DIVISION 1.1. BANKING [1000. - 1910.]
Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3.
§§ 1000–1910 · 436 sections
CHAPTER 1. General Provisions §§ 1000–1008 · 9 sections
- § 1000 When authorized by the commissioner as provided in Chapter 3 (commencing with Section 1040) a corporation may be formed by one or more persons in accordance…
- § 1001 This division is known, and may be cited, as the “Banking Law.”
- § 1002 No bank shall be a close corporation (as defined in Section 158 of the Corporations Code).
- § 1003 Except where explicitly stated or the context provides otherwise, this division is applicable to the following: (a) All corporations engaging in commercial…
- § 1004 (a) A California state bank is a corporation incorporated under Division 1 (commencing with Section 100) of Title 1 of the Corporations Code or, in the case of…
- § 1005 It shall be unlawful for any person, corporation, limited liability company, partnership, firm, or any other form of business entity allowed by law, to engage…
- § 1006 No corporation shall hereafter be organized under the laws of this state to transact the business of a commercial bank, industrial bank, or trust company,…
- § 1007 Neither the enactment of this code nor the amendment or repeal thereof, nor the repeal of any statute affected thereby, shall take away or impair any liability…
- § 1008 When applicable to a corporation organized as a public bank, as defined in Section 57600 of the Government Code, references in this division to share,…
CHAPTER 2. Application §§ 1020–1027 · 8 sections
- § 1020 The request for authority to organize and establish a corporation to engage in the banking or trust business shall be set forth in an application in such form…
- § 1021 Upon receiving a request for an application, the commissioner shall inform the prospective applicant in writing that the commissioner is available to confer…
- § 1022 Upon the filing of an application the commissioner shall make or cause to be made a careful investigation and examination relative to the following: (a) The…
- § 1023 The commissioner may give or withhold his or her approval of the application in his or her discretion, but he or she shall not approve the application until he…
- § 1024 (a) In this section, “control” has the meaning set forth in Section 1250. (b) For purposes of Section 1023, the commissioner may find: (1) That a proposed…
- § 1025 At least 30 days before denying an application, the commissioner shall by mail or other method of service give written notice of the intended denial of an…
- § 1026 The commissioner may, in approving an application to organize and establish a corporation to engage in the banking or trust business pursuant to Section 1023,…
- § 1027 (a) With the approval of the commissioner, a bank may be formed to facilitate a merger or an acquisition of control. The new bank may survive the merger or…
CHAPTER 3. Authorization to Engage in Banking §§ 1040–1048 · 9 sections
- § 1040 In this article: (a) “Preopening expenditure” means any obligation incurred, or sum disbursed, by a bank prior to the time when it commences to transact…
- § 1041 The articles of incorporation of the proposed bank or trust company shall be submitted to the commissioner for his or her approval before they are filed with…
- § 1042 If the commissioner finds that the proposed bank or trust company has in good faith complied with all the requirements of law and fulfilled all the conditions…
- § 1043 It shall be unlawful to accept payment of subscriptions for shares of any corporation proposing to engage in the banking or trust business unless authority to…
- § 1044 No corporation organized to transact a commercial banking or trust business shall transact any business until the commissioner has issued his or her…
- § 1045 If the proposed bank or trust company fails to file evidence of incorporation and organization with the commissioner pursuant to Section 1041 within one year…
- § 1046 If the proposed bank or trust company fails to open for business within 90 days after the issuance of the certificate of authorization, the right to transact…
- § 1047 It is unlawful to apply any part of the funds collected from subscribers or shareholders to the payment of commissions or fees for obtaining subscriptions or…
- § 1048 Every bank and trust company shall keep posted in a conspicuous place in its banking room at its head office the certificate of authority to transact a banking…
CHAPTER 4. Bank Offices §§ 1070–1083 · 14 sections
- § 1070 For purposes of this chapter, the following definitions apply: (a) “Automated teller machine” means any electronic information processing device used by a…
- § 1071 The commissioner shall issue a certificate in duplicate authorizing a bank to establish and maintain an office. A bank shall pay a fee of twenty-five dollars…
- § 1072 Every bank shall establish and maintain a head office which shall be located in this state.
- § 1073 A bank, with the approval of its board, may establish and maintain one or more offices.
- § 1074 A bank, with the approval of its board, may relocate an office.
- § 1075 A bank, with the approval of its board, may redesignate offices.
- § 1076 Each time a bank establishes an office, relocates an office, or redesignates an office, the bank shall, within 10 days of the establishment, relocation, or…
- § 1077 On or before January 1 of each year, every bank shall file with the commissioner a list of all offices that are currently maintained and operated by the bank.…
- § 1078 (a) A bank may close or discontinue the operation of any branch office if, before the closing or discontinuance, (1) the bank files with the commissioner a…
- § 1079 If the commissioner finds for any reason that the establishment, relocation, or redesignation of office would be unsafe or unsound for a bank, the commissioner…
- § 1080 If a bank violates any provision of this chapter or fails to comply with any order, the commissioner may levy a penalty against the bank pursuant to Section…
- § 1081 A bank, with the approval of its board, may discontinue a facility office. Within 10 days of the date of the closure of the facility office, the bank shall…
- § 1082 Any bank that establishes a branch office in this state in accordance with Section 36(g)(1)(A) of the National Bank Act (12 U.S.C. Sec. 36(g)(1)(A)), or…
- § 1083 (a) A bank may participate in a financial education program that involves receiving deposits or paying withdrawals on the premises of, or at a facility used…
CHAPTER 4.5. Bank Extraordinary Situation Closing §§ 1090–1096 · 7 sections
- § 1090 This chapter is known and may be cited as the “Bank Extraordinary Situation Closing Act.”
- § 1091 “Extraordinary situation” means any condition or occurrence, other than as set forth in Section 592, that may interfere or is inconsistent with the conduct of…
- § 1092 Whenever the commissioner determines that an extraordinary situation exists anywhere in this state the commissioner may, by proclamation, authorize banks…
- § 1093 (a) Whenever the officers of a bank are of the opinion that an extraordinary situation exists which affects or may affect one or more of a bank’s offices, they…
- § 1094 A bank closing an office or offices pursuant to the authority granted under subdivision (a) of Section 1093 shall give prompt notice of its action to the…
- § 1095 Any day on which a bank or any one or more of its offices is closed pursuant to the authorization granted by this chapter shall be, with respect to such bank…
- § 1096 Provisions of this chapter shall be construed and applied as being in addition to, and not a substitution for, or limitation of, any other law of this state or…
CHAPTER 5. Corporate Requirements §§ 1100–1190 · 28 sections
ARTICLE 1. Articles, Bylaws, and Names §§ 1100–1107 · 8 sections
- § 1100 The articles of each bank shall contain the applicable one of the following statements: (a) Except as provided in subdivision (f), if the bank is, or is…
- § 1101 (a) In this section: (1) “Assessment provision” means the provision in the articles of a bank that complies with the requirements of Section 600.2, as in…
- § 1102 (a) No amendment of the articles of a bank (other than an amendment set forth in an agreement of merger or in a certificate of ownership executed pursuant to…
- § 1103 No restated articles of a bank shall become effective unless the certificate setting forth such restated articles is filed with the Secretary of State with the…
- § 1104 No certificate of determination of a bank shall become effective unless such certificate of determination is filed with the Secretary of State with the…
- § 1105 No certificate of correction of a bank shall become effective unless such certificate of correction is filed with the Secretary of State with the…
- § 1106 No certificate of revocation of a bank shall become effective unless such certificate of revocation is filed with the Secretary of State with the…
- § 1107 (a) A bank may change its name if it files with the commissioner a report on the proposed change not less than 30 days before the change. The report shall be…
ARTICLE 2. Shares §§ 1120–1122 · 3 sections
- § 1120 A bank may, with the approval of its board, determine and from time to time redetermine the par value of any class or series of its shares unless its articles…
- § 1121 No bank or trust company after October 1, 1949, shall issue any shares before they are fully paid for.
