating any law or regulation of this state or of the United States.

(4) The foreign savings association has violated or is in violation of any condition of the approval of its application for a certificate of authority, or of an order issued by the Commissioner.

(5) A person has become a savings and loan holding company of the foreign savings association, which person is a foreign holding company with its principal place of deposits located in a state other than one of the states listed in Financial Code Section 10011.

(6) The deposits of a California branch are not insured by the Federal Savings and Loan Insurance Corporation or the Federal Deposit Insurance Corporation.

(7) The foreign savings association has been placed under receivership pursuant to state or federal law.

(8) The foreign savings association has not actively conducted the business of an association in California for six months of the most recent twelve months, notwithstanding the fact that its certificate of authority may have been suspended during that time.

(9) The foreign savings association has failed to pay the assessment to the Commissioner as required by Section 104.602.

(b) An order of suspension or revocation may be effective immediately or at some later date, and may be subject to such conditions as the Commissioner deems appropriate.

(c) Prior to issuing an order of suspension or revocation, the Commissioner shall deliver to the foreign savings association at its principal California office a Notice of Suspension or Notice of Revocation which states the facts supporting an order of suspension or revocation. If the foreign savings association requests a hearing on the notice within 10 days of the date of receipt, the Commissioner shall hold a hearing at which evidence may be presented. On the basis of the evidence and argument presented at the hearing, the Commissioner may issue the order as set forth in the notice, or issue a modified order, or dismiss the matter.

(d) If no hearing is requested within the time specified, the Commissioner may proceed to issue an order of suspension or revocation on the basis of the facts set forth in the Notice of Suspension or Notice of Revocation.

(e) Notwithstanding subdivision (c) above, if the Commissioner determines that immediate action is necessary to protect the California depositors or creditors of a foreign savings association, a certificate of authority may be suspended without prior notice or hearing. A foreign savings association may apply within 10 days of receipt of an order of suspension issued pursuant to this subdivision to the superior court of the county in which the foreign savings association's principal California office is located for a hearing on the suspension, and an order staying the suspension until after the hearing is completed. The court shall set a hearing on an expedited basis, but shall not stay the suspension unless it appears to the court that the suspension was unlawful. After the hearing the court shall make findings of fact and may affirm or rescind the suspension, subject to any conditions the court deems appropriate, or dismiss the action.

(f) Within 10 days of the date an order is issued which suspends or revokes a certificate of authority pursuant to subsections (c) and (d), a foreign savings association may apply to the superior court of the county in which the foreign savings association's principal California office is located for a hearing on the order, and an order staying the suspension or revocation until after the hearing is completed. The court shall set a hearing on an expedited basis, but shall not stay any suspension or revocation unless it appears to the court that the suspension or revocation was unlawful. After the hearing the court shall make findings of fact and may affirm or rescind the order, subject to any conditions the court deems appropriate, or dismiss the action.

(g) Upon suspension or revocation of the certificate of authority, the foreign savings association shall immediately cease to operate in California, except as permitted or required in writing by the Commissioner.

1. New section filed 7-1-87; operative 7-1-87 pursuant to Government Code Section 11346.2(d) (Register 87, No. 28).

Note: Authority cited: Sections 8053 and 10012, Financial Code. Reference: Section 10012, Financial Code.

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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