§ 4852 Abandoning Corporate Sales

Financial Code·California

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Key Takeaways

•If you're a bank in California, you can cancel a sale before it's final, but your board has to agree.
•Other buyers or sellers can also cancel, but they need to follow their own state's rules.
•If there's a contract, you might still have to follow its rules even if you cancel.

Example

A California bank agrees to buy a smaller bank but changes its mind before the deal is done.

The bank can cancel the sale if its board agrees, but if there's a contract, they might still owe money or have to follow other rules in it.

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

Official Source

View on CA.gov

§ 4852 Abandoning Corporate Sales

A purchaser or seller that is a California state depository corporation, with the approval of its board and without further approval of the outstanding shares, may, and any other purchaser or seller, with approval as may be required under the law of its domicile, may, abandon the sale at any time before the sale becomes effective, subject to the contractual rights, if any, of other parties, including the seller or purchaser, as the case may be. (Amended by Stats. 1995, Ch. 480, Sec. 137. Effective October 2, 1995.)

Last verified: January 23, 2026

Key Terms

corporation contract shareholder effective october

References

Official text at leginfo.legislature.ca.gov
California Legislature. Financial Code. Section 4852.

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Key Takeaways

Example

Key Terms

Related Statutes

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