- § 1122 No bank shall issue any shares in consideration of: (a) Services rendered in the organization of such bank; or (b) Any note (whether or not negotiable and…
ARTICLE 3. Distributions to Shareholders §§ 1130–1135 · 6 sections
- § 1130 This article does not apply to any distribution made to the shareholders of a bank in any proceeding to wind up and dissolve or to liquidate such bank.
- § 1131 Section 500 of the Corporations Code does not apply to the making by a bank or by any majority-owned subsidiary of a bank of any distribution to the…
- § 1132 Neither a bank nor any majority-owned subsidiary of a bank shall make any distribution to the shareholders of such bank in an amount which exceeds the lesser…
- § 1133 Notwithstanding the provisions of Section 1132, a bank or a majority-owned subsidiary of a bank may, with the prior approval of the commissioner, make a…
- § 1134 Notwithstanding the provisions of Section 1132, a bank may: (a) With the prior approval of the commissioner, make a distribution to its shareholders by means…
- § 1135 If the commissioner finds that the shareholders’ equity of a bank is not adequate or that the making by a bank or by any majority-owned subsidiary of a bank of…
ARTICLE 4. Shareholders’ Equity §§ 1150–1152 · 3 sections
- § 1150 In determining for purposes of this division whether the shareholders’ equity of a bank or of a proposed bank is adequate, the commissioner shall consider: (a)…
- § 1151 For purposes of any statute, regulation, or requirement of any governmental official or agency which refers to the capital (including, without limitation,…
- § 1152 A bank which has deficit retained earnings may, with the prior approval of its outstanding shares and of the commissioner, readjust its accounts in a…
ARTICLE 5. Directors §§ 1170–1176 · 7 sections
- § 1170 Any reference in this article to the time a notice is given or sent shall be construed in accordance with Section 118 of the Corporations Code.
- § 1171 The board of a bank or trust company hereafter organized shall consist of not less than 5 nor more than 25 directors, and no bank or trust company shall amend…
- § 1172 The board of each bank and of each trust company shall hold a meeting not less than once each calendar quarter. Regular meetings of the board shall be held…
- § 1173 The commissioner may, in the name of the people of this state, bring or intervene in an action under Section 709 of the Corporations Code to determine the…
- § 1174 (a) The commissioner shall be deemed to be a party in interest within the meaning of Section 306 of the Corporations Code with respect to a bank and may, in…
- § 1175 (a) For purposes of Section 316 of the Corporations Code, to the extent that the making by a bank or by any majority-owned subsidiary of a bank of a…
- § 1176 (a) For purposes of Section 316 of the Corporations Code, the making of a loan or guarantee by a bank or any other extending of credit by a bank contrary to…
ARTICLE 6. Shareholders § 1190 · 1 section
- § 1190 (a) Paragraph (1) of subdivision (b) of Section 1501 of the Corporations Code does not apply to the annual report of any bank with respect to any transaction…
CHAPTER 6. Securities §§ 1200–1212 · 13 sections
- § 1200 Unless the context otherwise requires, in this chapter: (a) “Offer” or “offer to sell” includes every attempt or offer to dispose of, or solicitation of an…
- § 1201 No bank organized under the laws of this state shall offer or sell any security issued by it unless the commissioner has issued a permit authorizing such sale.
- § 1202 The following transactions are exempt from Section 1201: (a) (1) Any offer (but not a sale) not involving a public offering by a bank organized under the laws…
- § 1203 An application for a permit shall be in such form and contain such information as the commissioner may prescribe.
- § 1204 The commissioner shall charge and collect fees for applications filed under this chapter as fixed in this section. (a) The fee for a negotiating permit shall…
- § 1205 If the commissioner finds that the proposed sale of securities is fair, just, and equitable, he or she shall issue to the applicant a permit authorizing it to…
- § 1206 The commissioner may impose conditions in any permit issued under Section 1205, requiring the deposit in escrow of securities, imposing a legend condition…
- § 1207 Every permit issued pursuant to Section 1205 shall recite that it is permissive only and does not constitute a recommendation or endorsement of the securities…
- § 1208 The commissioner may amend, alter, suspend, or revoke any permit issued pursuant to Section 1205.
- § 1209 Whenever a bank applies for a permit to issue any security or to deliver any other consideration (whether or not such security or such transaction is exempt…
- § 1210 There shall be exempted from the provisions of Section 1201 any transaction or security, including, without limitation, any type or class of transactions or…
- § 1211 A bank at any time may, with the approval of its board, issue, sell or hypothecate its capital notes or debentures which may be payable upon such terms and may…
- § 1212 Nothing contained in this chapter shall affect the Corporate Securities Law of 1968, Division 1 (commencing with Section 25000) of Title 4 of the Corporations…
CHAPTER 7. Acquisition of Control §§ 1250–1263 · 14 sections
- § 1250 Unless the context otherwise requires, in this chapter: (a) “Bank” means a bank organized under the laws of this state. (b) “Control” means possession, direct…
- § 1251 No person shall, directly or indirectly, unless the commissioner has approved such acquisition of control, do any of the following: (a) Make a tender offer…
- § 1252 Notwithstanding any other provision of this chapter, except for those persons approved by the commissioner prior to September 1, 2002, and for those persons…
- § 1253 An application for approval to acquire control of a bank or a controlling person shall be in such form and contain such information as the commissioner may…
- § 1254 If the commissioner finds, with respect to the proposed acquisition of control of a bank or a controlling person, that any of the factors set forth in…
- § 1255 (a) For purposes of Section 1254, the commissioner may find: (1) That the integrity of an acquiring person indicates that it would not be in the interest of…
- § 1256 The commissioner may, in approving a proposal to acquire control of a bank or a controlling person pursuant to Section 1254, impose such conditions as the…
- § 1257 The commissioner may, for good cause, amend, alter, suspend, or revoke any approval of a proposal to acquire control of a bank or a controlling person issued…
- § 1258 Notwithstanding any other provision of this chapter, any application for approval to acquire control of a bank or a controlling person which is not denied or…
- § 1259 (a) The commissioner, before determining whether, for purposes of this chapter, a person controls another person or before denying or approving an application…
- § 1260 There shall be exempted from the provisions of Section 1251 any transaction, including, without limitation, any type or class of transactions, which the…
- § 1261 Whenever it appears to the commissioner that any person has committed or is about to commit a violation of any provision of this chapter or of any regulation…
- § 1262 No person shall be entitled to vote or to give a written consent with respect to any security acquired in contravention of any provision of this chapter or of…
- § 1263 If any provision or clause of this chapter or the application thereof to any person or circumstance is held invalid, illegal, or unenforceable, such…
CHAPTER 8. Bank Holding Companies §§ 1280–1287 · 8 sections
- § 1280 “Bank holding company” means: (a) Any person or company which: (1) Directly or indirectly owns, controls, or holds with power to vote, 10 percent or more of…
- § 1281 “Company” means any domestic or foreign corporation, voting trust, business trust, limited partnership, partnership fund, joint stock company, association,…
- § 1282 “Subsidiaries,” with respect to a specified bank holding company, means: (a) Any company 10 percent or more of whose voting securities are directly or…
- § 1283 The commissioner may from time to time require, under oath or otherwise, reports from any bank holding company and its subsidiaries in such form and as to such…
- § 1284 Each bank holding company and its subsidiaries shall be subject to examination by the commissioner. The commissioner may use, for this purpose, his or her own…
- § 1285 With respect to a trust company controlled by or under common control with a title insurance company, the commissioner in cooperation with the Insurance…
- § 1286 Nothing in this chapter shall be construed to authorize the commissioner to require reports from a national bank or to examine a national bank contrary to…
- § 1287 Pursuant to the authority contained in Section 1 of Article XV of the California Constitution, the restrictions upon rates of interest contained in Section 1…
CHAPTER 9. Authorizations for Banks §§ 1300–1301 · 2 sections
- § 1300 (a) Notwithstanding the provisions of Sections 1051, 1052, and 1054 of the Labor Code and Section 2947 of the Penal Code, a bank or any affiliate thereof,…
- § 1301 (a) Notwithstanding Section 726 of the Code of Civil Procedure or any other provision of law to the contrary, a state or nationally chartered bank, its…
CHAPTER 10. Restrictions and Prohibited Practices §§ 1320–1367 · 30 sections
