§ 1472 Bank Loans To Affiliates

This law lets banks avoid certain restrictions when they give loans to or invest in their regulated subsidiaries, as long as the state commissioner approves and may set conditions.

Key Takeaways

•Banks can make loans to and invest in their regulated subsidiaries without the usual limits.
•The state commissioner must give prior approval before the bank does these actions.
•The commissioner can still impose conditions or restrictions on the bank's actions.

Example

A bank wants to lend money to its insurance company subsidiary and buy its stock.

Normally the bank would be limited by rules on how much it can lend or invest, but this statute says those limits don't apply if the bank first gets approval from the state commissioner and follows any conditions the commissioner sets.

Subject to prior approval by the commissioner and to any limitations the commissioner may impose, the limitations in Sections 1471, 1481, and 1510 shall not apply to loans made by a bank to, and the bank’s investments in securities of, its regulated corporations. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)

This law lets banks avoid certain restrictions when they give loans to or invest in their regulated subsidiaries, as long as the state commissioner approves and may set conditions.

Key Takeaways

•Banks can make loans to and invest in their regulated subsidiaries without the usual limits.
•The state commissioner must give prior approval before the bank does these actions.
•The commissioner can still impose conditions or restrictions on the bank's actions.

Example

A bank wants to lend money to its insurance company subsidiary and buy its stock.

Key Takeaways

Example

Key Terms

References

§ 1472 Bank Loans To Affiliates

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References