1. (a) In case an application for authority to organize a subject institution is approved by the Commissioner and such proposed subject institution is incorporated, the balance of the pre-incorporation pre-opening funds account for the proposed subject institution may be transferred to the post-incorporation pre-opening funds account of the subject institution.
2. (b) In case an application for authority to organize a subject institution is not filed with the Commissioner within nine months after pre-opening funds for such proposed subject institution are first accepted by a proposed director, proposed officer, or organizer of the proposed subject institution, or in case an application for authority to organize a subject institution filed with the Commissioner within such time is denied by the Commissioner and a reapplication for authority to organize such subject institution is not filed with the Commissioner within 90 days after such denial, or in case an application for authority to organize a subject institution is approved by the Commissioner and such proposed subject institution is incorporated but the balance of the pre-incorporation pre-opening funds account for the proposed subject institution is not, within 90 days after such incorporation, transferred to the post-incorporation pre-opening funds account of the subject institution, the manager of the pre-incorporation pre-opening funds account for the proposed subject institution shall, after making all disbursements authorized under the terms of agreements with persons from whom pre-opening funds for the proposed subject institution were accepted, including the agreements called for in Section 10.3402(a)(3) of this Chapter, if applicable, pay the balance of such account on a pro rata basis to the persons from whom pre-opening funds for the proposed subject institution have been accepted by the proposed directors, proposed officers, or organizers of the proposed subject institution and, after making such payments, close the account.

Note: Authority cited: Section 215, Financial Code.

History

1. Change without regulatory effect amending section and adding new Note filed 8-19-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 34).