Financial Code — Part 4 | FIN — United States — California law | Esheria

Financial Code

Part 4 of 17 · provisions 601–800

This section says the act may be cited as the Financial Code.

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The commissioner must let certain debt collectors keep operating if they applied before January 1, 2023, and may issue a conditional license while an application is pending. Local governments in this state may not require a debt collector to be licensed or to register as a debt collector. This division is named the Debt Collection Licensing Act and may be cited by that name. A person may not do debt collection business in this state without first getting a license, and the license is tied to the principal place of business and cannot be transferred or assigned. This section defines key terms used in the Debt Collection Licensing Act.

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Provisions of Financial Code

Showing 200 of 3,273

  1. 14960.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 7. Loans [14950 - 15103] ( Chapter 7 added by Stats. 1979, Ch. 112. ) ## ARTICLE 1. General [14950 - 14961] ( Article 1 added by Stats. 1979, Ch. 112. )

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    Credit unions that extend consumer credit to covered borrowers must follow the referenced federal consumer credit rules.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 7. Loans [14950 - 15103] ( Chapter 7 added by Stats. 1979, Ch. 112. ) ## ARTICLE 1. General [14950 - 14961] ( Article 1 added by Stats. 1979, Ch. 112. ) ## 14960. (a) Any credit union that extends consumer credit to a covered borrower, as those terms are defined in Part 232 (commencing with Section 232.1) of Subchapter M of Chapter I of Subtitle A of Title 32 of the Code of Federal Regulations, as published on July 22, 2015, on page 43560 in Number 140 of Volume 80 of the Federal Register, shall comply with the applicable provisions of Section 987 of Title 10 of the United States Code, as amended by 126 Stat. 1785 (Public Law 112-239), and Part 232 (commencing with Section 232.1) of Subchapter M of Chapter I of Subtitle A of Title 32 of the Code of Federal Regulations, as amended on the date described above. (b) A credit union that does not market or extend consumer credit to covered borrowers, as those terms are defined under Part 232 (commencing with Section 232.1) of Subchapter M of Chapter I of Subtitle A of Title 32 of the Code of Federal Regulations, as amended on the date described in subdivision (a), shall not be in violation of Section 394 of the Military and Veterans Code. (Amended by Stats. 2017, Ch. 514, Sec. 2. (SB 266) Effective January 1, 2018.)
  2. 14961.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 7. Loans [14950 - 15103] ( Chapter 7 added by Stats. 1979, Ch. 112. ) ## ARTICLE 1. General [14950 - 14961] ( Article 1 added by Stats. 1979, Ch. 112. )

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    A licensee violates this division if it violates certain listed federal acts or regulations.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 7. Loans [14950 - 15103] ( Chapter 7 added by Stats. 1979, Ch. 112. ) ## ARTICLE 1. General [14950 - 14961] ( Article 1 added by Stats. 1979, Ch. 112. ) ## 14961. Any licensee that violates any provision of any of the following federal acts or regulations violates this division:(a) The federal Real Estate Settlement Procedures Act, as amended (12 U.S.C. Sec. 2601 et seq.). (b) The federal Truth in Lending Act, as amended (15 U.S.C. Sec. 1601 et seq.). (c) The federal Home Ownership Equity Protection Act (15 U.S.C. Sec. 1639). (d) Any regulation promulgated under any of the federal acts in subdivision (a), (b), or (c). (Added by Stats. 2009, Ch. 629, Sec. 5. (AB 260) Effective January 1, 2010.)
  3. 1497.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 14. Loans and Investments [1460 - 1522] ( Chapter 14 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 3. Loan Limits [1480 - 1498] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 3. )

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    Loans made over the division’s limits, or in violation of the division, are not invalid or illegal solely for that reason.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 14. Loans and Investments [1460 - 1522] ( Chapter 14 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 3. Loan Limits [1480 - 1498] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 be invalid or illegal as to the lender for that reason, nor shall any loan made to any bank in excess of the amounts permitted by this division be invalid or illegal as to the lender for that reason. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  4. 1498.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 14. Loans and Investments [1460 - 1522] ( Chapter 14 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 3. Loan Limits [1480 - 1498] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 3. )

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    State-chartered banks that extend consumer credit to covered borrowers must follow the referenced federal provisions; banks that do not market or extend such credit are not in violation of Section 394 of the Military and Veterans Code.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 14. Loans and Investments [1460 - 1522] ( Chapter 14 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 3. Loan Limits [1480 - 1498] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 Subchapter M of Chapter I of Subtitle A of Title 32 of the Code of Federal Regulations, as published on July 22, 2015, on page 43560 in Number 140 of Volume 80 of the Federal Register, shall comply with the applicable provisions of Section 987 of Title 10 of the United States Code, as amended by 126 Stat. 1785 (Public Law 112-239), and Part 232 (commencing with Section 232.1) of Subchapter M of Chapter I of Subtitle A of Title 32 of the Code of Federal Regulations, as amended on the date described above. (b) A state-chartered bank that does not market or extend consumer credit to covered borrowers, as those terms are defined under Part 232 (commencing with Section 232.1) of Subchapter M of Chapter I of Subtitle A of Title 32 of the Code of Federal Regulations, as amended on the date described in subdivision (a), shall not be in violation of Section 394 of the Military and Veterans Code. (Amended by Stats. 2017, Ch. 514, Sec. 1. (SB 266) Effective January 1, 2018.)
  5. 15.

    ## Financial Code - FIN ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1951, Ch. 364. )

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    This section says “shall” means mandatory and “may” means permissive.

    ## Financial Code - FIN ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1951, Ch. 364. ) ## 15. “Shall” is mandatory and “may” is permissive. (Enacted by Stats. 1951, Ch. 364.)
  6. 15001.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 7. Loans [14950 - 15103] ( Chapter 7 added by Stats. 1979, Ch. 112. ) ## ARTICLE 2. Maximum Charges and Fees [15001- 15001.] ( Article 2 added by Stats. 1979, Ch. 112. )

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    A credit union may charge late fees if approved by its board of directors, but only once for each delinquent payment.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 7. Loans [14950 - 15103] ( Chapter 7 added by Stats. 1979, Ch. 112. ) ## ARTICLE 2. Maximum Charges and Fees [15001- 15001.] ( Article 2 added by Stats. 1979, Ch. 112. ) ## 15001. Every credit union may assess charges as approved by the board of directors for failure to meet punctually obligations to the credit union. Any late charge shall be made only once for each delinquent payment and shall be subject to Section 2954.5 of the Civil Code, Division 1.1 (commencing with Section 4000) of this code, and any other applicable law. (Amended by Stats. 1998, Ch. 539, Sec. 39. Effective January 1, 1999.)
  7. 15050.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 7. Loans [14950 - 15103] ( Chapter 7 added by Stats. 1979, Ch. 112. ) ## ARTICLE 3. Loans to Directors, Officers and Committee Members [15050 - 15051] ( Article 3 added by Stats. 1979, Ch. 112. )

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    Credit unions generally may not make loans or lines of credit with officials unless specified conditions are met, and officials are barred from participating in credit decisions for their own benefit.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 7. Loans [14950 - 15103] ( Chapter 7 added by Stats. 1979, Ch. 112. ) ## ARTICLE 3. Loans to Directors, Officers and Committee Members [15050 - 15051] ( Article 3 added by Stats. 1979, Ch. 112. ) ## 15050. (a) For purposes of this section: (1) “Credit manager” means any individual, regardless of title, designated pursuant to Section 14600 to fulfill the duties of a credit manager. (2) “Obligation” means any loan or approved line of credit, including both used and unused portions, on which the official is a borrower, coborrower, cosigner, endorser, or guarantor. (3) “Officer” means an officer, as described in Section 14500, that is employed by the credit union. (4) “Official” means a director, member of the supervisory committee, member of the audit committee, or member of the credit committee of a credit union. (b) A credit union shall not enter into any obligation with any official, directly or indirectly, unless all of the following apply: (1) The obligation complies with all lawful requirements of this division with respect to obligations permitted for other members of the credit union. (2) The obligation is not on terms more favorable than those extended to other members of the credit union. (3) The obligation is entered into in accordance with a written policy adopted by the directors establishing that all officials shall have an equal opportunity to enter into obligations with the credit union. (c) A credit union shall not enter into any obligation with any official, directly or indirectly, unless all of the following requirements are satisfied: (1) Upon the making of the obligation, the aggregate amount of obligations outstanding to all officials, except obligations fully secured by shares, shall not exceed 20 percent of the aggregate dollar amount of all savings capital, as defined in Section 14400, of the credit union. (2) The obligation, except any portion of an obligation fully secured by shares, shall not exceed the maximum obligation to the credit union set forth in subdivisions (b) and (c) of Section 15100. (3) Any obligation that would cause the aggregate amount of obligations outstanding to the official to exceed fifty thousand dollars ($50,000), excluding any portion fully secured by shares, shall be approved by the credit committee or the credit manager, and by the board of directors. An official shall not take part in any credit decision, directly or indirectly, for the official’s benefit and shall not be present during any portion of any committee or board meeting where the official’s credit application is under consideration. (4) The names of members of the credit committee, the credit manager, and board of directors who voted to authorize or ratify the obligation shall be entered in their respective minutes. (d) A credit union shall not permit an official to become surety for any obligation created by the credit union for anyone other than a member of the official’s immediate family. (e) A credit union shall not enter into any obligation with any credit manager or any officer employed by the credit union unless the obligation is in compliance with all requirements of this division with respect to obligations permitted for other nonemployee members, and not on terms more favorable than those extended to other employees, and approved by the board of directors. (Amended by Stats. 2024, Ch. 305, Sec. 9. (AB 2062) Effective January 1, 2025.)
  8. 15051.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 7. Loans [14950 - 15103] ( Chapter 7 added by Stats. 1979, Ch. 112. ) ## ARTICLE 3. Loans to Directors, Officers and Committee Members [15050 - 15051] ( Article 3 added by Stats. 1979, Ch. 112. )

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    The board of directors must declare certain offices vacant if the person does not timely reduce a debt owed to the credit union.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 7. Loans [14950 - 15103] ( Chapter 7 added by Stats. 1979, Ch. 112. ) ## ARTICLE 3. Loans to Directors, Officers and Committee Members [15050 - 15051] ( Article 3 added by Stats. 1979, Ch. 112. ) ## 15051. The board of directors shall declare the office of any director, officer, committee member, or the credit manager vacant if the person fails to reduce any obligation to the credit union for which he or she is liable in a timely manner according to the terms of the obligation. (Amended by Stats. 1984, Ch. 789, Sec. 16.)
  9. 151.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 1. Definitions [99 - 217] ( Chapter 1 added by Stats. 2011, Ch. 243, Sec. 2. )

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    This section defines “certificate of correction” as a certificate executed and filed with the Secretary of State under Corporations Code Section 109, subject to Section 1105.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 1. Definitions [99 - 217] ( Chapter 1 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 151. “Certificate of correction” means a certificate executed and filed with the Secretary of State pursuant to Section 109 of the Corporations Code, subject, however, to the provisions of Section 1105. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  10. 1510.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 14. Loans and Investments [1460 - 1522] ( Chapter 14 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 4. Investments [1510 - 1515] ( Article 4 added by Stats. 2011, Ch. 243, Sec. 3. )

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    A bank’s investment in securities issued by one person must not exceed 15% of the stated bank capital base, subject to listed exceptions.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 14. Loans and Investments [1460 - 1522] ( Chapter 14 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 4. Investments [1510 - 1515] ( Article 4 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 and lease losses, capital notes and debentures of the bank, except: (a) Obligations of the United States and those for which the faith and credit of the United States are pledged for the payment of principal and interest. (b) Bonds, consolidated bonds, collateral trust debentures, or other obligations issued by the Federal Financing Bank, the United States Postal Service, federal land banks, or federal intermediate credit banks established under the Federal Farm Loan Act; in debentures and consolidated debentures issued by the Central Bank for Cooperatives and banks for cooperatives established under the Farm Credit Act of 1933; in consolidated notes, bonds, debentures, and other obligations issued by federal land banks, federal intermediate credit banks, and banks for cooperatives under the Farm Credit Act of 1971; in the bonds of any federal home loan bank established under the Federal Home Loan Bank Act; and in stock, bonds, debentures, participations, and other obligations of or issued by the Student Loan Marketing Association, the Federal National Mortgage Association, the Government National Mortgage Association, and the Federal Home Loan Mortgage Corporation. (c) Obligations of the State of California and those for which the credit of the State of California is pledged for the payment of principal and interest. (d) Obligations of a local agency or district of the State of California having the power, without limit as to rate or amount, to levy taxes to pay the principal and interest of the bonds upon all property within its boundaries subject to taxation by the local agency or district. (e) Capital stock of the Federal Reserve bank serving the district in which the bank is located. (f) Capital stock of a federal home loan bank in the manner provided in the Federal Home Loan Bank Act. (g) Capital stock of the Federal Deposit Insurance Corporation. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  11. 15100.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 7. Loans [14950 - 15103] ( Chapter 7 added by Stats. 1979, Ch. 112. ) ## ARTICLE 4. Limitations [15100 - 15103] ( Article 4 added by Stats. 1979, Ch. 112. )

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    The board of directors must adopt written policies for obligations offered to members, and those policies must cap member obligations at 10% of savings capital, with a similar cap for one family.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 7. Loans [14950 - 15103] ( Chapter 7 added by Stats. 1979, Ch. 112. ) ## ARTICLE 4. Limitations [15100 - 15103] ( Article 4 added by Stats. 1979, Ch. 112. ) ## 15100. (a) The board of directors shall establish written policies which shall set forth the policies of the credit union with respect to any obligation that is offered to the members of the credit union. The written policies shall set forth the maximum amounts and terms for any obligation offered to the members, including, but not limited to, the following information: (1) For loans, the written policies shall set out the terms for unsecured loans, the maximum amount and terms for secured loans, the schedule of interest rates established pursuant to Section 15000 for each type or class of unsecured and secured loan offered to members, the maximum maturity for any loan, or, in the case of an open-end loan, the rate of repayment for any type or class of open-end loan, the limitations, if any, which shall be placed on the authority of any loan officer appointed pursuant to Sections 14602 and 14603, and, subject to the provisions of subdivisions (b) and (c), the individual limits on obligations that are applicable to all members of the credit union. Any policy developed pursuant to this section by the board of directors shall, insofar as possible, and, subject to individual creditworthiness, ensure equal access to funds available for obligations with credit union members. (2) For obligations other than those set out in paragraph (1), the board of directors shall set out the interest rates and essential terms of the obligations offered to the members and any other information as may be required pursuant to regulations that may be adopted by the commissioner. (b) Notwithstanding subdivision (a), no credit union policy shall permit a credit union to enter into obligations with an individual credit union member whereby the total obligations of that member, exclusive of amounts secured by shares or certificates for funds, exceed 10 percent of the aggregate dollar amount of the credit union’s savings capital, as defined in Section 14400. (c) Notwithstanding subdivision (b), no credit union policy shall permit a credit union to enter into obligations with any one family whereby the total obligations of the family would be greater than the amount permitted by subdivision (b). For purposes of this article, “family” means the marital couple or any head of household together with those dependents residing with the marital couple or the head of household and those dependents attending school away from the principal residence of the marital couple or head of household. (Amended by Stats. 2024, Ch. 305, Sec. 10. (AB 2062) Effective January 1, 2025.)
  12. 15101.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 7. Loans [14950 - 15103] ( Chapter 7 added by Stats. 1979, Ch. 112. ) ## ARTICLE 4. Limitations [15100 - 15103] ( Article 4 added by Stats. 1979, Ch. 112. )

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    Educational loans can be excluded from the loan-aggregation limit if they are made for educational purposes, secured as required, and the exempted amount does not exceed $10,000.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 7. Loans [14950 - 15103] ( Chapter 7 added by Stats. 1979, Ch. 112. ) ## ARTICLE 4. Limitations [15100 - 15103] ( Article 4 added by Stats. 1979, Ch. 112. ) ## 15101. Notwithstanding the provisions of Section 15100, if a loan is made for educational purposes and such loan would cause the aggregate of loans to an individual or to any one family to exceed the limitations imposed by subdivision (b) or (c) of Section 15100, such educational loan shall not be included in computing the aggregate of loans pursuant to Section 15100, provided (1) that such educational loan is secured in accordance with subdivision (b) or (c) of Section 14955, and (2) that the aggregate amount of such educational loan exempted by this subdivision from subdivision (c) of Section 15100 shall not exceed ten thousand dollars ($10,000). (Amended by Stats. 1984, Ch. 209, Sec. 13.)
  13. 15102.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 7. Loans [14950 - 15103] ( Chapter 7 added by Stats. 1979, Ch. 112. ) ## ARTICLE 4. Limitations [15100 - 15103] ( Article 4 added by Stats. 1979, Ch. 112. )

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    Certain credit unions and related entities may sue a borrower for damages, including exemplary damages capped at 50% of actual damages, when the loan was secured by real property and the borrower’s fraud induced the original lender to make the loan.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 7. Loans [14950 - 15103] ( Chapter 7 added by Stats. 1979, Ch. 112. ) ## ARTICLE 4. Limitations [15100 - 15103] ( Article 4 added by Stats. 1979, Ch. 112. ) ## 15102. (a) Notwithstanding Section 726 of the Code of Civil Procedure or any other provision of law to the contrary, a credit union, an affiliate of a credit union, a credit union service organization, or any successor in interest thereto, that originates, acquires, or purchases, in whole or in part, any loan secured directly or collaterally, in whole or in part, by a mortgage or deed of trust on real property, or any interest therein, may bring an action for recovery of damages, including exemplary damages not to exceed 50 percent of the actual damages, against a borrower where the action is based on fraud under Section 1572 of the Civil Code and the fraudulent conduct by the borrower induced the original lender to make that loan. (b) The provisions of this section shall not apply to loans secured by single-family, owner-occupied residential real property, when the property is actually occupied by the borrower as represented to the lender in order to obtain the loan and the loan is for an amount of one hundred fifty thousand dollars ($150,000) or less, as adjusted annually, commencing on January 1, 1987, to the Consumer Price Index as published by the United States Department of Labor. (c) Any action maintained under this section for damages shall not constitute a money judgment for deficiency or a deficiency judgment within the meaning of Section 580a, 580b, or 580d of the Code of Civil Procedure. (Added by Stats. 1986, Ch. 173, Sec. 3.)
  14. 15103.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 7. Loans [14950 - 15103] ( Chapter 7 added by Stats. 1979, Ch. 112. ) ## ARTICLE 4. Limitations [15100 - 15103] ( Article 4 added by Stats. 1979, Ch. 112. )

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    A credit union or its agent that received a required notice must not make a later assignment to skip trace, locate, or repossess a vehicle unless it simultaneously tells the assignee the notice information.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 7. Loans [14950 - 15103] ( Chapter 7 added by Stats. 1979, Ch. 112. ) ## ARTICLE 4. Limitations [15100 - 15103] ( Article 4 added by Stats. 1979, Ch. 112. ) ## 15103. A credit union, or the agent of a credit union, that has received a notice pursuant to Section 7507.6 of the Business and Professions Code, shall not make a subsequent assignment to skip trace, locate, or repossess a vehicle without simultaneously, and in the same manner by which the assignment is given, advising the assignee of the assignment of the information contained in the notice. As used in this section, “assignment” has the same meaning set forth in Section 7500.1 of the Business and Professions Code. (Added by Stats. 2007, Ch. 192, Sec. 7. Effective September 7, 2007.)
  15. 1511.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 14. Loans and Investments [1460 - 1522] ( Chapter 14 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 4. Investments [1510 - 1515] ( Article 4 added by Stats. 2011, Ch. 243, Sec. 3. )