ARTICLE 1. General Provisions §§ 1320–1341 · 22 sections
- § 1320 A bank or trust company may purchase, acquire, hold, or lease real property or an interest therein only as follows: (a) Such as may be necessary or convenient…
- § 1321 Any real property not held for any purpose permitted by subdivisions (a) and (e) of Section 1320 shall be sold whenever the same can be sold for an amount…
- § 1322 (a) The Legislature finds and declares: (1) That it is necessary to increase job opportunities in real estate development and construction and to provide…
- § 1323 Any director, officer, or employee of a bank or of a foreign banking corporation who asks for or receives, or consents or agrees to receive, any commission,…
- § 1324 Any director, officer, agent, or employee of any bank who knowingly receives or possesses himself or herself of any of its property otherwise than in payment…
- § 1325 Any director, officer, agent, or employee of a bank who knowingly concurs in making or publishing any written report, exhibit, or statement of its affairs or…
- § 1326 No bank shall publish a statement of its resources or liabilities in connection with those of any other bank, unless such statement shall show the resources…
- § 1327 (a) Any person who willfully and knowingly makes, circulates, or transmits to another or others, any statement or rumor, written, printed, or by word of mouth,…
- § 1328 (a) A bank or trust company may engage in the business of renting safe deposit boxes and may receive personal property for safekeeping and storage on its…
- § 1329 (a) In this section, “subject person,” when used with respect to a bank, means any director or officer of the bank, any controlling person of the bank, or any…
- § 1330 (a) In this section, “subject person” has the meaning set forth in subdivision (a) of Section 1329. (b) No subject person of a bank shall purchase, directly or…
- § 1331 (a) For purposes of this section, the following terms have the following meanings: (1) “Carrying a security” means maintaining, reducing, or retiring…
- § 1332 Any officer, director, trustee, employee, or agent of any bank in this state, who abstracts or willfully misapplies any of the money, funds, or property of the…
- § 1333 (a) Every director of a bank in this state who does either of the following is guilty of a misdemeanor: (1) In case of the fraudulent insolvency of such bank,…
- § 1334 An officer or agent of any bank in this state, who makes or delivers any guaranty or endorsement on behalf of such bank, whereby it may become liable upon any…
- § 1335 A director of a bank, organized under the laws of this state, who concurs in any vote or act of the directors of such corporation, or any of them, by which it…
- § 1336 Any director, trustee, officer, or employee of any bank organized under the laws of this state, who makes or maintains, or attempts to make or maintain, a…
- § 1337 Any officer or employee of any bank organized under the laws of this state, who intentionally conceals from the directors of the bank any discounts or loans…
- § 1338 Every officer, agent, teller, or clerk of any bank, and every individual banker, or agent, teller, or clerk of any individual banker, who receives any…
- § 1339 Any officer, director, trustee, employee, or agent of any bank, who willfully makes a false or untrue entry in any book or record or in any report, tag, or…
- § 1340 Unless specifically authorized by law or by the commissioner, a bank shall not become, act as, or in any other manner assume the duties or liabilities of, a…
- § 1341 A bank, or the agent of a bank, that has received a notice pursuant to Section 7507.6 of the Business and Professions Code, shall not make a subsequent…
ARTICLE 2. Loans to Insiders §§ 1360–1367 · 8 sections
- § 1360 It is the intent of the Legislature that the provisions of this article, insofar as they are contained in Regulation O (12 C.F.R. Part 215) of the Federal…
- § 1361 As used in this article: (a) “Bank” means: (1) Any commercial bank, industrial bank, or trust company incorporated under the laws of this state. (2) Any…
- § 1362 Sections 215.2, 215.3, 215.4, 215.5, 215.8, and 215.9 of Regulation O in all of their particulars, including footnotes, are hereby referred to, incorporated by…
- § 1363 No bank shall extend credit in an aggregate amount greater than the amount permitted in paragraph (4) of subdivision (c) of Section 215.5 of Regulation O to…
- § 1364 In making any extension of credit that is subject to this article, a bank shall comply with all other applicable provisions of this division relating to…
- § 1365 No provision of this article or of Article 3 (commencing with Section 1480) of Chapter 14 shall apply to an advance of money made by a bank pursuant to Section…
- § 1366 A bank may make a loan, otherwise complying with the provisions of this division, for the benefit of a trust, notwithstanding that the bank or any one or more…
- § 1367 Any bank that makes an extension of credit in violation of this article is subject to a civil penalty pursuant to Section 329. Any person, other than the bank…
CHAPTER 11. Agency Activities §§ 1380–1397 · 17 sections
ARTICLE 1. General Provisions §§ 1380–1382 · 3 sections
- § 1380 In this chapter, unless the context otherwise requires: (a) “Authorized agency activities” means receiving deposits, renewing time deposits, closing loans,…
- § 1381 This chapter does not apply to a California state bank having an insured depository institution engage in authorized agency activities as its agent or to a…
- § 1382 (a) In this section, “affiliated,” when used with respect to a California state bank and an insured depository institution, means that the California state…
ARTICLE 2. California State Bank as Principal §§ 1384–1390 · 7 sections
- § 1384 Notwithstanding the provisions of Chapter 4 (commencing with Section 1070), a California state bank may, with the prior approval of the commissioner and…
- § 1385 An application by a California state bank for approval to have an insured depository institution engage in authorized agency activities as its agent shall be…
- § 1386 An application by a California state bank for approval to have an insured depository institution engage in authorized agency activities as its agent shall be…
- § 1387 In determining whether to approve or deny an application by a California state bank for approval to have an insured depository institution engage in authorized…
- § 1388 No California state bank may have an insured depository institution conduct as its agent any activity that the California state bank is prohibited from…
- § 1389 No office of an insured depository institution that is performing authorized agency activities as agent for a California state bank in accordance with this…
- § 1390 If the commissioner finds that any activity performed by an insured depository institution as agent for a California state bank is not an authorized agency…
ARTICLE 3. California State Bank as Agent §§ 1391–1397 · 7 sections
- § 1391 Notwithstanding the provisions of Chapter 4 (commencing with Section 1070), a California state bank may, with the prior approval of the commissioner and…
- § 1392 An application by a California state bank for approval to engage in authorized agency activities as agent for an insured depository institution shall be in the…
- § 1393 An application by a California state bank for approval to engage in authorized agency activities as agent for an insured depository institution shall be…
- § 1394 In determining whether to approve or deny an application by a California state bank for approval to engage in authorized agency activities as agent for an…
- § 1395 No California state bank may conduct any activity as an agent for an insured depository institution that the California state bank would be prohibited from…
- § 1396 (a) No office of a California state bank that conducts authorized agency activities as agent for an insured depository institution in accordance with this…
- § 1397 If the commissioner finds that any activities performed by a California state bank as agent for an insured depository institution are not authorized agency…
CHAPTER 12. Deposits §§ 1400–1440 · 24 sections
ARTICLE 1. Depositors §§ 1400–1415 · 13 sections
- § 1400 A bank account by or in the name of a minor shall be held for the exclusive right and benefit of such minor and shall be paid to such minor or to his order and…
- § 1401 A bank account by or in the name of a married person shall be held for the exclusive right and benefit of the person, shall be free from the control or lien of…
- § 1402 A bank account that is a multiple-party account as defined in Section 5132 of the Probate Code is governed by Part 2 (commencing with Section 5100) of Division…
- § 1403 No bank, directly or indirectly, by any device whatever, shall pay any interest on any demand deposit except to the extent that the payment of interest on…
- § 1404 Notwithstanding Section 10145 of the Business and Professions Code or any other provision of law, but subject to the limitations of Section 854, benefits…
- § 1405 (a) Notwithstanding Section 10145 of the Business and Professions Code or any other provision of law, benefits accruing from the placement in an interest…
- § 1406 (a) In this section: (1) “Creditor” includes, but is not limited to, a depositor. (2) “Insolvency,” when used with respect to a bank, means that the bank is…
- § 1407 An overdraft of more than 90 days standing shall not be allowed as an asset of any bank.
