DFI Monthly Bulletin – July 2003
Volume 7, Number 1
Investing in Securities
Know the requirements of Financial Code sections 772, 782 and 1336
Recently, it has come to the attention of the Department that there is some confusion with regard to the
types of investments in securities that are permissible for banks, the legal and prudential limits on those
investments, and whether the Department’s prior approval is required before such an investment can be
made. Typically, this has involved investments that are governed under Financial Code sections 772, 782
and 1336. Whether the Department’s prior approval is required will depend upon which provision applies
to the investment, as presented in the following matrix:
Investments governed
by Financial Code
section 772
Investments governed
by Financial Code
section 782
Investments governed by
Financial Code section 1336
Require the
Department’s
prior
approval?
Yes. No. Yes, if the securities 1) are from
one obligor or maker, 2) are in
excess of 15% of a bank’s
shareholders’ equity and 3) are
not one of the types of securities
listed in Financial Code section
1336(a)-(d).
Banks that are considering making an investment in securities need to consider and confirm which
Financial Code provision governs a potential investment prior to making that investment. The
requirements of these provisions are strict, and the appropriate provision to apply in each case will be
determined by the type of security the bank is considering to purchase. Therefore, the Department advises
all banks to contact the appropriate Assistant Deputy prior to any investment in securities to determine if
it is governed by either Financial Code section 772, 782 or 1336.
2 Monthly Bulletin July, 2003
General Counsel Rosemarie Oda to Leave DFI
Commissioner of Financial Institutions Donald Meyer announced that Rosemarie Oda, General Counsel,
will leave the Department of Financial Institutions (DFI) on Friday, August 8 to join the San Francisco
office of the law firm Pillsbury Winthrop LLP.
Ms. Oda joined DFI in September 2000. She made many contributions to the Department and its
mission. She implemented the Legal Precedent System, which made it easy for staff and licensees to
access the useful interpretations and opinions issued during the past, thereby saving time and expense for
all. She led the way to close down liquidations that had been pending for years and provided counsel and
advice on many legal issues thereby enabling us all to better serve the public.
Mr. Tom Thompson, Assistant General Counsel, will continue to be the contact person in the Legal
Department. Mr. Thompson may be contacted at (415) 263-8516 or by e-mail at tthompson@dfi.ca.gov
Commercial Bank Activity
New Bank
American Premier Bank
336 East Huntington Drive, Arcadia, Los Angeles County
Phone: (626) 821-8008
Officers: Andrew Tjia, President and Chief Executive Officer
Kerry Stone, Chief Financial Officer
Hans Chan, Chief Credit Officer
Capitalization: $10,300,000.00
Opened: 7/7/03
Golden State Business Bank
Proposed Location: In the vicinity of 1060 West Foothill Boulevard, Upland, San Bernardino County
Correspondent: Peggy Hansen
517 North Mountain Avenue, Suite 106
Upland, CA 91786
Phone: (909) 912-0106
Approved: 7/30/03
Merger
Central Sierra Bank, San Andreas, with and into Central California Bank, Sonora
Approved: 6/25/03
Effected: 7/11/03
Comerica Bank – California, San Jose, with and into Comerica Bank, Detroit, Michigan
Effected: 6/30/03
3 Monthly Bulletin July, 2003
Merger (Continued)
First Continental Bank, Rosemead, with and into United Commercial Bank, San Francisco
Effected: 7/11/03
General Bank, Los Angeles, with and into Cathay Bank, Los Angeles
Filed: 7/3/03
Southland Business Bank, Irwindale, with and into Vineyard Bank, Rancho Cucamonga
Approved: 6/18/03
Effected: 7/4/03
Conversion to State Charter
First Bank of Beverly Hills, F.S.B., Calabasas, to convert from a federal savings bank to a state-chartered
bank under the name First Bank of Beverly Hills
Withdrawn: 6/30/03
InterBusiness Bank, N.A., Los Angeles, to convert from a national bank to a state-chartered bank under
the name InterBusiness Bank
Filed: 7/15/03
Sale of Partial Business Unit
California Bank & Trust, San Diego, to sell its trust assets to Western National Trust Company, Los
Angeles
Effected: 6/30/03
Acquisition of Control
Heritage Oaks Bancorp, to acquire control of Hacienda Bank, Santa Maria
Filed: 7/16/03
Yong Oh, to acquire control of Uniti Bank, Buena Park
Filed: 7/22/03
Correction
The June 2003 issue of the Monthly Bulletin incorrectly reported that California Bank & Trust sold its
trust business to Western National Trust Company, Salt Lake City, Utah. Western National Trust
Company is located in Los Angeles, California.
4 Monthly Bulletin July, 2003
Premium Finance Company Activity
New Premium Finance Companies
BCIC Premium Finance Company
2501 East Chapman Avenue, Suite 100, Fullerton, Orange County
Opened: 6/30/03
California Millennium Financing, Inc.
22349 La Palma Avenue, Suite D-110, Yorba Linda, Orange County
Opened: 7/1/03
Premium Payment Plan Inc.