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    A bank may invest in shares of certain registered investment companies if the company’s portfolio consists only of the listed permitted assets.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 14. Loans and Investments [1460 - 1522] ( Chapter 14 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 4. Investments [1510 - 1515] ( Article 4 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 Securities and Exchange Commission pursuant to the federal Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1 et seq.) and for which the shares are registered under the federal Securities Act of 1933 (15 U.S.C. Sec. 77a et seq.), and (2) the portfolio of which consists solely of the following: (a) Debt obligations in which a bank is permitted to invest without limitation pursuant to subdivision (a), (b), (c), or (d) of Section 1510 and repurchase agreements fully collateralized by those obligations. (b) Loans of federal funds and similar loans of unsecured day(s) funds, maturing in six months or less to institutions insured by the Federal Deposit Insurance Corporation Federal Funds. Loans under this subdivision are limited to transactions described in subsection (a) or (b) of Section 32.102 of Title 12 of the Code of Federal Regulations involving investment companies in which the entire beneficial interest is held exclusively by depository institutions, as permitted by Section 204.123 of Title 12 of the Code of Federal Regulations. (c) Cash or its equivalent. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  16. 1512.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 14. Loans and Investments [1460 - 1522] ( Chapter 14 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 4. Investments [1510 - 1515] ( Article 4 added by Stats. 2011, Ch. 243, Sec. 3. )

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    A bank may buy, acquire, or hold corporate stock if the purchase is part of a commissioner-approved reorganization plan.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 14. Loans and Investments [1460 - 1522] ( Chapter 14 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 4. Investments [1510 - 1515] ( Article 4 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 commissioner by which all of the stock of one or more banks organized under the laws of this state shall be acquired and immediately reissued proportionately to the stockholders of the acquiring bank. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  17. 1513.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 14. Loans and Investments [1460 - 1522] ( Chapter 14 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 4. Investments [1510 - 1515] ( Article 4 added by Stats. 2011, Ch. 243, Sec. 3. )

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    A commercial bank does not have to dispose of investments that were authorized when made, even if the Banking Code or later amendments change.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 14. Loans and Investments [1460 - 1522] ( Chapter 14 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 4. Investments [1510 - 1515] ( Article 4 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 by reason of adoption of the Banking Code, this code, or any amendments to this article. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  18. 1514.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 14. Loans and Investments [1460 - 1522] ( Chapter 14 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 4. Investments [1510 - 1515] ( Article 4 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    A commercial bank may engage in certain investment-company activities and securities transactions if its selling officers and employees meet standards set by the commissioner or the commissioner’s designee.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 14. Loans and Investments [1460 - 1522] ( Chapter 14 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 4. Investments [1510 - 1515] ( Article 4 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1514. (a) A commercial bank may organize, sponsor, operate, control, or render investment advice to, an investment company, or underwrite, distribute, or sell securities of any investment company which has qualified to sell its securities in this state pursuant to Part 2 (commencing with Section 25100) of Division 1 of Title 4 of the Corporations Code, if the officers and employees of the bank who sell these securities meet such standards with respect to training, experience, and sales practices as established by the commissioner or the commissioner’s designee. For the purpose of this section, “investment company” means an investment company as defined in the Investment Company Act of 1940 (15 U.S.C., Sec. 80a-1 et seq.). (b) The amendments made to this section by the act adding this subdivision shall become operative on July 1, 2026. (Amended by Stats. 2026, Ch. 28, Sec. 16. (SB 170) Effective June 29, 2026. Operative July 1, 2026, by its own provisions.)
  19. 1515.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 14. Loans and Investments [1460 - 1522] ( Chapter 14 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 4. Investments [1510 - 1515] ( Article 4 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    A bank or trust company may acquire stock in limited loan-related situations, and later must sell or convert it when sale would fully reimburse its loss.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 14. Loans and Investments [1460 - 1522] ( Chapter 14 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 4. Investments [1510 - 1515] ( Article 4 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 acquisition of the stock is necessary in order to minimize or avoid loss arising out of the loan or investment. The limitation in Section 1510 shall not apply to the stock acquired in accordance with this section. Whenever any stock that is acquired in accordance with this section can be sold for an amount sufficient to reimburse the bank or trust company for all loss arising out of the loan for which the stock was security or arising out of the original investment by the bank or trust company, the bank or trust company shall sell the same or shall convert the stock to an investment subject to Section 1510. (Amended by Stats. 2013, Ch. 334, Sec. 40. (SB 537) Effective January 1, 2014.)
  20. 1520.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 14. Loans and Investments [1460 - 1522] ( Chapter 14 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 5. Miscellaneous [1520 - 1522] ( Article 5 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    A public administrator may keep a decedent’s bank deposit in the commercial bank, add estate money not needed for current administration expenses to that account, and need not pay it to the county treasurer.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 14. Loans and Investments [1460 - 1522] ( Chapter 14 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 5. Miscellaneous [1520 - 1522] ( Article 5 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 bank, the public administrator may allow such deposit to remain in the commercial bank and may deposit therein to the account of the decedent any moneys of said estate not required for current expenses of administration, and in such cases the public administrator need not deposit the same with the county treasurer. Moneys so deposited, whether by the decedent or by the public administrator, may be withdrawn upon the order of the public administrator countersigned by a judge of the superior court when required for the purpose of administration or otherwise. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  21. 15200.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 1. Merger [15200 - 15204] ( Article 1 added by Stats. 1979, Ch. 112. )

    Verify source ↗

    A credit union may merge with another credit union or a central credit union if the commissioner approves.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 1. Merger [15200 - 15204] ( Article 1 added by Stats. 1979, Ch. 112. ) ## 15200. Any credit union may, with the approval of the commissioner, merge with another credit union or with a central credit union. (Amended by Stats. 1984, Ch. 452, Sec. 5.)
  22. 15201.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 1. Merger [15200 - 15204] ( Article 1 added by Stats. 1979, Ch. 112. )

    Verify source ↗

    A credit union merger must follow an approved plan, with member approval or written consent, unless the commissioner can approve it under the section’s exceptions.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 1. Merger [15200 - 15204] ( Article 1 added by Stats. 1979, Ch. 112. ) ## 15201. (a) The merger shall be made pursuant to any plan agreed upon by the majority of the board of directors of each credit union joining in the merger, and approved by the affirmative vote of at least a majority of the members of the disappearing credit union, in person or by proxy, at a meeting of the members called for that purpose or by written consent of a majority of the members of the disappearing credit union. Notice of the meeting shall be given to the members, either personally or by first-class mail, not less than 30 nor more than 90 days prior to the date of the meeting. (b) The commissioner may approve a merger according to the plan agreed upon by the majority of the board of directors of each credit union, as set forth in subdivision (a), if the plan of merger is approved by less than a majority of the membership as provided in subdivision (a) if the commissioner finds, upon the written and verified application filed by the board of directors, that (1) notice of the meeting called to consider the merger or the ballot for written vote on the merger was mailed to each member entitled to vote upon the question, (2) the notice or ballot disclosed the purpose of the meeting or the written vote, (3) the notice or ballot informed the membership that approval of the merger might be sought pursuant to this section, and (4) a majority of the votes cast upon the question were in favor of the merger. (c) Notwithstanding subdivisions (a) and (b), the commissioner may approve a merger without a vote of the membership of the disappearing credit union if a majority of the members of the board of directors of the surviving credit union approves the merger, the disappearing credit union is in danger of insolvency and the merger would reduce the risk or avoid a threatened loss to the National Credit Union Share Insurance Fund or other form of share guaranty or insurance that is acceptable to the commissioner. For purposes of this chapter, a credit union is insolvent when, from the most recent available financial statements, it can be shown that the total amount of its shares exceeds the present cash value of its assets after providing for liabilities unless the commissioner finds all of the following: (1) The facts that caused the deficient share-asset ratio no longer exist. (2) Further decline in the share-asset ratio is not probable. (3) The return of the share-asset ratio to its normal limits within a reasonable time for the credit union concerned is probable. (4) The probability of a further potential loss is negligible to the National Credit Union Share Insurance Fund or other form of share guaranty or insurance that is acceptable to the commissioner. (Amended by Stats. 1998, Ch. 539, Sec. 41. Effective January 1, 1999.)
  23. 15202.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 1. Merger [15200 - 15204] ( Article 1 added by Stats. 1979, Ch. 112. )

    Verify source ↗

    Credit unions must execute a certificate of merger after merger approval requirements are satisfied, include specified merger details, and attach the plan of merger and the commissioner’s written approval.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 1. Merger [15200 - 15204] ( Article 1 added by Stats. 1979, Ch. 112. ) ## 15202. (a) After the requirement of approval as provided in Section 15201 is satisfied, each credit union shall execute a certificate of merger as an officers’ certificate pursuant to Section 5062 of the Corporations Code that shall set forth: (1) That the plan of merger has been approved by the board of directors. (2) That the plan of merger has been duly approved by any required vote of the members pursuant to Section 15201. (3) The total number of members of the credit union. (b) A copy of the plan of merger and of the written approval thereof by the commissioner shall be annexed to the certificate of merger. (c) Nothing in this section requires a federal credit union to execute or file the certificate of merger called for in subdivision (a). (Amended by Stats. 1998, Ch. 539, Sec. 41.3. Effective January 1, 1999.)
  24. 15203.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 1. Merger [15200 - 15204] ( Article 1 added by Stats. 1979, Ch. 112. )

    Verify source ↗

    Merger certificates must be filed with the Secretary of State, and a certified copy must then be filed with the commissioner before the merger becomes effective.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 1. Merger [15200 - 15204] ( Article 1 added by Stats. 1979, Ch. 112. ) ## 15203. Each certificate of merger called for in Section 15202 shall be filed in the office of the Secretary of State. After the filing in the office of the Secretary of State, a copy of each certificate of merger, certified by the Secretary of State, shall be filed with the commissioner, and at that time the merger shall become effective for all purposes. (Amended by Stats. 1998, Ch. 539, Sec. 42. Effective January 1, 1999.)
  25. 15204.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 1. Merger [15200 - 15204] ( Article 1 added by Stats. 1979, Ch. 112. )

    Verify source ↗

    When a credit union merges, the surviving credit union takes the merged credit union’s property, rights, debts, obligations, and liabilities.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 1. Merger [15200 - 15204] ( Article 1 added by Stats. 1979, Ch. 112. ) ## 15204. (a) Upon any merger effectuated as provided in this article, all property, property rights, and interests of the merged credit union shall vest in the surviving credit union, without deed, endorsement or other instruments of transfer, and all debts, obligations and liabilities of the merged credit union are assumed by the surviving credit union under whose charter the merger has been effected. Thereafter the charter of the merged credit union is void, and the existence of the merged credit union as a legal entity separate from the surviving credit union terminates. (b) Whenever a credit union having any real property in this state merges with another credit union and vests that real property in the surviving credit union, the filing for record in the office of the county recorder of any county in this state in which any of the real property of the disappearing credit union is located of the certificates of merger and requisite attachments, as required by Section 15202, shall evidence record ownership in the surviving credit union of all interest of the disappearing credit union in and to the real property located in that county. (Amended by Stats. 1997, Ch. 187, Sec. 13. Effective January 1, 1998.)
  26. 1521.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 14. Loans and Investments [1460 - 1522] ( Chapter 14 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 5. Miscellaneous [1520 - 1522] ( Article 5 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    A commercial bank that accepts savings deposits must set repayment timing and conditions in its bylaws or contracts, cannot waive notice requirements except for all savings deposits, and must stop making new loans or investments while excess repayment demands exceed available funds.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 14. Loans and Investments [1460 - 1522] ( Chapter 14 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 5. Miscellaneous [1520 - 1522] ( Article 5 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 is to be made to such depositors. The bank shall not waive any requirement of notice before payment of any savings deposit except as to all savings deposits. Whenever there is any call by savings depositors for repayment of a greater amount than the bank may have disposable for that purpose, the bank must not make any new loan or investment until such excess call has ceased. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  27. 1522.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 14. Loans and Investments [1460 - 1522] ( Chapter 14 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 5. Miscellaneous [1520 - 1522] ( Article 5 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    A commercial bank that accepts savings deposits is treated as a savings bank for laws about depositing funds with savings banks.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 14. Loans and Investments [1460 - 1522] ( Chapter 14 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 5. Miscellaneous [1520 - 1522] ( Article 5 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 a savings bank. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  28. 15250.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 2. Dissolution [15250 - 15260] ( Article 2 added by Stats. 1979, Ch. 112. )

    Verify source ↗

    A credit union may be dissolved by member vote, and the commissioner may approve dissolution in some cases. Until the members approve or reject the recommendation, the credit union may not make new loans or withdraw shares or certificates for funds.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 2. Dissolution [15250 - 15260] ( Article 2 added by Stats. 1979, Ch. 112. ) ## 15250. (a) Whenever the board of directors of a credit union recommends by a vote of a majority of all its members the dissolution of the credit union, the members of the credit union, at any meeting specially called to consider the subject, may elect to dissolve the credit union, by the vote or written consent of a majority of all members of the credit union. (b) The commissioner may approve the dissolution of a credit union which is recommended by the vote of a majority of the board members of the credit union, even if the dissolution is approved by less than a majority of all members of the credit union, if the commissioner finds, upon the written and verified application filed by the board of directors, that (1) notice of the meeting called to consider the dissolution or the written ballot for written vote on the dissolution was mailed to each member entitled to vote upon the question, (2) the notice or the written ballot disclosed the purpose of the meeting or the written vote and informed the membership that approval of the dissolution might be sought pursuant to this section, and (3) a majority of the votes cast upon the question were in favor of the dissolution. (c) Whenever the members of the board of directors vote to recommend the dissolution of any credit union, the credit union shall not make any loans, withdrawal of shares, or withdrawal of certificates for funds until the members approve or disapprove the recommendation of the board of directors. (Amended by Stats. 1998, Ch. 539, Sec. 43. Effective January 1, 1999.)
  29. 15251.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 2. Dissolution [15250 - 15260] ( Article 2 added by Stats. 1979, Ch. 112. )

    Verify source ↗

    If a credit union’s dissolution is approved, its board must elect a three-member committee or may appoint a liquidating agent to liquidate the assets. If the commissioner is appointed liquidating agent, the commissioner may act personally or appoint the National Credit Union Administration or another person, and the credit union must surrender its certificate.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 2. Dissolution [15250 - 15260] ( Article 2 added by Stats. 1979, Ch. 112. ) ## 15251. If the dissolution of the credit union is approved pursuant to subdivision (a) or (b) of Section 15250, the board of directors of the credit union shall elect a committee of three members or may by resolution appoint a liquidating agent to liquidate the assets of the credit union. If the commissioner is appointed liquidating agent, the commissioner may act as liquidating agent or appoint the National Credit Union Administration or other person to act as liquidating agent. Whenever the commissioner is appointed liquidating agent, the credit union shall surrender its certificate to act as a credit union. (Amended by Stats. 1998, Ch. 539, Sec. 44. Effective January 1, 1999.)
  30. 15252.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 2. Dissolution [15250 - 15260] ( Article 2 added by Stats. 1979, Ch. 112. )

    Verify source ↗

    Certain officers, a committee majority, or the liquidating agent must promptly sign and verify a certificate of the credit union’s election to wind up and dissolve.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 2. Dissolution [15250 - 15260] ( Article 2 added by Stats. 1979, Ch. 112. ) ## 15252. Promptly thereafter the president or vice president and secretary or assistant secretary, or a majority of the committee or the liquidating agent in charge of liquidation, shall sign and verify a certificate stating that the credit union has elected to wind up and dissolve and showing by what vote or consent such election was made. The certificate shall be filed in the office of the Secretary of State, and copies of the certificate certified by the Secretary of State shall be filed with the commissioner. (Amended by Stats. 1981, Ch. 862, Sec. 4.)
  31. 15253.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 2. Dissolution [15250 - 15260] ( Article 2 added by Stats. 1979, Ch. 112. )

    Verify source ↗

    After a vote to dissolve a credit union, it may not do business except as needed for liquidation.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 2. Dissolution [15250 - 15260] ( Article 2 added by Stats. 1979, Ch. 112. ) ## 15253. After a vote to dissolve a credit union no business may be carried on by the credit union except in the proper course of liquidation. (Added by Stats. 1979, Ch. 112.)
  32. 15254.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 2. Dissolution [15250 - 15260] ( Article 2 added by Stats. 1979, Ch. 112. )

    Verify source ↗

    The committee or liquidating agent in charge of liquidation may sue for the credit union and may sell or otherwise dispose of its assets, in whole or in part, by public or private sale.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 2. Dissolution [15250 - 15260] ( Article 2 added by Stats. 1979, Ch. 112. ) ## 15254. The committee or the liquidating agent in charge of liquidation may sue in the name and on behalf of the credit union, and may sell or otherwise dispose of the assets of the credit union, in whole or in part, at public or private sale. (Added by Stats. 1979, Ch. 112.)
  33. 15255.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 2. Dissolution [15250 - 15260] ( Article 2 added by Stats. 1979, Ch. 112. )

    Verify source ↗

    After debts and liabilities are paid or covered, the committee or liquidating agent must distribute the remaining credit union assets to members or shareholders.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 2. Dissolution [15250 - 15260] ( Article 2 added by Stats. 1979, Ch. 112. ) ## 15255. After determining that all known debts and liabilities of the credit union have been paid or adequately provided for, the committee or the liquidating agent in charge of liquidation shall distribute all the remaining assets of the credit union among the members or shareholders. Each share is entitled to its proportionate amount of the assets according to the amount paid on that share. (Added by Stats. 1979, Ch. 112.)
  34. 15257.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 2. Dissolution [15250 - 15260] ( Article 2 added by Stats. 1979, Ch. 112. )

    Verify source ↗

    After a credit union is fully wound up and its debts and assets are handled as required, a majority of the committee or the liquidating agent must sign and acknowledge a certificate confirming those facts and the dissolution.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 2. Dissolution [15250 - 15260] ( Article 2 added by Stats. 1979, Ch. 112. ) ## 15257. When a credit union has completely wound up, all of its known debts and liabilities actually paid or adequately provided for or paid as far as its assets permit, and its known assets distributed, a majority of the committee or the liquidating agent in charge of liquidation shall sign and acknowledge a certificate stating that the credit union has been completely wound up, its known assets distributed, any tax or penalty due under the Bank and Corporation Franchise Tax Law paid, and its other known debts and liabilities actually paid or adequately provided for or paid as far as its assets permit and that the credit union is dissolved. (Added by Stats. 1979, Ch. 112.)
  35. 15258.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 2. Dissolution [15250 - 15260] ( Article 2 added by Stats. 1979, Ch. 112. )

    Verify source ↗

    The certificate of dissolution must be filed with the Secretary of State, and certified copies must be filed with the commissioner.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 2. Dissolution [15250 - 15260] ( Article 2 added by Stats. 1979, Ch. 112. ) ## 15258. The certificate of dissolution shall be filed in the office of the Secretary of State and copies, certified by him, shall be filed in the office of the commissioner. (Added by Stats. 1979, Ch. 112.)
  36. 15259.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 2. Dissolution [15250 - 15260] ( Article 2 added by Stats. 1979, Ch. 112. )

    Verify source ↗

    During liquidation, the commissioner may remove the committee or liquidating agent, and then must act as liquidating agent or appoint one to finish dissolving the credit union.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 2. Dissolution [15250 - 15260] ( Article 2 added by Stats. 1979, Ch. 112. ) ## 15259. At any time during the liquidation process, the committee or the liquidating agent in charge of liquidation may be relieved of their duties at the discretion of the commissioner and the commissioner shall thereafter act as the liquidating agent or appoint a liquidating agent to complete the dissolution of the credit union. (Added by Stats. 1979, Ch. 112.)
  37. 15260.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 2. Dissolution [15250 - 15260] ( Article 2 added by Stats. 1979, Ch. 112. )

    Verify source ↗

    If the commissioner finds the credit union lacks enough assets to fully return shareholders’ investment when dissolution papers are filed, the credit union is not liable for the assessed administration costs.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 2. Dissolution [15250 - 15260] ( Article 2 added by Stats. 1979, Ch. 112. ) ## 15260. Where the commissioner finds that on the date of filing with the Secretary of State of the certificate of election to wind up and dissolve, the credit union does not have sufficient assets to return to its shareholders their investment in full, the credit union shall not be liable for the costs of administration assessed under Article 4 (commencing with Section 14350) of Chapter 3. (Added by Stats. 1979, Ch. 112.)
  38. 153.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 1. Definitions [99 - 217] ( Chapter 1 added by Stats. 2011, Ch. 243, Sec. 2. )