- § 1408 A bank may act as a depositary, paying agent, trustee, or fiscal agent for the holding or handling of public funds or securities notwithstanding the fact that…
- § 1409 When a statement of account has been rendered by a bank to a depositor accompanied by vouchers, if any, which are the basis for debit entries in such account,…
- § 1410 (a) No bank shall impose any charge on a savings account or on a depositor for the failure of a depositor to deposit, or for the late deposit of, any agreed…
- § 1411 (a) For the purposes of this section: (1) “Customer” means one or more natural persons. (2) “Debt” means an interest-bearing obligation or an obligation which…
- § 1415 (a) For purposes of this section, the following definitions apply: (1) “Nonqualifying account” means a deposit account, other than a demand deposit account,…
ARTICLE 2. Disclosure of Delayed Availability Policy §§ 1420–1429 · 10 sections
- § 1420 As used in this article: (a) “Depository institution” means any of the following: (1) Any insured bank as defined in Section 3 of the Federal Deposit Insurance…
- § 1421 (a) Prior to opening a deposit account a depository institution shall provide a written disclosure to the potential customer of its general policy with respect…
- § 1422 For the purposes of computing the amount of interest or dividends payable with respect to an interest-bearing deposit account, a depository institution shall…
- § 1423 Except as otherwise provided in this section, any depository institution which fails to comply with any requirement imposed pursuant to this article shall be…
- § 1424 The commissioner shall issue administrative regulations to define a reasonable time for permitting customers to draw on items received for deposit in the…
- § 1425 Pursuant to Section 1424, the commissioner shall promulgate regulations which shall be reviewed annually to establish a reasonable period of time within which…
- § 1426 The commissioner is authorized to gather from depository institutions such information as may be necessary for the formulation and promulgation of the…
- § 1427 The first regulations issued pursuant to this article shall be issued on or before July 1, 1984.
- § 1428 The commissioner is authorized to issue regulations which provide for a different period of time for withdrawal as a matter of right against deposited items,…
- § 1429 (a) Funds deposited in an account at a depository institution shall be available on the second business day after the business day on which those funds are…
ARTICLE 3. Dormant Accounts § 1440 · 1 section
- § 1440 Any bank which delivers or has heretofore delivered to the State Treasurer pursuant to law any unclaimed or abandoned deposit shall not thereafter be liable to…
CHAPTER 13. Withdrawals and Collections §§ 1450–1456 · 5 sections
ARTICLE 1. General §§ 1450–1452 · 3 sections
- § 1450 Notice to any bank of an adverse claim (the person making the adverse claim being hereafter called “adverse claimant”) to a deposit standing on its books to…
- § 1451 When the depositor of a commercial or savings account has authorized any person to make withdrawals from the account, the bank, in the absence of written…
- § 1452 A bank need not recognize or give any effect to (1) any claim to a deposit of cash or securities standing on its books to the credit of, or held by it for the…
ARTICLE 2. Certified Checks §§ 1455–1456 · 2 sections
CHAPTER 14. Loans and Investments §§ 1460–1522 · 40 sections
ARTICLE 1. General Provisions §§ 1460–1467 · 8 sections
- § 1460 A commercial bank shall not rediscount, borrow money, or hypothecate its assets as security for money borrowed except to the extent and upon the conditions set…
- § 1461 Assets hypothecated by a commercial bank as security for moneys borrowed shall not exceed in value the amount borrowed by more than 50 percent except with the…
- § 1462 A commercial bank may borrow money by discounting or otherwise, and may borrow money secured by real property owned by the bank, to an amount not in excess of…
- § 1463 A commercial bank may hypothecate its assets in any manner provided by law to secure the deposits of moneys of the United States, of postal savings funds, of…
- § 1464 A commercial bank may borrow for the purpose of buying from the United States, United States bonds, United States Treasury certificates, or notes or other…
- § 1465 A commercial bank may rediscount with, borrow money from, or hypothecate its assets as security for money borrowed from a Federal Reserve bank, the Federal…
- § 1466 A commercial bank may issue negotiable certificates of deposit transferable by endorsement and delivery and nonnegotiable certificates transferable only on the…
- § 1467 A commercial bank located in a place the population of which does not exceed 5,000 persons according to the most recent official federal or state census may…
ARTICLE 2. Loan and Investment Limitations §§ 1470–1473 · 4 sections
- § 1470 (a) In this article and in Article 4 (commencing with Section 1710) of Chapter 19, “affiliate,” when used with respect to a specified person, means any person…
- § 1471 (a) Subject to the limitations and exceptions in Sections 1481 and 1510, a bank may hold both obligations made by a person, and securities issued by that same…
- § 1472 Subject to prior approval by the commissioner and to any limitations the commissioner may impose, the limitations in Sections 1471, 1481, and 1510 shall not…
- § 1473 Sections 1481 and 1510 shall not apply to investments held by a bank prior to January 1, 2009. All authorizations regarding investments by a bank issued by the…
ARTICLE 3. Loan Limits §§ 1480–1498 · 19 sections
- § 1480 For the purpose of this article: (a) “Obligations” means the total sums for the payment of which a person is obligated, primarily or secondarily, to a…
- § 1481 The obligations, as defined in Section 1480, excepting the obligations described in Section 1485 and the obligations described in Section 1483, of any one…
- § 1482 An obligation shall not be deemed secured by personal property or collateral unless the personal property or collateral held as security is of a kind which has…
- § 1483 (a) In addition to the limitations contained in Section 1481 a commercial bank may issue letters of credit and a commercial bank may accept drafts or bills of…
- § 1484 With the approval of the commissioner a commercial bank may accept drafts or bills of exchange drawn upon it having not more than three months’ sight to run,…
- § 1485 The limitations of Section 1481 shall not apply to the following and the following shall not be included among the obligations of a person for the purpose of…
- § 1486 A commercial bank may lend on the security of a first lien on real property or a first lien on a leasehold under a lease which does not expire, or which has…
- § 1487 (a) The provisions of any deed of trust or mortgage on real property which authorize any state or nationally chartered bank to accelerate the maturity date of…
- § 1488 The provisions of any deed of trust or mortgage on real property which authorize any state or nationally chartered bank to receive and control the disbursement…
- § 1489 A commercial bank may lend on the security of a first lien on real property or a first lien on a leasehold under a lease which does not expire, or which has…
- § 1490 A commercial bank shall not lend in the aggregate more than 5 percent of its assets upon the security of the stock of any one corporation or upon the security…
- § 1491 No loan shall be made by any commercial bank upon the securities of one or more corporations, the payment of which loan is undertaken, in whole or in part,…
- § 1492 Nothing in this chapter restricts a commercial bank in taking any lien on or pledge of any property as additional security for a loan already made in good…
- § 1493 A commercial bank holding a first lien on real property may take, or purchase and hold, or loan upon another and immediately junior lien but all such loans…
- § 1494 A commercial bank may lend on the security of a first security interest on stock or a membership certificate issued to a tenant-stockholder or resident-member…
- § 1495 (a) A commercial bank may make amortized loans upon the security of residential real property to finance the purchase and installation of material or equipment…
- § 1496 For the purpose of determining whether any loan or investment is secured by a first lien on real property as required by any provision of this division, none…
- § 1497 No loan made by any bank in excess of any limitations contained in this division or which is made in violation of any of the provisions of this division shall…
- § 1498 (a) Any state-chartered bank that extends consumer credit to a covered borrower, as those terms are defined in Part 232 (commencing with Section 232.1) of…
ARTICLE 4. Investments §§ 1510–1515 · 6 sections
- § 1510 The total amount invested by a bank in the securities issued by a person shall not exceed 15 percent of the sum of the shareholders’ equity, allowance for loan…
- § 1511 Section 1510 shall not apply to investments made pursuant to this section. A bank may invest in shares of an investment company (1) registered with the…
- § 1512 Notwithstanding Section 1510, a bank may purchase, acquire, or hold the stock of any corporation pursuant to a plan of reorganization approved by the…
- § 1513 If any commercial bank has made investments which it was authorized to make at the time they were made it shall not be required to dispose of such investments…
- § 1514 (a) A commercial bank may organize, sponsor, operate, control, or render investment advice to, an investment company, or underwrite, distribute, or sell…
- § 1515 A bank or trust company may acquire stock in settlement or reduction of a loan or in exchange for an investment previously made in good faith where the…
ARTICLE 5. Miscellaneous §§ 1520–1522 · 3 sections
- § 1520 Whenever the public administrator becomes the administrator of the estate of a decedent who at the time of his death left money on deposit with a commercial…
- § 1521 A commercial bank accepting savings deposits shall provide by its bylaws or by contract with its savings depositors the time and condition on which repayment…
- § 1522 For the purposes of any law authorizing or providing for the deposit of funds with a savings bank, a commercial bank accepting savings deposits shall be deemed…
CHAPTER 15. Industrial Banks §§ 1530–1542 · 7 sections
ARTICLE 1. General Provisions §§ 1530–1533 · 4 sections
- § 1530 Chapter 15 (commencing with Section 1530) is a restatement of Division 7 (commencing with Section 18000) as that division pertains to the licensing and…
- § 1531 (a) Any reference in a provision of any statute or regulation of this state to banks or commercial banks includes industrial banks. (b) Subdivision (a) does…
- § 1532 The Industrial Loan Account of the Financial Institutions Fund is renamed to be the Industrial Bank Account.
