2007 California Financial Code Article 4. Reports And Examinations

CA Codes (fin:8150-8160)

8150.  (a) On or before the last day of January in each year, or
within 30 days following the end of the fiscal year, each
association, savings and loan holding company, and those subsidiaries
of an association or  savings and loan holding company that the
commissioner may require, shall make an annual written report to the
commissioner, in a format to be prescribed by the commissioner.
   (b) Each report shall be verified by an authorized officer.



8151.  Each association, savings and loan holding company and
subsidiary of any association or savings and loan holding company
that is required to file an annual report under Section 8150 also
shall make any other reports that the commissioner may from time to
time require, which shall be in a format and filed on a date that the
commissioner may prescribe and shall, if required by the
commissioner, be verified in the same manner as the annual report.



8152.  From time to time the commissioner may, without previous
notice, examine or cause an examination to be made into the affairs
of each association, and any office of the association within or
outside this state, savings and loan holding company and subsidiary
of any association or savings and loan holding company subject to
this division.



8153.  (a) In lieu of a report or an examination under Section 8150
or 8152, the commissioner may accept any report made to, or
examination made by, a federal or state authority that supervises
financial institutions, or by a certified or other public accountant
or firm of certified or other public accountants selected by the
association and approved by the commissioner.
   (b) An examination under Section 8152 may be conducted in
conjunction with an examination by a federal authority that
supervises financial institutions.



8154.  (a) Whenever, in the judgment of the commissioner, the
condition of any association, savings and loan holding company, or
any of their subsidiaries renders it necessary or expedient to make
an extra examination or audit or to devote any extraordinary
attention to its affairs, the commissioner shall do so or may appoint
a certified public accountant or any expert to do so.
   (b) The association, savings and loan holding company, or
subsidiary specially examined under this section may be required to
pay the actual expenses incurred by the commissioner for all extra
services rendered by the commissioner, by the appointed accountant,
or any expert.



8155.  (a) The commissioner is authorized in connection with any
examination or audit of any association or any subsidiary to cause to
be made appraisals of real estate or other property held by it or
securing its assets.
   (b) Unless otherwise ordered by the commissioner, appraisal of
real estate or other property in connection with any examination or
audit pursuant to this article shall be made by a department
appraiser or by an independent professional appraiser employed or
selected by the commissioner, and the cost of the appraisal promptly
shall be paid by the association or subsidiary to the commissioner or
directly to the appraiser upon receipt by it of a statement of cost
bearing the written approval of the commissioner.
   (c) A copy of the report of each appraisal caused to be made by
the commissioner pursuant to this section shall be furnished to the
association or subsidiary within a reasonable time, not to exceed 60
days, following the completion of the appraisals.



8156.  (a) Each association shall at least annually cause its books
and accounts to be audited at its own expense by a certified public
accountant or firm of certified public accountants selected by the
association and approved by the commissioner.
   (b) The annual audit date and audit period shall be approved in
writing by the commissioner prior to commencement of the audit.
   (c) Each savings association which engages certified public
accountant services for any audit shall transmit to the accountant or
accountants copies of the most recent report of condition made by
the association pursuant to state or federal law and a copy of the
most recent report of examination received by the savings
association.
   (d) In addition to the copies of the reports required to be
provided pursuant to subdivision (c), each savings association shall
provide the auditing accountant or accountants with all of the
following:
   (1) A copy of any supervisory memorandum of understanding with the
association and any written agreement between the association and
any federal financial regulatory agency or the commissioner which is
in effect during the period covered by the audit.
   (2) A report of any action initiated or taken pursuant to
subdivisions (a), (b), (c), (e), (g), (i), or (s) of Section 8 of the
Federal Deposit Insurance Act (12 U.S.C. 1818), and a report of any
action taken by the commissioner pursuant  to Section 8200 or 8201,
or any other civil monetary penalty assessed under any provision of
law with respect to the savings association or any
institution-affiliated party.



8157.  (a) The commissioner may prescribe the scope of the annual
audit and may require the auditor to furnish information in addition
to that contained in the audit report.
   (b) Each association shall furnish the commissioner annually,
within 90 days after the end of the period covered by the audit, five
copies of the financial statements, which shall be accompanied by a
report signed by the auditor, prepared and containing the information
prescribed in regulations of the commissioner.  The financial
statements shall be certified by the auditor.


8158.  (a) The commissioner, or any department employee authorized
by the commissioner, shall have free access to all books and records
of an association, savings and loan holding company, and any of their
subsidiaries that relate to the business of the association, holding
company, or subsidiary, and to the books and records kept by any
officer, agent, or employee that relate to the business of the
association, holding company, or subsidiary.
   (b) The commissioner, or any department employee authorized by the
commissioner, may summon witnesses and administer oaths or
affirmations in the examination  of the directors, officers, agents,
or employees of any association, savings and loan holding company,
any of their subsidiaries, or any other person, in relation to their
affairs, transactions, and conditions, and may require and compel the
production of records, books, papers, contracts, or other documents
by court order, if not voluntarily produced.
   (c) This section applies to all parties designated in subdivisions
(a) and (b) when an association is placed in conservatorship or
receivership.


8159.  For each department examination or appraisal made outside
this state, a reasonable fee and the actual traveling expenses
incurred shall be paid to the department by the association, savings
and loan holding company, or subsidiary so examined.




8160.  If an association, savings and loan holding company, or any
subsidiary of an association or savings and loan holding company
fails to report to the commissioner as required by this article, the
commissioner may impose penalties in accordance with the following:
   (a) Any association, savings and loan holding company, or any
subsidiary of an association or savings and loan holding company
which (1) maintains procedures reasonably adapted to avoid any
inadvertent error and, unintentionally and as a result of such an
error (A) fails to make, obtain, transmit, or publish any report or
information required by the commissioner by the due date set forth in
this article or, if no due date is set forth in this article, the
date specified by the commissioner, or (B) submits or publishes any
false or misleading report or information or (2) inadvertently
transmits or publishes any report which is minimally late, shall be
subject to a civil penalty of not more than two thousand dollars
(,000) for  each day during which the failure continues or the
false or misleading information is not corrected.  The association,
savings and loan holding company, or subsidiary of an association or
savings and loan holding company shall have the burden of proving
that an error was inadvertent and that a report was inadvertently
transmitted or published late.
   (b) Any association, savings and loan holding company, or any
subsidiary of an association or savings and loan holding company
which (1) fails to make, obtain, transmit, or publish any report or
information required by the commissioner by the due date set forth in
this article or, if no due date is set forth in this article, the
date specified by the commissioner or (2) submits or publishes any
false or misleading report or information, in a manner not described
in subdivision (a) shall be subject to a civil penalty of not more
than twenty thousand dollars (,000) for each day during which the
failure continues or the false and misleading information is not
corrected.
   (c) Any association, savings and loan holding company, or any
subsidiary of an association or savings and loan holding company
which knowingly or with reckless disregard for the accuracy of any
information or report subject to this section submits or publishes
any false or misleading report or information, shall be subject to a
civil penalty of not more than one million dollars (,000,000) or 1
percent of total assets of the savings institution, whichever is
less, per day for each day during which the false or misleading
information is not corrected.
   (d) Any penalty imposed under subdivisions (a), (b), or (c) shall
be assessed and collected by the commissioner in the same manner as
provided in Section 5330.