    Verify source ↗

    “Certificate of determination” is defined by reference to Section 156 of the Corporations Code, but that definition is subject to Section 1104.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 1. Definitions [99 - 217] ( Chapter 1 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 153. “Certificate of determination” has the meaning set forth in Section 156 of the Corporations Code, subject, however, to the provisions of Section 1104. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  39. 1530.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 15. Industrial Banks [1530 - 1542] ( Chapter 15 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. General Provisions [1530 - 1533] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    This section says Chapter 15 restates and reorganizes earlier law on industrial bank licensing, regulation, and deposit insurance.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 15. Industrial Banks [1530 - 1542] ( Chapter 15 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. General Provisions [1530 - 1533] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 regulation of industrial banks and to the insurance of deposits of industrial banks. Chapter 15 is a continuation, simplification, and recodification of the licensing and regulation of deposit-taking industrial banks. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  40. 15300.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 3. Conversion Into Federal Credit Unions [15300 - 15306] ( Article 3 added by Stats. 1979, Ch. 112. )

    Verify source ↗

    A credit union may convert itself into a federal credit union if it follows the procedure in this article.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 3. Conversion Into Federal Credit Unions [15300 - 15306] ( Article 3 added by Stats. 1979, Ch. 112. ) ## 15300. A credit union may convert itself into a federal credit union by following the procedure contained in this article. (Repealed and added by Stats. 1979, Ch. 112.)
  41. 15301.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 3. Conversion Into Federal Credit Unions [15300 - 15306] ( Article 3 added by Stats. 1979, Ch. 112. )

    Verify source ↗

    Members of a credit union may vote to convert it into a federal credit union if the board of directors recommends it and the members approve by an affirmative majority vote.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 3. Conversion Into Federal Credit Unions [15300 - 15306] ( Article 3 added by Stats. 1979, Ch. 112. ) ## 15301. Upon recommendation of the board of directors the members of any credit union may by an affirmative majority vote of such members resolve to convert such credit union into a federal credit union. For the purposes of this article, an “affirmative majority vote of such members” means that the vote by the members to convert the credit union into a federal credit union is approved or ratified by the affirmative vote of a majority of the votes represented and voting at a duly held meeting at which a quorum is present (which affirmative votes also constitute a majority of the required quorum) or written ballot in conformity with Section 7513 of the Corporations Code or by the affirmative vote or written ballot as may be provided in the bylaws pursuant to subdivision (e) of Section 7151 of the Corporations Code. (Amended by Stats. 1993, Ch. 399, Sec. 2. Effective January 1, 1994.)
  42. 15302.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 3. Conversion Into Federal Credit Unions [15300 - 15306] ( Article 3 added by Stats. 1979, Ch. 112. )

    Verify source ↗

    A credit union must file a verified conversion certificate with the commissioner within 10 days after members decide to convert, and file a copy with the Secretary of State.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 3. Conversion Into Federal Credit Unions [15300 - 15306] ( Article 3 added by Stats. 1979, Ch. 112. ) ## 15302. Within 10 days after the meeting or written vote at which the members determine to convert into a federal credit union, the credit union shall file with the commissioner a certificate verified by the board of directors of such credit union. The certificate shall contain a copy of the minutes of the meeting or a copy of the written ballot and the results of the written vote and a statement that the members have approved the determination to convert such credit union into a federal credit union. A copy of such certificate shall be filed with the Secretary of State. (Amended by Stats. 1980, Ch. 413, Sec. 6.)
  43. 15303.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 3. Conversion Into Federal Credit Unions [15300 - 15306] ( Article 3 added by Stats. 1979, Ch. 112. )

    Verify source ↗

    A certified copy of the Section 15302 certificate filed with the Secretary of State counts as presumptive evidence of the meeting or written vote and the action taken.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 3. Conversion Into Federal Credit Unions [15300 - 15306] ( Article 3 added by Stats. 1979, Ch. 112. ) ## 15303. A certified copy of the certificate required by Section 15302 filed in the office of the Secretary of State is presumptive evidence of the holding of the meeting or written vote and the action taken thereat. (Amended by Stats. 1980, Ch. 413, Sec. 7.)
  44. 15304.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 3. Conversion Into Federal Credit Unions [15300 - 15306] ( Article 3 added by Stats. 1979, Ch. 112. )

    Verify source ↗

    A credit union must take the steps needed to become a federal credit union and, within 10 days after receiving the federal charter, file the required charter copy or certificate with the commissioner and the Secretary of State.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 3. Conversion Into Federal Credit Unions [15300 - 15306] ( Article 3 added by Stats. 1979, Ch. 112. ) ## 15304. After the meeting or the written vote of the members, the credit union shall take such action as is necessary to make it a federal credit union, and within 10 days after receipt of the federal charter, the credit union shall file with the commissioner and with the Secretary of State, a copy of the charter issued to such credit union by the National Credit Union Administration or a certificate showing the organization of such credit union as a federal credit union certified by or on behalf of the National Credit Union Administration. Upon the filing of such instrument with the Secretary of State the credit union ceases to be a state credit union and is a federal credit union. (Amended by Stats. 1980, Ch. 413, Sec. 8.)
  45. 15305.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 3. Conversion Into Federal Credit Unions [15300 - 15306] ( Article 3 added by Stats. 1979, Ch. 112. )

    Verify source ↗

    When a credit union’s conversion to a federal credit union takes effect, state supervision ends and the credit union’s property automatically vests in the converted federal credit union.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 3. Conversion Into Federal Credit Unions [15300 - 15306] ( Article 3 added by Stats. 1979, Ch. 112. ) ## 15305. At the time the conversion into a federal credit union becomes effective, the credit union ceases to be supervised by this state and all of the property of the credit union, including all of its right, title, and interest in and to all property of every kind and character immediately, by operation of law and without any conveyance, or transfer and without any further act or deed, is vested in the credit union under its new name and style as a federal credit union and under its new jurisdiction. (Repealed and added by Stats. 1979, Ch. 112.)
  46. 15306.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 3. Conversion Into Federal Credit Unions [15300 - 15306] ( Article 3 added by Stats. 1979, Ch. 112. )

    Verify source ↗

    A converted federal credit union keeps the listed property and remains responsible for the state credit union’s obligations.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 3. Conversion Into Federal Credit Unions [15300 - 15306] ( Article 3 added by Stats. 1979, Ch. 112. ) ## 15306. The converted federal credit union shall have, hold, and enjoy the property mentioned in Section 15305 in its own right as fully and to the same extent as the property was possessed, held, and enjoyed by it as a state credit union and the federal credit union shall continue responsible for all of the obligations of the state credit union to the same extent as though the conversion had not taken place. The federal credit union shall be merely a continuation of the state credit union under a new name and new jurisdiction and such revision of its corporate structure as is considered necessary for its proper operation under the new jurisdiction. (Added by Stats. 1979, Ch. 112.)
  47. 1531.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 15. Industrial Banks [1530 - 1542] ( Chapter 15 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. General Provisions [1530 - 1533] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    References in California statutes or regulations to banks or commercial banks include industrial banks, with stated exceptions.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 15. Industrial Banks [1530 - 1542] ( Chapter 15 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. General Provisions [1530 - 1533] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 not apply in any of the following cases: (1) In case the provision or a related provision expressly provides otherwise. (2) In the case of any provision of Division 1.6 (commencing with Section 4800) or this division. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  48. 1532.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 15. Industrial Banks [1530 - 1542] ( Chapter 15 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. General Provisions [1530 - 1533] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    The Industrial Loan Account of the Financial Institutions Fund is renamed the Industrial Bank Account.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 15. Industrial Banks [1530 - 1542] ( Chapter 15 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. General Provisions [1530 - 1533] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1532. The Industrial Loan Account of the Financial Institutions Fund is renamed to be the Industrial Bank Account. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  49. 1533.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 15. Industrial Banks [1530 - 1542] ( Chapter 15 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. General Provisions [1530 - 1533] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    The commissioner must annually collect an assessment from qualifying industrial banks, using total assets to calculate it, and may adjust how foreign branch assets are counted in some cases.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 15. Industrial Banks [1530 - 1542] ( Chapter 15 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. General Provisions [1530 - 1533] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 basis of total assets, an assessment in a total amount that is sufficient in the commissioner’s judgment to (1) meet the expenses of the department in administering laws relating to industrial banks or to the industrial banking business that are not otherwise provided for and (2) provide a reasonable reserve for contingencies. (b) The amount of the annual assessment on any industrial bank authorized to transact the industrial banking business shall be the greater (1) five thousand dollars ($5,000) or (2) the sum of the products determined by multiplying (A) increments of the bank’s or trust company’s total assets by (B) percentages of the base assessment rate according to the following table: Total Assets (In Percentage of Base Millions) Assessment Rate First $2 ........................ 100.0 Next $18 ........................ 50.0 Next $80 ........................ 12.0 Next $100 ........................ 6.25 Next $800 ........................ 6.0 Next $1,000 ........................ 4.0 Next $4,000 ........................ 3.5 Next $14,000 ........................ 3.0 Next $20,000 ........................ 2.5 Excess over $40,000 ........................ 1.5 (c) (1) For purposes of the annual assessment, the total assets of an industrial bank authorized to transact industrial banking business shall be determined as of a date fixed by the commissioner. However, if an industrial loan company is not authorized to transact industrial banking business as of that date but is so authorized as of the date when the annual assessment is levied, its total assets for purposes of the annual assessment shall be determined as of the date of the levy. (2) (A) In determining for purposes of the annual assessment on the total assets of industrial banks that are authorized to transact industrial banking business and that have one or more foreign (other state) branch offices or facilities, the assets of the foreign (other state) branch offices and facilities shall be excluded from total assets. However, the commissioner may order the assets of foreign (other state) branch offices and facilities to be included in total assets if and to the extent that it is necessary or advisable in the commissioner’s judgment to (i) meet the expenses of the department on account of foreign (other state) branch offices and facilities that are not otherwise provided for and (ii) provide a reasonable reserve for contingencies. (B) If the commissioner finds that an industrial bank authorized to transact industrial banking business allocated any asset to a foreign (other state) branch office or facility for the purpose, in whole or in part, of reducing its annual assessment, the commissioner may, for purposes of calculating the annual assessment on the industrial bank, reallocate the asset to the industrial bank’s head office. (d) The base assessment rate for each annual assessment shall be fixed by the commissioner but shall not exceed two dollars and twenty cents ($2.20) per one thousand dollars ($1,000) of total assets. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  50. 15350.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 4. Conversion of Federal Credit Union [15350 - 15359] ( Article 4 added by Stats. 1979, Ch. 112. )

    Verify source ↗

    A federal credit union may convert into a state-law credit union if its board recommends it and the federal and state certificate requirements are met.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 4. Conversion of Federal Credit Union [15350 - 15359] ( Article 4 added by Stats. 1979, Ch. 112. ) ## 15350. Upon recommendation of its board of directors, any federal credit union may convert into a credit union under the laws of this state by complying with the requirements of the Federal Credit Union Act (12 U.S.C. Sec. 1771) and on obtaining a certificate pursuant to Chapter 2 (commencing with Section 14100) of this division. (Amended by Stats. 1981, Ch. 765, Sec. 4.)
  51. 15351.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 4. Conversion of Federal Credit Union [15350 - 15359] ( Article 4 added by Stats. 1979, Ch. 112. )

    Verify source ↗

    After conversion takes effect, the federal credit union’s officers and directors become the officers and directors of the converted credit union and stay in office until successors are elected and qualified.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 4. Conversion of Federal Credit Union [15350 - 15359] ( Article 4 added by Stats. 1979, Ch. 112. ) ## 15351. The officers and directors of the federal credit union shall be the officers and directors of the credit union after conversion takes effect, to hold office until their successors are elected and qualified. (Added by Stats. 1979, Ch. 112.)
  52. 15352.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 4. Conversion of Federal Credit Union [15350 - 15359] ( Article 4 added by Stats. 1979, Ch. 112. )

    Verify source ↗

    The commissioner may conduct a joint audit of a federal credit union, must issue a certificate to the National Credit Union Administration after the audit, and may certify compliance of the asset-and-liability transfer; audit costs are charged to the credit union.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 4. Conversion of Federal Credit Union [15350 - 15359] ( Article 4 added by Stats. 1979, Ch. 112. ) ## 15352. The commissioner may conduct a joint audit of the federal credit union with federal auditors. Upon completion of such audit, he shall issue a certificate to the National Credit Union Administration showing the results of such audit. The commissioner may also certify that the transfer of the assets and liabilities from the federal credit union to a credit union subject to the laws of this state has been effected in compliance with the applicable laws of this state. The costs of the audit mentioned in this section shall constitute a charge against the credit union. (Added by Stats. 1979, Ch. 112.)
  53. 15353.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 4. Conversion of Federal Credit Union [15350 - 15359] ( Article 4 added by Stats. 1979, Ch. 112. )

    Verify source ↗

    Copies of the member meeting minutes or written vote records must be filed within 10 days after the meeting or vote, and filed in duplicate with the National Credit Union Administration.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 4. Conversion of Federal Credit Union [15350 - 15359] ( Article 4 added by Stats. 1979, Ch. 112. ) ## 15353. Copies of the minutes of the proceedings of the meeting of the members or the written ballot and the record of written vote of the members in which they voted to convert into a state credit union, verified by the board of directors of the credit union, shall be filed within 10 days after the meeting or written vote with the commissioner, and, in duplicate, with the National Credit Union Administration. (Amended by Stats. 1980, Ch. 413, Sec. 9.)
  54. 15354.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 4. Conversion of Federal Credit Union [15350 - 15359] ( Article 4 added by Stats. 1979, Ch. 112. )

    Verify source ↗

    Filed verified minutes or written-vote records count as presumptive evidence of the meeting and the action taken.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 4. Conversion of Federal Credit Union [15350 - 15359] ( Article 4 added by Stats. 1979, Ch. 112. ) ## 15354. The verified copies of the minutes of the meeting or the record of written vote, when filed as required by Section 15353, are presumptive evidence of the holding of, and the action taken at, the meeting or the written vote. (Amended by Stats. 1980, Ch. 413, Sec. 10.)
  55. 15355.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 4. Conversion of Federal Credit Union [15350 - 15359] ( Article 4 added by Stats. 1979, Ch. 112. )

    Verify source ↗

    After an affirmative vote under Section 15350, the federal credit union must take the steps needed to become a credit union of this state. Its directors must file the required documents and carry out the required proceedings.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 4. Conversion of Federal Credit Union [15350 - 15359] ( Article 4 added by Stats. 1979, Ch. 112. ) ## 15355. After an affirmative vote as provided in Section 15350, the federal credit union shall take or cause to be taken such action in the manner prescribed and authorized by this division as shall make it a credit union of this state. The directors shall file the documents and take such proceedings as are required by this division in the case of the original incorporation of a credit union. (Amended by Stats. 1979, Ch. 811.)
  56. 15356.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 4. Conversion of Federal Credit Union [15350 - 15359] ( Article 4 added by Stats. 1979, Ch. 112. )

    Verify source ↗

    Directors of a credit union converted from a federal credit union may add a specified incorporation statement to the articles of incorporation.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 4. Conversion of Federal Credit Union [15350 - 15359] ( Article 4 added by Stats. 1979, Ch. 112. ) ## 15356. The directors of a credit union converted from a federal credit union may insert in the articles of incorporation the following statement: “This credit union is incorporated by conversion from a federal credit union.” (Added by Stats. 1979, Ch. 112.)
  57. 15357.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 4. Conversion of Federal Credit Union [15350 - 15359] ( Article 4 added by Stats. 1979, Ch. 112. )

    Verify source ↗

    Within 10 days after filing the articles of incorporation with the Secretary of State, two certified copies must be filed with the National Credit Union Administration.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 4. Conversion of Federal Credit Union [15350 - 15359] ( Article 4 added by Stats. 1979, Ch. 112. ) ## 15357. Within 10 days after the filing of the articles of incorporation with the Secretary of State, there shall be filed, with the National Credit Union Administration, two copies of the articles of incorporation, certified by the Secretary of State. (Added by Stats. 1979, Ch. 112.)
  58. 15358.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 4. Conversion of Federal Credit Union [15350 - 15359] ( Article 4 added by Stats. 1979, Ch. 112. )

    Verify source ↗

    A federal credit union becomes a state-law credit union after filing articles of incorporation with the Secretary of State and receiving a commissioner’s certificate.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 4. Conversion of Federal Credit Union [15350 - 15359] ( Article 4 added by Stats. 1979, Ch. 112. ) ## 15358. Upon the filing of the articles of incorporation with the Secretary of State and the issuance of a certificate by the commissioner authorizing the federal credit union to act as a credit union under the laws of this state, the credit union ceases to be a federal credit union and is a credit union under the laws of this state. All of the property of the credit union immediately, by operation of law and without any further act, is vested in the credit union under its new name and existence as a credit union under the laws of this state. (Amended by Stats. 1981, Ch. 765, Sec. 5.)
  59. 15359.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 4. Conversion of Federal Credit Union [15350 - 15359] ( Article 4 added by Stats. 1979, Ch. 112. )

    Verify source ↗

    A converted credit union keeps the listed property and remains responsible for the federal credit union’s obligations.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 9. Merger, Dissolution and Conversion [15200 - 15359] ( Chapter 9 added by Stats. 1979, Ch. 112. ) ## ARTICLE 4. Conversion of Federal Credit Union [15350 - 15359] ( Article 4 added by Stats. 1979, Ch. 112. ) ## 15359. The converted credit union shall have, hold, and enjoy the property mentioned in Section 15358 in its own right as fully and to the same extent as the property was possessed, held, and enjoyed by it as a federal credit union and the converted credit union continues responsible for all of the obligations of the federal credit union to the same extent as though conversion had not taken place. The converted credit union is merely a continuation of the federal credit union under a new name and new jurisdiction and such revision of its corporate structure as is considered necessary for its proper operation under the new jurisdiction. (Added by Stats. 1979, Ch. 112.)
  60. 1540.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 15. Industrial Banks [1530 - 1542] ( Chapter 15 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Industrial Bank Business [1540 - 1542] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    Each industrial bank must be an insured bank whenever it is engaged in industrial banking business.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 15. Industrial Banks [1530 - 1542] ( Chapter 15 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Industrial Bank Business [1540 - 1542] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1540. Each industrial bank shall be an insured bank at all times while it is engaged in the industrial banking business. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  61. 15400.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 10. Central Credit Union [15400 - 15451] ( Chapter 10 added by Stats. 1979, Ch. 112. ) ## ARTICLE 1. Definition [15400- 15400.] ( Article 1 added by Stats. 1979, Ch. 112. )

    Verify source ↗

    This section defines “central credit union.”

