Monthly Bulletin – February 2002

State of California

Gray Davis, Governor	Business Transportation and Housing Agency Maria Contreras-Sweet, Secretary
Department of Financial Institutions	http://www.dfi.ca.gov
	Monthly Bulletin
Volume 5, Number 8	February, 2002

Financial Code Section 3359 – Advisory to all State Chartered Banks

Recently, during routine examinations of banks, our examiners have discovered instances where neither loan policies, insider policies and/or compliance review contained provisions covering the requirements and restrictions of Financial Code Section 3359. This statute prohibits banks from acquiring, holding, extending credit on the security of, or extending credit for the purpose of acquiring or carrying any security of the bank or holding company of the bank, among other provisions. "Security" means any stock (common or preferred), capital note, or debenture, or any warrant, right, or option to subscribe to or purchase any of the foregoing.

The prohibitions are not discretionary and carry severe penalties.

We recommend that all banks review their policies in this area to make sure they are comprehensive and also that all banks establish provisions to inform appropriate personnel.

Commercial Bank Activity

GB Interim Bank
800 West Sixth Street, Los Angeles, Los Angeles County
Correspondent: T. J. Grasmick
Manatt, Phelps & Phillips, LLP
11355 W Olympic Boulevard
Los Angeles, CA 90064
Phone: (310) 312-4369
Approved: 2/8/02

Western Security Bank, N.A., Burbank, with and into Citizens Business Bank, Ontario
Filed: 2/4/02

Liberty Bank and Trust Company, Boston, Massachusetts, with and into General Bank, Los Angeles
Approved: 2/8/02

The Chicago Trust Company of California, San Diego, with and into Lasalle Interim Bank, N.A., San Diego
Effected: 1/31/02

Pacific State Bank, Stockton, to acquire the Stockton Branch of California Bank & Trust, San Diego
Approved: 2/11/02

Premium Finance Company Activity

Granite Premium Finance, Inc.
2501 East Chapman Avenue, Suite 100, Fullerton, Orange County
Filed: 2/4/02

Ladera Premium Finance, Inc.
2501 East Chapman Avenue, Suite 100, Fullerton, Orange County
Filed: 2/4/02

Newport Premium Finance, Inc
2501 E. Chapman Avenue, Suite 100
Fullerton, Orange County
Opened: 2/25/01

Foreign (Other Nation) Bank Activity

Bank Hapoalim, B.M.
5201 Great America Parkway, Santa Clara, Santa Clara County (Representative Office)
Filed: 2/22/02
Approved: 2/22/02

P.T. Bank Bali
900 Wilshire Boulevard, Suite 1426, Los Angeles, Los Angeles County (Depositary Agency)
Filed: 2/11/02
Approved: 2/13/02
Effected: 2/15/02

Foreign (Other State) Bank Activity

RBC Centura Bank, Rocky Mount, North Carolina
dba RBC Builder Finance (Facilities – Insured Bank)
111 Deerwood Road, Suite 100, San Ramon, Contra Costa County
Notifed: 1/10/02

Credit Union Activity

Amphlett Federal Credit Union, San Mateo into America’s Choice Credit Union, Redwood City
Approved: 9/26/01
Effected: 10/1/01

FAMCO Federal Credit Union, South Gate, into Southland Civic Credit Union, Downey
Effected: 12/01/01

Levi Strauss Employees Federal Credit Union, San Francisco, into Patelco Credit Union, San Francisco
Effected: 3/1/00

Mobil West Federal Credit Union, Torrance into Premier America Credit Union, Chatsworth
Effected: 3/1/01

Sunland Federal Credit Union, Orange, into American First Credit Union, La Habra
Filed: 12/4/01
Approved: 12/20/01
Effected: 2/28/02

Team California Federal Credit Union, San Bruno, into America’s Choice Credit Union, Redwood City
Approved: 9/26/01
Effected: 9/26/01

DONALD R. MEYER
Commissioner of Financial Institutions

Bulletin for month ended
February, 2002, issued pursuant
to Financial Code, Section 258

The Monthly Bulletin is available without charge via email as a PDF attachment. To subscribe, please send e-mail with your name, e-mail address, and company name and phone number to bulletin@dfi.ca.gov.

Be energy efficient