California Department of Business Oversight
Volume 2, Number 2 – August 2014
California Drought Update:
On August 14, 2014 the California Public Utilities Commission (CPUC) ordered the water companies under its jurisdiction to provide direct notice to their customers of mandatory water use restrictions and potential fines in response to the State Water Resources Control Board’s Emergency Regulation for Statewide Water Conservation.
On July 15, 2014, the Water Board adopted Emergency Regulation that prohibits the use of drinking water for outdoor landscapes in a manner that causes runoff; the use of a hose without a shut-off nozzle to dispense drinking water to wash a motor vehicle; the application of drinking water to driveways and sidewalks; and the use of drinking water in a fountain or other decorative water feature, except where the water is part of a recirculating system. The Emergency Regulation also limits outdoor irrigation of ornamental landscape or turf with drinking water to no more than two days per week. Violation of these prohibited actions is punishable by a fine of up to $500 for each day in which the violation occurs. Additionally, all CPUC jurisdiction water utilities are ordered to comply with the Water Board’s requirements in implementing either mandatory outdoor irrigation restrictions or, alternatively, mandatory water conservation measures.
Utilities must include notice of the implementation of either the mandatory outdoor irrigation restrictions or mandatory water conservation measures as part of the required customer notification the CPUC required in the order. These water utilities will also provide a monitoring report to the Water Board beginning in October 2014 to show progress towards the objective of a 20 percent reduction in water usage.
Governor Brown has called on all Californians to reduce their water use by 20 percent and prevent water waste – visit www.SaveOurWater.com to find out how everyone can do their part, and visit www.Drought.CA.Gov to learn more about how California is dealing with the effects of the drought.
Derivative Transactions – Parity Regulations Effective October 1
The Department has adopted parity regulations under the Revised Banking Law. These regulations provide state chartered banks and savings associations with different options for measuring credit exposure of derivative transactions so that they may lawfully engage in them. The Department is adopting sections 10.190500 and 10.190501 in Title 10 of the California Code of Regulations. These regulations will become effective on October 1, 2014.
On November 19, 2013, the Department adopted identical parity regulations on a temporary basis. These regulations are set to expire on December 31, 2014. This rulemaking action effectively makes these parity regulations permanent.
Here is a link to the approved regulations: https://dfpi.ca.gov/Licensees/banks/Regulations.asp.
DBO Urges Licensees to Grant Appropriate Latitude to Customers Affected by South Napa Earthquake
Commissioner Jan Lynn Owen urges Department of Business Oversight (DBO) licensees to grant appropriate latitude to customers affected by the severe damage resulting from the magnitude 6.0 South Napa earthquake that occurred August 24, 2014. Because of the earthquake damage and the widespread effect it will have on the economy in these counties, the Commissioner encourages the Department’s licensees to work with customers in dealing with the economic hardships of this disaster.
Governor Edmund G. Brown Jr. issued an emergency proclamation on August 24, 2014 for the following counties: Napa, Solano and Sonoma due to the effects of a 6.1 magnitude earthquake in Napa Valley and continued aftershocks that have damaged critical infrastructure, homes and other structures and caused fires and the closure of roads and highways. The emergency declaration followed a statement issued by Governor Brown. Full text of the emergency proclamation.
The Department of Business Oversight will continue to monitor the situation in the Napa regional area closely. (Photo credit: Mackenzie Reilly)
Governor Brown Signs AB 2298
Electronic Filing of Weekly Local Agency Reports
Governor Edmund G. Brown Jr. signed Assembly Bill 2298, allowing financial institutions that hold local agency deposits to submit their weekly reports to the California Department of Business Oversight (DBO) electronically by email or facsimile rather than through U.S. mail starting January 1, 2015. The weekly report due Wednesday, January 7, 2015 will be the first weekly report to which the provisions of AB 2298 will apply.
For more information, please contact Karen Cunningham at (916) 322-1547 or by email at firstname.lastname@example.org.
Commercial Bank Activity
Conversion to State Charter
TomatoBank, NA, to convert to a state-chartered bank under the name of TomatoBank
Acquisition of Control
Enrique Schon and KEDAP S.A. de C.V., to acquire control of Vibra Bank
PBB Bancorp, to acquire control of Premier Business Bank
Sang Young Lee, Chun Young Lee and Lee’s Gold & Diamond Import, Inc. to acquire control of Pacific City Bank
Seacoast Commerce Banc Holdings, to acquire control of Seacoast Commerce Bank
1st Enterprise Bank, Los Angeles, to merge with and into California United Bank, Encino
United Central Bank, Garland, Texas, to merge with and into Hanmi Bank, Los Angeles, California
Foreign (Other Nation) Bank Activity
The July 2014 Bulletin incorrectly reported that Natixis, a Representative Office located at 10250 Constellation Boulevard, Los Angeles, Los Angeles County, opened on April 14, 2014. The correct opening date is July 14, 2014.
Credit Union Activity
California Center Credit Union, Ontario, to merge with and into Credit Union of Southern California, Brea
NBC Universal Employees Federal Credit Union, Burbank, to merge with and into Premier America Credit Union, Chatsworth
Premium Finance Company Activity
New Premium Finance Company
US Premium Finance Holdings, Inc.
2201 Lakewood Boulevard, Long Beach, Los Angeles County
Money Transmitter Activity
Acquisition of Control
FleetCor Technologies, Inc., to acquire control of Comdata Network, Inc. of California
Bulletin for Month ended August 2014, issued pursuant to Financial Code section 376.
The Monthly Bulletin is available without charge via e-mail. To subscribe, go to: https://dfpi.ca.gov/Resources/subscription.asp
1515 K Street, Suite 200
One Sansome Street, Suite 600
320 West 4th Street, Suite 750
1350 Front Street, Room 2034
45 Fremont Street, Suite 1700
300 S. Spring Street, Suite 15513
7575 Metropolitan Drive, Suite 108
Department of Business Oversight Consumer Services Office – 1(866) 275-2677