Cal. Financial Code - FIN § 1130. Section 1130.
This article does not apply to any distribution made to the shareholders of a bank in any proceeding to wind up and dissolve or to liquidate such bank.
ARTICLE 3. Distributions to Shareholders [1130. - 1135.]
Cal. Financial Code - FIN 3.
in effectCal. Financial Code - FIN § 1131. Section 1131.
Section 500 of the Corporations Code does not apply to the making by a bank or by any majority-owned subsidiary of a bank of any distribution to the shareholders of such bank.
Cal. Financial Code - FIN § 1132. Section 1132.
Neither a bank nor any majority-owned subsidiary of a bank shall make any distribution to the shareholders of such bank in an amount which exceeds the lesser of:
(a)
The retained earnings of the bank; or
(b)
The net income of the bank for its last three fiscal years, less the amount of any distributions made by the bank or by any majority-owned subsidiary of
the bank to the shareholders of the bank during such period.
Cal. Financial Code - FIN § 1133. Section 1133.
Notwithstanding the provisions of Section 1132, a bank or a majority-owned subsidiary of a bank may, with the prior approval of the commissioner, make a distribution to the shareholders of such bank in an amount not exceeding the greatest of:
(a)
The retained earnings of the bank;
(b)
The net income of the bank for its last fiscal year; or
(c)
The net income of the bank for its current fiscal year.
Cal. Financial Code - FIN § 1134. Section 1134.
Notwithstanding the provisions of Section 1132, a bank may:
(a)
With the prior approval of the commissioner, make a distribution to its shareholders by means of redeeming its redeemable shares; and
(b)
With the prior approval of its outstanding shares and of the commissioner, otherwise make a distribution to its shareholders in connection with a reduction of
its contributed capital.
Cal. Financial Code - FIN § 1135. Section 1135.
If the commissioner finds that the shareholders’ equity of a bank is not adequate or that the making by a bank or by any majority-owned subsidiary of a bank of a distribution to the shareholders of the bank would be unsafe or unsound for the bank, the commissioner may order the bank and its majority-owned subsidiaries not to make any distribution to the shareholders of the bank. In addition to the order authorized by this section, the commissioner may levy a civil penalty against the
bank pursuant to Section 329.
Source: CA Legislative Counsel Bulk DataURL: https://downloads.leginfo.legislature.ca.gov/pubinfo_2025.zipFetched: 6/27/2026