Fin. Code, § 7450.2 · Article 5. Investment in Loans
Fin. Code, § 7450.2
Text — As published in the Legislative Counsel's database, tables dated October 18, 2026 (pubinfo_2025.zip)
Except with the prior written consent of the commissioner, no association shall knowingly make:
(a) Any loan to any corporation of which 10 percent or more of the stock is owned or controlled individually or collectively by any one or more of the directors, officers, employees, or substantial stockholders of the association.
As used in this subdivision, “substantial stockholder” means a person who has a real or beneficial ownership of more than 10 percent of the outstanding stock of the association. For this purpose, stock owned by the person’s immediate family shall be deemed owned by that person.
(b) Any loan the proceeds of which are intended to inure to the benefit of any corporation specified in subdivision (a).
Notes and commentary — not statutory text
History
Added by Stats. 1986, Ch. 1158, Sec. 6. Effective September 26, 1986.
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=7450.2.
- Text hash
- sha256 76d8c4adabdd35730aac285eb0e0452bd27a074962985bf246e4819d55c7800e
- 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
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.