Section 4879.04 Of Article 5. Other Sales Of Partial Business Units From California Financial Code >> Division 1.6. >> Chapter 3. >> Article 5.
4879.04
. The agreement of sale shall be approved by the seller and
purchaser, as follows:
(a) In the case of a California state depository corporation:
(1) If, as of the time when the agreement of sale is made, the
deposits, if any, of the partial business unit are less than 10
percent of the total deposits of the state depository corporation and
the fiduciary assets, if any, of the partial business unit are less
than 10 percent of the total fiduciary assets of the state depository
corporation, the agreement of sale shall be approved by the board of
the state depository corporation.
(2) Otherwise, the agreement of sale shall be approved by the
board of the state depository corporation, and the principal terms of
the agreement of sale shall be approved by the outstanding shares of
the state depository corporation.
(3) For purposes of paragraphs (1) and (2):
(A) The amount of deposits shall be determined as of the end of
the calendar quarter immediately preceding the making of the
agreement of sale.
(B) The value of fiduciary assets shall be the net carrying value,
as determined in conformity with generally accepted accounting
principles, as of the end of the calendar quarter immediately
preceding the making of the agreement of sale.
(b) In the case of a depository corporation other than a
California state depository corporation, the agreement of sale shall
be approved as required by the law of the depository corporation's
domicile.