- § 1533 (a) The commissioner shall annually levy on and collect from industrial banks authorized to transact industrial banking business in this state, pro rata on the…
ARTICLE 2. Industrial Bank Business §§ 1540–1542 · 3 sections
- § 1540 Each industrial bank shall be an insured bank at all times while it is engaged in the industrial banking business.
- § 1541 Subject to any order or regulation of the commissioner, an industrial bank may accept deposits evidenced by a deposit account or by certificates, that are…
- § 1542 In addition to other provisions of this division that are otherwise applicable to an industrial bank, the following provisions of this division apply to the…
CHAPTER 16. Trust Companies §§ 1550–1613 · 41 sections
ARTICLE 1. General Provisions §§ 1550–1557 · 8 sections
- § 1550 No corporation shall engage in the trust business unless: (a) Its articles comply with the requirements of subdivision (b), (d), or (e) of Section 1100; and…
- § 1551 Any commercial bank or industrial bank, with the prior authorization of the commissioner, may engage in the trust business, if its articles comply with the…
- § 1552 No California state bank may engage in trust business at a place unless the place is its head office, an authorized branch office, or an authorized place of…
- § 1553 The following persons are exempt from Section 1550: (a) Any natural person serving as trustee of one or more trusts where at least one trustor is a family…
- § 1554 In this section, “subject national banking association” means a national banking association that (a) maintains its main office or a branch office in this…
- § 1555 No foreign corporation, other than a national banking association or a foreign (other state) state bank that is authorized to conduct a trust business in this…
- § 1556 Pursuant to the authority contained in Section 1 of Article XV of the California Constitution, the restrictions upon rates of interest contained in Section 1…
- § 1557 The Legislature finds and declares that it is important to inform taxpayers that they may make voluntary contributions to certain funds or programs, as…
ARTICLE 2. Fiduciary Activities §§ 1560–1562 · 3 sections
- § 1560 It is the intent of the Legislature that the provisions of this article, insofar as they are contained in the regulations regarding fiduciary activities of…
- § 1561 For purposes of Section 1562, the following terms have the following meanings: (a) “Bank” means any of the following: (1) A commercial bank, industrial bank,…
- § 1562 (a) Sections 9.4 to 9.6, inclusive, Sections 9.8 to 9.15, inclusive, and Sections 9.18 to 9.101, inclusive, of the Fiduciary Regulations in all of their…
ARTICLE 3. Deposits with State Treasurer §§ 1570–1578 · 9 sections
- § 1570 Every trust company shall deposit with the State Treasurer money or securities of the character described in Section 1572 as security for its court and private…
- § 1571 Whenever any trust company receives trust funds or property, other than real property, from court trusts accepted by it to the amount of one million dollars…
- § 1572 Security deposited with the Treasurer by trust companies pursuant to Section 1570 or 1571 shall consist of the following: (a) Bonds or other interest-bearing…
- § 1573 Such money or securities shall be approved by the commissioner and be deposited with the Treasurer upon the written order of the commissioner. Upon receiving…
- § 1574 Securities deposited pursuant to this article may be exchanged from time to time, with the approval of the commissioner, for other like securities of equal…
- § 1575 Should any security deposited pursuant to this article so depreciate in value as to reduce the deposit below the amount required by this article, additional…
- § 1576 When any revaluation of securities is made by the commissioner pursuant to Section 1575, other than at the time such securities are presented for deposit,…
- § 1577 The money and securities deposited pursuant to this article shall be subject to sale and the same or the proceeds thereof shall be subject to disposal by the…
- § 1578 The commissioner may, pursuant to Section 329, levy a civil penalty against any trust company that fails to comply with this article.
