DIVISION 1. FINANCIAL INSTITUTIONS [99. - 900.]

Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2.

§§ 99–900 · 260 sections

1. CHAPTER 1. Definitions §§ 99–217 · 63 sections

   • § 99 This division, Division 1.1 (commencing with Section 1000), Division 1.2 (commencing with Section 2000), Division 1.6 (commencing with Section 4800), Division…
   • § 101 If and to the extent that any provision of the Financial Institutions Law is preempted by federal law, the provision does not apply and shall not be enforced.
   • § 103 The word “bank” as used in the Financial Institutions Law means any incorporated banking institution that shall have been incorporated to engage in commercial…
   • § 105 Banks are divided into the following classes: (a) Commercial banks. (b) Industrial banks. (c) Trust companies.
   • § 107 “Commercial bank” means a corporation organized for the purpose of engaging in the commercial banking business.
   • § 109 “Commercial banking business” includes, but is not limited to, the business of soliciting, receiving, or accepting of money or its equivalent on deposit as a…
   • § 111 “Industrial bank” means a corporation organized for the purpose of engaging in the industrial banking business.
   • § 113 “Industrial banking business” includes the making of loans and acceptance of deposits, including deposits evidenced by investment or thrift certificates, but…
   • § 115 “Trust business” means the business of acting as executor, administrator, guardian or conservator of estates, assignee, receiver, depositary or trustee under…
   • § 117 “Trust company” means a corporation, industrial bank, or a commercial bank that is authorized to engage in the trust business.
   • § 119 “Bank” or “banks” includes a public bank, as defined in Section 57600 of the Government Code, commercial banks, industrial banks, and trust companies unless…
   • § 121 (a) “Office” includes head office, branch office, and any other authorized place of business of a licensee. (b) “Head office” means the principal place of…
   • § 123 “Real property” and “personal property” have the meanings defined in and shall be construed in accordance with Title 1 (commencing with Section 654) of Part 1…
   • § 125 “Commissioner” means the Commissioner of Financial Protection and Innovation and “department” means the Department of Financial Protection and Innovation.
   • § 127 “Person” means an individual, sole proprietorship, partnership, joint venture, association, trust, estate, business trust, corporation, joint stock company,…
   • § 129 Unless the provision or the context otherwise requires, the definitions set forth in this chapter govern the construction of the Financial Institutions Law.
   • § 131 References in this division to the voting of shares shall be construed in accordance with Section 111 of the Corporations Code.
   • § 133 If the articles of a bank provide for more or less than one vote for any share on any matter, the references in Sections 139 and 141 to a majority or other…
   • § 135 Any requirement in this division for a vote of each class of outstanding shares shall be construed in accordance with Section 117 of the Corporations Code.
   • § 137 “Approved by (or approval of) the board” means approved or ratified by the vote of the board or by the vote of a committee authorized to exercise the powers of…
   • § 139 “Approved by (or approval of) the outstanding shares” has the meaning set forth in Section 152 of the Corporations Code and shall include approval by the…
   • § 141 “Approved by (or approval of) the shareholders” has the meaning set forth in Section 153 of the Corporations Code and shall include approval or ratification by…
   • § 143 “Articles” has the meaning set forth in Section 154 of the Corporations Code.
   • § 145 “Board” has the meaning set forth in Section 155 of the Corporations Code.
   • § 147 “California” means: (a) When used with respect to a bank, in the case of a state bank, a bank that is organized under the laws of this state and, in the case…
   • § 149 “CAMELS composite rating” shall have the meaning set forth in Section 327.8(j) of Title 12 of the Code of Federal Regulations.
   • § 151 “Certificate of correction” means a certificate executed and filed with the Secretary of State pursuant to Section 109 of the Corporations Code, subject,…
   • § 153 “Certificate of determination” has the meaning set forth in Section 156 of the Corporations Code, subject, however, to the provisions of Section 1104.
   • § 155 “Certificate of revocation” means a certificate executed and filed with the Secretary of State pursuant to the second and third sentences of subdivision (c) of…
   • § 157 “Common shares” has the meaning set forth in Section 159 of the Corporations Code.
   • § 159 (a) “Confidential information” means any information regarding a licensee contained in, or related to, any of the following: (1) Applications filed with the…
