SupervisionDepartment of Savings and Loan

Section § 8009

Explanation

This section limits the sharing of information by the commissioner and department employees regarding their official duties, unless required by law. Information may be shared with other government authorities and agencies for supervisory or investigation purposes related to financial institutions. If documents or records are subpoenaed, a court must decide whether their disclosure is in the public interest and would assist the department in its duties.

(a)CA Financial Code § 8009(a) Except where required by law, regulation, or court order, or permitted under subdivision (b), the commissioner, and all employees of the department, shall not disclose any information acquired by them in the discharge of their duties as prescribed by this division.
(b)CA Financial Code § 8009(b) The commissioner may furnish information relating to the condition or operation of any association or other person to state and federal authorities that supervise financial institutions, to state, local and federal law enforcement agencies, and state agencies that are engaged in any investigation of an unsafe or unsound business practice.
(c)CA Financial Code § 8009(c) No record or document in the possession or custody of the department which contains information specified in subdivision (a) shall be produced pursuant to a subpoena duces tecum addressed to the commissioner or any employee of the department except upon a determination of a court of competent jurisdiction that disclosure of the information in the record or document would serve the public interest and assist the department in conducting the duties prescribed by this subdivision. With respect to each item subject to the subpoena duces tecum, the court shall either make this determination or shall determine that the item is not subject to disclosure. The court’s determination shall be made upon hearing on a motion by the subpoenaing party under this subdivision to compel production of the document or record.
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Section § 8010

Explanation

The commissioner can require an association to correct its financial records if it overvalues its assets. This involves either writing off the overvalued assets from current operations or creating a special reserve by moving funds from retained earnings or other reserves, based on a valuation assessment.

The commissioner, after a determination of value made in accordance with Article 4 (commencing with Section 8150) of Chapter 7, may order that assets, individually or in the aggregate, to the extent that the assets are overvalued on an association’s books, be charged off against current operations, or that a special reserve or reserves equal to the overvaluation be set up by transfers from retained earnings or reserves.
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