Cal. Code Regs. Tit. 10, § 30.304 - Purchase of Notes from Liquidating Credit Union

Current through Register 2022 Notice Reg. No. 16, April 25, 2022

A credit union may purchase members' notes of a liquidating credit union, provided all of the following conditions are met:

(a) The purchase shall not result in increases in expenses and losses to the credit union to the extent that it would impair the credit union's ability to pay normal dividends on shares.
(b) After the purchase of notes pursuant to this Section, the credit union shall establish a special reserve in accordance with generally accepted accounting principles.
(c) The amounts paid for the notes shall not exceed the limitations on obligations contained in the California Credit Union Law as they apply to the purchasing credit union.
(d) A purchase agreement shall be signed by the board of directors or authorized officer of the purchasing credit union and the board of directors or authorized liquidating agent of the selling credit union.
(e) The written consent of the Commissioner shall have been obtained authorizing the credit union to purchase the members' notes.

Notes

Cal. Code Regs. Tit. 10, § 30.304

Note: Authority cited: Section 14201, Financial Code. Reference: Sections 14656 and 14702, Financial Code.

1. Change without regulatory effect renumbering and amending former section 928 to new section 30.304 filed 8-19-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 34).
2. Amendment of section and Note filed 2-27-2003; operative 3-29-2003 (Register 2003, No. 9).

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