   • § 161 “Constituent corporation,” when used with respect to a corporation: (a) In the case of a merger, has the meaning set forth in Section 161 of the Corporations…
   • § 163 “Contributed capital” means all of shareholders’ equity other than retained earnings. However, nothing in this section shall prohibit a bank from transferring…
   • § 165 “Credit union” means a corporation of the type described in Section 14002 organized under the laws of this state or a corporation of similar type organized…
   • § 167 “Directors” has the meaning set forth in Section 164 of the Corporations Code.
   • § 169 “Disappearing,” when used with respect to a corporation, means a constituent corporation that is not the surviving corporation.
   • § 171 “Distribution to its shareholders” has the meaning set forth in Section 166 of the Corporations Code. However, in Division 1 (commencing with Section 100),…
   • § 173 (a) “Foreign,” when used with respect to a bank, an office of a bank, or any corporation other than a bank, means foreign (other nation) or foreign (other…
   • § 175 “Foreign nation” means any nation other than the United States, including, without limitation, any subdivision, territory, trust territory, dependency, colony,…
   • § 177 (a) The definition of “state of the United States” in Section 207 does not apply to this section. In this section, “state of the United States” means any state…
   • § 179 “Foreign (other state)”: (a) When used with respect to a bank, means a bank that is organized under the laws of any state of the United States other than this…
   • § 181 “Insured”: (a) When used with respect to a bank or an office of a bank, means a bank or office the deposits of which are insured by the Federal Deposit…
   • § 183 “Law of the domicile” means: (a) When used with respect to a national bank, the law of the United States. (b) When used with respect to a state bank, the law…
   • § 185 “Licensee” has the following meanings: (a) Any bank authorized by the commissioner pursuant to Section 1042 to transact banking or trust business. (b) Any…
   • § 186 “Majority-owned subsidiary” has the meaning set forth for “subsidiary” in subdivision (a) of Section 189 of the Corporations Code.
   • § 187 “Member of the public” means any person, except an agent, officer, or employee of the department acting within the scope of his or her agency, office, or…
   • § 188 “Money transmitter” means a person authorized pursuant to Chapter 3 (commencing with Section 2030) of Division 1.2 to engage in the business of money…
   • § 189 (a) “National bank” or “national banking association” means a national banking association organized under the National Bank Act. (b) For purposes of the…
   • § 190 “Officer” means: (a) When used with respect to a corporation, any person appointed or designated as an officer of the corporation by or pursuant to applicable…
   • § 191 “Officers’ certificate” has the meaning set forth in Section 173 of the Corporations Code.
   • § 193 “Resulting,” when used with respect to a corporation, means: (a) In the case of a consolidation, the corporation into which the constituent corporations are…
   • § 195 “ROCA supervisory rating” shall have the meaning set forth in Section 327.8(k) of Title 12 of the Code of Federal Regulations.
   • § 197 “Savings association” includes a savings association, a savings and loan association, and a savings bank. However, “savings association” does not include any…
   • § 199 “Series,” when used with respect to shares, has the meaning set forth in Section 183 of the Corporations Code.
   • § 201 “Shares” has the meaning set forth in Section 184 of the Corporations Code.
   • § 203 “Shareholder” has the meaning set forth in Section 185 of the Corporations Code.
   • § 205 “State”: (a) When used with respect to a corporation, means a corporation that is organized under the laws of a state of the United States. (b) When used with…
   • § 207 “State of the United States” means any state of the United States, the District of Columbia, any territory of the United States, Puerto Rico, Guam, American…
   • § 209 “Surviving,” when used with respect to a corporation, means a corporation in which one or more other corporations are merged.
   • § 211 “Uniform Interagency Trust Rating System (UITRS)” shall have the meaning set forth in the policy statement regarding the uniform interagency trust rating…
   • § 213 “Uniform Rating System for Informational Technology (URSIT)” shall have the meaning set forth in the policy statement regarding the uniform rating system for…
   • § 215 “Vote” has the meaning set forth in Section 194 of the Corporations Code.
   • § 217 “Voting power” has the meaning set forth in Section 194.5 of the Corporations Code.
2. CHAPTER 2. Transition Provisions §§ 250–254 · 5 sections

