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Can you summarize Fin Code CACL Division 1.1 Chapter 10 Article 2?
Restrictions and Prohibited Practices [1320. - 1367.] > Loans to Insiders [1360. - 1367.]
Short Summary
The provided legal document content pertains to loans to insiders and is part of the California Financial Code under the section on Restrictions and Prohibited Practices. It incorporates and refers to various sections of Regulation O (12 C.F.R. Part 215) of the Federal Reserve Board, which governs Loans to Insiders. The document provides definitions for key terms such as ‘Bank’, ‘Company’, ‘Executive officer’, ‘Extension of credit’, ‘Regulation O’, and ‘Subsidiary’. It clarifies certain terms and expands the definition of ’executive officer’ to include managers of specific bank offices. The document also establishes rules regarding related interests of executive officers or directors of banks and exemptions for certain companies. It requires banks to report extensions of credit to the board of the bank if subject to certain requirements. The document was added to the California Financial Code in 2011 and became effective on January 1, 2012. Non-compliance with this article may result in civil penalties for banks and felony charges for individuals knowingly violating the provisions.
Whom does it apply to?
Banks, both domestic and foreign, subsidiaries of banks, executive officers, managers of specific bank offices
What does it govern?
Loans to insiders
What are exemptions?
Advance of money made by a bank pursuant to Section 317 of the Corporations Code, loans made for the benefit of a trust
What are the Penalties?
Civil penalty pursuant to Section 329 for banks making an extension of credit in violation of this article, felony charge for any person knowingly making or procuring an extension of credit in violation of this article
Jurisdiction
California