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2018 California Code
Financial Code - FIN
DIVISION 2 - SAVINGS ASSOCIATION LAW
CHAPTER 4 - Powers of Associations
ARTICLE 1 - General Powers
Section 6504.
Universal Citation: CA Fin Code § 6504 (2018)
6504.
(a) Except by the prior written consent of the commissioner, an association in organization that is not a member of a federal home loan bank may borrow money from any source not more than an aggregate amount equal to 25 percent of its assets on the date of borrowing, and may pledge and otherwise encumber any of its assets to secure its debts.
(b) An association that is a member of a federal home loan bank may borrow money from any source without limitation and may pledge and otherwise encumber any of its assets to secure its debts or savings accounts.
(Amended by Stats. 1985, Ch. 983, Sec. 5. Effective September 26, 1985.)
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