Section 18427.8 Of Article 5. Securities Transactions From California Financial Code >> Division 7. >> Chapter 5. >> Article 5.
18427.8
. Whenever an industrial loan company applies for a permit
to issue any security or to deliver any other consideration (whether
or not such security or such transaction is exempt from, or not
subject to, the provisions of Section 18427.1) in exchange for one or
more bona fide outstanding securities (as defined in Section 25019
of the Corporations Code), claims, or property interests, or partly
in such exchange and partly for cash, the commissioner is authorized
to approve the terms and conditions of such issuance and exchange or
such delivery and exchange and the fairness of such terms and
conditions and is authorized to hold a hearing on the fairness of
such terms and conditions, at which all persons to whom it is
proposed to issue any security or to deliver any other consideration
in such exchange shall have the right to appear.