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