   • § 250 In this chapter, unless the provision or context requires otherwise: (a) “New General Corporation Law” means Division 1 (commencing with Section 100), Title 1…
   • § 251 For purposes of Chapter 23 (commencing with Section 2300) of the new General Corporation Law, in the case of any subject institution existing on January 1,…
   • § 252 (a) Sections 600 and 600.2 of the revised Banking Law shall not apply to any subject institution existing on January 1, 1979, unless and until an amendment of…
   • § 253 In case the board of a subject institution has, prior to January 1, 1979, adopted a resolution levying an assessment on the common shares of such subject…
   • § 254 Article 3 (commencing with Section 640), Chapter 5 of the revised Banking Law applies to any distribution to its shareholders made after January 1, 1979, by a…
3. CHAPTER 3. Department of Financial Protection and Innovation §§ 300–414 · 53 sections

   1. ARTICLE 1. General Provisions §§ 300–301 · 2 sections

      • § 300 (a) In this section: (1) “Business and industrial development corporation” means a corporation licensed under Division 15 (commencing with Section 31000). (2)…
      • § 301 (a) This chapter is applicable to this division, Division 1.1 (commencing with Section 1000), Division 1.2 (commencing with Section 2000), Division 1.6…
   2. ARTICLE 2. Commissioner of Financial Protection and Innovation §§ 320–338 · 20 sections

      • § 320 (a) The chief officer of the Department of Financial Protection and Innovation is the Commissioner of Financial Protection and Innovation. The Commissioner of…
      • § 321 (a) In this section, “order” means any approval, consent, authorization, exemption, denial, prohibition, requirement, or other administrative action,…
      • § 322 The commissioner is appointed by the Governor, and holds office at the pleasure of the Governor. The appointment of the commissioner is subject to confirmation…
      • § 323 The commissioner shall be a citizen of the United States and a resident of the state for at least three years prior to his or her appointment. The commissioner…
      • § 324 The annual salary of the commissioner is provided for by Chapter 6 (commencing with Section 11550) of Part 1 of Division 3 of Title 2 of the Government Code.
      • § 325 Before entering upon the duties of his or her office, the commissioner shall take and subscribe to the constitutional oath of office and file the same with the…
      • § 326 (a) The Commissioner of Financial Protection and Innovation is responsible for the performance of all duties, the exercise of all powers and jurisdiction, and…
      • § 327 (a) The commissioner shall apply the Interagency Guidance on Nontraditional Mortgage Product Risks issued in September 2006 and the Statement on Subprime…
      • § 328 (a) The commissioner may make the agreements that he or she deems necessary or appropriate in exercising his or her powers. (b) (1) The agreements authorized…
      • § 329 (a) For purposes of this section, the following definitions apply: (1) “Applicable law” means: (A) With respect to any bank, Division 1.6 (commencing with…
      • § 330 The authority vested in the Superintendent of Banks under subdivision (2) of Section 1 of Article XV of the California Constitution is delegated to the…
      • § 331 The commissioner may adopt and implement any method of accepting electronic filings of applications, reports, or other matters, which, in the opinion of the…
      • § 331.5 (a) (1) A licensee subject to the commissioner’s jurisdiction shall establish and maintain an electronic service address designated for receiving…
      • § 332 (a) (1) In this section, “federal law” includes, but is not limited to, the United States Constitution, any federal statute, any federal court decision, and…
      • § 333 The powers of supervision and examination of all licensees are vested in the commissioner.
      • § 334 The commissioner may promulgate or waive such rules and regulations as may be reasonable or necessary to carry out his or her duties and responsibilities.
      • § 335 (a) The commissioner, whenever in his or her opinion such action is necessary or appropriate to carry out his or her duties, may call a meeting of the board of…
      • § 336 The commissioner may, at any time, require a licensee to write down any asset held by the licensee to a valuation that will represent the asset’s then fair…
      • § 337 (a) The commissioner, when conducting examinations under Section 500, 14250, 16150, or 16700, shall examine a licensee that maintains a correspondent account…
      • § 338 Upon declaration of a state of emergency, pursuant to the California Emergency Services Act (Chapter 7 (commencing with Section 8550) of Division 1 of Title 2…
   3. ARTICLE 3. Deputies and Employees §§ 350–357 · 8 sections

      • § 350 The chief deputy shall be appointed by the Governor and hold office at the pleasure of the Governor. The annual salary of the chief deputy shall be fixed by…
      • § 351 (a) The chief officer of the Division of Corporations and Financial Institutions is the Senior Deputy Commissioner of Financial Protection and Innovation for…
      • § 352 The commissioner may employ deputies in addition to the chief deputy, and examiners, appraisers, technical assistants, investigators, administrative…
      • § 353 Before entering upon the duties of his or her office each deputy and examiner shall take and subscribe to the constitutional oath of office.
      • § 354 The commissioner may require, at any time, of any deputy, examiner, or other employee of the department, an official bond in such amount as the commissioner…
      • § 355 The Commissioner of Financial Protection and Innovation, the Senior Deputy Commissioner of the Division of Financial Institutions, or any deputy or employee of…
      • § 356 If the commissioner is unable to perform his or her duties for more than 30 consecutive days or if the office of the commissioner becomes vacant, the chief…
      • § 357 If a deputy commissioner or any examiner has knowledge of the insolvency or unsafe condition of any licensee and willfully fails to report that fact to the…
   4. ARTICLE 4. Administration of the Department §§ 370–382 · 12 sections