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 10. Central Credit Union [15400 - 15451] ( Chapter 10 added by Stats. 1979, Ch. 112. ) ## ARTICLE 1. Definition [15400- 15400.] ( Article 1 added by Stats. 1979, Ch. 112. ) ## 15400. “Central credit union” means a credit union whose membership includes, but is not limited to, other credit unions, members of credit unions, credit union employees, employees of organizations serving credit unions, and the families of such members and any common bond set out in subdivision (a) of Section 14155. (Amended by Stats. 1984, Ch. 452, Sec. 6.)
  62. 1541.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 15. Industrial Banks [1530 - 1542] ( Chapter 15 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Industrial Bank Business [1540 - 1542] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    An industrial bank may accept certain deposit accounts or certificates, but not demand deposits, and this is subject to any commissioner order or regulation.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 15. Industrial Banks [1530 - 1542] ( Chapter 15 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Industrial Bank Business [1540 - 1542] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 redeemable prior to their stated maturity, but may not accept demand deposits. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  63. 1542.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 15. Industrial Banks [1530 - 1542] ( Chapter 15 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Industrial Bank Business [1540 - 1542] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    An industrial bank must treat the listed banking provisions as applying to it as if it were a California state commercial bank.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 15. Industrial Banks [1530 - 1542] ( Chapter 15 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Industrial Bank Business [1540 - 1542] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 industrial bank as if it were a California state commercial bank: (a) Chapter 4 (commencing with Section 1070). (b) Chapter 4.5 (commencing with Section 1090). (c) Chapter 5 (commencing with Section 1100). (d) Chapter 8 (commencing with Section 1280). (e) Chapter 10 (commencing with Section 1320). (f) Chapter 11 (commencing with Section 1380). (g) Chapter 12 (commencing with Section 1400). (h) Chapter 13 (commencing with Section 1450). (i) Chapter 14 (commencing with Section 1460). (j) Chapter 16 (commencing with Section 1550). (k) Chapter 17 (commencing with Section 1620). (l) Chapter 18 (commencing with Section 1660). (m) Chapter 19 (commencing with Section 1670). (n) Chapter 5 (commencing with Section 500) of Division 1. (o) Chapter 6 (commencing with Section 550) of Division 1. (p) Division 1.6 (commencing with Section 4800). (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  64. 15450.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 10. Central Credit Union [15400 - 15451] ( Chapter 10 added by Stats. 1979, Ch. 112. ) ## ARTICLE 2. General [15450 - 15451] ( Article 2 added by Stats. 1979, Ch. 112. )

    Verify source ↗

    Central credit unions may be organized and operated under this division, and each such credit union must use the word “central” in its official name.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 10. Central Credit Union [15400 - 15451] ( Chapter 10 added by Stats. 1979, Ch. 112. ) ## ARTICLE 2. General [15450 - 15451] ( Article 2 added by Stats. 1979, Ch. 112. ) ## 15450. Central credit unions may be organized and operated under this division. Each such credit union shall use the word “central” in its official name. (Added by Stats. 1979, Ch. 112.)
  65. 15451.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 10. Central Credit Union [15400 - 15451] ( Chapter 10 added by Stats. 1979, Ch. 112. ) ## ARTICLE 2. General [15450 - 15451] ( Article 2 added by Stats. 1979, Ch. 112. )

    Verify source ↗

    A central credit union may admit certain employee groups to membership, and may transfer their member accounts, if the commissioner and the board of directors approve and other stated conditions are met.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 10. Central Credit Union [15400 - 15451] ( Chapter 10 added by Stats. 1979, Ch. 112. ) ## ARTICLE 2. General [15450 - 15451] ( Article 2 added by Stats. 1979, Ch. 112. ) ## 15451. (a) A central credit union may, with the approval of the commissioner and under such regulations as he shall prescribe, admit to membership groups of employees of a common employer, including the employer, whose place of employment is located within 25 miles of the principal office of the central credit union, or is located within the boundaries of a greater or lesser geographic area prescribed by the commissioner, upon application made by the employer and approval of the board of directors of the central credit union. (b) In the event the employee group qualifies under the provisions of Section 14154, these employees may organize a separate credit union. The central credit union may, upon a plan approved by the commissioner, transfer the member accounts of these employees to any credit union formed by them. (Amended by Stats. 1982, Ch. 691, Sec. 17.)
  66. 155.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 1. Definitions [99 - 217] ( Chapter 1 added by Stats. 2011, Ch. 243, Sec. 2. )

    Verify source ↗

    This section defines “Certificate of revocation” as a certificate executed and filed with the Secretary of State, subject to other specified code provisions.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 1. Definitions [99 - 217] ( Chapter 1 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 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 Section 110 of the Corporations Code, subject, however, to the provisions of Section 1106. (Amended by Stats. 2013, Ch. 334, Sec. 10. (SB 537) Effective January 1, 2014.)
  67. 1550.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. General Provisions [1550 - 1557] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    A corporation may not engage in the trust business unless it meets the listed corporate, authorization, and deposit requirements.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. General Provisions [1550 - 1557] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 (b) It has received from the commissioner a certificate of authority pursuant to Section 1042 to engage in the trust business, or, if it is a bank, has received the authorization of the commissioner to engage in the trust business; and (c) It has deposited with the State Treasurer money or securities in compliance with Article 3 (commencing with Section 1570) of this chapter. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  68. 1551.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. General Provisions [1550 - 1557] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    A commercial bank or industrial bank may engage in the trust business only with prior authorization from the commissioner and if its articles meet Section 1100(b).

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. General Provisions [1550 - 1557] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 requirements of subdivision (b) of Section 1100. Any bank so authorized shall, in the conduct of its trust business, comply with and be governed by all of the provisions of this chapter, except the provisions of Section 1580. An application for such authorization shall be in such form and contain such information as the commissioner may require, and be accompanied by a fee of one thousand dollars ($1,000). (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  69. 1552.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. General Provisions [1550 - 1557] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    A California state bank may not conduct trust business at a location unless that location is its head office, an authorized branch office, or an authorized place of business.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. General Provisions [1550 - 1557] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 business. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  70. 1553.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. General Provisions [1550 - 1557] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    Section 1553 exempts several kinds of persons and organizations from Section 1550.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. General Provisions [1550 - 1557] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 member of that trustee. For purposes of this section, “family member” means any lineal ancestor, lineal descendant, person having a common lineal ancestor of not more than four generations distant, spouse, father-in-law, mother-in-law, sister-in-law, brother-in-law, stepparent, or stepchild. (b) Any member of the State Bar, as specified in Section 6002 of the Business and Professions Code, any certified public accountant, as defined in Section 5033 of the Business and Professions Code, and any professional corporation of one or more members of the State Bar or certified public accountants, where these professionals are acting as trustee of a trust established by them for their respective clients, provided that the member of the State Bar, certified public accountant, or professional corporation engages in no advertising for trust business in this state. (c) Subject to all applicable limitations and restrictions in law for nonprofit corporations, any nonprofit corporation acting as trustee incidental to the purposes for which it was organized. (d) Any person appointed as receiver, trustee, or other fiduciary by a court of competent jurisdiction acting pursuant to that authority. (e) Any person licensed as a professional fiduciary pursuant to Chapter 6 (commencing with Section 6500) of Division 3 of the Business and Professions Code. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  71. 1554.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. General Provisions [1550 - 1557] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    A qualifying national banking association may run a trust business and use “trust” in its name and advertising; the commissioner may access certain federal examination reports.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. General Provisions [1550 - 1557] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 state, (b) is authorized to transact a trust business, and (c) has complied with the requirements of Article 3 (commencing with Section 1570) of this chapter and of all other laws of this state relating to the deposit of securities for the protection of court and private trusts. A subject national banking association may engage in and conduct a trust business and may be appointed by any court to act in any fiduciary capacity in which a trust company is authorized to act. All acts provided in this code to be performed by the commissioner, the State Treasurer, or other public officials for or in respect to the deposit of securities by trust companies, shall be performed for subject national banking associations equally with trust companies. Every subject national banking association shall be permitted to use the word “trust” in its corporate name and to advertise its authority to engage in and conduct a trust business and to advertise for and solicit trust business in this state, notwithstanding any contrary provision in this division or in any other law. The commissioner shall have access to reports of examination made by the Comptroller of the Currency insofar as they relate to the trust department of a subject national banking association. For purposes of Article 3 (commencing with Section 1570), the principal place of business of a national banking association that maintains its main office in another state of the United States and maintains a California branch office shall be deemed to be situated in the city where the California branch office is located or, if the national banking association maintains California branch offices in two or more cities, in the city with the largest population. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  72. 1555.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. General Provisions [1550 - 1557] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    Most foreign corporations may not act as a trust company or conduct a trust business in this state, except specified banks and certain foreign corporations authorized by their articles.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. General Provisions [1550 - 1557] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 state, shall have or exercise the powers of a trust company nor directly or indirectly transact or conduct in this state a trust business as defined in Section 115. However, a foreign corporation that is authorized by its articles to exercise trust powers may act as trustee for the following purposes: (a) To deliver bonds and receive payments therefor. (b) To deliver permanent bonds in exchange for temporary bonds of the same issue. (c) To deliver refunding bonds in exchange for those of a prior issue or issues. (d) To register bonds or to exchange registered bonds for coupon bonds or coupon bonds for registered bonds. (e) To pay interest on the bonds, and take up and cancel coupons representing the interest payment. (f) To redeem and cancel bonds when called for redemption or to pay and cancel bonds when due. (g) To certify registered bonds for the purpose of exchanging registered bonds for coupon bonds. A foreign corporation that is authorized by its articles to exercise trust powers may be appointed and may accept appointment and act as trustee under any mortgage, deed of trust, or other instrument securing bonds or other obligations issued or to be issued by any railroad corporation that owns a railroad operating in the State of California and extending into another state. A foreign corporation exercising in this state the powers conferred by this section shall not establish or maintain directly or indirectly any branch office or agency in this state unless it has complied with all of the applicable provisions of Chapter 20 (commencing with Section 1750) or of Chapter 19 (commencing with Section 1670). (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  73. 1556.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. General Provisions [1550 - 1557] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    Certain banks authorized to do trust business are exempt from California constitutional interest-rate limits for specified obligations, loans, and forbearances when acting in a fiduciary capacity.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. General Provisions [1550 - 1557] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 of Article XV of the California Constitution shall not apply to any obligations of, loans made or arranged by, or forbearances of, any of the following that is authorized to engage in the trust business, when acting in its fiduciary capacity: (a) Any California state bank. (b) Any national bank that maintains its main office or a branch office in this state. (c) Any foreign (other state) state bank that maintains a branch office in this state. This section creates and authorizes an exempt class of persons pursuant to Section 1 of Article XV of the Constitution. This section does not exempt a bank authorized to transact a trust business or a subsidiary thereof from complying with all other laws and regulations governing the business in which the bank or subsidiary is engaged. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  74. 1557.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. General Provisions [1550 - 1557] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    Tax return preparers should inform clients in writing, before finishing a return, that voluntary contribution check-offs may be available on the state income tax return.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. General Provisions [1550 - 1557] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 provided on the state income tax return. The Legislature further finds and declares that many taxpayers remain unaware of the voluntary contribution check-offs on the state income tax return. Therefore, it is the intent of the Legislature to encourage all persons who prepare state income tax returns to inform their clients in writing, prior to the completion of any tax return, that they may make a contribution to any voluntary contribution check-off on the state income tax return if they so choose. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  75. 1560.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Fiduciary Activities [1560 - 1562] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    This section says the article should be read to conform to certain OCC fiduciary-activity regulations and related OCC interpretations.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Fiduciary Activities [1560 - 1562] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 national banks (Part 9 (commencing with Section 9.1) of Title 12 of the Code of Federal Regulations) of the Office of the Comptroller of the Currency, conform, and be interpreted by anyone construing the provisions of this article to so conform, to those regulations, any rule or interpretation promulgated thereunder by the Office of the Comptroller of the Currency, and to any interpretation issued by an official or employee of the Office of the Comptroller of the Currency duly authorized to issue the interpretation. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  76. 1561.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Fiduciary Activities [1560 - 1562] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    This section defines key terms used for Section 1562, including bank, fiduciary regulations, fiduciary account, fiduciary capacity, and related trust-office terms.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Fiduciary Activities [1560 - 1562] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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, or trust company incorporated under the laws of this state. (2) A foreign (other state) bank that may establish a branch office in this state in accordance with Article 2 (commencing with Section 1680) of Chapter 19. (b) “Fiduciary Regulations” means the regulations regarding fiduciary activities of national banks promulgated by the Office of the Comptroller of the Currency (Part 9 (commencing with Section 9.1) of Title 12 of the Code of Federal Regulations), as amended from time to time. (c) “Affiliate” has the meaning set forth in Section 150 of the Corporations Code. (d) “Applicable law” means the law of the state, another state, or other jurisdiction governing a bank’s fiduciary relationships, any applicable federal laws governing those relationships, or any court order pertaining to those relationships. (e) “Custodian under a uniform gifts to minors act” means a fiduciary relationship established pursuant to the California Uniform Transfers to Minors Act (Part 9 (commencing with 3900) of Division 4 of the Probate Code). (f) “Fiduciary account” means an account administered by a bank acting in a fiduciary capacity. (g) “Fiduciary capacity” means trustee, executor, administrator, registrar of stocks and bonds, transfer agent, guardian, assignee, receiver, or custodian under a uniform gifts to minors act; investment adviser, if the bank receives a fee for its investment advice; any capacity in which the bank possesses investment discretion on behalf of another; or any other similar capacity. (h) “Fiduciary powers” means the powers granted a bank by virtue of its receipt of the authority to engage in trust business from the commissioner. (i) “Guardian” means the guardian or conservator, by whatever name used by law, of the estate of a minor, an incompetent person, an absent person, or a person over whose estate a court has taken jurisdiction, other than under bankruptcy or insolvency laws. (j) “Investment discretion” means, with respect to an account, the sole or shared authority, whether or not that authority is exercised, to determine what securities or other assets to purchase or sell on behalf of that account. A bank that delegates its authority over investments and a bank that receives delegated authority over investments shall both be deemed to have investment discretion. (k) “Trust office” means an office of a bank, other than a main office, at which the bank engages in the trust business. A trust office that engages in core banking business, as defined in subdivision (b) of Section 1670, is considered a branch office of the bank. (l) “Trust representative office” means a facility as defined in subdivision (c) of Section 1670. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  77. 1562.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Fiduciary Activities [1560 - 1562] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    This section incorporates specified Fiduciary Regulations into the article and says references to “national bank” or “national banks” in those regulations mean “bank” or “banks” here.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Fiduciary Activities [1560 - 1562] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 particular, including footnotes, are hereby referred to, incorporated by reference into this article, and adopted. (b) All references to the term “national bank” or “national banks” used in the Fiduciary Regulations shall mean “bank” or “banks” for purposes of this article. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  78. 157.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 1. Definitions [99 - 217] ( Chapter 1 added by Stats. 2011, Ch. 243, Sec. 2. )

    Verify source ↗

    This section defines “common shares” by referring to Section 159 of the Corporations Code.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 1. Definitions [99 - 217] ( Chapter 1 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 157. “Common shares” has the meaning set forth in Section 159 of the Corporations Code. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  79. 1570.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 3. Deposits with State Treasurer [1570 - 1578] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 3. )

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    Trust companies must deposit specified money or securities with the State Treasurer, with higher amounts for larger-city locations and an extra deposit and written notice if court-trust receipts reach $500,000.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 3. Deposits with State Treasurer [1570 - 1578] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 trusts as follows: (a) If the trust company’s principal place of business is situated in a city the population of which does not exceed 100,000 persons, it shall deposit with the State Treasurer money or securities having a market value of at least fifty thousand dollars ($50,000) as security for the faithful performance and execution of all court trusts accepted by it, and money or securities having a market value of at least fifty thousand dollars ($50,000) as security for the faithful performance and execution of all private trusts accepted by it. Whenever any such trust company receives trust funds or property, other than real property, from court trusts accepted by it to the amount of five hundred thousand dollars ($500,000), it shall forthwith give the commissioner written notice thereof, and within 30 days thereafter shall make an additional deposit with the State Treasurer of money or securities having a market value of fifty thousand dollars ($50,000) as security for its court trusts, and money or securities having a market value of fifty thousand dollars ($50,000) as additional security for its private trusts. (b) If the trust company’s principal place of business is situated in a city the population of which exceeds 100,000 persons, it shall deposit with the State Treasurer money or securities having a market value of at least one hundred thousand dollars ($100,000) as security for the faithful performance and execution of all court trusts accepted by it, and money or securities having a market value of at least one hundred thousand dollars ($100,000) as security for the faithful performance and execution of all private trusts accepted by it. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  80. 1571.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 3. Deposits with State Treasurer [1570 - 1578] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 3. )

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    A trust company that receives enough court trust funds must promptly notify the commissioner and, within 30 days, make required deposits with the State Treasurer.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 3. Deposits with State Treasurer [1570 - 1578] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 ($1,000,000), it shall forthwith give the commissioner written notice thereof, and within 30 days thereafter shall make an additional deposit with the State Treasurer of money or securities having a market value of fifty thousand dollars ($50,000). For each additional five hundred thousand dollars ($500,000) of such trust funds thereafter received by any trust company from court trusts a similar notification in writing shall forthwith be given to the commissioner and a further deposit of money or securities having a market value of twenty-five thousand dollars ($25,000) shall be made within 30 days thereafter by such trust company with the State Treasurer until money or securities having a market value of five hundred thousand dollars ($500,000) have been so deposited. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  81. 1572.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 3. Deposits with State Treasurer [1570 - 1578] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    Trust companies depositing security with the Treasurer under Sections 1570 or 1571 must use one of the listed categories of assets.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 3. Deposits with State Treasurer [1570 - 1578] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 notes or obligations of the United States or those for which the faith and credit of the United States are pledged for the payment of principal and interest. (b) Bonds of the State of California or those for which the faith and credit of the State of California are pledged for the payment of principal and interest or in registered warrants of the State of California. (c) Obligations and securities of the type described in subdivisions (a) to (g), inclusive, of Section 1510. (d) Obligations and assets of the type described in subdivisions (a) to (c), inclusive, of Section 1511. (e) Loans secured by a first lien on real property and otherwise complying with the provisions of subdivision (a) of Section 1486. (f) Obligations issued, assumed, or guaranteed by the International Bank for Reconstruction and Development, the Inter-American Development Bank, the Asian Development Bank, the International Finance Corporation, or the African Development Bank. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  82. 1573.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 3. Deposits with State Treasurer [1570 - 1578] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 3. )

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    The commissioner must approve the money or securities and order their deposit with the Treasurer; the Treasurer must give a receipt, hold the deposit for the specified beneficiaries, and deposit the money under the Government Code sections cited.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 3. Deposits with State Treasurer [1570 - 1578] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 any such deposit the Treasurer shall give his or her receipt therefor and thereafter subject to the provisions of this chapter shall hold such deposits for the sole benefit of the beneficiaries of the class of trust business for the security and protection of which the same were deposited. The state is responsible for the custody and safe return of any money or securities so deposited. The Treasurer shall deposit any such moneys under the provisions of Sections 16370 to 16375 of the Government Code. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  83. 1574.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 3. Deposits with State Treasurer [1570 - 1578] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 3. )

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    A trust company may withdraw excess deposited securities by written request, and securities may be exchanged with the commissioner’s approval.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 3. Deposits with State Treasurer [1570 - 1578] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 market value. Upon written request to the commissioner, any trust company shall be entitled to withdraw from the Treasurer, from time to time, any amount of its securities so deposited in excess of the amount it is required to maintain on deposit in order to conform with the requirements of this article. Upon receiving a written request for such withdrawal or exchange, and satisfactory proof of the facts warranting the same, the commissioner shall forthwith deliver to the Treasurer a written order directing the withdrawal or exchange of such securities so as to conform with the provisions of this section. The Treasurer shall comply with such written order. So long as the trust company so depositing such securities shall continue solvent, it shall have the right and shall be permitted by the Treasurer to receive the interest and dividends on any securities deposited by it. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  84. 1575.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 3. Deposits with State Treasurer [1570 - 1578] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 3. )

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    If deposited security drops below the required amount, additional money or securities must be deposited promptly. The commissioner may inspect the value of deposited security and may charge a reasonable fee for that investigation.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 3. Deposits with State Treasurer [1570 - 1578] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 money or securities shall be deposited promptly in amount sufficient to meet such requirements. The commissioner may make an investigation of the value of any security deposited pursuant to this article, at the time such security is presented for deposit or at any time thereafter, whenever in his judgment such investigation is necessary. The commissioner may make such charge as may be reasonable and proper for such investigation. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  85. 1576.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 3. Deposits with State Treasurer [1570 - 1578] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 3. )

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    If the commissioner revalues securities under Section 1575, U.S. government securities with less than five years to maturity must be valued at no less than par, except when the securities are being presented for deposit.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 3. Deposits with State Treasurer [1570 - 1578] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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, United States Government securities having a maturity date less than five years from the date of such revaluation shall be valued at not less than par. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  86. 1577.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 3. Deposits with State Treasurer [1570 - 1578] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 3. )

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    Money and securities deposited under this article may be sold or disposed of only on a court order, and only for the benefit of the relevant beneficiaries.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 3. Deposits with State Treasurer [1570 - 1578] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 State Treasurer only on the order of a court of competent jurisdiction and for the benefit respectively of the beneficiaries of that class of trust business for the security and protection of which the securities were deposited. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  87. 1578.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 3. Deposits with State Treasurer [1570 - 1578] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 3. )

