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§ 50.15307. Legal Proceedings.

10 CA ADC § 50.15307Barclays Official California Code of Regulations

Barclays California Code of Regulations
Title 10. Investment
Chapter 1. Commissioner of Business Oversight, Division of Financial Institutions
Subchapter 50. Business and Industrial Development Corporations
Article 14. Reports
Subarticle 4. Other Reports
10 CCR § 50.15307
§ 50.15307. Legal Proceedings.
Currentness
(a) In this Section:
(1) “Subject person,” when used with respect to a licensee, means:
(A) Any individual who controls the licensee; or
(B) Any person (other than an individual) which controls the licensee or which otherwise is an affiliate of the licensee (including, in case any such person consists of a group of persons acting in concert, each person who is a member of such group).
(2) “Reporting subject person,” when used with respect to a licensee, means any subject person of such licensee who is a director, officer, or affiliate of the licensee.
(b) For purposes of this section:
(1) A proceeding involving a licensee or a subject person of a licensee shall not be deemed to be material if it is an ordinary routine proceeding incidental to the business of such licensee or of such subject person and if the amount of any damages (including interest and costs) claimed against the licensee or the subject person does not exceed 10% of the shareholders' equity of the licensee or of the subject person, as the case may be.
(2) Notwithstanding the provisions of Paragraph (1) of this Subdivision (b), each of the following proceedings shall be deemed to be material:
(A) Any proceeding in which any person who is, or is an associate of, any
(1) director,
(2) officer, or
(3) ten percent (including associates) equity security owner of a licensee or a subject person of a licensee, is a party adverse to such licensee or to any subject person of the licensee.
(B) Any proceeding in which a licensee, any subject person of a licensee, or any of the persons referred to in Subparagraph (A) of this Paragraph (2) is a party adverse to any governmental agency which regulates financial institutions, any governmental agency which regulates the offering or selling of securities, or any governmental agency which provides financing assistance or management assistance to business firms.
(C) Any proceeding brought by a shareholder of a licensee or of any subject person of a licensee which names such licensee or such subject person as a plaintiff or defendant.
(D) Any proceeding involving civil rights laws.
(E) Any proceeding involving environmental laws.
(F) Any bankruptcy, receivership, or similar proceeding.
(c) Whenever any material proceeding to which a licensee or any subject person of a licensee is a party or of which any property of a licensee or of any subject person of a licensee is the subject, is commenced by or before any court or governmental agency, such licensee and, in case any reporting subject person of a licensee is a party to, or any property of a reporting subject person of a licensee is a subject of, such proceeding, such reporting subject person shall promptly file with the Commissioner a report describing such proceeding, including:
(1) Title of the proceeding.
(2) Name and address of the court or of the governmental agency before which the proceeding was commenced.
(3) Names of the parties to the proceeding.
(4) Date the proceeding was commenced.
(5) Allegations made in the proceeding.
(6) Relief sought in the proceeding.
(d) Whenever any proceeding of the type referred to in Subdivision (c) of this Section is concluded, the licensee and, in case any reporting subject person of a licensee was a party to, or any property of a reporting subject person of a licensee was the subject of, such proceeding, such reporting subject person shall promptly file with the Commissioner a report identifying the proceeding and describing the conclusion of the proceeding.

Credits

Note: Authority cited: Section 31101, Financial Code. Reference: Section 31506, Financial Code.
History
1. Change without regulatory effect amending section and adding new Note filed 8-19-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 34).
This database is current through 5/10/24 Register 2024, No. 19.
Cal. Admin. Code tit. 10, § 50.15307, 10 CA ADC § 50.15307
End of Document