      • § 370 The commissioner may have an office in the City of Sacramento, the City of Los Angeles, the City of San Diego, the City and County of San Francisco, or any…
      • § 372 The department may expend moneys in accordance with law for the necessary travel expenses of officers and employees of the department while traveling in the…
      • § 373 The commissioner shall adopt and keep an official seal. Papers executed by the commissioner in his or her official capacity pursuant to law and bearing the…
      • § 374 (a) Whenever it is necessary for the commissioner to approve any instrument and to affix his or her official seal thereto, the commissioner shall charge a fee…
      • § 375 Official reports made by the commissioner and verified reports of an examination made by the commissioner, exclusively or in conjunction with or with…
      • § 376 At least once each month, the commissioner shall issue and disseminate as the commissioner deems appropriate a bulletin containing the following information:…
      • § 377 Notwithstanding any other provision of this code, whenever any provision of the Financial Institutions Law requires the pledge of securities to be deposited…
      • § 378 Whenever the commissioner is notified of or discovers a violation of the state law punishable by criminal penalties, he or she shall promptly advise the…
      • § 379 (a) For the purposes of this section the following definitions shall apply: (1) “Control” has the meaning set forth in subdivision (b) of Section 1250.…
      • § 380 (a) The commissioner shall inform appropriate state and federal officials charged with the regulation of financial institutions or securities transactions of…
      • § 381 Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to hearings conducted by the department.
      • § 382 (a) The department shall require fingerprint images from any department employee, prospective employee or applicant seeking employment within the department,…
   5. ARTICLE 5. Financial Institutions Fund § 400 · 1 section

      • § 400 As of the operative date of this section, there is established a Financial Institutions Fund in the State Treasury. Except as otherwise provided in Division 5…
   6. ARTICLE 6. State Banking Account §§ 405–414 · 10 sections

      • § 405 (a) The commissioner shall annually collect pro rata from the banks and trust companies under the supervision of the department a fund in an amount sufficient…
      • § 406 The commissioner shall annually collect from national banking associations and foreign (other state) banks operating trust departments in this state an annual…
      • § 407 Whenever the commissioner makes an assessment pursuant to Section 405 or 406, the commissioner shall fix the date when the assessment is due and payable and…
      • § 408 The commissioner, in addition to the annual assessment, shall collect from each bank authorized to engage in the trust business, to defray the cost of…
      • § 409 If any bank or trust company fails to make timely payment of any assessment made pursuant to Section 405, 406, or 408, the commissioner may, in the…
      • § 410 As of the operative date of this section: (a) The State Banking Fund is converted into a separate account in the Financial Institutions Fund and designated as…
      • § 411 Except as otherwise provided in Section 413 or 414, all salaries and other expenses of the department, other than those incurred in administering laws relating…
      • § 412 The commissioner shall deliver all moneys received or collected by the commissioner under Section 405, 406, or 408 or otherwise, other than moneys received or…
      • § 413 (a) In this section, “assessment statute” means any statute that authorizes the commissioner to make or collect an assessment (other than a fine) on financial…
      • § 414 Notwithstanding any other provision of this code or of Section 53667 of the Government Code, the commissioner may, at any time during a fiscal year, pay any…
4. CHAPTER 4. Operations §§ 450–464 · 15 sections

   • § 450 (a) In this section, “governmental agency” includes, without limitation, any agency of this state, of any other state of the United States, of the United…
   • § 451 With the prior approval of the commissioner, a foreign (other state) or foreign (other nation) financial institutions regulatory agency may examine a licensee…
   • § 452 (a) Directors, officers, employees, attorneys, accountants, or consultants of a licensee may not disclose in any manner to any person confidential information…
   • § 453 Every licensee shall make and file with the commissioner whenever required by him or her a report in any form as the commissioner may prescribe and verified in…
   • § 454 The commissioner shall call for the report specified in Section 453 from all licensees at least four times each year upon dates selected by the commissioner.
   • § 455 The commissioner may at any time require any licensee to make and file with him or her a special report furnishing any information as the commissioner may…
   • § 456 Every licensee shall keep its corporate records, financial records, and books of account in words and figures of the English language and in form satisfactory…
   • § 457 Every licensee shall notify the commissioner of any change in the following officers of the licensee, to the extent that those officers exist within the…
   • § 458 (a) Each report required under this article, or under any other provision of law administered by the commissioner, shall be filed with the commissioner at the…
   • § 459 (a) Every licensee shall file with the commissioner one copy of all material filed by the licensee with a federal agency that is charged with the supervision…
   • § 460 Any person intentionally making a false statement in any report required to be rendered under this article or other provision of law administered by the…
   • § 461 Any debt due a licensee on which interest is past due and unpaid for the period of one year shall be charged off, unless the debt is well secured or is in…
   • § 462 Any person that provides services to any licensee, at the request of the commissioner, shall submit to an examination by the commissioner. Should the…
   • § 463 (a) All references in this code and the Corporations Code to financial statements, balance sheets, income statements, and statements of changes in financial…
   • § 464 (a) An officer of a financial institution, within the meaning of Section 1101(1) of the federal Right to Financial Privacy Act of 1978 (12 U.S.C. Sec.…
5. CHAPTER 5. Examinations and Reports-Banking §§ 500–521 · 12 sections

