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2011 California Code
Financial Code
DIVISION 1.1. BANKING [1000 - 1910]
ARTICLE 2. Loan and Investment Limitations
Section 1471


CA Fin Code § 1471 (through 2012 Leg Sess) What's This?

(a) Subject to the limitations and exceptions in Sections 1481 and 1510, a bank may hold both obligations made by a person, and securities issued by that same person.

(b) The total amount of obligations and securities held by a bank pursuant to subdivision (a) shall not exceed 25 percent of the sum of the shareholders equity, allowance for loan and lease losses, capital notes and debentures of the bank.

(Added by Stats. 2011, Ch. 243, Sec. 3. Effective January 1, 2012.)

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