Section 1135 Of Article 3. Distributions To Shareholders From California Financial Code >> Division 1.1. >> Chapter 5. >> Article 3.
1135
. If the commissioner finds that the shareholders' equity of a
bank is not adequate or that the making by a bank or by any
majority-owned subsidiary of a bank of a distribution to the
shareholders of the bank would be unsafe or unsound for the bank, the
commissioner may order the bank and its majority-owned subsidiaries
not to make any distribution to the shareholders of the bank. In
addition to the order authorized by this section, the commissioner
may levy a civil penalty against the bank pursuant to Section 329.