2383 Buena Vista Avenue, Livermore, Alameda County
Opened: 7/29/03
RSA Premium Finance Company
2501 East Chapman Avenue, Suite 100, Fullerton, Orange County
Opened: 6/30/03
Snowcrest Funding, Inc.
2501 East Chapman Avenue, Suite 100, Fullerton, Orange County
Opened: 6/30/03
West Coast Premium Finance Corp.
2501 East Chapman Avenue, Suite 100, Fullerton, Orange County
Filed: 7/17/03
Foreign (Other Nation) Bank Activity
Discontinuance of Office
BBVA BANCOMER, S.A.
444 South Flower Street, Suite 100, Los Angeles, Los Angeles County (Depositary Agency)
Filed: 4/17/02
Approved: 7/16/03
Dresdner Bank, A.G.
355 South Grand Avenue, Los Angeles, Los Angeles County (Depositary Agency)
Approved: 7/17/03
5 Monthly Bulletin July, 2003
Change of Name
The Development Bank of Singapore Ltd., to DBS Bank Ltd.
Effected: 7/21/03
Credit Union Activity
Merger
Coastline Community Credit Union, Long Beach, into Orange County’s Credit Union, Santa Ana
Filed: 7/7/03
Gentelco West Federal Credit Union, Long Beach, into Pacific Community Credit Union, Fullerton
Filed: 7/7/03
Field of Membership
13 credit unions received approvals to add 38 new fields of membership during June 2003.
Select Group
One credit union received an approval to add a select group to its field of membership during June 2003
Bylaw Amendment
Six credit unions received approval for seven bylaw amendments during June 2003.
Amendment of Articles of Incorporation
Eleven credit unions received approvals for 11 amendments of articles of incorporation during June 2003.
Transmitter of Money Abroad Activity
New Transmitters
GroupEx Financial Corporation Inc.
14849 Firestone Boulevard
La Mirada, CA 90638
Approved: 7/30/03
6 Monthly Bulletin July, 2003
Acquisition of Control
Frederick M. Locsin, Maria R. Locsin, and Felicidad V. Jimenez, to acquire control of Dollar American
Exchange
Filed: 7/1/03
DONALD R. MEYER
Commissioner of Financial Institutions
Bulletin for Month ended
July 2003, issued pursuant
to Financial Code, Section 258
The Monthly Bulletin is available without charge via e-mail. To subscribe, go to http://www.dfi.ca.gov/bulletin/subscription/public.asp. To
unsubscribe, send a blank e-mail to leave-dfi_public@blizzard.sparklist.com. Contact the list administration team at bulletin@dfi.ca.gov
Recently, it has come to the attention of the Department that there is some confusion with regard to the
types of investments in securities that are permissible for banks, the legal and prudential limits on those
investments, and whether the Department’s prior approval is required before such an investment can be
made. Typically, this has involved investments that are governed under Financial Code sections 772, 782
and 1336. Whether the Department’s prior approval is required will depend upon which provision applies
to the investment, as presented in the following matrix:
Investments governed
by Financial Code
section 772
Investments governed
by Financial Code
section 782
Investments governed by
Financial Code section 1336
Require the
Department’s
prior
approval?
Yes. No. Yes, if the securities 1) are from
one obligor or maker, 2) are in
excess of 15% of a bank’s
shareholders’ equity and 3) are
not one of the types of securities
listed in Financial Code section
1336(a)-(d).
Banks that are considering making an investment in securities need to consider and confirm which
Financial Code provision governs a potential investment prior to making that investment. The
requirements of these provisions are strict, and the appropriate provision to apply in each case will be
determined by the type of security the bank is considering to purchase. Therefore, the Department advises
all banks to contact the appropriate Assistant Deputy prior to any investment in securities to determine if
it is governed by either Financial Code section 772, 782 or 1336.
2 Monthly Bulletin July, 2003
General Counsel Rosemarie Oda to Leave DFI
Commissioner of Financial Institutions Donald Meyer announced that Rosemarie Oda, General Counsel,
will leave the Department of Financial Institutions (DFI) on Friday, August 8 to join the San Francisco
office of the law firm Pillsbury Winthrop LLP.
Ms. Oda joined DFI in September 2000. She made many contributions to the Department and its
mission. She implemented the Legal Precedent System, which made it easy for staff and licensees to
access the useful interpretations and opinions issued during the past, thereby saving time and expense for
all. She led the way to close down liquidations that had been pending for years and provided counsel and
advice on many legal issues thereby enabling us all to better serve the public.