   1. ARTICLE 1. Examination §§ 500–509 · 10 sections

      • § 500 (a) (1) For purposes of this section, “foreign bank” means the business in this state of every foreign (other nation) bank licensed under Article 3 (commencing…
      • § 501 (a) Whenever, in the judgment of the commissioner, it is necessary or advisable to make an extra examination of or to devote any extraordinary attention to any…
      • § 502 (a) The commissioner may by order or regulation grant exemptions from this section in cases where the commissioner finds that the requirements of this section…
      • § 503 The commissioner, whenever in his or her opinion the condition of the bank, trust company, or foreign banking corporation is such as to require such audit, may…
      • § 504 The commissioner, for good cause, at any time and from time to time may employ appraisers to appraise the value of any investment, asset, or property held or…
      • § 505 The commissioner, a deputy commissioner, and every examiner assigned to an examination may administer an oath to any person whose testimony is required for the…
      • § 506 Whenever he or she deems it expedient, the commissioner may call a meeting of the stockholders of any bank or trust company. Notice of the time and place of…
      • § 507 During any emergency period declared by the President of the United States, each bank shall conform to any order of the commissioner directed to it, relating…
      • § 508 During any emergency period declared by the Governor no bank shall transact any banking business except to such extent and subject to such regulations,…
      • § 509 (a) The commissioner may, in his or her discretion, bring an action in the name of the people of this state in a superior court to enjoin a violation of, to…
   2. ARTICLE 2. Reports §§ 520–521 · 2 sections

      • § 520 (a) A California state bank shall prominently display in the lobby of its main office and each branch office, except an automated teller machine branch office,…
      • § 521 (a) A bank or credit union subject to the examination authority of the commissioner shall report annually, on or before March 1, to the commissioner on the…
6. CHAPTER 5.5. Nonsufficient Funds Fees § 530 · 1 section

   • § 530 A bank or credit union subject to the examination authority of the commissioner shall not charge a consumer a nonsufficient funds fee, as defined in Section…
7. CHAPTER 6. Enforcement §§ 550–595 · 28 sections

   1. ARTICLE 1. General Provisions §§ 550–554 · 5 sections

      • § 550 In this article: (a) “Appropriate licensee business” means the business that a licensee may conduct in accordance with the charter or license that the…
      • § 551 Any subject person who is entitled to a hearing pursuant to this article may waive that right at any time. A waiver under this section shall relieve the…
      • § 552 (a) Within 30 days after an order is issued pursuant to Section 567, 581, 582, 586, or 591, or subdivision (c) of Section 587, the person to whom the order is…
      • § 553 In addition to any other action or requirement the commissioner deems necessary or advisable, an order issued pursuant to Section 580, 581, 582, 585, 586, or…
      • § 554 If the commissioner takes possession of a subject institution without a prior notice or hearing, or takes action against a subject person without prior notice…
   2. ARTICLE 2. Actions Involving the Conduct of Business by Unauthorized Persons §§ 560–567 · 8 sections

      • § 560 No person who has not received a certificate from the commissioner authorizing it to engage in the banking business shall solicit or receive deposits, issue…
      • § 561 No person who has not received a certificate from the commissioner authorizing it to engage in the banking business shall advertise that it is accepting…
      • § 562 No person who has not received a certificate from the commissioner authorizing it to engage in the banking business shall transact business under any name or…
      • § 563 No provision of Section 560, 561, or 562 prohibits any of the following from transacting any business or performing any activity if it is authorized by…
      • § 564 Any person or any bank violating any provision of the foregoing sections of this article shall be liable to the people of the state in the amount of one…
      • § 565 No person shall represent by advertisement, circular, or otherwise, or in any manner mislead anyone to believe, that any securities are legal investments for…
      • § 566 (a) The commissioner may bring an action in the name of the people of this state in superior court to enjoin any violation of, to enforce compliance with, or…
      • § 567 If the commissioner finds that a person has conducted, or that there is reasonable cause to believe that a person is about to conduct, business that requires a…
   3. ARTICLE 3. Orders Against Licensees and Subject Persons §§ 580–583 · 4 sections