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    The commissioner may levy a civil penalty against a trust company that fails to comply with this article.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 3. Deposits with State Treasurer [1570 - 1578] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1578. The commissioner may, pursuant to Section 329, levy a civil penalty against any trust company that fails to comply with this article. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  88. 1580.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 4. Investments [1580 - 1586] ( Article 4 added by Stats. 2011, Ch. 243, Sec. 3. )

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    A trust company may invest its contributed capital only in the kinds of securities, properties, and real-property loans that commercial banks are permitted to invest in or make under the cited provisions.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 4. Investments [1580 - 1586] ( Article 4 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 to Sections 800 to 819, inclusive, and in loans on real property which commercial banks are permitted to make pursuant to Article 3 (commencing with Section 1480) of Chapter 14. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  89. 1581.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 4. Investments [1580 - 1586] ( Article 4 added by Stats. 2011, Ch. 243, Sec. 3. )

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    If a trust company invests trust funds received in its trust business, it must invest them as provided in Part 4 of Division 9 of the Probate Code.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 4. Investments [1580 - 1586] ( Article 4 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 16000) of Division 9 of the Probate Code. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  90. 1582.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 4. Investments [1580 - 1586] ( Article 4 added by Stats. 2011, Ch. 243, Sec. 3. )

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    A trust company may invest trust assets in certain funds, but it must give notice and a prospectus within 30 days after the initial investment and then disclose related fees at least annually.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 4. Investments [1580 - 1586] ( Article 4 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 amended from time to time. (2) “Trust” means any court trust or private trust. (3) “Trust Law” means Division 9 (commencing with Section 15000) of the Probate Code. (b) Within the standards established by trust law, including, but not limited to, Division 9 (commencing with Section 15000) of the Probate Code, a trust company acting in any capacity under a trust may, in the exercise of its investment discretion unless the trust instrument provides expressly to the contrary, invest and reinvest in the securities of or other interests in any fund to which the trust company or its affiliate is providing services including, but not limited to, services as an investment adviser, sponsor, distributor, custodian, agent, registrar, administrator, servicer, or manager, and for which the trust company or its affiliate receives compensation. (c) Before or within 30 days after the initial investment upon the exercise of discretionary powers authorized by subdivision (b), the trust company, acting in any capacity under a trust, shall furnish written notice of the exercise of the discretionary powers and a copy of the prospectus relating to the securities to all persons to whom the trust company is required to render statements of account pursuant to applicable provisions of the Trust Law or to whom the trust company regularly provides a statement of account unless specifically waived in writing. (d) With respect to any trust so invested, the trust company shall disclose to all persons identified in subdivision (c), at least annually by prospectus, statement of account, or other written notice, a brief description of the fees or rates charged by the trust company and its affiliates for its services as investment adviser or investment manager to the fund. (e) In connection with an investment or reinvestment authorized by subdivision (b), the portion of compensation a trust company receives from the trust reasonably attributable to investment advisory or investment management services to the trust shall be reduced (but not below zero) by an amount equal to compensation that is received by the trust company or its affiliates for providing investment advisory or investment management services to the fund for the portion of the trust invested in the fund. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  91. 1583.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 4. Investments [1580 - 1586] ( Article 4 added by Stats. 2011, Ch. 243, Sec. 3. )

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    A trust company or trust-business bank may place trust funds with a state or national bank, but not with itself or a related majority-owner institution unless it first provides qualifying securities as collateral; insured deposit amounts do not need security.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 4. Investments [1580 - 1586] ( Article 4 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 such funds with any state or national bank. Such funds shall not, however, be deposited or left with the same corporation or association depositing or leaving on deposit such funds or with any corporation or association holding or owning a majority of the capital stock of the trust company or bank making or leaving such deposit, unless such corporation or association shall first pledge, as security for such deposit, securities eligible for investment by savings banks having a market value of not less than the funds so deposited. No security shall be required with respect to any part of such deposits which is insured under the provisions of any law of the United States. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  92. 1584.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 4. Investments [1580 - 1586] ( Article 4 added by Stats. 2011, Ch. 243, Sec. 3. )

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    Trust companies may register certain trust securities in nominee names if consent and no contrary trust instrument language exist, but they must keep records, segregate assets, certify holdings on demand, and are liable for losses caused by nominees.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 4. Investments [1580 - 1586] ( Article 4 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 cofiduciaries, unless the instrument creating such trust contains a provision to the contrary, may, with the consent of such cofiduciary or cofiduciaries cause any stock or other securities held in any such capacity to be registered in the name of a nominee or nominees of such trust company and any trust company when acting as depositary or custodian for the trustee of any other court or private trust, unless the instrument creating the trust contains a provision to the contrary, may, with the consent of the trustee of such other trust, cause any stock or other securities held by it in such capacity to be registered in the name of a nominee or nominees of such trust company. Any such trust company shall be liable for any loss occasioned by the acts of any nominee of such trust company with respect to such stock or other securities so registered. The records of such trust company shall at all times show the ownership of any such stock or other securities and of those held in bearer form. Such stock or other securities and those held in bearer form shall at all times be kept by such trust company separate and apart from its other assets and may be kept by such trust company: (a) In a manner such that all certificates representing the stock or other securities from time to time constituting the assets of a particular estate, trust or other fiduciary account are held separate from those of all other estates, trusts or accounts; or (b) In a manner such that, without certification as to ownership attached, certificates representing stock or other securities of the same class of the same issuer and from time to time constituting assets of particular estates, trusts or other fiduciary accounts are held in bulk, including, to the extent feasible, the merging of certificates of small denomination into one or more certificates of large denomination, provided that a trust company, when operating under the method of safekeeping security certificates described in this subdivision, shall be subject to such rules and regulations as, in the case of state chartered institutions, the commissioner and, in the case of national bank associations, the Comptroller of the Currency, may from time to time issue. Such trust company shall, on demand by any party to an accounting by such trust company as fiduciary or on demand by the attorney for such party, certify in writing the stock or other securities held by such trust company as such fiduciary for such party. No domestic or foreign corporation or the registrar or transfer agent of any such corporation shall be liable for registering or causing to be registered on the books of such corporation any share or shares or other securities in the name of any nominee of such trust company or for transferring or causing to be transferred on the books of any such corporation any share or shares or other securities theretofore registered by such corporation in the name of any nominee of such trust company as herein provided when the transfer is made upon the authorization of such nominee. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  93. 1585.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 4. Investments [1580 - 1586] ( Article 4 added by Stats. 2011, Ch. 243, Sec. 3. )

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    Trust companies may create and administer common trust funds and invest in them, subject to stated conditions. The commissioner may examine those funds, and certain ownership and apportionment rules do not apply.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 4. Investments [1580 - 1586] ( Article 4 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 meaning of Section 1504 of the Internal Revenue Code. (b) Any trust company may establish and administer common trust funds composed of property permitted by law for the investment of trust funds, for the purpose of furnishing investments to any one or more of the following: (1) itself, as fiduciary; (2) itself and others, as cofiduciaries; (3) any affiliated trust company including, without limitation, any foreign (other state) affiliated trust company, as fiduciary; and (4) any affiliated trust company including, without limitation, any foreign (other state) affiliated trust company and others, as cofiduciaries. Any trust company may as such fiduciary or cofiduciary invest funds which it lawfully holds for investment in interests in common trust funds administered by itself or by any affiliated trust company including, without limitation, any foreign (other state) affiliated trust company, if such investment is not prohibited by the instrument, judgment, decree, order, or statute creating or governing such fiduciary relationship, and if, in the case of cofiduciaries, the trust company procures the consent of its cofiduciaries to such investment. (c) Each common trust fund established hereunder shall be treated as an entity separate and distinct from the fiduciary relationships participating therein. No fiduciary in administering a participating fiduciary relationship shall be required to make any apportionment or allocation between the principal and income of this relationship different from that made for the common trust fund. No participating fiduciary relationship, nor any person having an interest in that relationship, shall have or be deemed to have any ownership in any particular property of the common trust fund, but each participating fiduciary relationship shall have a proportionate undivided interest in the fund and its income, and the ownership of all property of the common trust fund shall be in the trustee of the fund. (d) This section shall apply to fiduciary relationships now in existence or hereafter established, whether the same be revocable or irrevocable. The commissioner, at his or her direction, may make an examination of any common trust fund established hereunder at the times and to the extent as he or she may deem advisable. The provisions of the Corporate Securities Law shall not apply to the creation, administration, or termination of common trust funds, nor to participation therein. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  94. 1586.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 4. Investments [1580 - 1586] ( Article 4 added by Stats. 2011, Ch. 243, Sec. 3. )

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    For participation certificates issued by a trust company and secured by a trust deed or mortgage, the issuing trust company holds the legal title as trustee and may exercise broad powers over the security and related property.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 4. Investments [1580 - 1586] ( Article 4 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 mortgage and debt (referred to in this section as “security”) shall be held by the trust company issuing the certificates as trustee of an express trust, with all powers necessary to extend, renew, enforce, collect, and liquidate the same, acquire title to the property covered thereby either through foreclosure or by voluntary conveyance; manage, lease, sell (either for cash or upon deferred payments), exchange, or otherwise realize upon the security or property and distribute the net proceeds thereof. All sums so realized shall, as and when received by such trustee, after payment of its compensation and all costs, charges, and expenses, including brokers’ commissions and advances for taxes and assessments, incurred or made in connection with the protection, administration, and liquidation of the security or property, be distributed to the trusts or persons who are beneficiaries of the trust, as their interests may appear therein. The rights and interests therein of any such beneficiary failing to contribute on demand its or his pro rata of sums advanced, expended, or required by the trust company in the protection, administration, or liquidation of the trust shall be subject to a lien for all sums, with legal interest thereon advanced, expended, or required for any of such purposes by the trustee or by any other beneficiary of the trust. The trust in such security or property shall continue in the trust company so long as any of the certificates are outstanding, irrespective of any distribution of the certificates from the trust in which the same are held. The purpose of this section is to define and clarify the rights and obligations of trust companies and of all persons and trusts interested in participation certificates issued under any authority of law. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  95. 159.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 1. Definitions [99 - 217] ( Chapter 1 added by Stats. 2011, Ch. 243, Sec. 2. )

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    This section defines “confidential information” about a licensee and states that the confidential information is the property of the commissioner.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 1. Definitions [99 - 217] ( Chapter 1 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 159. (a) “Confidential information” means any information regarding a licensee contained in, or related to, any of the following: (1) Applications filed with the commissioner. (2) Examination, operating, condition, or any other reports prepared by, on behalf of, or for the use of, the commissioner. (3) Information received in confidence by the commissioner. (b) Confidential information is the property of the commissioner. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  96. 16.

    ## Financial Code - FIN ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1951, Ch. 364. )

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    “Oath” includes affirmation.

    ## Financial Code - FIN ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1951, Ch. 364. ) ## 16. “Oath” includes affirmation. (Enacted by Stats. 1951, Ch. 364.)
  97. 1600.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 5. Miscellaneous [1600 - 1613] ( Article 5 added by Stats. 2011, Ch. 243, Sec. 3. )

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    A trust company has several powers, including serving in fiduciary roles, acting as transfer agent or registrar, buying and selling securities for customers, and carrying out trust business allowed by law.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 5. Miscellaneous [1600 - 1613] ( Article 5 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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, guardian or conservator of estates, assignee, receiver, depositary, trustee, custodian, or in any other fiduciary or representative capacity for any purpose permitted by law, may act as transfer agent or registrar of corporate stocks and bonds, may buy and sell securities for the account of customers, and may accept and execute any trust business permitted by any law of this or any other state or of the United States to be taken, accepted, or executed by an individual; and (b) A trust company, upon becoming a member of the Federal Reserve System, shall continue to have such powers as may then or thereafter be conferred upon it by the laws of this state, subject to such federal rules, regulations, and laws as may govern state banks exercising trust powers or trust companies which become members of the Federal Reserve System. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  98. 16000.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 1. General Provisions [16000 - 16013] ( Article 1 added by Stats. 2000, Ch. 612, Sec. 3. )

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    This chapter may be cited as the Foreign (Other State) Credit Union Law.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 1. General Provisions [16000 - 16013] ( Article 1 added by Stats. 2000, Ch. 612, Sec. 3. ) ## 16000. This chapter may be cited as the “Foreign (Other State) Credit Union Law.” (Added by Stats. 2000, Ch. 612, Sec. 3. Effective January 1, 2001.)
  99. 16001.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 1. General Provisions [16000 - 16013] ( Article 1 added by Stats. 2000, Ch. 612, Sec. 3. )

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    This section defines key terms used in this chapter about foreign (other state) credit unions.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 1. General Provisions [16000 - 16013] ( Article 1 added by Stats. 2000, Ch. 612, Sec. 3. ) ## 16001. In this chapter: (a) “Branch business” means the business of issuing share accounts, certificates for funds, and share drafts, receiving deposits, paying checks, making loans and other obligations, and other activities that the commissioner may specify by order or regulation. (b) “California branch office,” when used with respect to a foreign (other state) credit union, means an office in this state at which the foreign (other state) credit union engages in branch business. (c) (1) “California facility,” when used with respect to a foreign (other state) credit union, means an office in this state at which the foreign (other state) credit union engages in business other than branch business. (2) In the case of an employer-supported foreign (other state) credit union, a “California facility” does not include a table, counter, or booth on the premises of the employer’s place of business at which a volunteer of the foreign (other state) credit union provides information or services to members but does not engage in branch business. (d) “Foreign nation” means any nation other than the United States, including, without limitation, any subdivision, territory, trust territory, dependency, colony, or possession of any nation other than the United States. (e) “Foreign (other nation) credit union” means any credit union or similar institution that is organized under the laws of a foreign nation. (f) “Foreign (other state) credit union” means a credit union that is organized under the laws of any state of the United States other than this state. (g) “Home state,” when used with respect to a foreign (other state) credit union, means the state of the United States under which the foreign (other state) credit union is organized. (h) “Home state regulator,” when used with respect to a foreign (other state) credit union, means the state regulatory agency in the home state of the foreign (other state) credit union which has primary regulatory authority over the foreign (other state) credit union. (i) “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 Samoa, the Trust Territory of the Pacific Islands, the Virgin Islands, and the Northern Mariana Islands. (Added by Stats. 2000, Ch. 612, Sec. 3. Effective January 1, 2001.)
  100. 16002.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 1. General Provisions [16000 - 16013] ( Article 1 added by Stats. 2000, Ch. 612, Sec. 3. )

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    This section says this chapter does not authorize a foreign credit union from another state or nation to do business in California.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 1. General Provisions [16000 - 16013] ( Article 1 added by Stats. 2000, Ch. 612, Sec. 3. ) ## 16002. Nothing in this chapter shall be deemed to authorize a foreign (other nation) credit union to transact business in this state. (Added by Stats. 2000, Ch. 612, Sec. 3. Effective January 1, 2001.)
  101. 16003.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 1. General Provisions [16000 - 16013] ( Article 1 added by Stats. 2000, Ch. 612, Sec. 3. )

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    A foreign (other state) credit union may not open or keep a California branch office or facility unless it is qualified to do intrastate business, subject to a stated exception.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 1. General Provisions [16000 - 16013] ( Article 1 added by Stats. 2000, Ch. 612, Sec. 3. ) ## 16003. No foreign (other state) credit union may establish or maintain a California branch office or California facility unless it is qualified to transact intrastate business under Chapter 21 (commencing with Section 2100) of Division 1 of Title 1 of the Corporations Code, except as provided in Section 8910 of the Corporations Code. (Added by Stats. 2000, Ch. 612, Sec. 3. Effective January 1, 2001.)
  102. 16004.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 1. General Provisions [16000 - 16013] ( Article 1 added by Stats. 2000, Ch. 612, Sec. 3. )

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    A foreign credit union may not open a California branch office or facility unless its deposit or share accounts are insured by the National Credit Union Administration or another insurer acceptable to the commissioner.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 1. General Provisions [16000 - 16013] ( Article 1 added by Stats. 2000, Ch. 612, Sec. 3. ) ## 16004. No foreign (other state) credit union may establish a California branch office or California facility unless its deposit or share accounts are insured by the National Credit Union Administration or other insurer that is not unsatisfactory to the commissioner. (Added by Stats. 2000, Ch. 612, Sec. 3. Effective January 1, 2001.)
  103. 16005.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 1. General Provisions [16000 - 16013] ( Article 1 added by Stats. 2000, Ch. 612, Sec. 3. )

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    Applications filed with the commissioner under this chapter must be in the required form, include the required information, be signed properly, and, if required by regulation or order, be verified as the commissioner requires.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 1. General Provisions [16000 - 16013] ( Article 1 added by Stats. 2000, Ch. 612, Sec. 3. ) ## 16005. 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 the information, shall be signed in the manner, and shall (if the commissioner requires by regulation or order) be verified in the manner that the commissioner may by regulation or order require. (Added by Stats. 2000, Ch. 612, Sec. 3. Effective January 1, 2001.)
  104. 16006.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 1. General Provisions [16000 - 16013] ( Article 1 added by Stats. 2000, Ch. 612, Sec. 3. )

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    Foreign (other state) credit unions must pay specified application, licensing, annual, and examination fees to the commissioner.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 1. General Provisions [16000 - 16013] ( Article 1 added by Stats. 2000, Ch. 612, Sec. 3. ) ## 16006. Fees shall be paid to and collected by the commissioner as follows: (a) The fee for an application by a foreign (other state) credit union that is not licensed to transact business in this state for approval to establish a branch office is one thousand dollars ($1,000). (b) The fee for an application by a foreign (other state) credit union that is licensed to transact business in this state for approval to establish a California branch office is five hundred dollars ($500). (c) The fee for issuing a license to establish and maintain a California branch office or California facility is twenty-five dollars ($25). (d) Each foreign (other state) credit union that on June 1 of any year maintains one or more California branch offices or California facilities shall pay, on or before the following July 1, a fee of two hundred fifty dollars ($250) per California branch office and one hundred dollars ($100) per California facility. However, the maximum fee shall be not more than one thousand dollars ($1,000). (e) If the commissioner makes an examination in connection with a pending application, the foreign (other state) credit union making the application shall pay a fee for the examination, as determined by the commissioner. In determining the fee, the commissioner may use the estimated average hourly cost, including, but not limited to, overhead, for all persons performing the examination, plus, if in the opinion of the commissioner it is necessary for any examiner engaged in the examination to travel outside this state, the travel expenses of the examiner. (f) If the commissioner makes an examination of a foreign (other state) credit union that maintains a California branch office or California facility, the foreign (other state) credit union shall pay a fee for the examination, as determined by the commissioner. In determining the fee, the commissioner may use the estimated average hourly cost, including, but not limited to, overhead, for all persons performing the examination, plus, if in the opinion of the commissioner it is necessary for any examiner engaged in the examination to travel outside this state, the travel expenses of the examiner. (Amended by Stats. 2025, Ch. 20, Sec. 13. (AB 137) Effective June 30, 2025.)
  105. 16007.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 1. General Provisions [16000 - 16013] ( Article 1 added by Stats. 2000, Ch. 612, Sec. 3. )

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    A foreign (other state) credit union must file an appointment with the commissioner at least 30 days before opening a California branch office or facility, and service of process rules apply if it does business there.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 1. General Provisions [16000 - 16013] ( Article 1 added by Stats. 2000, Ch. 612, Sec. 3. ) ## 16007. (a) Not less than 30 days before a foreign (other state) credit union establishes a California branch office or a California facility, the foreign (other state) credit union shall file with the commissioner, in the form that the commissioner may by regulation or order require, an appointment irrevocably appointing the commissioner and the commissioner’s successor from time to time in office to be the foreign (other state) credit union’s attorney to receive service of any lawful process in any noncriminal judicial or administrative proceeding against the foreign (other state) credit union or any of its successors that arises out of the activities of the California branch office or California facility after the appointment has been filed, with the same force and validity as if served personally on the foreign (other state) credit union or its successors, as the case may be. (b) Any foreign (other state) credit union that maintains a California branch office or California facility that has not filed with the commissioner an appointment pursuant to subdivision (a) is deemed by the maintenance of the branch office or facility to have appointed the commissioner as its attorney to receive service of any lawful process in any noncriminal judicial or administrative proceeding against the foreign (other state) credit union or any of its successors that arises out of the activities of the California branch office or California facility, with the same force and validity as if served personally on the credit union or its successor, as the case may be. (c) Service may be made on a foreign (other state) credit union that has appointed or is deemed to have appointed the commissioner as its attorney for service of process by leaving a copy of the process at any office of the commissioner. However, the service is not effective unless (1) the party making the service, who may be the commissioner, forthwith sends notice of the service and a copy of the process by registered or certified mail to the foreign (other state) credit union served at the last address on file with the commissioner for any of the foreign (other state) credit union’s offices in this state or at its head office, and (2) an affidavit of compliance with this subdivision by the party making the service is filed in the case on or before the return date if any, or within any further time that the court, in the case of a judicial proceeding, or the administrative agency, in the case of an administrative proceeding, allows. (Added by Stats. 2000, Ch. 612, Sec. 3. Effective January 1, 2001.)
  106. 16008.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 1. General Provisions [16000 - 16013] ( Article 1 added by Stats. 2000, Ch. 612, Sec. 3. )

