§ 103.604. Restricted Transactions.

All service corporations shall comply with Sections 7177-7183 of the law when making or acquiring loans directly or indirectly to or from any stockholder, officer, director or employee of any association or associations which are stockholders of the service corporation, or to any member of the immediate family of any such person above enumerated, either for himself or as agent or as partner of another, or to any corporation the majority of the stock of which is owned or controlled, individually or collectively, by any of such persons. For the purposes of this section, the term “stock” does not include shares representing savings accounts, or borrower memberships, in a domestic savings and loan association or a federal savings and loan association.

HISTORY

1. Change without regulatory effect renumbering former Section 230.5 to Section 103.604 (Register 87, No. 14). For prior history, see Register 82, No. 52.

Note

Note: Authority cited: Sections 5255 and 6702.1, Financial Code. Reference: Sections 6702.1 and 7177-7183, Financial Code.