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HomeFinancial CodeDiv. 7Ch. 1Art. 3§ 18042 Industrial Loan Company Premises

§ 18042 Industrial Loan Company Premises

Financial Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 18042 Industrial Loan Company Premises

This law says that a company needs a big vote (three-fourths of all directors) to buy or build a new office building.

Key Takeaways

  • •This rule is only for buying or building a new office for the company.
  • •A simple majority (more than half) isn't enough—it has to be three-fourths.
  • •If the board has 8 directors, at least 6 must agree. If it has 20, at least 15 must agree.

Example

A small bank wants to buy a new building for its offices.

The bank's board of directors must vote, and at least three-fourths of them must agree before the bank can buy the building.

How to Calculate

Number of 'yes' votes ≥ (3/4) * Total number of directors

  1. Count the total number of directors on the board.
  2. Multiply the total number of directors by 0.75 (or 3/4).
  3. The number of 'yes' votes must be at least this big to pass.

A company has 12 directors voting on buying a new building.

Result: At least 9 directors must vote 'yes' to approve the purchase.

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

Official Source
View on CA.gov

§ 18042 Industrial Loan Company Premises

The authority of a three-fourths vote of all the directors is necessary to authorize the purchase of a lot and building necessary as premises for the transaction of business as an industrial loan company or to authorize the construction of such building. (Added by Stats. 1976, Ch. 964.)

Last verified: January 11, 2026

Key Terms

three-fourths votedirectorsindustrial loan company

Related Statutes

  • § 18040 Industrial Loan Company Real Property
  • § 18043 Industrial Loan Property Conveyance
  • § 100002 Debt Collection Definitions
  • § 1007 Bank Liability Preservation
  • § 18003 Premium Finance Agency Definitions

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Financial Code. Section 18042.
View Official Source