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AB-1304 Financial institutions: savings associations.(1991-1992)

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Assembly Bill No. 1304
CHAPTER 458

An act to amend Section 6050 of the Financial Code, relating to financial institutions.

[ Filed with Secretary of State  September 30, 1991. Approved by Governor  September 30, 1991. ]

LEGISLATIVE COUNSEL'S DIGEST


AB 1304, Lempert. Financial institutions: savings associations.
Existing law provides that the register of stockholders or members, the books of account, and the minutes of a savings association are subject to inspection upon written demand of any stockholder or member of a savings association holding a specified minimum of shares, and with the prior written approval of the Savings and Loan Commissioner. The approval by the commissioner is not to be given unless the commissioner determines that the inspection is not contrary to the best interests of the association and its stockholders or members, but if approval is not given the commissioner must hold a hearing, as specified, to determine whether the demand should be approved.
This bill would provide that the register of stockholders or members, the books of accounts, and the minutes of a savings association are subject to inspection upon written demand of any stockholder, member, or group of stockholders or members, who hold of record voting shares having a cost of not less than $100,000 or who hold of record voting shares constituting not less than 1% of the outstanding voting shares and who have been holders of record of the voting shares at least 6 months before making the written demand at any reasonable time during usual business hours, for a proper purpose reasonably related to the stockholder’s or member’s interest, subject to specified limitations. This bill would also provide that this right of inspection shall extend to the records of each subsidiary of an association subject to this division and includes the right to make extracts.

The people of the State of California do enact as follows:


SECTION 1.

 Section 6050 of the Financial Code is amended to read:

6050.
 (a)  The register of stockholders or members, the books of account, and the minutes of an association shall be subject to inspection upon the written demand of any stockholder or member or group of stockholders or members at any reasonable time during usual business hours, for a proper purpose reasonably related to the stockholder’s or member’s interest. The right of inspection is limited to a stockholder, or member, or group of stockholders or members, who hold of record voting shares having a cost of not less than one hundred thousand dollars ($100,000), or who hold of record voting shares constituting not less than 1 percent of the outstanding voting shares, provided in either case, the stockholder, member, or group of stockholders or members, have been holders of record of the voting shares for at least six months before making the written demand. The right of inspection created by this subdivision shall extend to the records of each subsidiary of an association subject to this subdivision and includes the right to make extracts.
(b)  Notwithstanding the right of inspection granted in subdivision (a), no stockholder, member, or group of stockholders or members, shall have the right to inspect or make extracts of any portion of any register, book, or minutes of an association containing any of the following:
(1)  A list of depositors in or borrowers from the association.
(2)  The addresses of depositors or borrowers from the association.
(3)  Individual deposit or loan balances or records. “Records” for the purposes of this paragraph means confidential facts pertaining to personal financial information about an individual, including, but not limited to, an individual’s credit file and any loan application.
(4)  Any data from which any of the information described in paragraphs (1) to (3), inclusive, could be reasonably constructed.
(c)  Each association director shall have the right at any reasonable time to inspect all books, records, documents of every kind, and the physical properties of that association. The inspection may be made in person or by agent or attorney, and the right of inspection includes the right to make extracts. In the case of foreign associations the right of inspection extends only to books, records, documents, and property located in this state.
(d)  Savings accountholders who are not stockholders, members, or directors of an association shall have no right of inspection under this section.