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    The commissioner may share information with federal and home state regulators of foreign credit unions when administering this chapter.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 1. General Provisions [16000 - 16013] ( Article 1 added by Stats. 2000, Ch. 612, Sec. 3. ) ## 16008. In administering the provisions of this chapter, the commissioner may share information with federal and home state regulators of foreign (other state) credit unions. (Added by Stats. 2000, Ch. 612, Sec. 3. Effective January 1, 2001.)
  107. 16009.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 1. General Provisions [16000 - 16013] ( Article 1 added by Stats. 2000, Ch. 612, Sec. 3. )

    Verify source ↗

    A licensed foreign credit union must post a public notice at its office in a conspicuous place.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 1. General Provisions [16000 - 16013] ( Article 1 added by Stats. 2000, Ch. 612, Sec. 3. ) ## 16009. A foreign (other state) credit union that is licensed to establish an office shall post at a conspicuous place at the office a notice to the public which states the name of the foreign (other state) credit union, the type of office it is, and the state of the United States under whose laws it was organized or chartered. (Added by Stats. 2000, Ch. 612, Sec. 3. Effective January 1, 2001.)
  108. 1601.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 5. Miscellaneous [1600 - 1613] ( Article 5 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    This section classifies trusts handled by a trust company as either court trusts or private trusts.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 5. Miscellaneous [1600 - 1613] ( Article 5 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 either court trusts or private trusts. A “court trust” is one in which a trust company acts under appointment, order, or decree of any court, as executor, administrator, guardian, conservator, assignee, receiver, depositary, or trustee, or in which it receives on deposit money or property from a public administrator, under any provision of this code, or from any executor, administrator, guardian, assignee, receiver, depositary, or trustee, under any order or decree of any court. A “private trust” is every other trust, agency, fiduciary relationship, or representative capacity. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  109. 16010.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 1. General Provisions [16000 - 16013] ( Article 1 added by Stats. 2000, Ch. 612, Sec. 3. )

    Verify source ↗

    A license may not be transferred or assigned.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 1. General Provisions [16000 - 16013] ( Article 1 added by Stats. 2000, Ch. 612, Sec. 3. ) ## 16010. No license shall be transferable or assignable. (Added by Stats. 2000, Ch. 612, Sec. 3. Effective January 1, 2001.)
  110. 16011.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 1. General Provisions [16000 - 16013] ( Article 1 added by Stats. 2000, Ch. 612, Sec. 3. )

    Verify source ↗

    A foreign credit union licensed to have more than one office must designate one office as its primary office.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 1. General Provisions [16000 - 16013] ( Article 1 added by Stats. 2000, Ch. 612, Sec. 3. ) ## 16011. Whenever a foreign (other state) credit union is licensed to establish more than one office, it shall designate one of its offices as its primary office. (Added by Stats. 2000, Ch. 612, Sec. 3. Effective January 1, 2001.)
  111. 16012.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 1. General Provisions [16000 - 16013] ( Article 1 added by Stats. 2000, Ch. 612, Sec. 3. )

    Verify source ↗

    A licensed foreign credit union must do all office business in one building or adjoining buildings, unless it gives prior notice to the commissioner and does some business elsewhere in the same vicinity.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 1. General Provisions [16000 - 16013] ( Article 1 added by Stats. 2000, Ch. 612, Sec. 3. ) ## 16012. Each foreign (other state) credit union that is licensed to establish an office shall conduct all of the business of the office in a single building or in adjoining buildings. However, with prior to notice to the commissioner, the foreign (other state) credit union may conduct part of the business of the office elsewhere in the same vicinity. (Added by Stats. 2000, Ch. 612, Sec. 3. Effective January 1, 2001.)
  112. 16013.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 1. General Provisions [16000 - 16013] ( Article 1 added by Stats. 2000, Ch. 612, Sec. 3. )

    Verify source ↗

    If this chapter’s rule conflicts with another chapter’s rule for a foreign credit union with a California branch office or facility, the other chapter’s rule controls.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 1. General Provisions [16000 - 16013] ( Article 1 added by Stats. 2000, Ch. 612, Sec. 3. ) ## 16013. Whenever any provision of this chapter or of any regulation or order issued under this chapter which is applicable to or with respect to a foreign (other state) credit union that maintains a California branch office or California facility is inconsistent with any provision of any other chapter of this division, the provision of the other chapter applies, and the latter provision does not apply. (Added by Stats. 2000, Ch. 612, Sec. 3. Effective January 1, 2001.)
  113. 1602.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 5. Miscellaneous [1600 - 1613] ( Article 5 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    Trust companies and their officers and employees must not disclose information about a private trust, except in listed situations.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 5. Miscellaneous [1600 - 1613] ( Article 5 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1602. A trust company, its officers and employees, shall not disclose any information to any person concerning the existence, condition, management, and administration of any private trust confided to it, except: (a) Where such disclosure is specifically authorized by the terms of the trust. (b) Where such disclosure is determined by an officer of the trust company to be necessary in the administration of such trust. (c) Where such disclosure is required by a court of competent jurisdiction or by a subpoena issued by an attorney pursuant to Section 1985 of the Code of Civil Procedure. (d) Where such disclosure is made to, or upon the instructions of, any party executing the trust instrument. (e) Where such disclosure refers to an irrevocable trust, to, or upon the instructions of, any beneficiary thereunder whether or not presently entitled to receive benefits therefrom. (f) Where such disclosure is made to the commissioner in the course of an examination. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  114. 16020.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 2. Establishment of a California Branch Office or California Facility [16020 - 16024] ( Article 2 added by Stats. 2000, Ch. 612, Sec. 3. )

    Verify source ↗

    A foreign (other state) credit union may not do business in the state except at a licensed branch office or facility, with specific exceptions for certain activities, advertising, and loan applications.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 2. Establishment of a California Branch Office or California Facility [16020 - 16024] ( Article 2 added by Stats. 2000, Ch. 612, Sec. 3. ) ## 16020. (a) Except for the activities described in paragraph (2) of subdivision (c) of Section 16001, no foreign (other state) credit union shall transact business in this state except at a branch office or facility that it is licensed to maintain and at which it is permitted by this chapter to transact the business transacted. (b) Subdivision (a) shall not be deemed to prohibit any of the following: (1) Any foreign (other state) credit union from carrying on the activities described in subdivision (d) of Section 191 of the Corporations Code. (2) The advertising or solicitation of shares or deposits in this state by a foreign (other state) credit union made through the media of the mail, radio, television, magazines, newspapers, the Internet, or similar media, provided that shares or deposits are not accepted or received in this state. (3) The acceptance of loan applications through agents in this state, provided the loan applications are approved or rejected, and the loans are funded, outside of this state. (c) For the purposes of subdivision (a), no foreign (other state) credit union shall be deemed to be transacting business in this state merely because a majority-owned subsidiary transacts business in this state. (Added by Stats. 2000, Ch. 612, Sec. 3. Effective January 1, 2001.)
  115. 16021.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 2. Establishment of a California Branch Office or California Facility [16020 - 16024] ( Article 2 added by Stats. 2000, Ch. 612, Sec. 3. )

    Verify source ↗

    A foreign (other state) credit union may not establish or keep a California branch office unless the commissioner first approves it and issues a license.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 2. Establishment of a California Branch Office or California Facility [16020 - 16024] ( Article 2 added by Stats. 2000, Ch. 612, Sec. 3. ) ## 16021. (a) No foreign (other state) credit union shall establish or maintain a California branch office unless the commissioner shall have first approved its establishment and issued a license authorizing the foreign (other state) credit union to maintain the California branch office. (b) Notwithstanding subdivision (a), this article does not apply to any branch office or other office in this state of a foreign (other state) credit union that was established prior to January 1, 2001, in compliance with existing law. (Added by Stats. 2000, Ch. 612, Sec. 3. Effective January 1, 2001.)
  116. 16022.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 2. Establishment of a California Branch Office or California Facility [16020 - 16024] ( Article 2 added by Stats. 2000, Ch. 612, Sec. 3. )

    Verify source ↗

    A foreign credit union may establish a California branch office only if the commissioner finds the listed conditions are met; otherwise the commissioner must deny the application.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 2. Establishment of a California Branch Office or California Facility [16020 - 16024] ( Article 2 added by Stats. 2000, Ch. 612, Sec. 3. ) ## 16022. (a) If the commissioner finds all of the following with respect to an application by a foreign (other state) credit union for approval to establish a California branch office, the commissioner shall approve the application: (1) That the foreign (other state) credit union, the directors and officers of the foreign (other state) credit union, and the proposed management of the branch office are each of good character and sound financial standing. (2) That the financial history and condition of the foreign (other state) credit union are satisfactory. (3) That the management of the foreign (other state) credit union and the proposed management of the branch office are adequate. (4) That it is reasonable to believe that, if licensed to maintain the branch office, the foreign (other state) credit union will operate the branch office in a safe and sound manner and in compliance with all applicable laws, regulations, and orders. (5) That the foreign (other state) credit union’s plan to establish and to maintain the branch office affords reasonable promise of successful operation. (6) That the foreign (other state) credit union’s establishment and maintenance of the branch office will promote the convenience and advantage of its members, and is necessary or convenient to meet the needs of the foreign (other state) credit union’s members. (7) Not more than 50 percent of the members of the foreign (other state) credit union are or will be residents of this state. If the commissioner finds otherwise, the commissioner shall deny the application. (b) Whenever an application by a foreign (other state) credit union for approval to establish a California branch office has been approved and all conditions precedent to the issuance of a license authorizing the foreign (other state) credit union to maintain the California branch office have been fulfilled, the commissioner shall issue the license. (Added by Stats. 2000, Ch. 612, Sec. 3. Effective January 1, 2001.)
  117. 16023.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 2. Establishment of a California Branch Office or California Facility [16020 - 16024] ( Article 2 added by Stats. 2000, Ch. 612, Sec. 3. )

    Verify source ↗

    An approved applicant foreign credit union must establish and maintain the California branch office within one year, unless the commissioner extends the time first; otherwise the approval is revoked by operation of law.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 2. Establishment of a California Branch Office or California Facility [16020 - 16024] ( Article 2 added by Stats. 2000, Ch. 612, Sec. 3. ) ## 16023. The approval of an application for approval to establish a California branch office shall be revoked by operation of law if the applicant foreign (other state) credit union does not establish and maintain the California branch office within one year after the date of the approval, unless prior to the expiration of the one-year period the commissioner extends the time within which the foreign (other state) credit union may establish the California branch office. (Added by Stats. 2000, Ch. 612, Sec. 3. Effective January 1, 2001.)
  118. 16024.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 2. Establishment of a California Branch Office or California Facility [16020 - 16024] ( Article 2 added by Stats. 2000, Ch. 612, Sec. 3. )

    Verify source ↗

    A foreign (other state) credit union must notify the commissioner within 30 days after establishing a California facility, include specified information in the notice, and may not start business at the proposed facility without a license from the commissioner.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 2. Establishment of a California Branch Office or California Facility [16020 - 16024] ( Article 2 added by Stats. 2000, Ch. 612, Sec. 3. ) ## 16024. (a) Within 30 days of establishing a California facility, a foreign (other state) credit union shall notify the commissioner in writing of its intent to establish a California facility. The notice shall identify the proposed location of the facility, describe its proposed activities, and contain any other information which the commissioner may by regulation or order specify. (b) A foreign (other state) credit union shall not commence business at a proposed facility without a license having been issued by the commissioner. (Amended by Stats. 2001, Ch. 159, Sec. 93. Effective January 1, 2002.)
  119. 1603.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 5. Miscellaneous [1600 - 1613] ( Article 5 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    The commissioner must examine a trust company’s court trust business at least every 24 months and may examine its private trust business whenever the commissioner considers necessary or advisable.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 5. Miscellaneous [1600 - 1613] ( Article 5 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 times and to such extent as he or she may deem necessary or advisable. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  120. 1604.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 5. Miscellaneous [1600 - 1613] ( Article 5 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    Every trust company must report separately to the commissioner the amount of real property and personal property it holds in court trusts and private trusts.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 5. Miscellaneous [1600 - 1613] ( Article 5 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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, the amount of real property and the amount of personal property held by such trust company in both its court trusts and in its private trusts. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  121. 1605.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 5. Miscellaneous [1600 - 1613] ( Article 5 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    A court may allow a fiduciary to place estate money or personal assets with a trust company, and must reduce the fiduciary bond after the deposit is made.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 5. Miscellaneous [1600 - 1613] ( Article 5 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1605. Any court having jurisdiction of any executor, administrator, guardian, conservator, assignee, receiver, depositary, or trustee, upon the application of any such officer or trustee or upon the application of any person having an interest in the estate or property administered by such officer or trustee, after such notice to the other parties in interest as the court may direct, or without notice if all parties in interest consent thereto, and after a hearing upon such application, may authorize or direct such officer or trustee, whether such person has duly qualified or not, to deposit any moneys then in his hands or which may come into his hands thereafter, and such portion or all of the personal assets of such estate as the court shall deem proper for safekeeping, with any such trust company. Upon such deposit being made the court shall by an order of record reduce the bond to be given, or theretofore given, by such officer or trustee so as to cover only the estate remaining in the hands of such officer or trustee. The money and property so deposited shall thereupon and thereafter be held by such trust company under the order and direction of the court. Such trust company shall not be required to give any bond or security, except as provided in this division, in case of any deposit of moneys or other personal assets with it under this section. Its responsibility for the safekeeping of personal assets so deposited with it shall be that of a bailee for hire. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  122. 1606.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 5. Miscellaneous [1600 - 1613] ( Article 5 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    A trust company may deposit securities it holds under a court order into a qualifying securities depository.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 5. Miscellaneous [1600 - 1613] ( Article 5 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 Section 30004, which is licensed under Section 30200 or exempted from licensing thereunder by Section 30005 or 30006. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  123. 1607.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 5. Miscellaneous [1600 - 1613] ( Article 5 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    A trust company acting as a fiduciary may satisfy an oath or affidavit requirement through certain named officers, and it is liable for failing to perform the duties required of an individual in the same role.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 5. Miscellaneous [1600 - 1613] ( Article 5 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1607. Whenever an executor, administrator, guardian or conservator of estates, assignee, receiver, depositary, or trustee is required to qualify by taking and subscribing an oath or to make an affidavit, any trust company acting in any such capacity may satisfy such requirement by the oath or affidavit of its president, vice president, secretary, assistant secretary, manager, trust officer, or assistant trust officer. Any such trust company shall be liable for its failure to perform any of the duties required by law to be performed by an individual acting in like capacity and shall be subject to the same penalties for such failure as would be applicable to an individual. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  124. 16075.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 5. Relocation or Discontinuance of California Branch Office or California Facility [16075 - 16077] ( Article 5 added by Stats. 2000, Ch. 612, Sec. 3. )

    Verify source ↗

    A foreign (other state) credit union must file a report with the commissioner within 10 days after relocating a California branch office or facility, and it may not do business at the new location unless the commissioner issues a license for that location.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 5. Relocation or Discontinuance of California Branch Office or California Facility [16075 - 16077] ( Article 5 added by Stats. 2000, Ch. 612, Sec. 3. ) ## 16075. Within 10 days of relocating a California branch office or California facility, a foreign (other state) credit union shall file a report with the commissioner which contains the information specified by the commissioner by regulation or order. The foreign (other state) credit union shall not conduct business at the new location of the California branch office or California facility without a license issued by the commissioner for the new location. (Added by Stats. 2000, Ch. 612, Sec. 3. Effective January 1, 2001.)
  125. 16076.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 5. Relocation or Discontinuance of California Branch Office or California Facility [16075 - 16077] ( Article 5 added by Stats. 2000, Ch. 612, Sec. 3. )

    Verify source ↗

    A foreign (other state) credit union must file a report with the commissioner at least 30 days before discontinuing a California branch office or California facility.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 5. Relocation or Discontinuance of California Branch Office or California Facility [16075 - 16077] ( Article 5 added by Stats. 2000, Ch. 612, Sec. 3. ) ## 16076. Not less than 30 days before a foreign (other state) credit union discontinues a California branch office or California facility, it shall file a report with the commissioner which contains the information specified by the commissioner by regulation or order. (Added by Stats. 2000, Ch. 612, Sec. 3. Effective January 1, 2001.)
  126. 16077.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 5. Relocation or Discontinuance of California Branch Office or California Facility [16075 - 16077] ( Article 5 added by Stats. 2000, Ch. 612, Sec. 3. )

    Verify source ↗

    After relocating or discontinuing a California branch office or facility, a foreign (other state) credit union must promptly surrender the license for that site to the commissioner.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 5. Relocation or Discontinuance of California Branch Office or California Facility [16075 - 16077] ( Article 5 added by Stats. 2000, Ch. 612, Sec. 3. ) ## 16077. Promptly after a foreign (other state) credit union relocates or discontinues a California branch office or California facility pursuant to this article, the foreign (other state) credit union shall surrender to the commissioner the license which authorized the foreign (other state) credit union to maintain the California branch office or California facility at the old or discontinued site. (Added by Stats. 2000, Ch. 612, Sec. 3. Effective January 1, 2001.)
  127. 1608.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 5. Miscellaneous [1600 - 1613] ( Article 5 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    A corporation that wants to stop doing trust business must give the commissioner proof that it has been released from all related obligations and trusts.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 5. Miscellaneous [1600 - 1613] ( Article 5 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 1608. Whenever any corporation desires to withdraw from and discontinue doing a trust business, it shall furnish to the commissioner satisfactory evidence of its release and discharge from all the obligations and trusts which it has assumed or which have been imposed on it by law. Thereupon the commissioner shall revoke his or her certificate of authority to do a trust business, and the State Treasurer shall return to it all of the securities deposited by it. Thereafter such corporation shall not be permitted to use and shall not use the word “trust” in its corporate name, or in connection with its business. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  128. 1609.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 5. Miscellaneous [1600 - 1613] ( Article 5 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    A trust company’s acts or proceedings in administering court and private trusts stay valid even if the company, or its officers or employees, failed to comply with this division.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 5. Miscellaneous [1600 - 1613] ( Article 5 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 private trusts, shall not be affected or impaired by the neglect or failure of such trust company, or of any officer or employee thereof, to comply with any of the provisions of this division. All such acts and proceedings done or taken prior to the revocation of its certificate of authority to do a trust business by the commissioner, under the provisions of this division, or the revocation by any court or judge thereof of the appointment, order, or decree theretofore entered in such trust matter, shall be as valid and effective for all purposes as if any such neglect or failure had not occurred. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  129. 161.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 1. Definitions [99 - 217] ( Chapter 1 added by Stats. 2011, Ch. 243, Sec. 2. )

    Verify source ↗

    This section defines “constituent corporation” for use with a corporation.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 1. Definitions [99 - 217] ( Chapter 1 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 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 Code. (b) In the case of a consolidation, means a corporation that is consolidated with one or more other corporations. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  130. 1610.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 5. Miscellaneous [1600 - 1613] ( Article 5 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    The chapter does not make it unlawful for any person or corporation to receive and hold money in escrow or act as trustee under certain deeds of trust.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 5. Miscellaneous [1600 - 1613] ( Article 5 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 trustee under deeds of trust given solely for the purpose of securing obligations for the repayment of money other than corporate bonds. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  131. 16100.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 6. Conduct of Credit Union Business [16100 - 16103] ( Article 6 added by Stats. 2000, Ch. 612, Sec. 3. )

