This law requires savings associations operating in California to pay an annual fee in advance. This fee helps cover the costs and expenses of the state's regulatory department that oversees savings associations. The amount each association pays is their portion of the total operating costs, as estimated by the commissioner for the next year. Even foreign savings associations doing business in California must pay this fee if they have approval from the commissioner.

In simple terms, this law explains how the operating costs for an association are divided among its members. The commissioner will decide the exact amount each association member has to pay. The total amount collected from all members should not be more than the budget planned for the next fiscal year, plus a bit extra for unexpected expenses.

Every year, by June 20th, the commissioner sends a letter to each association telling them how much they owe in assessments. The association must pay at least half by July 10th and the rest by January 10th the following year. If they don't pay on time, they face a 5% penalty each month the payment is late.

If an organization stops being a group due to a merger, consolidation, conversion, or asset acquisition, it must pay any missed payments for the fiscal year ending June 30 before the deal happens. This payment must be made to get the necessary approval for the transaction from the commissioner.

If a new domestic association is created during the fiscal year, it will still have to pay an initial fee, calculated as if it had existed before June 20th of the previous fiscal year. However, the fee is adjusted based on the association's assets when it receives its certificate of authority. If the certificate isn't issued in July, the fee decreases by one-twelfth for each full month that has passed since the fiscal year started and is due immediately when the certificate is issued.

Regardless of these adjustments, the association must pay at least $500 for the remainder of the fiscal year after its formation.

This law section states that when a domestic association plans to acquire the assets of a federal association or a bank (state or national), the initial assessment (a kind of financial evaluation) is done as if the federal association or bank was already an assessed entity as of June 20th of the previous fiscal year. The assessment is based on the assets reported by the association or bank to relevant authorities prior to this date. If the certificate of authority (which is necessary for the acquisition) isn’t issued in July, the assessment amount is reduced by one-twelfth for each month of the fiscal year that has passed. The full assessment amount is due once the certificate is issued.

This section of the law states that the Savings Association Special Regulatory Fund is being changed into a separate account within the Financial Institutions Fund, now called the Savings and Loan Account.

All the money, assets, and obligations that were part of the original fund will move over to this new account.

The money collected by the commissioner related to savings associations, except for funds from associations under the commissioner's control, must be deposited with the State Treasurer. These funds are credited to the Savings and Loan Account within the Financial Institutions Fund.

This law states that all expenses related to the department's management of savings associations or savings association businesses must be paid from the Savings and Loan Account. This account is designated solely for these purposes unless exceptions are noted in other specified sections.