California Code of Regulations › Title 10 - Investment › Chapter 1 - Commissioner of Business Oversight, Division of Financial Institutions › Subchapter 10 - Banks › Article 4 - Establishment of California State Banks › Subarticle 2 - Establishment of California State Commercial Bank, Industrial Bank, or Independent Trust Company › Part 4 - Pre-Incorporation Matters › Subpart 3 - Pre-Incorporation Solicitation and Acceptance of Pre-Opening Funds › Section 10.3402 - Exemptions

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
There are hereby exempted from the provisions of
							 Section 10.3401 of this Chapter as not
							 being comprehended within the purposes of Section
							 10.3401 of this Chapter and the
							 regulation of which is not necessary or appropriate in the public interest or
							 for the protection of the public, the following transactions:
(a) The solicitation and acceptance by a
						  proposed director, proposed officer, or organizer of a proposed subject
						  institution from any proposed director, proposed officer, or organizer of such
						  proposed subject institution of pre-opening funds for the proposed subject
						  institution, provided:
(1) No advertisement
						  shall be published regarding the solicitation or acceptance of pre-opening
						  funds.
(2) The total number of
						  persons from whom pre-opening funds for the subject institution are accepted
						  shall not exceed 25.
(3) No
						  pre-opening funds shall be accepted from any person except pursuant to a
						  written agreement which shall provide:
(A)
						  Terms under which the pre-opening funds are accepted.
(B) Terms under which the pre-opening funds
						  shall be held, including the name of the California commercial bank in which
						  such money is to be deposited in accordance with Section
						  10.3405(a) of
						  this Chapter and the name and address of the manager of the pre-incorporation
						  pre-opening funds account.
(C)
						  Terms under which the pre-opening funds shall be disbursed, including a
						  provision that the pre-opening funds shall be expended only for the purpose of
						  paying pre-opening expenditures of the proposed subject institution.
(D) Terms under which the pre-opening funds
						  shall be repaid.
(E) That the
						  pre-opening funds, if expended for the purpose of paying pre-opening
						  expenditures of the proposed subject institution, may not be repaid unless,
						  among other contingencies, an application for authority to organize the subject
						  institution is filed with and approved by the Commissioner, the subject
						  institution is organized and is issued a certificate of authority to transact
						  commercial banking business, trust business, or both, as the case may be, the
						  subject institution, in case it is a commercial bank, becomes an insured bank,
						  and pre-opening expenditures are assumed by the subject institution and, in the
						  case of pre-opening noncapital expenditures, approved by the Commissioner; and
						  that no assurance can be given that any of the foregoing contingencies will
						  occur.