1. (a) For any interest period, the board of directors may, by resolution, determine to distribute interest at a rate higher than the regular rate on the balance of an account in excess of a minimum balance fixed by the board of directors. The minimum balance shall not be less than $200. The rate to be paid on the higher balance shall be determined by the board of directors.

2. (b) Each certificate, whether printed in a passbook or as a separate certificate, evidencing an account issued pursuant to this section, shall bear on its face the following additional words:

   “Interest is distributable on this account as determined by the board of directors of the association, subject to Section 106.103, Subchapter 6, Article 1, Chapter 2, Title 10 of the California Administrative Code.”

Note: Authority cited: Section 5255, Financial Code. Reference: Sections 6403 and 7400, Financial Code.

History

1. Change without regulatory effect renumbering former Section 214 to Section 106104 (Register 87, No. 14). For prior history, see Register 83, No. 4.