7350. (a) An association may acquire and hold stock of one or more
corporations the primary activities of which are engaging in real
property investment, in which event the sum of (1) investments made
by an association pursuant to the authority of this subdivision, (2)
any loans and guarantees extended by an association to, or for the
benefit of, corporations the stock of which it holds pursuant to the
authority of this subdivision, and (3) real property investments made
pursuant to the authority of subdivision (b), unless a higher
percentage is approved by the commissioner in writing, shall not
exceed 10 percent of the total assets of the association.
(b) An association may engage in real property investment. The
total of all real property investments made pursuant to the authority
of this subdivision, unless a higher percentage is approved by the
commissioner in writing, shall not exceed the total shareholders'
equity of the association.
(c) Prior to initially engaging in real property investment
activities authorized by subdivision (a) or (b), an association shall
make application with the commissioner for approval of its general
plan of real property investment. The application for approval shall
be in letter form, shall contain a copy of the general plan for real
property investment as approved or adopted by the board of directors
of the association, which shall include a brief description of either
the activities of the corporations the association will invest in or
the activities the association will engage in, or both, the
approximate amount to be invested, the extent, if any, of
diversification of those activities or investment, and the
approximate date of the initial investment, and shall be signed by
the chief executive officer of the association. Unless the
commissioner finds (1) that the capital, assets, management,
earnings, and liquidity of the association are, on a composite basis,
not satisfactory or (2) that the plan for the association to engage
in real property investment or to acquire and hold the stock of one
or more real property investment corporations is unsafe or unsound,
the commissioner shall approve the application. An application for
approval shall be deemed approved on the 46th day after the
application is filed with the commissioner, unless the commissioner
earlier makes a final decision on the application or extends the
period for approving or denying the application. For purposes of this
subdivision, an application for approval shall be deemed to be filed
with the commissioner on the date when the application,
substantially in compliance with the requirements of this
subdivision, is received by the commissioner. Upon the filing of the
application for approval, the applicant shall pay to the commissioner
a filing fee of five hundred dollars ($500).
(d) As used in this section, "real property investment" means all
forms of investing in real property, whether direct or in the form of
partnerships, joint ventures, or other methods of investment. It
includes, but is not limited to, the purchasing, subdividing, and
developing of real property or any interest therein, the building of
residential housing or commercial improvements, and the owning,
renting, leasing, managing, operating for income, or selling of that
property.
(e) The legality of any investment lawfully made pursuant to
former Section 7350, as repealed by the act enacting this section,
shall not be affected by this section, nor shall this section be
construed to require the changing of any investments lawfully made
prior to January 1, 1991.
7350. (a) An association may acquire and hold stock of one or more
corporations the primary activities of which are engaging in real
property investment, in which event the sum of (1) investments made
by an association pursuant to the authority of this subdivision, (2)
any loans and guarantees extended by an association to, or for the
benefit of, corporations the stock of which it holds pursuant to the
authority of this subdivision, and (3) real property investments made
pursuant to the authority of subdivision (b), unless a higher
percentage is approved by the commissioner in writing, shall not
exceed 10 percent of the total assets of the association.
(b) An association may engage in real property investment. The
total of all real property investments made pursuant to the authority
of this subdivision, unless a higher percentage is approved by the
commissioner in writing, shall not exceed the total shareholders'
equity of the association.