ARTICLE 4. Investments §§ 1580–1586 · 7 sections
- § 1580 A trust company may invest its contributed capital only in the securities and properties in which a commercial bank is permitted to invest its funds pursuant…
- § 1581 Trust funds received by any trust company in connection with its trust business, if invested, shall be invested as provided in Part 4 (commencing with Section…
- § 1582 (a) As used in this section: (1) “Fund” means any investment company registered under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1 et seq.), as…
- § 1583 Any trust company or bank authorized to engage in the trust business holding trust funds awaiting investment or distribution may deposit or leave on deposit…
- § 1584 Any trust company acting in any capacity under a court or private trust or when acting in such capacity with one or more persons as cofiduciary or…
- § 1585 (a) For purposes of this section, two or more trust companies shall be deemed to be affiliated if they are members of the same affiliated group, within the…
- § 1586 With regard to any participation certificates heretofore issued by any trust company, secured by a trust deed or mortgage, the full legal title in the deed or…
ARTICLE 5. Miscellaneous §§ 1600–1613 · 14 sections
- § 1600 A trust company has the following powers: (a) It may act, or may be appointed by any court to act, in like manner as an individual, as executor, administrator,…
- § 1601 For the purposes of this chapter, all trusts and other business permitted to be accepted or executed by a trust company are hereby classified and defined as…
- § 1602 A trust company, its officers and employees, shall not disclose any information to any person concerning the existence, condition, management, and…
- § 1603 The commissioner shall examine the court trust business of a trust company at least once every 24 months and shall examine the private trust business at such…
- § 1604 In making the reports to the commissioner required by this division, every trust company shall report, in addition to the other facts called for, separately,…
- § 1605 Any court having jurisdiction of any executor, administrator, guardian, conservator, assignee, receiver, depositary, or trustee, upon the application of any…
- § 1606 Securities held by a trust company by direction of any court order issued pursuant to Section 1605 may be deposited in a securities depository, as defined in…
- § 1607 Whenever an executor, administrator, guardian or conservator of estates, assignee, receiver, depositary, or trustee is required to qualify by taking and…
- § 1608 Whenever any corporation desires to withdraw from and discontinue doing a trust business, it shall furnish to the commissioner satisfactory evidence of its…
- § 1609 The validity or legality of any act or proceeding done or taken by any trust company, relating to or in connection with the administration of its court and…
- § 1610 Nothing in this chapter shall make it unlawful for any person or corporation to engage in the business of receiving and holding money in escrow or of acting as…
- § 1611 A bank or trust company shall not mingle trust funds received by it with other assets of the corporation or association and such funds shall not be used in the…
- § 1612 Notwithstanding any other provision of law, any bank and any trust company holding securities in a fiduciary capacity or while engaged in a trust business, or…
- § 1613 Notwithstanding any other provision of law, any bank and any trust company holding securities in a fiduciary capacity or while engaged in a trust business, or…
CHAPTER 17. Safe Deposit §§ 1620–1651 · 23 sections
ARTICLE 1. General Provisions § 1620 · 1 section
- § 1620 Notice to a bank operating a safety deposit department or to a company conducting a safety deposit business of an adverse claim (the person making the adverse…
ARTICLE 2. Remedies for Nonpayment of Rent §§ 1630–1651 · 22 sections
- § 1630 Every bank conducting a safe-deposit business shall be entitled to the special remedies set forth in this article in enforcing the liabilities of safe-deposit…
- § 1631 If the rental of any safe-deposit box is not paid within six months from the day it is due, the bank, or at any time thereafter and while such rental remains…
- § 1632 At any time after the date specified in such notice, if the rental for such safe-deposit box to the date of payment and the cost of giving such notice have not…
- § 1633 The following persons, and no others, are entitled to receive from the bank a copy of the inventory: (a) An executor of the decedent’s will. (b) The…
- § 1634 All contents removed from a safe-deposit box pursuant to Section 1632 shall be retained by the bank for at least two years unless sooner delivered to or on the…
- § 1635 At any time after two years from the day when a safe-deposit box has been opened pursuant to this article, the bank may mail a notice to the person in whose…
- § 1636 Notwithstanding any of the provisions of this article, no stocks, bonds, or other securities which, at the time of sale pursuant to Section 1635, are listed on…
- § 1637 Upon the making of a sale of any securities, an officer of the bank shall execute and attach to the securities so sold an affidavit reciting facts showing that…
- § 1638 From the proceeds of any sale the bank shall deduct the amount set forth in such notice and any further charges which may have accrued since the mailing of the…
- § 1639 Any documents, letters, or other articles found in a safe-deposit box opened pursuant to Section 1632, which in the judgment of at least two officers of the…
- § 1640 If, before the effective date of this section, a bank or its predecessor in interest, has caused a safe-deposit box to be opened for nonpayment of rental, and…
- § 1641 Whenever a bank receives personal property for safekeeping or storage as bailee and issues a receipt therefor, the bank may enforce its lien as warehouseman in…
- § 1642 If the amount charged by a bank for the safekeeping or storage of personal property is not paid within six months from the day it is due, the bank, at any time…
- § 1643 From the proceeds of the sale, the bank shall deduct all charges as stated in the final notice, together with any further charges that have accrued since the…
- § 1644 Any documents, letters, or other articles which, in the judgment of an officer of the bank, have no apparent intrinsic or marketable value, need not be offered…
- § 1645 The power conferred on a bank to sell the contents of a safe-deposit box or personal property received for safekeeping or storage for nonpayment of rental or…
- § 1646 A bank holding a safe-deposit box originally rented from, or personal property against which a safekeeping or storage receipt was issued by, a predecessor in…
- § 1647 The provisions of this article do not preclude any other remedy by action or otherwise now or hereafter existing for the enforcement of the claims of a bank…
- § 1648 If the principal of, or interest or dividends on, any securities that have come into the possession of any bank by reason of action taken pursuant to this…
- § 1649 (a) Whenever this article requires that notice be sent to a person, and the box stood or stands on the records of the bank or the safekeeping or storage…
- § 1650 Whenever an amount of safe-deposit rental, custody, safekeeping, or other charge is to be paid or deducted pursuant to this article, there shall be added to…
- § 1651 Any bank or trust company may receive bonds issued by the United States Government for safekeeping, collection, or storage, and shall receipt therefor to the…
CHAPTER 18. Interstate Acquisitions §§ 1660–1664 · 5 sections
- § 1660 This chapter does not apply to any of the following transactions: (a) An acquisition of control of a California state bank that requires the approval of the…
- § 1661 Each application filed with the commissioner for an approval under this chapter shall be in the form, shall contain the information, shall be signed in the…
- § 1662 The fee for filing with the commissioner an application for an approval under this chapter is two thousand five hundred dollars ($2,500).
- § 1663 (a) The definitions that are set forth in or are applicable to Section 3(d) of the Bank Holding Company Act of 1956 (12 U.S.C. Sec. 1842(d)) apply to this…
- § 1664 (a) The definitions that are set forth in or are applicable to Section 44 of the Federal Deposit Insurance Act (12 U.S.C. Sec. 1831u) apply to this section.…
CHAPTER 19. Foreign (Other State) Banks §§ 1670–1721 · 34 sections
ARTICLE 1. General Provisions §§ 1670–1676 · 7 sections
- § 1670 In this chapter, unless the context otherwise requires: (a) “Branch business unit” has the meaning set forth in subdivision (a) of Section 4840. (b) “Core…
- § 1671 Each application filed with the commissioner under this chapter or under any regulation or order issued under this chapter shall be in the form, shall contain…
- § 1672 (a) Each foreign (other state) bank that maintains a facility or a California branch office shall file with the commissioner such reports as and when the…
- § 1673 Each foreign (other state) bank that maintains a facility (other than a foreign (other state) national bank that maintains a California branch office) and each…
- § 1674 Fees shall be paid to and collected by the commissioner as follows: (a) The fee for filing with the commissioner an application by an uninsured foreign (other…
- § 1675 (a) Any foreign (other state) state bank is exempted from the restrictions of Section 1 of Article XV of the California Constitution relating to rates of…
- § 1676 (a) In this section, “subject bank” means a bank organized under the laws of any territory of the United States, Puerto Rico, Guam, American Samoa, the Trust…
ARTICLE 2. California Branch Offices §§ 1680–1688 · 9 sections
- § 1680 No foreign (other state) state bank may transact core banking business in this state except at a branch office established in accordance with federal law and…
- § 1681 Section 1680 does not prohibit: (a) Any foreign (other state) state bank that does not maintain a California branch office from carrying on the activities…
- § 1682 No foreign (other state) bank may establish or maintain a California branch office unless it is qualified to transact intrastate business in this state under…
- § 1683 No foreign (other state) bank may establish or maintain a California branch office unless the bank is insured.
- § 1684 (a) (1) No foreign (other state) bank may merge as the surviving corporation with a California bank, except that an insured foreign (other state) bank may do…
- § 1685 (a) No foreign (other state) bank that does not already maintain a California branch office may: (1) Merge as the surviving bank with a California bank…
- § 1686 The minimum age requirement set forth in Section 1685 does not apply in any case in which the factor set forth in subdivision (a) and any of the factors set…
- § 1687 (a) In case a foreign (other state) state bank that maintains a California branch office is a commercial bank, in addition to other provisions of this division…
- § 1688 Notwithstanding Section 1684, a foreign (other state) bank that does not maintain offices in California may merge with or purchase the whole business unit of a…
ARTICLE 3. Facilities of Insured Foreign (Other State) Banks §§ 1700–1705 · 6 sections
- § 1700 No provision of this article applies to an insured foreign (other state) bank that maintains a California branch office.
- § 1701 (a) No insured foreign (other state) bank may establish or maintain an office in this state at which it engages in noncore banking business unless the bank…
- § 1702 Not less than 30 days before an insured foreign (other state) bank establishes a facility, the bank shall file with the commissioner a report and the…
- § 1703 (a) Not less than 30 days before establishing a facility, an insured foreign (other state) bank shall file with the commissioner, in the form that the…
- § 1704 Not less than 30 days before an insured foreign (other state) bank relocates a facility, it shall file a report with the commissioner.