      • § 580 If, after notice and an opportunity to be heard, the commissioner finds any of the factors set forth in subdivision (a) or (b) with respect to any subject…
      • § 581 If the commissioner finds that any of the factors set forth in Section 580 is true with respect to any subject institution, subject person, or holding company,…
      • § 582 If the commissioner finds that a subject institution’s books or records are so incomplete or inaccurate that the commissioner is unable through the normal…
      • § 583 (a) The commissioner shall make public on the department’s Internet Web site all final orders issued pursuant to Sections 329, 567, 580, 581, 582, 585, 586,…
   4. ARTICLE 4. Suspension or Removal of Subject Persons §§ 585–589 · 5 sections

      • § 585 If, after notice and an opportunity to be heard, the commissioner finds that any of the factors set forth in subdivision (a), any of the factors set forth in…
      • § 586 If the commissioner finds that any of the factors set forth in subdivision (a) of Section 585, any of the factors set forth in subdivision (b) of Section 585,…
      • § 587 (a) If the commissioner finds that any of the factors set forth in paragraph (1) and the factor set forth in paragraph (2) are true with respect to a subject…
      • § 588 (a) Any subject institution, subject person of a subject institution, or former subject person of a subject institution to whom an order is issued under…
      • § 589 (a) In this section, “subject financial institution” means any: (1) Licensee or any bank or credit union that maintains an office in this state. (2) Affiliate…
   5. ARTICLE 5. Suspension or Possession of a License §§ 590–595 · 6 sections

      • § 590 The commissioner may revoke or suspend any license issued by, or under the authority of, the commissioner, if, after notice and opportunity to be heard, the…
      • § 591 If the commissioner finds that any of the factors set forth in Section 590 is true with respect to any licensee and that it is necessary for the protection of…
      • § 592 If the commissioner finds that any of the factors set forth in subdivisions (a) to (k), inclusive, is true with respect to a licensee, the commissioner may by…
      • § 593 (a) If the commissioner takes possession of the property and business of a licensee pursuant to Section 592, the licensee may, within 10 days, apply to the…
      • § 594 (a) Upon taking possession of the property and business of any licensee, the commissioner shall give notice of that fact to all persons holding or having in…
      • § 595 The commissioner is deemed to take possession of the entire property and business of a licensee when the commissioner takes possession of the business and…
8. CHAPTER 7. Liquidation and Conservation §§ 600–710 · 55 sections

   1. ARTICLE 1. General Provisions §§ 600–609 · 10 sections

      • § 600 In this chapter, “Federal Insurance Agency” means the Federal Deposit Insurance Corporation or the National Credit Union Administration, as appropriate, or…
      • § 601 Upon taking possession of the property and business of any licensee, the commissioner has authority, and it is his or her duty, to collect all moneys due to…
      • § 602 No attachment shall be issued against the property of any licensee subject to conservation or liquidation pursuant to this article.
      • § 603 Upon taking possession of the property and business of any licensee pursuant to Section 592, the commissioner may proceed to liquidate or conserve the licensee…
      • § 604 Upon taking possession of the property and business of a licensee pursuant to Section 592, the commissioner may tender to any person or persons an appointment…
      • § 605 The commissioner shall supervise the acts of the conservator, liquidator, receiver, or liquidating committee appointed under this article and may remove the…
      • § 606 If required by the commissioner, the conservator, liquidator, receiver, or members of the liquidating committee appointed under this article shall provide…
      • § 607 (a) If the commissioner retains possession of the assets of the licensee for the purpose of liquidation or conservation, the commissioner shall, to the extent…
      • § 608 The compensation of civil service employees, special deputies, counsel, and other employees and assistants appointed to assist in the conservation or…
      • § 609 If a licensee is not insured by a Federal Insurance Agency, upon the commissioner taking possession of the business and property of the licensee, the superior…
   2. ARTICLE 2. Conservation or Liquidation of an Insured Licensee §§ 620–624 · 5 sections

      • § 620 If the licensee whose property and business has been taken pursuant to Section 592 is insured by a Federal Insurance Agency, the commissioner may tender to the…
      • § 621 The Federal Insurance Agency may be, and act as, a conservator, liquidator, or receiver without bond.
      • § 622 If the Federal Insurance Agency accepts the appointment in accordance with Section 620, the rights of customers and other creditors of the insured licensee…
      • § 623 The Federal Insurance Agency conservator, liquidator, or receiver shall possess with respect to the insured licensee all the powers, rights, and privileges…
      • § 624 (a) The commissioner may sell to any other licensee any part or the whole of the business of a licensee that is subject to liquidation or conservatorship. The…
   3. ARTICLE 3. Conservatorship of an Uninsured Licensee §§ 640–652 · 13 sections

