Section 1471 Of Article 2. Loan And Investment Limitations From California Financial Code >> Division 1.1. >> Chapter 14. >> Article 2.

. (a) Subject to the limitations and exceptions in Sections 1481 and 1510, a bank may hold both obligations made by a person, and securities issued by that same person.
  (b) The total amount of obligations and securities held by a bank pursuant to subdivision (a) shall not exceed 25 percent of the sum of the shareholders' equity, allowance for loan and lease losses, capital notes and debentures of the bank.