California Financial Code 1480 – For the purpose of this article:(a) “Obligations” means the …
For the purpose of this article:
(a) “Obligations” means the total sums for the payment of which a person is obligated, primarily or secondarily, to a commercial bank.
Terms Used In California Financial Code 1480
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Person: includes any person, firm, partnership, association, corporation, company, limited liability company, syndicate, estate, trust, business trust, or organization of any kind. See California Financial Code 18
(b) Obligations of a person include obligations of others to a commercial bank arising out of loans made by the bank for the benefit of the person.
(c) Obligations of an individual include the obligations of a partnership or association for which obligations the individual is liable.
(d) Obligations of a partnership include the obligations of its members who are liable for its obligations.
(e) Obligations of a corporation include the obligations of all subsidiaries in which it owns or controls a majority interest, except to the extent and under such restrictions as the commissioner may prescribe in specific instances upon special application made by any bank prior to the creation of the obligations.
(f) Obligations of a sovereign government or agency include the obligations of instrumentalities or political subdivisions of the government or agency, except to the extent and under such restrictions as the commissioner may prescribe in specific instances upon special application made by any bank prior to the creation of the obligations.
(g) Obligations of a limited liability company include the obligations of all subsidiaries in which it owns or controls a majority interest, except to the extent and under any restrictions the commissioner may prescribe in specific instances upon special application made by any bank prior to the creation of the obligations.
(Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)