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California Law (Last Updated: March 4, 2014) |
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Financial Code - FIN |
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Division 2. SAVINGS ASSOCIATION LAW |
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Chapter 2. Corporate Organization and Corporate Changes |
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ARTICLE 3. Postincorporation Organization of Associations |
Section 5600.
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(a) The board of directors of an association which is in the process of organization shall select a financial institution within this state as a depository for stock, savings account and mutual capital certificate subscription funds.
(b) The financial institution shall assure the safekeeping of the subscription funds and the delivery of these funds to the association after the issuance of the certificate of authority and after the bonding of the officers. In the event of the failure to complete the organization of the association and to commence business, the financial institution shall insure the return of the amounts collected to the respective subscribers or their assigns, plus any earnings on the funds, less reasonable charges of the financial institution for services as depository of the funds.