SECTIONS 1210-1213

1210.  (a) In this article and in Article 4 (commencing with Section3860) of Chapter 22, "affiliate," when used with respect to aspecified person, means any person controlling, controlled by, orunder common control with, the specified person, directly orindirectly, through one or more intermediaries. (b) "Control" has the meaning set forth in Section 700. (c) "Regulated corporation" means any corporation or limitedliability company or similar entity in which a bank makes an equityinvestment and which the bank controls. (d) "Securities issued by a person" means any debt, equity, orother security issued by a person, and any and all affiliates of thatperson, issued for the benefit of that person or for the benefit ofan affiliate of that person.1211.  (a) Subject to the limitations and exceptions in Sections1221 and 1330, a bank may hold both obligations made by a person, andsecurities issued by that same person. (b) The total amount of obligations and securities held by a bankpursuant to subdivision (a) shall not exceed 25 percent of the sum ofthe shareholders' equity, allowance for loan and lease losses,capital notes and debentures of the bank.1212.  Subject to prior approval by the commissioner and to anylimitations the commissioner may impose, the limitations in Sections1211, 1221, and 1330 shall not apply to loans made by a bank to, andthe bank's investments in securities of, its regulated corporations.1213.  Sections 1211 and 1330 shall not apply to investments held bya bank prior to the operative date of this section. Allauthorizations regarding investments by a bank issued by thecommissioner prior to the operative date of this section areterminated.