1. (a) The articles of incorporation of each common, wholly owned or independent service corporation shall provide that the service corporation is organized to engage in activities as are approved by the commissioner.
2. (b) The bylaws of a common or wholly owned service corporation shall provide, and the certificates of stock issued shall carry, notice that the stock shall be only available for purchase by, and nontransferable other than to, a domestic or federal savings and loan association having their home offices in this State.

The articles of incorporation and bylaws of the service corporation shall be approved by the commissioner in writing, concurrent with the submission of an application by an association to invest in or buy capital stock, obligations or other securities of the service corporation.

Note: Authority cited: Sections 5255 and 6702.1, Financial Code. Reference: Section 6702.1, Financial Code.

History

1. Change without regulatory effect renumbering former Section 230.1 to Section 103.601 (Register 87, No. 14). For prior history, see Register 82, No. 52.