- § 1705 Not less than 30 days before an insured foreign (other state) bank closes a facility, it shall file a report with the commissioner.
ARTICLE 4. Facilities of Uninsured Foreign (Other State) Banks §§ 1710–1721 · 12 sections
- § 1710 In this article, unless the context otherwise requires: (a) “Controlling person,” when used with respect to an uninsured foreign (other state) bank, means any…
- § 1711 (a) In this section, “act” includes (without limitation) omission. (b) For purposes of making findings on an application by an uninsured foreign (other state)…
- § 1712 (a) No uninsured foreign (other state) bank may establish or maintain an office in this state at which it engages in noncore banking business unless the…
- § 1713 (a) No uninsured foreign (other state) bank may establish or maintain a facility unless the commissioner has first approved the establishment of the office and…
- § 1714 (a) No uninsured foreign (other state) bank that is licensed to maintain a facility may relocate the office unless the commissioner has first approved the…
- § 1715 An uninsured foreign (other state) bank that is licensed to maintain a facility may, subject to any regulations that the commissioner may prescribe, engage in…
- § 1716 (a) (1) No uninsured foreign (other state) bank that is licensed to maintain a facility may close the office unless the commissioner has first approved the…
- § 1717 (a) Any uninsured foreign (other state) bank that holds a license to maintain a facility may voluntarily surrender the license by filing the license and a…
- § 1718 (a) (1) No uninsured foreign (other state) bank may be issued a license to maintain a facility unless it has first filed with the commissioner, in the form…
- § 1719 Each uninsured foreign (other state) bank that is licensed to maintain a facility shall assign to the office a popular name that includes the term “facility”…
- § 1720 Each uninsured foreign (other state) bank that is licensed to maintain a facility shall post its license in a conspicuous place at the office.
- § 1721 No license is transferable or assignable.
CHAPTER 20. Foreign (Other Nation) Banks §§ 1750–1835 · 45 sections
ARTICLE 1. General Provisions §§ 1750–1768 · 19 sections
- § 1750 In this chapter, unless the context otherwise requires: (a) “Agency” means a depositary agency or a nondepositary agency. (b) “Branch office” means a limited…
- § 1751 Nothing in this chapter, except Section 1760, applies to a federal agency or branch in this state.
- § 1752 (a) In this section, “subject bank” means a bank organized under the laws of any territory of the United States, Puerto Rico, Guam, American Samoa, the Trust…
- § 1753 For purposes of this chapter, offices of foreign (other nation) banks are divided into classes and ranked in ascending order, as follows: (a) Representative…
- § 1754 (a) For purposes of this chapter: (1) Changing a lower class office into a higher class office shall be treated as establishing the higher class office, but…
- § 1755 Fees shall be paid to, and collected by, the commissioner, as follows: (a) The fee for filing with the commissioner an application by a foreign (other nation)…
- § 1756 Each application filed with the commissioner under this chapter or under any regulation or order issued under this chapter shall be in such form, shall contain…
- § 1757 (a) In this section, “act” includes (without limitation) omission. (b) For purposes of making findings on an application by a foreign (other nation) bank for…
- § 1758 (a) Each foreign (other nation) bank that is licensed to maintain an office shall file with the commissioner reports as and when the commissioner may, by…
- § 1759 Each foreign (other nation) bank that is licensed to maintain an office shall make, keep, and preserve at the office or at another place that the commissioner…
- § 1760 (a) No foreign (other nation) bank which is licensed to maintain an agency or branch office shall concurrently maintain a federal agency or federal branch in…
- § 1761 (a) No foreign (other nation) bank shall concurrently be licensed to maintain offices of different classes. (b) Subdivision (a) does not prohibit a foreign…
- § 1762 (a) (1) No foreign (other nation) bank (other than a bank that is licensed to maintain an agency or branch office) shall be issued a license to maintain a…
- § 1763 No license shall be transferable or assignable.
- § 1764 Each foreign (other nation) bank that is licensed to maintain an office shall post its license in a conspicuous place at the office.
- § 1765 (a) Each foreign (other nation) bank that is licensed to maintain an office shall assign to the office a popular name that consists of a specific designation…
- § 1766 Whenever a foreign (other nation) bank is licensed to maintain two or more agencies or branch offices, it shall designate one of such offices as its primary…
- § 1767 Each foreign (other nation) bank that is licensed to maintain an office shall conduct all of the business of the office in a single building or in adjoining…
- § 1768 Any foreign (other nation) bank that, at the time it makes a loan or forbearance or executes a contract therefor, has assets equal to at least one hundred…
ARTICLE 2. Representative Offices §§ 1780–1784 · 5 sections
- § 1780 (a) No foreign (other nation) bank shall establish or maintain an office in this state at which it engages in representational functions unless it is licensed…
- § 1781 (a) (1) No foreign (other nation) bank shall establish or maintain a representative office unless the commissioner shall have first approved the establishment…
- § 1782 (a) No foreign (other nation) bank that is licensed to maintain a representative office shall relocate the office unless the commissioner shall have first…
- § 1783 A foreign (other nation) bank that is licensed to maintain a representative office may, subject to any regulations that the commissioner may prescribe, engage…
- § 1784 (a) (1) No foreign (other nation) bank that is licensed to maintain a representative office shall close the office unless the commissioner shall have first…
ARTICLE 3. Agencies and Branch Offices §§ 1800–1813 · 14 sections
- § 1800 (a) No foreign (other nation) bank shall transact business in this state except at an agency or branch office that it is licensed to maintain and at which it…
- § 1801 No foreign (other nation) bank shall be licensed to maintain any agency or branch office unless it is qualified to transact intrastate business in this state…
- § 1802 No foreign (other nation) bank shall be licensed to maintain a retail branch office unless the deposits in such office are insured by the Federal Deposit…
- § 1803 (a) (1) No foreign (other nation) bank shall establish or maintain an agency or branch office unless the commissioner shall have first approved the…
- § 1804 (a) No foreign (other nation) bank which is licensed to maintain an agency or branch office shall relocate such office unless the commissioner shall have first…
- § 1805 (a) A foreign (other nation) bank that is licensed to maintain an agency or branch office may transact commercial banking business at the office, subject to…
- § 1806 (a) In addition to other provisions of this division and Division 1 (commencing with Section 99) that are otherwise applicable to or with respect to foreign…
- § 1807 (a) Whenever the commissioner calls for a report under Section 453 from commercial banks organized under the laws of this state, the commissioner shall call…
- § 1808 Each foreign (other nation) bank which is licensed to maintain a depositary agency, limited branch office, or wholesale branch office shall, in accordance with…
- § 1809 (a) In case a foreign (other nation) bank is licensed to maintain a depositary agency or branch office and such office is not subject to the regulations of the…
- § 1810 (a) Each foreign (other nation) bank which is licensed to transact business in this state shall keep the assets of such business separate and apart from the…
- § 1811 (a) In this section: (1) “Adjusted liabilities,” when used with respect to a foreign (other nation) bank, means the liabilities of such bank’s business in this…
- § 1812 (a) In this section: (1) “Adjusted liabilities,” when used with respect to a foreign (other nation) bank which is licensed to maintain a branch office in this…
- § 1813 (a) (1) No foreign (other nation) bank which is licensed to maintain an agency or branch office shall close such office unless the commissioner shall have…
ARTICLE 4. Voluntary Surrender of License § 1825 · 1 section
- § 1825 (a) Any foreign (other nation) bank that holds a license to maintain an office may voluntarily surrender the license by filing the license and a report with…
ARTICLE 5. Enforcement §§ 1830–1835 · 6 sections
- § 1830 If the commissioner finds that any person has violated any provision of this chapter or of any regulation or order issued under this chapter, the commissioner…
- § 1831 If, after notice and a hearing, the commissioner finds any of the following with respect to a foreign (other nation) bank that is licensed to maintain an…
- § 1832 (a) If the commissioner finds that any of the factors set forth in Section 1831 is true with respect to any foreign (other nation) bank that is licensed to…
- § 1833 Any foreign (other nation) bank whose license to maintain an office is suspended or revoked shall immediately surrender the license to the commissioner.
