1. (a) The offer (but not the sale) by a proposed director, proposed officer, or organizer of a proposed subject institution to any proposed director, proposed officer, or organizer of such proposed subject institution of any security to be issued by the subject institution or of any right or option to subscribe for or purchase any such security, provided:

   1. (1) No advertisement shall be published regarding the security or such right or option.
   2. (2) No consideration for the security or the right or option shall be accepted.

2. (b) The offer and sale by a proposed director, proposed officer, or organizer of a proposed subject institution to any proposed director, proposed officer, or organizer of such proposed subject institution of any right or option to subscribe for or purchase any security to be issued by the subject institution, provided:

   1. (1) No advertisement shall be published regarding the right or option.
   2. (2) The total number of purchasers shall not exceed 25.
   3. (3) No consideration for such right or option shall be accepted except in accordance with the provisions of Subpart 3 (commencing with section 3.500) of this Part for the purpose of paying pre-opening expenses of the proposed subject institution.
3. (c) The offer (but not the sale) by any proposed director, proposed officer, or organizer of a proposed subject institution to any commercial bank of a security interest in any security to be issued by such subject institution or in any right or option to subscribe for or purchase any such security.

There are hereby exempted from the provisions of Section 10.3377 of this Chapter and, to the extent applicable, the provisions of Financial Code Section 1201 as not being comprehended within the purposes of Section 10.3377 of this Chapter or of Financial Code Section 1201 and the regulation of which is not necessary or appropriate in the public interest or for the protection of investors, the following transactions and securities:

Note: Authority cited: Section 326, Financial Code. Reference: Section 1201, Financial Code.

History

1. Change without regulatory effect amending first paragraph and adding Note filed 8-21-2019 pursuant to section 100, title 1, California Code of Regulations (Register 2019, No. 34).