If a financial institution is liquidated and there isn't enough money to cover each savings account by $50,000, a corporation called Guaranty Corporation must pay the missing amount within 10 days after the commissioner asks for it. If Guaranty Corporation doesn't have enough money to cover everything, each account will get less, and more payments will be made as more money comes in. Once the obligations are paid, both regular and special members' account balances will decrease by the amounts paid out.

This section explains that when a financial institution's property and business are being liquidated, the commissioner can instruct the Guaranty Corporation to cover its obligations up to $50,000 for each account holder. If the Guaranty Corporation doesn't have enough money to cover all obligations, payments are reduced proportionately. Additional payments are made as funds become available.

If a person's obligations are covered, the Guaranty Corporation takes over those rights. When liquidation proceeds are available, the Guaranty Corporation gets paid back before any amounts exceeding $50,000 are paid to thriftholders.

Accounts are adjusted based on amounts paid and received during liquidation to ensure fair distribution among account holders.

If the commissioner finds that Guaranty Corporation is breaking its own rules or any state laws, not paying directed amounts, improperly investing funds, failing to collect required payments, not pursuing required legal actions, or refusing to let examiners review its records, the commissioner can take over its business. This means the commissioner will manage the corporation until it agrees to follow the rules.

If the state financial commissioner takes over a company called Guaranty Corporation, the company has 10 days to ask the court to stop the takeover. They can do this if they feel they have been wronged. The court will hold a hearing to decide whether to stop the commissioner's actions, give the company's property and business back, or make another fair decision.

This law states that either the commissioner or the Guaranty Corporation can appeal a court judgment in the same way appeals are made from a superior court to a court of appeal. However, the appeal will not pause (or 'stay') the judgment unless the court specifically decides there is a good reason to do so.

This law outlines the powers and responsibilities of the Guaranty Corporation regarding membership approval and financial assessments of its members. The Corporation can approve or revoke memberships and report financial conditions to the commissioner while maintaining confidentiality. Financial statements provided to or created by the Corporation are not public documents, protecting all individuals involved from liability. The Corporation can hire accountants or form committees for audits or investigations, which are paid by the Corporation. Unauthorized use of confidential information is a misdemeanor. These powers cannot be used for special members.

This law states that individuals working for Thrift Guaranty Corporation, like directors or employees, can be held accountable for fraudulent, intentional, or criminal actions during their duties. However, they aren't responsible for other types of actions not listed here.

The law also requires the board of directors to try to get insurance that covers mistakes or oversight by their staff. They must report the cost and details of this insurance to the commissioner every year.

The Guaranty Corporation can only invest its money in securities that can be easily sold, following rules set by the commissioner.

If the commissioner asks, the Guaranty Corporation must allow access to its financial records to check how these funds are being managed.

This law explains how income from investments should be handled. First, any investment income should be put into an account to help with administration costs. If the income is more than what's needed for these costs, it can be shared with members based on how much each member has in their account. The investment income, whether or not it's shared with members, can be claimed by the commissioner if it's not set aside for administration purposes for the year.

If the costs of running the investment exceed the income it generates by the end of the year, then those extra costs will be charged to the members' accounts. Each member will share this charge based on how much they have in their account.

The Guaranty Corporation has the power to carry out several actions to support its members and manage financial stability.

It can borrow money, make loans or investments, and provide financial assistance to member companies to prevent financial shortfalls. It can also establish a new thrift company to temporarily manage the obligations of a closed company and act as a conservator or receiver when needed. Additionally, the Corporation can use its funds to carry out these activities and hire consultants or advisors as necessary.

If a business gets into trouble, a commissioner must quickly inform the Guaranty Corporation when they take control of the business's property. They must also let them know right away if they decide to sell off the business and its property.

This law states that memberships given out by the Guaranty Corporation cannot be transferred to someone else. It also mentions that these memberships are not covered by the Corporate Securities Law of 1968, meaning they're not subject to the rules and regulations usually applied to securities.

This law allows the commissioner and their appointed staff to investigate and review the financial activities of Guaranty Corporation. They can examine the company's books, accounts, and files at any time and have full access to the company's office and records.

If an industrial loan company or any member applies to join the Guaranty Corporation and is unhappy with their decision or action, they have 30 days to appeal to the commissioner.

This law requires the commissioner, after consulting with the Thrift Guaranty Corporation, to set rules about what information needs to be provided to people holding investment certificates from industrial loan companies. This includes details about any guarantees or insurance and the process for payment if the company is taken over. The goal is to ensure that the information is easy to understand for typical holders and doesn't suggest any state-backed guarantees. The commissioner must establish these rules quickly, within 60 days of the law taking effect.

This law prohibits anyone from making or promoting any claims that suggest they are part of the Guaranty Corporation or that their savings or investment products are guaranteed by it. Basically, don't falsely advertise that you're associated with the Guaranty Corporation or that your financial products are secure through them.

This law requires the commissioner to provide Guaranty Corporation with a list of all industrial loan companies that don't have insurance, but have outstanding thrift obligations. The commissioner must also share a copy of each company's independent audit report, which is filed with him as of the previous December 31st. This information must be sent by April 1st each year.

If an industrial loan company has an account or has paid assessments, it cannot get its money back unless the Guaranty Corporation is being liquidated.

This section explains how a Guaranty Corporation can dissolve itself. First, it needs approval from several parties, and every industrial loan company involved must either join the Federal Deposit Insurance Corporation or settle its debts.

When the corporation liquidates, its assets are divided among all current and past members based on their account balances. Members' accounts include all payments made to the Guaranty Corporation and are adjusted for any expenses the corporation has paid on their behalf.

If a member owes more than what is in their account, their account is closed, and the extra cost is spread among other members. Any member that continues to operate gets a new account starting from zero.

This law specifies that the Board of Directors for the Guaranty Corporation must have five members, and at least two must be public members. The appointments are made by the commissioner, who must seek advice from the President of Thrift Guaranty Corporation before appointing anyone. Public members cannot be connected to any related companies, state agencies or be related to company officers or directors.

This law requires the Guaranty Corporation to set up a permanent office in California. This means they must have a physical presence in the state.

This law allows the commissioner to ask the Guaranty Corporation to get extra protection, like a bond or insurance, to safeguard its members’ savings. The commissioner must approve the type, amount, and form of this protection in writing.