      • § 640 Whenever the commissioner deems it necessary in order to conserve the assets of any licensee that does not have federal deposit or share insurance for the…
      • § 641 A conservator appointed in accordance with Section 640 has all of the powers and rights with relation to the business and the property of the licensee for…
      • § 642 The commissioner may order an examination at the earliest possible date of a licensee for which the commissioner has appointed a conservator.
      • § 643 While any licensee is in the hands of a conservator, the commissioner may require the conservator to set aside and make available for withdrawal by customers…
      • § 644 The commissioner, in his or her discretion, may permit the conservator to receive shares or deposits, but any shares or deposits received while the licensee is…
      • § 645 If the commissioner is satisfied that it may be done safely and that it would be in the public interest, he or she may terminate a conservatorship and permit…
      • § 646 The conservator of a licensee that has been permitted to resume accepting member shares or deposits shall first cause a notice to be published in a newspaper…
      • § 647 The commissioner may assess and collect from all licensees for whom a conservator is appointed their ratable share of the costs incurred in the administration…
      • § 648 Any licensee that the commissioner has taken possession of pursuant to Section 592, and for which a conservator has been appointed pursuant to this article,…
      • § 649 All customers, creditors, stockholders, if applicable, and other interested persons shall be given notice of any proposed plan of reorganization in the manner…
      • § 650 No plan of reorganization shall become effective until the commissioner finds that the plan is fair and equitable to all customers, creditors, and…
      • § 651 No creditor having security for the payment of his, her, or its claim shall be affected in his, her, or its right to enforce the security by the provisions of…
      • § 652 When any plan of reorganization becomes effective, all books, records, and assets of the licensee shall be disposed of in accordance with the provisions of the…
   4. ARTICLE 4. Liquidation of an Uninsured Licensee §§ 670–692 · 23 sections

      • § 670 Upon taking possession of the property and business of a licensee that does not have federal deposit or share insurance, the commissioner may sell, compromise,…
      • § 671 The commissioner may sell any real or personal property of the licensee for cash or on credit and on any other terms and conditions as the commissioner may…
      • § 672 (a) The commissioner may, with the approval of the court, sell any part or the whole of the business of a licensee to any other licensee. The purchase and sale…
      • § 673 Within six months after taking possession of the property and business of any licensee that does not have federal deposit or share insurance, the commissioner…
      • § 674 The commissioner, in his or her own name or in the name of the licensee, may execute, acknowledge, and deliver any and all conveyances and other instruments…
      • § 675 The commissioner, in the name of the delinquent licensee or in his or her own name, may prosecute and defend any and all actions and other legal proceedings…
      • § 676 The commissioner from time to time shall deposit all moneys coming into his or her hands in the course of the liquidation of the licensee in one or more state…
      • § 677 The commissioner shall make an inventory of the assets of the licensee in duplicate and file one in the office of the commissioner and one with the clerk of…
      • § 678 When the time fixed for the presentation of claims has expired, the commissioner shall make in duplicate a full and complete list of all claims presented,…
      • § 679 The commissioner shall cause notice to be given by advertisement in any newspapers of general circulation as he or she may select weekly for three consecutive…
      • § 680 All claims of every kind against the licensee or against any property owned or held by the licensee shall be presented to the commissioner in writing verified…
      • § 681 At any time and from time to time after the expiration of the time fixed for the presentation of claims, the commissioner, after obtaining approval of the…
      • § 682 (a) Expenses and claims of unsecured creditors have priority in the following order: (1) Expenses of liquidation and approved claims for fees and assessments…
      • § 683 Objections to any claim not rejected by the commissioner may be made by any person interested by filing a copy of the objection with the commissioner, who…
      • § 684 Dividends remaining unpaid and any sums available for payment of shares or deposits for which no claim was filed, which remain in the hands of the commissioner…
      • § 685 Whenever, under the provisions of this article, the commissioner is required to transmit unclaimed money or other unclaimed property to any state officer for…
      • § 686 All approved claims of customers and other creditors shall bear interest at the rate provided by law on judgments from the date that the commissioner takes…
      • § 687 If the licensee has in its possession for safekeeping or storage any jewelry, plate, money, specie, bullion, stocks, bonds, securities, valuable papers, or…
      • § 688 On the last day fixed in the notice for the removal of the property or on the date when the property is removed or the box surrendered, any contract between…
      • § 689 If any property is not removed within the time fixed by the notice mailed by the commissioner, the commissioner may dispose of the property as the court, on…
      • § 690 (a) When the commissioner has completed the liquidation of the licensee, he or she shall petition the court for an order declaring the licensee duly wound up…
      • § 691 Whenever this article requires court approval of any step in the liquidation proceedings, approval shall be given after a hearing upon notice as the court may…
      • § 692 Whenever, in the opinion of the commissioner, the liquidation or reorganization of any licensee taken in charge by him or her would be facilitated, or the…
   5. ARTICLE 5. Disposal of Unclaimed Trust Property §§ 700–702 · 3 sections

