Section 50.3 - Unsafe and Unsound Acts(a) 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 an unsafe and unsound act within the meaning of the Business and Industrial Development Corporations Law. However, it is impossible to foresee or to 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 unsafe or unsound acts within the meaning of the Business and Industrial Development Corporations Law. 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 an unsafe or unsound act within the meaning of the Business and Industrial Development Corporations Law. Also, the Commissioner may decide that an act which is not designated in this Subchapter as an "unsafe and unsound act" constitutes an unsafe or unsound act within the meaning of the Corporations Law.(b) Subject to the qualifications set forth in Subdivision (a) of this Section, whenever a licensee commits any act which is designated in this Subchapter as an "unsafe and unsound act," such licensee shall be deemed: (1) To be transacting and conducting its business in an unsafe and unsound manner within the meaning of the Business and Industrial Development Corporations Law; and(2) If and to the extent that such act affects the condition of the licensee, to be in an unsafe and unsound condition within the meaning of the Business and Industrial Development Corporations Law.Cal. Code Regs. Tit. 10, § 50.3
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). Note: Authority cited: Section 31101, 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).