Investment OperationsSalvage of Loans and Investments

Section § 7650

Explanation

This law allows associations, like financial institutions, to manage their investments, operate businesses, or deal in property to avoid losing money, as long as they act in good faith. However, if an association doesn't meet certain criteria or has received a specific order, it must get written approval from the commissioner before taking such actions.

(a)CA Financial Code § 7650(a) Except as provided in subdivision (b), nothing in this division or the laws of this state shall be construed as denying to an association the right to invest its funds, operate a business, manage or deal in property, or take any other action over whatever period of time may reasonably be necessary to avoid loss on a loan or investment made or an obligation created in good faith.
(b)CA Financial Code § 7650(b) Associations which do not meet the requirements of Section 6475, or have been issued an order pursuant to Section 8200, shall not take any action pursuant to this section without first obtaining approval, in writing, from the commissioner.
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