- § 1834 (a) Any foreign (other nation) bank to which an order is issued under Section 1831 or 1832 may apply to the commissioner to modify or rescind such order. The…
- § 1835 (a) If the commissioner finds that any of the factors set forth in Section 1831 is true with respect to any foreign (other nation) bank which is licensed to…
CHAPTER 21. International and Foreign Banking and Financing §§ 1850–1910 · 53 sections
ARTICLE 1. International and Foreign Banking and Financing Corporations §§ 1850–1897 · 48 sections
- § 1850 As used in this article, unless the context otherwise requires, “corporation” means a corporation organized under the laws of this state for the purpose of…
- § 1851 The provisions of Chapter 1 (commencing with Section 99) of Division 1 applicable to, or with respect to, banks shall apply to, or with respect to, as the case…
- § 1852 When authorized by the previous written consent of the commissioner as provided by Chapter 3 (commencing with Section 1040) one or more persons may organize a…
- § 1853 The articles of a corporation shall provide that the purpose of the corporation is to engage in the business of international and foreign banking and other…
- § 1854 The articles of incorporation shall be submitted to the commissioner for his or her approval before they are filed with the Secretary of State pursuant to the…
- § 1855 Each corporation shall have power, under such rules and regulations as the commissioner may prescribe: (a) To purchase, sell, discount, and negotiate, with or…
- § 1856 Except with the approval of the commissioner, no corporation shall invest in any one corporation an amount in excess of 10 percent of its own shareholders’…
- § 1857 No corporation shall purchase, own, or hold stock or certificates of ownership in any other corporation organized under this article or under the laws of any…
- § 1858 Nothing contained in this article shall prevent corporations from purchasing and holding stock in any corporation where such purchase shall be necessary to…
- § 1859 No corporation shall carry on any part of its business in the United States except such as, in the judgment of the commissioner, shall be incidental to its…
- § 1860 No corporation shall engage in commerce or trade in commodities except as specifically provided in this article, nor shall it either directly or indirectly…
- § 1861 It shall be unlawful for any director, officer, agent, or employee of any corporation to use or to conspire to use the credit, the funds, or the power of the…
- § 1862 No corporation shall be organized without adequate shareholders’ equity.
- § 1863 The provisions of Chapter 5 (commencing with Section 1100) (except the provisions of Section 1121) applicable to, or with respect to, banks shall apply to, or…
- § 1864 Any bank may invest in the shares of any corporation organized under the provisions of this article, but the aggregate amount of stock held in all corporations…
- § 1865 (a) In this section, “foreign bank” means any company organized under the laws of a foreign country, a territory of the United States, Puerto Rico, Guam,…
- § 1866 Whenever it shall appear to the commissioner that any corporation has violated the provisions of its articles of incorporation or any law of this state, or is…
- § 1867 No corporation shall deposit any of its funds with any other moneyed corporation unless the other corporation has been nominated and designated as a depositary…
- § 1868 No corporation shall be the holder of any shares of its own capital stock unless such stock shall have been taken to prevent loss upon a debt previously…
- § 1869 No corporation shall, either directly or indirectly, make any discount to any person for the purpose of enabling him to pay for or hold shares of its stock…
- § 1870 No corporation shall by any system of accounting or any device of bookkeeping, directly or indirectly enter any of its assets upon its books in the name of any…
- § 1871 Every corporation shall conform its methods of keeping its books and records to such orders in respect thereto as have been made and promulgated by the…
- § 1872 Each official communication directed by the commissioner to a corporation or to any officer thereof, relating to an examination or investigation conducted by…
- § 1873 On or before the first day of February in each year, each corporation and every foreign corporation licensed by the commissioner to transact the business of…
- § 1874 Every corporation and foreign corporation shall also make such other special reports to the commissioner as he or she may from time to time require, which…
- § 1875 If any corporation or foreign corporation shall fail to make any report required by this article on or before the day designated for the making thereof, or…
- § 1876 Every corporation shall hold a meeting of its stockholders annually upon a date fixed in its bylaws at its main office, or if its main office is to be located…
- § 1877 Every corporation shall keep at its main office, or if its main office is to be located outside of this state, at its branch or other office in this state,…
- § 1878 Every corporation shall make reports to the commissioner at such times and in such form as the commissioner may require and is subject to examination by…
- § 1879 No officer, director, clerk or other employee of any corporation, and no person in any way interested or concerned in the management of its affairs, shall as…
- § 1880 Every officer, director, clerk, employee, or agent of any corporation who embezzles, abstracts, or willfully misapplies any of the moneys, funds, credits,…
- § 1881 Whoever being connected in any capacity with any corporation represents in any way that the State of California is liable for the payment of any bond or other…
- § 1882 No person shall act in this state as the representative of any foreign corporation in transacting the business described in this article as the business of a…
- § 1883 Every foreign corporation before being licensed by the commissioner to transact in this state the business of a corporation, or any part thereof, shall…
- § 1884 At the time the application certificate is first submitted to the commissioner, such corporation shall also submit a duly authenticated copy of its charter, or…
- § 1885 No foreign corporation shall transact in this state the business defined in this article or any part thereof, unless such corporation shall have: (a) Been…
- § 1886 When the commissioner shall have issued a license to any foreign corporation, it may engage in the business of a corporation of the kind authorized by this…
- § 1887 Every foreign corporation, before receiving a license to transact business in this state, shall deposit with the State Treasurer of the State of California…
- § 1888 The foreign corporation shall pay a license fee of five hundred dollars ($500).
- § 1889 Every foreign corporation, duly licensed by the commissioner to transact in this state the business defined and authorized in this article, or any part…
- § 1890 Whenever the commissioner shall have revoked the license of any such foreign corporation and shall have taken the action to make such revocation effective, all…
- § 1891 Nothing in this division restricts the right of a state international or foreign banking or financing corporation to convert into an international or foreign…
- § 1892 An international or foreign banking or financing corporation organized under the laws of the United States may convert into a state international or foreign…
- § 1893 Nothing in this division restricts the right of any one or more state international or foreign banking or financing corporations to merge into or consolidate…
- § 1894 Nothing in this division restricts one or more international or foreign banking or financing corporations organized under the laws of the United States from…
- § 1895 Whenever a state international or foreign banking or financing corporation survives the merger of one or more international or foreign banking or financing…
- § 1896 Whenever one or more state international or foreign banking or financing corporations and one or more international or foreign banking or financing…
- § 1897 Whenever an international or foreign banking or financing corporation organized under the laws of the United States converts into a state international or…
ARTICLE 2. Bank Investments in International or Foreign Banking or Financing Companies Organized Under the Laws of the United States §§ 1900–1902 · 3 sections
- § 1900 Any bank may, with the consent of the commissioner, upon such conditions and under such regulations as the commissioner may prescribe, invest in the stock of…
- § 1901 Every bank investing in the capital stock of any corporation described in Section 1900 shall be required to furnish information concerning the condition of…
- § 1902 Before any bank shall be permitted to purchase stock in any corporation described in Section 1900 the said corporation shall enter into an agreement or…
ARTICLE 3. Bank Investments in International or Foreign Banking or Financing Corporations Organized Under the Laws of any State of the United States § 1905 · 1 section
- § 1905 Any bank may, with the consent of the commissioner, upon such conditions and under such regulations as the commissioner may prescribe, invest in the stock of…
ARTICLE 4. Bank Investments in Foreign Banks § 1910 · 1 section
- § 1910 Any bank may, with the consent of the commissioner, upon such conditions and under such regulations as the commissioner may prescribe, acquire and hold,…