§ 108.303. Borrowing Limitations.
10 CA ADC § 108.303Barclays Official California Code of Regulations
10 CCR § 108.303
§ 108.303. Borrowing Limitations.
(1) General rule. For any secured outside borrowing, the terms of such borrowing shall provide that the commissioner and the Federal Savings and Loan Insurance Corporation receive prompt written notification of any default on the obligation and, before a sale or other disposition of any portion of the collateral, that the Federal Savings and Loan Insurance Corporation shall have 30 days after written receipt of notice of such proposed sale or other disposition to exercise a right to repurchase such collateral at the price to be paid at such sale or to acquire such collateral at the value to be assigned to it in any other disposition.
(1) Unless the association meets the net worth requirement of Section 6900 of the law and, at the close of its most recent semi-annual period, it had a ratio of scheduled items (other than assets acquired in a merger instituted for supervisory reasons) to specified assets not in excess of 2.5 percent, it shall, at least ten business days prior to issuance, file with the commissioner a notice of intent to issue securities evidencing such borrowings. Such notice shall contain a summary of the terms of the security, including:
(2) The commissioner shall have ten (10) business days after receipt of such filing to object to the issuance of such securities. The commissioner shall object if the terms or covenants of the proposed issue are deemed to place unreasonable burdens on, or convey to the security holders undue control over, the operations of the association. If no objection is taken, the association shall have one hundred twenty (120) calendar days within which to issue such securities.
3. complying with 12 CFR Section 563.8-4 of the Federal Home Loan Bank Insurance Regulations and evidencing an obligation maturing in less than 90 days to repurchase direct obligations of, or obligations that are fully guaranteed as to principal and interest by, the United States or any agency thereof.
1. they are not sold to more than 35 persons or offered by any advertisement, including any broadcast or written communication published in a newspaper, magazine or similar medium, or by any letter, circular, or other written communication, sent, given, or communicated to more than 35 persons who prior to such communication have not indicated an interest in purchasing the securities, and any purchases by such persons are for their own account and not with a view to distribution; or
(g) Disclosure. No association shall, directly or indirectly in connection with the offer, sale, or issuance of a security evidencing a borrowing pursuant to this section, make any statement that: (1) is false or misleading with respect to any material fact; or (2) omits to state any material fact (A) necessary in order to make the statements made, in light of circumstances under which they were made, neither false nor misleading, or (B) necessary to correct any earlier statement that has subsequently become false or misleading.
(2) Content. A final offering circular under this section shall be in a form satisfactory to the commissioner. At a minimum, it shall contain information in detail comparable to that required under the Securities Act of 1933, General Form of Registration S-1, or S-7 if the issuing association meets the eligibility requirements prescribed by the Securities and Exchange Commission for use of that form, and Item 7 of Form PS as prescribed in Part 563b of the Rules and Regulations for Insurance of Accounts (“Insurance Regulations”) (12 CFR Part 563b).
(3) Financial statements. A final offering circular under this section shall contain the association's latest audited annual statement of condition and audited statements of operations for each of its last three years. It shall also contain the association's latest unaudited statements of condition and operations on a comparative basis for the quarter ending within one hundred twenty (120) days of its latest amendment. Such financial statements shall be prepared in accordance with the requirements of Section 563c.1 of the Insurance Regulations. The issuer shall also make available promptly upon request to each purchaser of a security issued subject to the requirements of subdivision (f)(2)(B)2 (including purchasers upon resale) while the securities are outstanding, audited annual statements of condition and operation and comparative unaudited quarterly statements of condition and operations for the first three quarters.
Credits
Note: Authority cited: Section 5255, Financial Code. Reference: Sections 6419 and 6712-6719, Financial Code.
History
1. Change without regulatory effect renumbering former Section 231.3 to Section 108.303 (Register 87, No. 14). For prior history, see Register 83, No. 16.
This database is current through 5/10/24 Register 2024, No. 19.
Cal. Admin. Code tit. 10, § 108.303, 10 CA ADC § 108.303
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