Cal. Code Regs. tit. 10 § 10.3

Current through Register 2024 Notice Reg. No. 52, December 27, 2024

Section 10.3 - Unsafe and Unsound Acts

Any act which is designated in this Subchapter as an "unsafe and unsound act" is an act which, in the usual or typical circumstances encountered, constitutes conducting business in an unsafe and injurious manner within the meaning of Financial Code Sections 580 and 581 and in an unsafe manner within the meaning of Financial Code Section 592. However, it is impossible to foresee or provide for all of the varying circumstances which may arise in a particular case. Also, the acts designated in this Subchapter as "unsafe and unsound acts" are not intended to constitute a complete compilation of all the acts which constitute conducting business in an unsafe or injurious manner within the meaning of Financial Code Sections 580 and 581 or in an unsafe manner within the meaning of Financial Code Section 592. Therefore, the Commissioner may, if and when warranted in any particular case, upon application or on his own initiative, decide that in such case an act which is designated in this Subchapter as an "unsafe and unsound act" does not constitute conducting business in an unsafe or injurious manner within the meaning of Financial Code Sections 580 and 581 or in an unsafe manner within the meaning of Financial Code Section 592. Also, the Commissioner may decide that an act which is not designated in this Subchapter as an "unsafe and unsound act" constitutes conducting business in an unsafe or injurious manner within the meaning of Financial Code Sections 580 and 581 or in an unsafe manner within the meaning of Financial Code Section 592.

Cal. Code Regs. Tit. 10, § 10.3

1. Change without regulatory effect amending section and adding new NOTE filed 8-19-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 34).
2. Change without regulatory effect amending section and NOTE filed 8-21-2019 pursuant to section 100, title 1, California Code of Regulations (Register 2019, No. 34).

Note: Authority cited: Section 326, Financial Code. Reference: Sections 550, 580, 585, 590 and 592, Financial Code.

1. Change without regulatory effect amending section and adding new Note filed 8-19-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 34).
2. Change without regulatory effect amending section and Note filed 8-21-2019 pursuant to section 100, title 1, California Code of Regulations (Register 2019, No. 34).