    Verify source ↗

    A licensed foreign credit union may conduct activities at its office in this state if those activities are allowed by its home state and California law, but it may not do in a California branch or facility anything that its home state law or California credit union law does not allow.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 6. Conduct of Credit Union Business [16100 - 16103] ( Article 6 added by Stats. 2000, Ch. 612, Sec. 3. ) ## 16100. (a) A foreign (other state) credit union that has a license to establish and maintain an office in this state may engage in activities at such office as may be authorized under the laws of its home state and the laws of this state that are applicable to credit unions. (b) Nothing in subdivision (a) authorizes a foreign (other state) credit union to engage in any activity at a California branch office or California facility that it is not authorized to transact or is prohibited from transacting under the law of its home state or that credit unions organized under the laws of this state are not authorized to transact or are prohibited from transacting. (Added by Stats. 2000, Ch. 612, Sec. 3. Effective January 1, 2001.)
  132. 16101.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 6. Conduct of Credit Union Business [16100 - 16103] ( Article 6 added by Stats. 2000, Ch. 612, Sec. 3. )

    Verify source ↗

    Certain California credit union laws apply to a foreign credit union with a California branch or facility, and those state laws also apply similarly to its activities, operations, and transactions in California.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 6. Conduct of Credit Union Business [16100 - 16103] ( Article 6 added by Stats. 2000, Ch. 612, Sec. 3. ) ## 16101. (a) The following provisions of this division apply to a foreign (other state) credit union that maintains a California branch office or California facility with respect to its business in this state as if the foreign (other state) credit union were a credit union organized under the laws of this state: (1) Section 14203. (2) Section 14204. (3) Section 14208. (4) Section 14210. (5) Section 14256. (6) Section 14409. (7) Section 14409.2. (8) Section 14602. (9) Section 14652.5. (10) Section 14655, to the extent promissory notes of the type described in this section are carried on the books of a branch office of a foreign (other state) credit union. (11) Section 14656, to the extent promissory notes of the type described in this section are carried on the books of a branch office of a foreign (other state) credit union. (12) Article 8 (commencing with Section 14750) of Chapter 4. (13) Article 1 (commencing with Section 14850) of Chapter 6. (14) Article 1 (commencing with Section 14950) of Chapter 7. (15) Article 2 (commencing with Section 15001) of Chapter 7. (16) Article 3 (commencing with Section 15050) of Chapter 7, to the extent loans of the type described in that article are carried on the books of a branch office of a foreign (other state) credit union. (17) Section 15102. (b) The laws of this state that are applicable to the activities, operations, and transactions of credit unions organized under the laws of this state, other than the laws in this division, similarly shall apply to the activities, operations, and transactions of a foreign (other state) credit union in this state. Those laws include, but are not limited to, consumer protection laws and laws relating to creditor rights and remedies, mortgages and deeds of trust, bank deposits and collections, and negotiable instruments. (Added by Stats. 2000, Ch. 612, Sec. 3. Effective January 1, 2001.)
  133. 16102.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 6. Conduct of Credit Union Business [16100 - 16103] ( Article 6 added by Stats. 2000, Ch. 612, Sec. 3. )

    Verify source ↗

    Certain foreign credit unions with a California branch or facility are exempt from the California constitutional interest-rate restriction, but only within other applicable laws and home-state interest limits.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 6. Conduct of Credit Union Business [16100 - 16103] ( Article 6 added by Stats. 2000, Ch. 612, Sec. 3. ) ## 16102. (a) Any foreign (other state) credit union that is authorized to and does maintain a California branch office or California facility is exempted from the restrictions of Section 1 of Article XV of the California Constitution relating to rates of interest upon the loan or forbearance of any money, goods, or things in action or on accounts after demand. (b) This section does not exempt a foreign (other state) credit union or any subsidiary from complying with all other laws and regulations governing the business in which the foreign (other state) credit union or subsidiary is engaged. (c) This section creates and authorizes an exempt class of persons pursuant to Section 1 of Article XV of the California Constitution. (d) This section does not authorize a foreign (other state) credit union or any subsidiary to charge an interest rate on a loan or forbearance in excess of any limitation that exists under the laws of its home state. (Added by Stats. 2000, Ch. 612, Sec. 3. Effective January 1, 2001.)
  134. 16103.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 6. Conduct of Credit Union Business [16100 - 16103] ( Article 6 added by Stats. 2000, Ch. 612, Sec. 3. )

    Verify source ↗

    A licensed foreign credit union in the state must keep office assets separate from its out-of-state business assets if the commissioner’s written order requires it. Creditors tied to an office’s in-state business get priority over other creditors for the in-state business assets.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 6. Conduct of Credit Union Business [16100 - 16103] ( Article 6 added by Stats. 2000, Ch. 612, Sec. 3. ) ## 16103. (a) A foreign (other state) credit union that is licensed to establish and maintain an office or offices in this state shall keep the assets of the offices separate and apart from the assets of its business outside this state, if required by written order of the commissioner. (b) Persons who are creditors of a foreign (other state) credit union as a result of the business of an office of the foreign (other state) credit union in this state shall be entitled to priority over other creditors with respect to the assets of the business in this state of the foreign (other state) credit union. (Added by Stats. 2000, Ch. 612, Sec. 3. Effective January 1, 2001.)
  135. 1611.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 5. Miscellaneous [1600 - 1613] ( Article 5 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    Banks or trust companies must not mix trust funds with other assets, and may use those funds in business only if they are deposited with the same institution under this division. Officers who knowingly violate or consent to a violation commit a felony.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 5. Miscellaneous [1600 - 1613] ( Article 5 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 conduct of its business except to the extent that such funds are deposited with the same corporation or association in accordance with the provisions of this division. Any officer of any bank or association who knowingly violates or consents to the violation of this section is guilty of a felony. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  136. 1612.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 5. Miscellaneous [1600 - 1613] ( Article 5 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    Banks and trust companies may place eligible securities in a securities depository, but they must keep records showing ownership at all times.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 5. Miscellaneous [1600 - 1613] ( Article 5 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 while acting in any capacity under a court or private trust, or while acting in that capacity with one or more persons as cofiduciary or cofiduciaries, unless the instrument creating the trust contains a provision to the contrary, is authorized to deposit or arrange for the deposit of the securities in a securities depository, as defined in Section 30004, which is licensed under Section 30200 or exempted from licensing thereunder by Section 30005 or 30006. When securities are so deposited, they may be held in the custody of the securities depository in which they are deposited or in the custody of any other securities depository so licensed or exempted and in which the securities depository in which the securities were deposited maintains an account, or in the custody of any bank or trust company with authority to accept custody of the securities, that accepts custody of the securities on behalf of a securities depository. The securities may be held in the name of the nominee of the securities depository in which they are deposited, or in the name of the nominee of any other securities depository with which the securities depository in which they are deposited maintains an account. The custodian of securities so deposited may merge certificates representing securities of the same class of the same issuer and may hold those certificates in bulk with any other securities deposited in any securities depository by any person regardless of the ownership of the securities, and certificates of small denomination may be merged into one or more certificates of larger denomination. Any bank or trust company that deposits or arranges for the deposit of the securities in a securities depository shall maintain records that at all times show the ownership of the deposited securities. A bank or trust company depositing securities pursuant to this section shall be subject to such rules and regulations as in the case of state chartered institutions, the commissioner and, in the case of national banking associations, the Comptroller of the Currency may from time to time issue. This section shall apply to securities now held or hereafter held by a bank or trust company in the above designated capacities. A bank or trust company may, but shall not be required to, own capital stock of a securities depository in which it deposits securities pursuant to this section. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  137. 1613.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 5. Miscellaneous [1600 - 1613] ( Article 5 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    Banks and trust companies in these fiduciary contexts may deposit certain securities with a Federal Reserve Bank, but they must keep ownership records and provide written certifications on demand.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 16. Trust Companies [1550 - 1613] ( Chapter 16 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 5. Miscellaneous [1600 - 1613] ( Article 5 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 while acting in any capacity under a court or private trust, or while acting in that capacity with one or more persons as cofiduciary or cofiduciaries, unless the instrument creating the trust contains a provision to the contrary, is authorized to deposit or arrange for the deposit with a federal reserve bank of any such securities the principal and interest of which the United States or any department, agency, or instrumentality thereof has agreed to pay, or has guaranteed payment, to be credited to one or more accounts on the books of the federal reserve bank in the name of the bank or trust company, to be designated fiduciary or safekeeping accounts, to which accounts other similar securities may be credited. Any bank or trust company that deposits or arranges for the deposit of securities pursuant to this section shall maintain records that at all times show the ownership of the securities deposited. A bank or trust company depositing securities pursuant to this section shall be subject to such rules and regulations as in the case of state-chartered institutions, the commissioner and, in the case of national banking associations, the Comptroller of the Currency, may from time to time issue. Ownership of, and other interests in, the securities credited to such account may be transferred by entries on the books of the federal reserve bank without physical delivery of any securities. A bank or trust company acting as custodian for a fiduciary shall, on demand by the fiduciary, certify in writing to the fiduciary the securities deposited by the bank or trust company pursuant to this section for the account of the fiduciary. A fiduciary shall, on demand by any party to its accounting, certify in writing to that party the securities deposited for its account as a fiduciary pursuant to this section. This section shall apply to all fiduciaries and custodians for fiduciaries, acting on the effective date of this section or who thereafter may act regardless of the state of the instrument or court order by which they are appointed. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  138. 16150.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 7. Examination, Reports, and Records [16150 - 16154] ( Article 7 added by Stats. 2000, Ch. 612, Sec. 3. )

    Verify source ↗

    The commissioner may investigate and examine a foreign (other state) credit union, including its subsidiary records, and the commissioner or a designated person has free access to the credit union’s offices and records.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 7. Examination, Reports, and Records [16150 - 16154] ( Article 7 added by Stats. 2000, Ch. 612, Sec. 3. ) ## 16150. (a) The commissioner may at any time investigate into the affairs and examine the books, accounts, and other records of a foreign (other state) credit union and of any subsidiary thereof. (b) The commissioner and any person designated by him or her shall have free access to any office of the foreign (other state) credit union and to its books, accounts, and other records. (Added by Stats. 2000, Ch. 612, Sec. 3. Effective January 1, 2001.)
  139. 16151.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 7. Examination, Reports, and Records [16150 - 16154] ( Article 7 added by Stats. 2000, Ch. 612, Sec. 3. )

    Verify source ↗

    The commissioner may examine a foreign credit union at the commissioner’s office, and may also examine any office of that credit union inside or outside California if the credit union maintains an office in California.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 7. Examination, Reports, and Records [16150 - 16154] ( Article 7 added by Stats. 2000, Ch. 612, Sec. 3. ) ## 16151. The commissioner may make any examination of a foreign (other state) credit union at any office of the commissioner. The commissioner may make an examination of any office, within or outside of this state, of a foreign (other state) credit union that maintains an office in this state. (Amended by Stats. 2003, Ch. 404, Sec. 18. Effective January 1, 2004.)
  140. 16152.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 7. Examination, Reports, and Records [16150 - 16154] ( Article 7 added by Stats. 2000, Ch. 612, Sec. 3. )

    Verify source ↗

    Foreign (other state) credit unions must file certain audit, examination, and response documents with the commissioner within 10 days, unless the commissioner extends the time.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 7. Examination, Reports, and Records [16150 - 16154] ( Article 7 added by Stats. 2000, Ch. 612, Sec. 3. ) ## 16152. (a) Each foreign (other state) credit union shall, within 10 days after receipt or within any extended time that the commissioner may specify, file with the commissioner a copy of any audit report obtained by, and of any examination report prepared for or of, the foreign (other state) credit union. (b) Each foreign (other state) credit union shall file with the commissioner a copy of any response made by the foreign (other state) credit union to an audit or examination report referred to in subdivision (a) within 10 days after making the response or within any extended time that the commissioner may specify. (Added by Stats. 2000, Ch. 612, Sec. 3. Effective January 1, 2001.)
  141. 16153.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 7. Examination, Reports, and Records [16150 - 16154] ( Article 7 added by Stats. 2000, Ch. 612, Sec. 3. )

    Verify source ↗

    A foreign (other state) credit union must file any other report the commissioner requires, and each report must follow the commissioner’s prescribed form, content, and filing date.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 7. Examination, Reports, and Records [16150 - 16154] ( Article 7 added by Stats. 2000, Ch. 612, Sec. 3. ) ## 16153. A foreign (other state) credit union shall file with the commissioner any other report as the commissioner may from time to time require. Each report shall be in the form, contain the information, and be filed on the date, as may be prescribed by the commissioner. (Added by Stats. 2000, Ch. 612, Sec. 3. Effective January 1, 2001.)
  142. 16154.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 7. Examination, Reports, and Records [16150 - 16154] ( Article 7 added by Stats. 2000, Ch. 612, Sec. 3. )

    Verify source ↗

    A foreign credit union with a California branch or facility must keep and preserve certain business records there, if the commissioner requires it.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 7. Examination, Reports, and Records [16150 - 16154] ( Article 7 added by Stats. 2000, Ch. 612, Sec. 3. ) ## 16154. A foreign (other state) credit union that maintains a California branch office or California facility, if required by the commissioner, shall make, keep, and preserve, at the branch office, facility, or at any other place that the commissioner may by regulation or order approve, the books, accounts, and other records relating to the business of the California branch office or California facility, in the form, in the manner, and for the time that the commissioner may by regulation or order require. (Added by Stats. 2000, Ch. 612, Sec. 3. Effective January 1, 2001.)
  143. 1620.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 17. Safe Deposit [1620 - 1651] ( Chapter 17 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. General Provisions [1620- 1620.] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    A bank or safe-deposit company must ignore an adverse claim notice and let the renter or depositor access the property, unless a qualifying affidavit or court order changes that result.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 17. Safe Deposit [1620 - 1651] ( Chapter 17 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 1. General Provisions [1620- 1620.] ( Article 1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 claim being hereafter in this section called “adverse claimant”) to any personal property in a safe-deposit box maintained by a bank or company and rented to any person, or to any personal property held by the bank or company in safekeeping or storage for any person shall be disregarded, and the bank or company, notwithstanding such notice, shall permit access to the box to the person to whom it is rented or shall deliver the contents thereof to or on the order of the person or shall deliver the property held in storage or safekeeping to or on the order of the person for whom it is held, without any liability on the part of the bank or company; subject, however, to the exceptions provided in subdivisions (a) and (b) of this section: (a) If an adverse claimant delivers to the bank at the office at which the safe-deposit box is maintained or the property is held his or her affidavit stating that of his or her own knowledge the person in whose name the box stands or for whom the property is held is a fiduciary for the adverse claimant and that he or she has reason to believe that fiduciary is about to misappropriate the contents of the box or the property, and stating the facts upon which the claim of fiduciary relationship and the belief are founded, the bank or company shall refuse access to the safe-deposit box or refuse to deliver the personal property for a period of not more than three court days (including the day of delivery) from the date that the bank or company received the adverse claimant’s affidavit, without liability on its part and without liability for the sufficiency or truth of the facts alleged in the affidavit. (b) If at any time, either before, after, or in the absence of the filing of an affidavit by the adverse claimant, the adverse claimant procures and serves upon the bank or company at the office at which the safe-deposit box is maintained or the property is held a restraining order, injunction, or other appropriate order against the bank or company from a court of competent jurisdiction in an action in which the adverse claimant and all persons in whose names the box stands or for whom the property is held are parties, the bank or company shall comply with that order or injunction, without liability on its part. (c) The provisions of this section shall be applicable even though the name of the person appearing on the bank’s or company’s books as the renter of the box or as the depositor of the property held in storage or safekeeping is modified by a qualifying or descriptive term such as “agent,” “trustee,” or other word or phrase indicating that the person may not be the owner in his or her own right of the contents of the box or of the property held in storage or safekeeping. (d) Before giving access to any safe-deposit box, the bank or company may demand payment to it of all costs and expenses of opening the safe-deposit box and all costs and expenses of repairing any damage to the safe-deposit box caused by the opening thereof. (e) Notwithstanding subdivisions (a) and (b), if a central location has been designated by the bank pursuant Section 684.115 of the Code of Civil Procedure for service of legal process, as that term is defined in Section 684.110 of the Code of Civil Procedure, the adverse claimant shall serve a notice of adverse claim or related affidavit, order, injunction, or other order contemplated herein at the central location. If a central location has not but should have been designated by the bank pursuant Section 684.115 of the Code of Civil Procedure for service of legal process, as that term is defined in Section 684.110 of the Code of Civil Procedure, the adverse claimant may serve a notice of adverse claim or related affidavit, order, injunction, or other order contemplated herein at any branch or office of the institution located in this state. (Amended by Stats. 2012, Ch. 484, Sec. 14. (AB 2364) Effective January 1, 2013.)
  144. 16200.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 9. Enforcement [16200 - 16206] ( Article 9 added by Stats. 2000, Ch. 612, Sec. 3. )

    Verify source ↗

    The commissioner may sue in superior court to stop violations, enforce compliance, or collect penalties, and the court can grant injunction-type relief.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 9. Enforcement [16200 - 16206] ( Article 9 added by Stats. 2000, Ch. 612, Sec. 3. ) ## 16200. (a) The commissioner may bring an action in the name of the people of this state in the superior court to enjoin any violation of, to enforce compliance with, or to collect any penalty or other liability imposed under this division or any regulation or order issued under this chapter. Upon a proper showing, a permanent or preliminary injunction, restraining order, or writ of mandate shall be granted, and a monitor, receiver, conservator, or other designated fiduciary or officer of the court may be granted as appropriate. (b) A receiver, monitor, conservator, or other designated fiduciary officer of the court appointed by the court pursuant to this section may, with the approval of the court, exercise all of the powers of the defendant’s officers, directors, partners, trustees, or persons who exercise similar powers and perform similar duties, including the filing of a petition for bankruptcy. No action at law or in equity may be maintained by any party against the commissioner, or a receiver, monitor, conservator, or other designated fiduciary or officer of the court by reason of their exercising these powers or performing these duties pursuant to the order of, or with the approval of, the court. (c) If the commissioner finds that it is in the public interest, the commissioner may include in a claim for restitution, disgorgement, or damages on behalf of the person injured by the act or practice constituting the subject matter of the action, and the court shall have jurisdiction to award ancillary relief. (d) The provisions of this section that authorize the commissioner to bring actions and seek relief are not intended to, and do not, affect any right that any other person may have to bring the same or similar actions or to seek the same or similar relief. (Added by Stats. 2000, Ch. 612, Sec. 3. Effective January 1, 2001.)
  145. 16200.5.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 9. Enforcement [16200 - 16206] ( Article 9 added by Stats. 2000, Ch. 612, Sec. 3. )

    Verify source ↗

    The commissioner may order a person to stop a violation of Section 16020 until licensed. The ordered person may request a hearing within 30 days, and the commissioner must start the hearing within 15 business days after the request unless a longer period is consented to; otherwise the order is rescinded.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 9. Enforcement [16200 - 16206] ( Article 9 added by Stats. 2000, Ch. 612, Sec. 3. ) ## 16200.5. (a) If the commissioner finds that any person has violated, or that there is reasonable cause to believe that any person is about to violate, Section 16020, the commissioner may order the person to cease and desist from the violation unless and until the person is issued a license. (b) (1) Within 30 days after an order is issued pursuant to subdivision (a), the person to whom the order is directed may file with the commissioner an application for a hearing on the order. If the commissioner fails to commence a hearing within 15 business days after the application is filed with him or her (or within such longer period to which the person consents), the order shall be deemed rescinded. At the hearing the commissioner shall affirm, modify, or rescind the order. (2) The right of any person, to whom an order is issued under subdivision (a), to petition for judicial review of the order shall not be affected by the failure of the person to apply to the commissioner for a hearing on the order pursuant to paragraph (1). (Added by Stats. 2000, Ch. 612, Sec. 3. Effective January 1, 2001.)
  146. 16201.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 9. Enforcement [16200 - 16206] ( Article 9 added by Stats. 2000, Ch. 612, Sec. 3. )