(c) Prior to initially engaging in real property investment
activities authorized by subdivision (a) or (b), an association shall
make application with the commissioner for approval of its general
plan of real property investment. The application for approval shall
be in letter form, shall contain a copy of the general plan for real
property investment as approved or adopted by the board of directors
of the association, which shall include a brief description of either
the activities of the corporations the association will invest in or
the activities the association will engage in, or both, the
approximate amount to be invested, the extent, if any, of
diversification of those activities or investment, and the
approximate date of the initial investment, and shall be signed by
the chief executive officer of the association. Unless the
commissioner finds (1) that the capital, assets, management,
earnings, and liquidity of the association are, on a composite basis,
not satisfactory or (2) that the plan for the association to engage
in real property investment or to acquire and hold the stock of one
or more real property investment corporations is unsafe or unsound,
the commissioner shall approve the application. An application for
approval shall be deemed approved on the 46th day after the
application is filed with the commissioner, unless the commissioner
earlier makes a final decision on the application or extends the
period for approving or denying the application. For purposes of this
subdivision, an application for approval shall be deemed to be filed
with the commissioner on the date when the application,
substantially in compliance with the requirements of this
subdivision, is received by the commissioner. Upon the filing of the
application for approval, the applicant shall pay to the commissioner
a filing fee of five hundred dollars ($500).
(d) As used in this section, "real property investment" means all
forms of investing in real property, whether direct or in the form of
partnerships, joint ventures, or other methods of investment. It
includes, but is not limited to, the purchasing, subdividing, and
developing of real property or any interest therein, the building of
residential housing or commercial improvements, and the owning,
renting, leasing, managing, operating for income, or selling of that
property.
(e) The legality of any investment lawfully made pursuant to
former Section 7350, as repealed by the act enacting this section,
shall not be affected by this section, nor shall this section be
construed to require the changing of any investments lawfully made
prior to January 1, 1991.
7350. (a) An association may acquire and hold stock of one or more
corporations the primary activities of which are engaging in real
property investment, in which event the sum of (1) investments made
by an association pursuant to the authority of this subdivision, (2)
any loans and guarantees extended by an association to, or for the
benefit of, corporations the stock of which it holds pursuant to the
authority of this subdivision, and (3) real property investments made
pursuant to the authority of subdivision (b), unless a higher
percentage is approved by the commissioner in writing, shall not
exceed 10 percent of the total assets of the association.
(b) An association may engage in real property investment. The
total of all real property investments made pursuant to the authority
of this subdivision, unless a higher percentage is approved by the
commissioner in writing, shall not exceed the total shareholders'
equity of the association.
(c) Prior to initially engaging in real property investment
activities authorized by subdivision (a) or (b), an association shall
make application with the commissioner for approval of its general
plan of real property investment. The application for approval shall
be in letter form, shall contain a copy of the general plan for real
property investment as approved or adopted by the board of directors
of the association, which shall include a brief description of either
the activities of the corporations the association will invest in or
the activities the association will engage in, or both, the
approximate amount to be invested, the extent, if any, of
diversification of those activities or investment, and the
approximate date of the initial investment, and shall be signed by
the chief executive officer of the association. Unless the
commissioner finds (1) that the capital, assets, management,
earnings, and liquidity of the association are, on a composite basis,
not satisfactory or (2) that the plan for the association to engage
in real property investment or to acquire and hold the stock of one
or more real property investment corporations is unsafe or unsound,
the commissioner shall approve the application. An application for
approval shall be deemed approved on the 46th day after the
application is filed with the commissioner, unless the commissioner
earlier makes a final decision on the application or extends the
period for approving or denying the application. For purposes of this
subdivision, an application for approval shall be deemed to be filed
with the commissioner on the date when the application,
substantially in compliance with the requirements of this
subdivision, is received by the commissioner. Upon the filing of the
application for approval, the applicant shall pay to the commissioner
a filing fee of five hundred dollars ($500).
(d) As used in this section, "real property investment" means all
forms of investing in real property, whether direct or in the form of
partnerships, joint ventures, or other methods of investment. It
includes, but is not limited to, the purchasing, subdividing, and
developing of real property or any interest therein, the building of
residential housing or commercial improvements, and the owning,
renting, leasing, managing, operating for income, or selling of that
property.
(e) The legality of any investment lawfully made pursuant to
former Section 7350, as repealed by the act enacting this section,
shall not be affected by this section, nor shall this section be
construed to require the changing of any investments lawfully made
prior to January 1, 1991.
