1. (a) After commencing business, a subject institution may file with the Commissioner an application for approval to pay pre-opening noncapital expenditures. Such an application shall contain:

   1. (1) Total amount and itemized schedule of pre-opening noncapital expenditures proposed to be paid.

   2. (2) Itemized schedule of proposed payments of pre-opening noncapital expenditures showing, with respect to each person to whom the aggregate total amount proposed to be paid, directly or indirectly, is $5,000 or more and, with respect to each director, officer, organizer, 25 percent (including consociates) equity security owner of the subject institution, to whom any amount is proposed to be paid, directly or indirectly:

      1. (A) Name of the person.
      2. (B) Aggregate amount proposed to be paid to the person.
      3. (C) Description of purpose of payment to the person.
2. (b) As an administrative standard, the Commissioner generally will not grant an application by a subject institution for approval to pay a pre-opening noncapital expenditure if he finds that such pre-opening noncapital expenditure is not a usual, ordinary, and lawful noncapital expenditure for the purpose of organizing a subject institution.

Note: Authority cited: Section 215, Financial Code. Reference: Section 406, Financial Code.

History

1. Amendment of subsection (a)(2) and new Note filed 4-7-97; operative 4-7-97 pursuant to Government Code section 11343.4(d) (Register 97, No. 15).

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