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Oct 27 (Reuters) - The City National Bank in Beverly Hills is to get a $395 million capital infusion from the U.S. Treasury as part of the government's $250 billion bailout program, the Los Angeles Times said.

The bank, which is owned by California lender City National Corp (CYN.N: Quote, Profile, Research), is quoted as telling the paper it had no "explicit or implicit understanding" with federal regulators about how it would use the money -- whether to increase lending in the community or to acquire a specific bank.

The investment, "clearly enhances our financial capacity to make acquisitions and ... to lend to a larger degree," Russell Goldsmith, chief executive of City National Corp was quoted as telling the Times.

The government's financing will raise the bank's Tier 1 capital, a fundamental measure of a bank's financial health, to 12 percent from 9.1 percent of its risk-weighted assets, the paper said.

City National Corp did not immediately return calls seeking comment.

About 20 regional U.S. banks are expected to receive cash under the Treasury Department's second round of its banks recapitalisation program. (Reporting by Shradhha Sharma in Bangalore; Editing by Greg Mahlich)