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Can you summarize Fin Code CACL Division 1.1 Chapter 8?
BANKING [1000. - 1910.] > Bank Holding Companies [1280. - 1287.]
Short Summary
This legal document defines the term ‘bank holding company’ and outlines the criteria for determining whether a person or company qualifies as a bank holding company. It applies to persons or companies that directly or indirectly own, control, or hold with the power to vote 10 percent or more of the outstanding stock of any domestic bank, or control the election of a majority of directors of any domestic bank. The document also grants the commissioner the authority to determine if a person or company exercises a controlling influence over the management and policies of any domestic bank. It further states that any company that controls another company that becomes a bank holding company is also considered a bank holding company, with the exception of trust companies controlled by or under common control with a title insurance company. The document does not specify any penalties for non-compliance or violation of its provisions. Additionally, the document governs the examination of bank holding companies and their subsidiaries. It grants the commissioner the authority to examine these entities using their own examiners or independent public accountants. The commissioner may also accept examinations conducted by federal agencies, state agencies, or agencies from other states. The document specifies that if the commissioner conducts the examination using their own examiners, the bank holding company is required to pay a fee of $200 per day for each examiner, along with travel expenses if necessary. If independent public accountants are used, the bank holding company is responsible for paying their fee. The document was added to the California Codes in 2011 and became effective on January 1, 2012.
Whom does it apply to?
Persons or companies that directly or indirectly own, control, or hold with the power to vote 10 percent or more of the outstanding stock of any domestic bank, or control the election of a majority of directors of any domestic bank
What does it govern?
Bank holding companies and their subsidiaries
What are exemptions?
Trust companies controlled by or under common control with a title insurance company
What are the Penalties?
The document does not specify any penalties for non-compliance or violation of its provisions.
Jurisdiction
California