86-2

March 24, 1986

Re: California State Bank
Dear Mr. _________:
In response to your inquiry, nothing in the California Financial Code precludes a bank from having more than one subsidiary established pursuant to Section 751.3. Each subsidiary would be viewed as a separate entity for lending limit purposes, however, the aggregate investment by the bank in all such subsidiaries may not exceed the ten (10%) of total assets of the bank specified in Section 751.3 of the Financial Code.
I hope the above answers your question.
Very truly yours,
LOUIS CARTER
Superintendent of Banks
By
DAVID L. SCOTT
Deputy Superintendent of Banks