Cal. Code Regs. Tit. 10, § 30.305 - Classification of Shares

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

Pursuant to the authority granted by Section 14862 of the Financial Code, the Commissioner will permit classification of share accounts into two or more classes, provided the following conditions are met:

(a) The Articles of Incorporation are not in conflict with issuing more than one class of shares.
(b) The corporate records of the credit union will include a schedule of the classes and series of shares authorized by the board of directors, showing all rights, preferences, privileges and restrictions of such class or series. All shares within each series must have the same rights, preferences, privileges, restrictions, and dividend rates.
(c) The board of directors shall be responsible for the establishment and review of a plan of business to determine on a continuous basis the ability of the credit union to pay dividends on share accounts at the rates established.
(d) A credit union which has failed to make timely and full payments of any dividend for which a rate was established in advance shall within five days after the dividend date, report the fact to the Commissioner. If it appears to the Commissioner that the credit union cannot meet its dividend obligations thereafter on its share accounts, the Commissioner may direct the credit union to restrict or discontinue the offering of any or all classes of share accounts.

Notes

Cal. Code Regs. Tit. 10, § 30.305

Note: Authority cited: Sections 14201, 14862 and 14866, Financial Code. Reference: Sections 14100, 14862 and 14865, Financial Code.

1. Change without regulatory effect renumbering former section 925 to new section 30.305 filed 8-19-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 34).

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