§ 108.301. Terms Defined.

(a) “Company” means any domestic or foreign corporation, voting trust, business trust, limited partnership, partnership fund, joint stock company, association, syndicate, organized group of persons, or similar organization or group, whether incorporated or not.

(b) “Issuer” means any party who issues or proposes to issue any security authorized for investment herein.

(c) “Affiliate of savings and loan” means any person, corporation, sole partnership, trust, partnership, or other business organization controlling, controlled by, or under common control with the association.

(d) “Subordinated debt security” means any unsecured note, debenture or other debt security issued by an association and subordinated on liquidation to claims of accountholders and to all claims having the same priority as accountholders.

(e) “Mortgage-backed bond” means a debt security of an association that is secured by an indenture agreement between the association and a trustee for the benefit of the person or persons to whom the debt is payable, and under the terms of which indenture agreement real estate loans or interests in real estate loans are pledged by the association as collateral for repayment of the debt. The term does not include borrowing by an association secured by a pledge of assets directly to the lender, such as federal home loan bank advances or bank borrowings secured by the pledge of loans.

(f) “Commercial paper” means any note, draft, or bill of exchange which arises out of a current transaction or the proceeds of which have been or are to be used for current transactions, and which has a maturity at the time of issuance of not exceeding nine months, exclusive of days of grace, or any renewal thereof the maturity of which is likewise limited.

(g) “Corporate debt security” means a marketable obligation, evidencing in indebtedness of any corporation in the form of a bond, note and/or debenture which is commonly regarded as a debt security and is not predominantly speculative in nature. A security is marketable if it may be sold with reasonable promptness at a price which corresponds reasonably to its fair value.

HISTORY

1. Change without regulatory effect renumbering former Section 231.1 to Section 108.301 (Register 87, No. 14). For prior history, see Register 83, No. 16.

Note

Note: Authority cited: Section 5255, Financial Code. Reference: Section 6705.8, Financial Code.