Cal. Code Regs. Tit. 10, § 105.201 - Minimum Statutory Net Worth

(a) The minimum statutory net worth for each association shall be not less than three percent of its total assets.

(b) An association shall not be required to meet the level set forth in (a) if its failure to attain that level is caused by losses recognized in accordance with generally accepted accounting principles (1) on sales, exchanges or other disposition of real estate loans, manufacture home chattel paper, securities, redeemable ground-rent leases, redeemable preferred stock as described in Section 105.102, or (2) by discount on submarket interest rate loans made to facilitate the sale of real estate owned by an association under Section 6705 of the law.

Notes

Cal. Code Regs. Tit. 10, § 105.201

1. Change without regulatory effect renumbering former Section 119.2 to Section 105.201 (Register 87, No. 14). For prior history, see Register 82, No. 43.

Note: Authority cited: Section 5255 and 6900, Financial Code. Reference: Section 6900 and 8751, Financial Code.

1. Change without regulatory effect renumbering former Section 119.2 to Section 105.201 (Register 87, No. 14). For prior history, see Register 82, No. 43.