§ 1512 Bank Stock Reorganization

Financial Code·California

AI SummaryVerified

This law lets a bank buy the stock of another bank as part of an approved merger plan and then give those shares to its own shareholders.

Key Takeaways

•Banks can combine by buying other banks' stock if a regulator approves the plan.
•The acquired stock must be handed out to the buying bank's shareholders in the same proportion.
•This only applies to banks that are organized under the state's laws.

Example

A local bank wants to merge with a smaller bank in the same state.

The larger bank gets all the smaller bank's shares, and then gives those shares to its own customers and investors so they own part of the new combined bank.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 1512 Bank Stock Reorganization

Notwithstanding Section 1510, a bank may purchase, acquire, or hold the stock of any corporation pursuant to a plan of reorganization approved by the commissioner by which all of the stock of one or more banks organized under the laws of this state shall be acquired and immediately reissued proportionately to the stockholders of the acquiring bank. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)

Last verified: January 11, 2026

Key Terms

plan of reorganization commissioner stockholders of the acquiring bank

References

Official text at leginfo.legislature.ca.gov
California Legislature. Financial Code. Section 1512.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References