31230-31233

FINANCIAL CODE
SECTION 31230-31233




31230.  In this article, "distribution to its shareholders" has the
meaning set forth in Corporations Code Section 166.



31231.  No licensee shall, except with the prior approval of the
commissioner, make, or obligate itself to make, any distribution to
its shareholders.


31232.  If the commissioner finds, with respect to an application
for approval for a licensee to make, or to obligate itself to make, a
distribution to its shareholders:
   (a) That for the applicant to make, or to obligate itself to make,
the distribution will not endanger the applicant's ability to
provide financing assistance and management assistance to business
firms in this state; and
   (b) That for the applicant to make, or to obligate itself to make,
the distribution will not be unsafe or unsound; the commissioner
shall approve the application. If, after notice and a hearing, the
commissioner finds otherwise, he or she shall deny the application.




31233.  Notwithstanding the provisions of Section 31232, unless an
application for approval for a licensee to make, or to obligate
itself to make, a distribution to its shareholders is approved,
denied, withdrawn, or abandoned within a period of 45 days after such
application is filed with the commissioner or, if the applicant
consents to an extension of the period, within such extended period,
such application shall be deemed to be approved by the commissioner
as of the first day after such period of 45 days or such extended
period, as the case may be.
   For purposes of this section, an application for approval for a
licensee to make, or to obligate itself to make, a distribution to
its shareholders shall be deemed to be filed with the commissioner
when such application, containing all the information required by the
commissioner and otherwise complying with Section 31107, is received
by the commissioner.