      • § 700 Whenever any licensee is being liquidated or whenever the trust business of any licensee has been discontinued and the licensee has in its possession money or…
      • § 701 Upon the delivery of any money to the Treasurer or upon the delivery of any property to the Controller, a certified copy of the order of the court approving…
      • § 702 All money or other property delivered to the Treasurer or Controller pursuant to this article shall be deemed to be delivered for deposit in the State Treasury…
   6. ARTICLE 6. Priorities § 710 · 1 section

      • § 710 The holder or transferor of a negotiable instrument transferred to a licensee for collection has a preferred claim in the amount of the liability of the…
9. CHAPTER 8. Voluntary Liquidation §§ 720–721 · 2 sections

   • § 720 Any licensee that voluntarily has ceased to do the business for which it is licensed shall immediately notify the commissioner and proceed to liquidate its…
   • § 721 If the licensee referred to in Section 720 is a state-chartered credit union and the commissioner has taken possession of the business and property of the…
10. CHAPTER 9. Approval of Names of Nonbank Corporations §§ 730–734 · 5 sections

    • § 730 In this chapter: (a) “Nonbank corporation” means any corporation incorporated or proposed to be incorporated under the laws of this state, other than (1) any…
    • § 731 An application for a certificate of approval of the subject name of a nonbank corporation shall be in such form, shall contain such information, shall be…
    • § 732 The fee for filing with the commissioner an application for a certificate of approval of the subject name of a nonbank corporation shall be twenty-five dollars…
    • § 733 If the commissioner finds, with respect to an application for a certificate of approval of the subject name of a nonbank corporation, that the subject name…
    • § 734 Promptly after the articles of a nonbank corporation, with the certificate of approval of the subject name of such nonbank corporation attached thereto, are…
11. CHAPTER 10. Legal Investments for Nonbank Licensees §§ 800–819 · 20 sections

    • § 800 As used in this chapter, unless the context requires otherwise, the following terms have the following meanings: (a) “Net direct debt” of any public…
    • § 801 Any securities or other assets that are described in Sections 803 to 819, inclusive, are legal investments for savings banks.
    • § 802 Where any laws of this state provide that the moneys of any pension fund, retirement plan, trust fund, or the moneys of any special fund the investment of…
    • § 803 Gold and silver bullion and United States mint certificates of ascertained value.
    • § 804 Stock of a federal reserve bank or of a federal home loan bank to the extent authorized by Section 1325.
    • § 805 Bonds or other interest-bearing notes and obligations of the United States and those for which the faith and credit of the United States are pledged for the…
    • § 806 Bonds of the State of California and those for which the faith and credit of the State of California are pledged for the payment of principal and interest and…
    • § 807 Bonds of any flood control and water conservation districts, or any zone thereof, having an assessed valuation on taxable real property of not less than one…
    • § 808 Bonds of any other political subdivision, public corporation, or district of the State of California (herein referred to generally as public corporations)…
    • § 809 (a) Any of the following subject to the conditions set forth in subdivision (b) to (d), inclusive. (1) Bonds or other evidences of indebtedness of, or which…
    • § 810 Bonds of any irrigation district, water storage district, water conservation district, county water district, reclamation district, drainage district, and any…
    • § 811 (a) Bonds, consolidated bonds, collateral trust debentures, consolidated debentures, or other obligations issued by federal land banks or federal intermediate…
    • § 812 Bonds, notes or other obligations issued by the Federal Financing Bank, the United States Postal Service, or issued or assumed by the International Bank for…
    • § 813 (a) Notes with a maturity not exceeding 15 months after the date of issue, issued in anticipation of uncollected taxes, income, revenue, cash receipts, and…
    • § 814 Revenue securities of any state of the United States, or of the Commonwealth of Puerto Rico, and of any city, county, city and county, political subdivision,…
    • § 815 Bonds of any local public housing agency (as defined in the United States Housing Act of 1937, as amended) that are secured by either of the following: (a) An…
    • § 816 Bonds secured by an insurance commitment of the Federal Housing Administration.
    • § 817 Evidences of indebtedness of companies incorporated in the United States and, directly or indirectly, engaged in manufacturing, extraction, merchandising, or…
    • § 818 Fixed interest railroad bonds meeting the requirements of subdivisions (a) and (b); bonds secured by a mortgage on jointly operated railroad facilities meeting…
    • § 819 Bonds and debentures of gas, electric, or gas and electric companies meeting the requirements of subdivision (a); bonds and debentures of telephone companies…
12. CHAPTER 11. Financial Abuse of Victims of Domestic Violence § 900 · 1 section

    • § 900 (a) Commencing on or before January 1, 2027, the department shall make available to financial institutions and the general public online resources related to…