“Secondary capital,” as used in this division, means the sum of mandatory convertible debt that is not included in primary capital, limited life preferred stock, and subordinated notes and debentures, all in an amount up to 50 percent of primary capital. Issues of limited life preferred stock and subordinated notes and debentures, except mandatory convertible debt, shall have original weighted average maturities of at least seven years to be included within capital surplus under primary capital.

(Added by Stats. 1989, Ch. 663, Sec. 1.2. Operative January 1, 1991, by Sec. 20 of Ch. 663.)

Terms Used In California Financial Code 18018.2

  • Capital: as used in this division , consists of all of the following:

    California Financial Code 18018

  • Limited life preferred: as used in this division , means preferred stock which has a maturity or which may be redeemed at the option of the holder. See California Financial Code 18018.5
  • Mandatory convertible debt: as used in this division , means a subordinated debt instrument which requires the issuer to convert that instrument into common or perpetual preferred stock by a date at or before the maturity of the debt instrument. See California Financial Code 18018.4
  • Primary capital: as used in this division , means the sum of common stock, perpetual preferred stock, capital surplus, undivided profits, capital reserves, and mandatory convertible debt (to the extent of 20 percent of primary capital exclusive of that debt). See California Financial Code 18018.1
  • Subordinated notes and debentures: as used in this division , means an obligation other than an investment certificate obligation that:

    California Financial Code 18018.6

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