Section 8229 Of Article 6. Conservatorship From California Financial Code >> Division 2. >> Chapter 7. >> Article 6.
8229
. (a) While the association is in the charge of a conservator,
savings account holders, borrowers, and other obligors of the
association shall continue to make payments to the association in
accordance with the terms and conditions of their contracts, and the
conservator may permit savings account holders to withdraw their
accounts from the association pursuant to the provisions of this
division but shall not declare, credit, or distribute interest for
savings accounts without prior approval of the commissioner.
(b) The conservator shall have power to accept savings accounts
and additions to savings accounts, but any amounts received by the
conservator may be segregated if the commissioner shall so order in
writing. If so ordered, these amounts shall not be subject to offset
and shall not be used to liquidate any indebtedness of the
association existing at the time the conservator was appointed for it
or any subsequent indebtedness incurred for the purposes of
liquidating the indebtedness of the association existing at the time
the conservator was appointed.
(c) All expenses of the association during conservatorship shall
be paid by the association.