Fin. Code, § 1510 · Article 4. Investments
Fin. Code, § 1510
Text — As published in the Legislative Counsel's database, tables dated October 18, 2026 (pubinfo_2025.zip)
The total amount invested by a bank in the securities issued by a person shall not exceed 15 percent of the sum of the shareholders’ equity, allowance for loan and lease losses, capital notes and debentures of the bank, except:
(a) Obligations of the United States and those for which the faith and credit of the United States are pledged for the payment of principal and interest.
(b) Bonds, consolidated bonds, collateral trust debentures, or other obligations issued by the Federal Financing Bank, the United States Postal Service, federal land banks, or federal intermediate credit banks established under the Federal Farm Loan Act; in debentures and consolidated debentures issued by the Central Bank for Cooperatives and banks for cooperatives established under the Farm Credit Act of 1933; in consolidated notes, bonds, debentures, and other obligations issued by federal land banks, federal intermediate credit banks, and banks for cooperatives under the Farm Credit Act of 1971; in the bonds of any federal home loan bank established under the Federal Home Loan Bank Act; and in stock, bonds, debentures, participations, and other obligations of or issued by the Student Loan Marketing Association, the Federal National Mortgage Association, the Government National Mortgage Association, and the Federal Home Loan Mortgage Corporation.
(c) Obligations of the State of California and those for which the credit of the State of California is pledged for the payment of principal and interest.
(d) Obligations of a local agency or district of the State of California having the power, without limit as to rate or amount, to levy taxes to pay the principal and interest of the bonds upon all property within its boundaries subject to taxation by the local agency or district.
(e) Capital stock of the Federal Reserve bank serving the district in which the bank is located.
(f) Capital stock of a federal home loan bank in the manner provided in the Federal Home Loan Bank Act.
(g) Capital stock of the Federal Deposit Insurance Corporation.
Notes and commentary — not statutory text
History
Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.
Source of truth
- Edition
- As published in the Legislative Counsel's database, tables dated October 18, 2026 (pubinfo_2025.zip)
- Official file
- https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=FIN§ionNum=1510.
- Text hash
- sha256 bf719be8bf5d6b8e042a867efdf62c0ed0d6d766a85ab2b205fcb7072422f369
- Composed by
- compose_ca.py 2026-10-22: the Legislative Counsel's CAML content files read by a tokenizer (caml_readers.reader_a); an independent xml.etree reading (caml_readers.reader_b) agrees on every section
Cited by 8 provisions
Provisions in this library whose text cites Fin. Code, § 1510. Each shows the citation as that text prints it.
Financial Code
- Fin. Code, § 1471Printed as Sections 1481 and 1510
- Fin. Code, § 1472Printed as Sections 1471, 1481, and 1510
- Fin. Code, § 1473Printed as Sections 1481 and 1510
- Fin. Code, § 1485Printed as Section 1510
- Fin. Code, § 1511Printed as Section 1510
- Fin. Code, § 1512Printed as Section 1510
- Fin. Code, § 1515Printed as Section 1510
- Fin. Code, § 1572Printed as Section 1510
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.