1. (a) The solicitation and acceptance by a subject institution from any director, officer, or organizer of such subject institution of pre-opening funds, provided:

   1. (1) No advertisement shall be published regarding the solicitation or acceptance of pre-opening funds.
   2. (2) The total number of persons from whom pre-opening funds are accepted by the subject institution, together with the total number of persons from whom pre-opening funds were accepted before incorporation of the subject institution by a then proposed director, proposed officer, or organizer of the then proposed subject institution, shall not exceed 25.

   3. (3) No pre-opening funds shall be accepted from any person except pursuant to a written agreement which shall provide:

      1. (A) Terms under which the pre-opening funds are accepted.
      2. (B) Terms under which the pre-opening funds shall be held, including the name of the California commercial bank in which such money is to be deposited in accordance with Section 10.3480 of this Chapter.
      3. (C) Terms under which the pre-opening funds shall be disbursed, including a provision that the pre-opening funds shall be expended only for the purpose of paying pre-opening expenditures of the subject institution.
      4. (D) Terms under which the pre-opening funds shall be repaid.
      5. (E) That the pre-opening funds, if expended for the purpose of paying pre-opening expenditures of the subject institution, may not be repaid unless, among other contingencies, the subject institution is organized and is issued a certificate of authority to transact commercial banking business, trust business, or both, as the case may be, the subject institution, in case it is a commercial bank, becomes an insured bank, and pre-opening noncapital expenditures are approved by the Commissioner; and that no assurance can be given that any of the foregoing contingencies will occur.
2. (b) The solicitation and acceptance by a subject institution from any commercial bank of pre-opening funds.

There are hereby exempted from the provisions of Section 10.3476 of this Chapter as not being comprehended within the purposes of Section 10.3476 of this Chapter and the regulation of which is not necessary or appropriate in the public interest or for the protection of the public, the following transactions:

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).