Mr. Tom Thompson, Assistant General Counsel, will continue to be the contact person in the Legal
Department. Mr. Thompson may be contacted at (415) 263-8516 or by e-mail at tthompson@dfi.ca.gov
Commercial Bank Activity
New Bank
American Premier Bank
336 East Huntington Drive, Arcadia, Los Angeles County
Phone: (626) 821-8008
Officers: Andrew Tjia, President and Chief Executive Officer
Kerry Stone, Chief Financial Officer
Hans Chan, Chief Credit Officer
Capitalization: $10,300,000.00
Opened: 7/7/03
Golden State Business Bank
Proposed Location: In the vicinity of 1060 West Foothill Boulevard, Upland, San Bernardino County
Correspondent: Peggy Hansen
517 North Mountain Avenue, Suite 106
Upland, CA 91786
Phone: (909) 912-0106
Approved: 7/30/03
Merger
Central Sierra Bank, San Andreas, with and into Central California Bank, Sonora
Approved: 6/25/03
Effected: 7/11/03
Comerica Bank – California, San Jose, with and into Comerica Bank, Detroit, Michigan
Effected: 6/30/03
3 Monthly Bulletin July, 2003
Merger (Continued)
First Continental Bank, Rosemead, with and into United Commercial Bank, San Francisco
Effected: 7/11/03
General Bank, Los Angeles, with and into Cathay Bank, Los Angeles
Filed: 7/3/03
Southland Business Bank, Irwindale, with and into Vineyard Bank, Rancho Cucamonga
Approved: 6/18/03
Effected: 7/4/03
Conversion to State Charter
First Bank of Beverly Hills, F.S.B., Calabasas, to convert from a federal savings bank to a state-chartered
bank under the name First Bank of Beverly Hills
Withdrawn: 6/30/03
InterBusiness Bank, N.A., Los Angeles, to convert from a national bank to a state-chartered bank under
the name InterBusiness Bank
Filed: 7/15/03
Sale of Partial Business Unit
California Bank & Trust, San Diego, to sell its trust assets to Western National Trust Company, Los
Angeles
Effected: 6/30/03
Acquisition of Control
Heritage Oaks Bancorp, to acquire control of Hacienda Bank, Santa Maria
Filed: 7/16/03
Yong Oh, to acquire control of Uniti Bank, Buena Park
Filed: 7/22/03
Correction
The June 2003 issue of the Monthly Bulletin incorrectly reported that California Bank & Trust sold its
trust business to Western National Trust Company, Salt Lake City, Utah. Western National Trust
Company is located in Los Angeles, California.
4 Monthly Bulletin July, 2003
Premium Finance Company Activity
New Premium Finance Companies
BCIC Premium Finance Company
2501 East Chapman Avenue, Suite 100, Fullerton, Orange County
Opened: 6/30/03
California Millennium Financing, Inc.
22349 La Palma Avenue, Suite D-110, Yorba Linda, Orange County
Opened: 7/1/03
Premium Payment Plan Inc.
2383 Buena Vista Avenue, Livermore, Alameda County
Opened: 7/29/03
RSA Premium Finance Company
2501 East Chapman Avenue, Suite 100, Fullerton, Orange County
Opened: 6/30/03
Snowcrest Funding, Inc.
2501 East Chapman Avenue, Suite 100, Fullerton, Orange County
Opened: 6/30/03
West Coast Premium Finance Corp.
2501 East Chapman Avenue, Suite 100, Fullerton, Orange County
Filed: 7/17/03
Foreign (Other Nation) Bank Activity
Discontinuance of Office
BBVA BANCOMER, S.A.
444 South Flower Street, Suite 100, Los Angeles, Los Angeles County (Depositary Agency)
Filed: 4/17/02
Approved: 7/16/03
Dresdner Bank, A.G.
355 South Grand Avenue, Los Angeles, Los Angeles County (Depositary Agency)
Approved: 7/17/03
5 Monthly Bulletin July, 2003
Change of Name
The Development Bank of Singapore Ltd., to DBS Bank Ltd.
Effected: 7/21/03
Credit Union Activity
Merger
Coastline Community Credit Union, Long Beach, into Orange County’s Credit Union, Santa Ana
Filed: 7/7/03
Gentelco West Federal Credit Union, Long Beach, into Pacific Community Credit Union, Fullerton
Filed: 7/7/03
Field of Membership
13 credit unions received approvals to add 38 new fields of membership during June 2003.
Select Group
One credit union received an approval to add a select group to its field of membership during June 2003
Bylaw Amendment
Six credit unions received approval for seven bylaw amendments during June 2003.
Amendment of Articles of Incorporation
Eleven credit unions received approvals for 11 amendments of articles of incorporation during June 2003.
Transmitter of Money Abroad Activity
New Transmitters
GroupEx Financial Corporation Inc.
14849 Firestone Boulevard
La Mirada, CA 90638
Approved: 7/30/03
6 Monthly Bulletin July, 2003
Acquisition of Control
Frederick M. Locsin, Maria R. Locsin, and Felicidad V. Jimenez, to acquire control of Dollar American
Exchange
Filed: 7/1/03
DONALD R. MEYER
Commissioner of Financial Institutions
Bulletin for Month ended
July 2003, issued pursuant
to Financial Code, Section 258
The Monthly Bulletin is available without charge via e-mail. To subscribe, go to http://www.dfi.ca.gov/bulletin/subscription/public.asp. To
unsubscribe, send a blank e-mail to leave-dfi_public@blizzard.sparklist.com. Contact the list administration team at bulletin@dfi.ca.gov