    Verify source ↗

    After notice and hearing, the commissioner may order a person who violated this chapter or related regulations or orders to pay a civil penalty.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 9. Enforcement [16200 - 16206] ( Article 9 added by Stats. 2000, Ch. 612, Sec. 3. ) ## 16201. If, after notice and hearing, 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 may order the person to pay to the commissioner a civil penalty imposed pursuant to Section 216.3. (Amended by Stats. 2003, Ch. 445, Sec. 16. Effective January 1, 2004.)
  147. 16202.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 9. Enforcement [16200 - 16206] ( Article 9 added by Stats. 2000, Ch. 612, Sec. 3. )

    Verify source ↗

    After notice and hearing, the commissioner may suspend or revoke the license of a foreign (other state) credit union licensed to maintain an office in the state if any listed grounds are found.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 9. Enforcement [16200 - 16206] ( Article 9 added by Stats. 2000, Ch. 612, Sec. 3. ) ## 16202. If, after notice and hearing, the commissioner finds any of the following with respect to a foreign (other state) credit union that is licensed to maintain an office in this state, the commissioner may issue an order suspending or revoking the license of the foreign (other state) credit union: (a) That the foreign (other state) credit union has violated a provision of this division or of any regulation or order issued under this division or a provision of any other applicable law, regulation, or order. (b) That the foreign (other state) credit union is transacting the business in this state or elsewhere in an unsafe or unsound manner. (c) That the foreign (other state) credit union is in unsafe or unsound condition. (d) That the foreign (other state) credit union has ceased to operate its office. (e) That the foreign (other state) credit union is insolvent in that it has ceased to pay its debts in the ordinary course of business, it cannot pay its debts as they become due, or its liabilities, including share accounts and certificates for funds, exceed its assets. (f) That the foreign (other state) credit union has suspended payment of its obligations, has made an assignment for the benefit of its creditors, or has admitted in writing its inability to pay its debts as they become due. (g) That the foreign (other state) credit union is the subject of an order for relief in bankruptcy or has sought other relief under any bankruptcy, reorganization, insolvency, or moratorium law, or that any person has applied for such relief under any such law against the foreign (other state) credit union, and the foreign (other state) credit union has by any affirmative act approved of or consented to the action or the relief has been granted. (h) That a receiver, liquidator, or conservator has been appointed for the foreign (other state) credit union or that any proceeding for an appointment or any similar proceeding has been initiated in the home state of the foreign (other state) credit union. (i) That the existence of the foreign (other state) credit union or the authority of the foreign (other state) credit union to transact banking business under the laws of the home state of the foreign (other state) credit union has been suspended or terminated. (j) That any fact or condition exists that, if it had existed at the time when the foreign (other state) credit union applied for approval to transact business in this state, would have been grounds for denying the application. (Amended by Stats. 2009, Ch. 500, Sec. 38. (AB 1059) Effective January 1, 2010.)
  148. 16203.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 9. Enforcement [16200 - 16206] ( Article 9 added by Stats. 2000, Ch. 612, Sec. 3. )

    Verify source ↗

    The commissioner may suspend or revoke a foreign credit union’s license in specified circumstances. The credit union may ask for a hearing within 30 days, and keeps the right to seek judicial review.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 9. Enforcement [16200 - 16206] ( Article 9 added by Stats. 2000, Ch. 612, Sec. 3. ) ## 16203. (a) If the commissioner finds that any of the factors set forth in Section 16202 is true with respect to any foreign (other state) credit union that is licensed to maintain an office in this state and that it is necessary for the protection of the interests of creditors of the foreign (other state) credit union’s business in this state or, in any case, for the protection of the public interest that the commissioner immediately suspend or revoke the license of the foreign (other state) credit union, the commissioner may issue an order suspending or revoking the license of the foreign (other state) credit union. (b) (1) Within 30 days after an order is issued pursuant to subdivision (a), the foreign (other state) credit union to which the order is issued may file with the commissioner an application for a hearing on the order. If the commissioner fails to commence the hearing within 15 business days after the application is filed with the commissioner (or within any longer period to which the foreign (other state) credit union consents), the order shall be deemed rescinded. Within 30 days after the hearing, the commissioner shall affirm, modify, or rescind the order; otherwise, the order shall be deemed rescinded. (2) The right of any foreign (other state) credit union to which an order is issued under subdivision (a) to petition for judicial review of the order shall not be affected by the failure of the foreign (other state) credit union to apply to the commissioner for a hearing on the order pursuant to paragraph (1). (Added by Stats. 2000, Ch. 612, Sec. 3. Effective January 1, 2001.)
  149. 16204.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 9. Enforcement [16200 - 16206] ( Article 9 added by Stats. 2000, Ch. 612, Sec. 3. )

    Verify source ↗

    A foreign credit union whose office license is suspended or revoked must immediately surrender the license to the commissioner.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 9. Enforcement [16200 - 16206] ( Article 9 added by Stats. 2000, Ch. 612, Sec. 3. ) ## 16204. Any foreign (other state) credit union whose license to maintain an office is suspended or revoked shall immediately surrender the license to the commissioner. (Added by Stats. 2000, Ch. 612, Sec. 3. Effective January 1, 2001.)
  150. 16205.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 9. Enforcement [16200 - 16206] ( Article 9 added by Stats. 2000, Ch. 612, Sec. 3. )

    Verify source ↗

    A foreign credit union under an order may ask the commissioner to modify or rescind it, but the commissioner may grant that request only if specified public-interest and compliance findings are made.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 9. Enforcement [16200 - 16206] ( Article 9 added by Stats. 2000, Ch. 612, Sec. 3. ) ## 16205. (a) Any foreign (other state) credit union to which an order is issued under Section 16202 or 16203 may apply to the commissioner to modify or rescind the order. The commissioner shall not grant the application unless the commissioner finds that it is in the public interest to do so and that it is reasonable to believe that the foreign (other state) credit union will, if and when it is again authorized to maintain an office, comply with all applicable provisions of this division and of any regulation or order issued under this division. (b) The right of any foreign (other state) credit union to which an order is issued under Section 16202 or 16203 to petition for judicial review of the order shall not be affected by the failure of the foreign (other state) credit union to apply to the commissioner pursuant to subdivision (a) to modify or rescind the order. (Added by Stats. 2000, Ch. 612, Sec. 3. Effective January 1, 2001.)
  151. 16206.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 9. Enforcement [16200 - 16206] ( Article 9 added by Stats. 2000, Ch. 612, Sec. 3. )

    Verify source ↗

    The commissioner may take over a foreign credit union’s property and business in California under stated conditions, and the credit union may seek court review within 10 days.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 11. Foreign (Other State) Credit Unions [16000 - 16206] ( Heading of Chapter 11 renumbered from Chapter 10 (as added by Stats. 2000, Ch. 612) by Stats. 2002, Ch. 734, Sec. 42. ) ## ARTICLE 9. Enforcement [16200 - 16206] ( Article 9 added by Stats. 2000, Ch. 612, Sec. 3. ) ## 16206. (a) If the commissioner finds that any of the factors set forth in Section 16202 is true with respect to any foreign (other state) credit union which is authorized to transact business in this state and that it is necessary for the protection of the interests of the creditors of the business of the foreign (other state) credit union in this state or for the protection of the public interest that he or she take immediate possession of the property and business of the foreign (other state) credit union, the commissioner may by order forthwith take possession of the property and business of the foreign (other state) credit union and retain possession until the foreign (other state) credit union resumes business in this state or is finally liquidated. The foreign (other state) credit union may, with the consent of the commissioner, resume business in this state under the conditions as the commissioner may prescribe. (b) (1) Whenever the commissioner takes possession of the property and business of a foreign (other state) credit union pursuant to subdivision (a), the foreign (other state) credit union may, within 10 days, apply to the superior court in the county in which the primary office in this state of the foreign (other state) credit union is located to enjoin further proceedings. The court may, after citing the commissioner to show cause why further proceedings should not be enjoined and after a hearing, dismiss the application or enjoin the commissioner from further proceedings and order him or her to surrender the property and business of the foreign (other state) credit union to the foreign (other state) credit union or make any further order as may be just. (2) The judgment of the court may be appealed by the commissioner or by the foreign (other state) credit union in the manner provided by law for appeals from the judgment of a superior court to the court of appeal. In case the commissioner appeals the judgment of the court, the appeal shall operate as a stay of the judgment, and the commissioner shall not be required to post any bond. (c) Whenever the commissioner takes possession of the property and business of a foreign (other state) credit union pursuant to subdivision (a), the commissioner shall conserve or liquidate the property and business of the foreign (other state) credit union in accordance with Sections 14301 to 14304, inclusive. (d) When the commissioner has completed the liquidation of the property and business of a foreign (other state) credit union in this state, the commissioner shall transfer any remaining assets to the foreign (other state) credit union in accordance with any order the court may issue. However, in case the foreign (other state) credit union has an office in another state of the United States which is in liquidation and the assets of that office appear to be insufficient to pay in full the creditors of that office, the court shall order the commissioner to transfer to the liquidator of that office the amount of any remaining assets as appears to be necessary to cover the insufficiency. If there are two or more offices and the amount of remaining assets is less than the aggregate amount of insufficiencies with respect to those offices, the court shall order the commissioner to distribute the remaining assets among the liquidators of the offices in the manner as the court determines. (Added by Stats. 2000, Ch. 612, Sec. 3. Effective January 1, 2001.)
  152. 163.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 1. Definitions [99 - 217] ( Chapter 1 added by Stats. 2011, Ch. 243, Sec. 2. )

    Verify source ↗

    “Contributed capital” means shareholders’ equity other than retained earnings, and a bank may transfer amounts from retained earnings to contributed capital subject to applicable statutes, regulations, and accounting principles.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 1. Definitions [99 - 217] ( Chapter 1 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 163. “Contributed capital” means all of shareholders’ equity other than retained earnings. However, nothing in this section shall prohibit a bank from transferring amounts from time to time from its retained earnings to its contributed capital, subject to any applicable statutes, regulations, and generally accepted accounting principles. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  153. 1630.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 17. Safe Deposit [1620 - 1651] ( Chapter 17 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Remedies for Nonpayment of Rent [1630 - 1651] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    Banks conducting a safe-deposit business are entitled to the special remedies in this article when enforcing liabilities of safe-deposit box renters and safekeeping or storage depositors.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 17. Safe Deposit [1620 - 1651] ( Chapter 17 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Remedies for Nonpayment of Rent [1630 - 1651] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 box renters and of safekeeping and storage depositors. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  154. 1631.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 17. Safe Deposit [1620 - 1651] ( Chapter 17 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Remedies for Nonpayment of Rent [1630 - 1651] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    If a safe-deposit box rent is unpaid for six months, the bank may send notice to the named customer and set a payment deadline of at least 30 days before forcing the box open.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 17. Safe Deposit [1620 - 1651] ( Chapter 17 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Remedies for Nonpayment of Rent [1630 - 1651] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 unpaid, may mail a notice to the person in whose name such box stands on its records stating that if the amount due for such rental is not paid on or before a specified day, which must be at least 30 days after the date of mailing such notice, the bank will cause such box to be forced open. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  155. 1632.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 17. Safe Deposit [1620 - 1651] ( Chapter 17 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Remedies for Nonpayment of Rent [1630 - 1651] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    If the rent and notice cost for a safe-deposit box are unpaid after the notice date, the bank may open the box, remove and inventory the contents, and the inventory must be signed by the persons present.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 17. Safe Deposit [1620 - 1651] ( Chapter 17 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Remedies for Nonpayment of Rent [1630 - 1651] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 been paid, the bank, in the presence of two of its employees, one of whom shall be an officer of the bank, may cause such box to be opened and the contents thereof to be removed and inventoried. The inventory shall be signed by such persons. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  156. 1633.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 17. Safe Deposit [1620 - 1651] ( Chapter 17 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Remedies for Nonpayment of Rent [1630 - 1651] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    Only listed persons may receive a copy of the inventory from the bank.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 17. Safe Deposit [1620 - 1651] ( Chapter 17 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Remedies for Nonpayment of Rent [1630 - 1651] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 administrator of the decedent’s estate. (c) The attorney for the executor or administrator. (d) A tenant of the safe-deposit box. (e) Any heir of the decedent or beneficiary under the decedent’s will. (f) Any person whom the superior court having jurisdiction by order directs should be allowed to obtain a copy of the inventory. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  157. 1634.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 17. Safe Deposit [1620 - 1651] ( Chapter 17 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Remedies for Nonpayment of Rent [1630 - 1651] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. )

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    The bank must keep contents removed from a safe-deposit box for at least two years, unless they are delivered sooner to or on the order of the person named on the bank’s records. The bank must also deliver the contents to that person after payment of listed charges, and it may deliver them even if the contents suggest someone else owns them.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 17. Safe Deposit [1620 - 1651] ( Chapter 17 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Remedies for Nonpayment of Rent [1630 - 1651] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 order of the person in whose name such box stood on the records of the bank. The bank shall deliver the contents of such box to or on the order of the person in whose name such box stood on its records, upon payment to it before such contents are sold or destroyed, of all rental due at the time of opening the box, the cost of giving notice, the charges for opening the box and for custody of the contents, and any other proper charges. The bank may deliver such contents on the order of the person in whose name such box stood on its records, irrespective of any information disclosed by the contents indicating ownership thereof by any other person. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  158. 1635.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 17. Safe Deposit [1620 - 1651] ( Chapter 17 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Remedies for Nonpayment of Rent [1630 - 1651] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    A bank may notify the person named on its records about unpaid amounts tied to a safe-deposit box, and if payment is not made, may sell the box contents under the section’s notice rules.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 17. Safe Deposit [1620 - 1651] ( Chapter 17 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Remedies for Nonpayment of Rent [1630 - 1651] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 name such box stood on its records, stating that unless the amounts due to the bank for rental, for the cost of mailing and publishing notice of sale, and for its charges for opening the box and for custody of its contents, and any other proper charges, giving the total amount thereof, are paid, the bank will offer for sale the contents thereof at a time and place named in such notice, which time shall be at least 30 days after the mailing thereof. If the amounts specified in such notice are not paid before the time of sale designated therein, the bank may sell all or any portion of the contents of such box, other than contents of the character described in Section 1668 and other than bonds and other securities which at the time of sale are listed on an established stock exchange in the United States, at public sale at the time and place given in such notice. Notice of the time and place of sale shall be published in a newspaper of general circulation in the county in which the sale is to be held once at least five days before the date of sale, or if no such newspaper is published in the county such notice shall be posted in three public places in the county at least five days before the date of sale. Such notice need describe the property only in general terms and as the unclaimed contents of a safe-deposit box. Such sale may be postponed from time to time by public pronouncement at the time and place of sale. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  159. 1636.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 17. Safe Deposit [1620 - 1651] ( Chapter 17 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Remedies for Nonpayment of Rent [1630 - 1651] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    Securities listed on an established U.S. stock exchange may not be sold at public sale at the time of sale under Section 1635, but may be sold later through an established stock exchange.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 17. Safe Deposit [1620 - 1651] ( Chapter 17 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Remedies for Nonpayment of Rent [1630 - 1651] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 any established stock exchange in the United States may be sold at public sale but may be sold at any time thereafter through an established stock exchange. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  160. 1637.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 17. Safe Deposit [1620 - 1651] ( Chapter 17 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Remedies for Nonpayment of Rent [1630 - 1651] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    After a securities sale, a bank officer must attach an affidavit stating the sale was made under this article and complied with its requirements.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 17. Safe Deposit [1620 - 1651] ( Chapter 17 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Remedies for Nonpayment of Rent [1630 - 1651] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 such securities were sold pursuant to this article and that the provisions of this article governing such sale have been complied with. The affidavit shall be and constitute sufficient authority to any corporation whose stock is so sold or to any registrar or transfer agent of such corporation to cancel the certificates of stock so sold and to issue a new certificate or certificates representing such stock to the purchaser thereof, and to any registrar, trustee, or transfer agent of registered bonds or other securities, to register any such bonds or other securities in the name of the purchaser thereof. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  161. 1638.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 17. Safe Deposit [1620 - 1651] ( Chapter 17 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Remedies for Nonpayment of Rent [1630 - 1651] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    If a safe-deposit box sale produces proceeds, the bank must deduct the notice amount and any later accrued charges, then record any remaining balance as a liability payable to the renter.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 17. Safe Deposit [1620 - 1651] ( Chapter 17 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Remedies for Nonpayment of Rent [1630 - 1651] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 notice and shall record the balance of the proceeds, if any, on its books as a liability payable to the person in whose name the safe-deposit box was rented. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  162. 1639.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 17. Safe Deposit [1620 - 1651] ( Chapter 17 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Remedies for Nonpayment of Rent [1630 - 1651] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    A bank may withhold certain safe-deposit box contents from sale, must keep unsold contents for at least one year, and may later destroy them, with notice required in some cases.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 17. Safe Deposit [1620 - 1651] ( Chapter 17 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Remedies for Nonpayment of Rent [1630 - 1651] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 bank have no intrinsic or marketable value, need not be offered for sale. Any documents, letters, and articles and any other contents which have been offered for sale and for which no purchaser has been found, shall be retained by the bank for not less than one year from the date when the box was opened. At any time thereafter, unless sooner delivered to or on the order of the person in whose name the box stood on the records of the bank, the documents, letters, and articles and also those contents which have been offered for sale and for which no purchaser has been found, may be destroyed in the presence of an officer of the bank, but if no notice of intended sale of the contents of the box has been given pursuant to Section 1635, the bank shall mail a notice of its intention to destroy the documents, letters, and articles at least 30 days before the destruction of the same to the person in whose name the box stood on the records of the bank. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  163. 1640.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 17. Safe Deposit [1620 - 1651] ( Chapter 17 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Remedies for Nonpayment of Rent [1630 - 1651] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    A bank may use special remedies to enforce the former renter’s liability if it previously opened a safe-deposit box for nonpayment and still has the contents in custody.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 17. Safe Deposit [1620 - 1651] ( Chapter 17 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Remedies for Nonpayment of Rent [1630 - 1651] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 the contents of such box or any part thereof remain in its custody, it shall be entitled to the special remedies in enforcing the liability of the former renter of such box as set forth in Sections 1634 to 1639, inclusive, whether or not such box was rented prior to October 1, 1949. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  164. 1641.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 17. Safe Deposit [1620 - 1651] ( Chapter 17 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Remedies for Nonpayment of Rent [1630 - 1651] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    A bank that receives personal property for safekeeping or storage as a bailee and issues a receipt may enforce its lien as a warehouseman.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 17. Safe Deposit [1620 - 1651] ( Chapter 17 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Remedies for Nonpayment of Rent [1630 - 1651] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 accordance with the provisions of the Uniform Commercial Code or at its option in the manner provided in Sections 1671 to 1673, inclusive, of this article. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  165. 1642.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 17. Safe Deposit [1620 - 1651] ( Chapter 17 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Remedies for Nonpayment of Rent [1630 - 1651] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    A bank may give notice and sell stored personal property if storage charges stay unpaid for six months.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 17. Safe Deposit [1620 - 1651] ( Chapter 17 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Remedies for Nonpayment of Rent [1630 - 1651] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 thereafter and while such charges remain unpaid, may mail a notice to the person in whose name the receipt was issued, giving the amount then due for such safekeeping or storage and stating that unless such amount and any other charges accruing to the date of payment are paid, the bank will sell such personal property at a time and place named therein, which time shall be at least 30 days after the mailing of such notice. If the amount specified in such notice and all other charges of the bank and expenses of mailing and publishing notice of sale accruing to time of payment are not paid, the bank may sell all or any portion of such personal property at public sale at the time and place given in such notice. Notice of the time and place of sale shall be published once at least five days before the date of sale in a newspaper of general circulation published in the county in which the sale is to be held, or if no such newspaper is published in the county such notice shall be posted in three public places in the county at least five days before the date of sale. Such sale may be postponed from time to time by public pronouncement at the time and place of sale. The bank may include in the notice required to be mailed a statement to the effect that if the amount due at that time is not paid at least 10 days before the date set for the sale, it may cause any container in which any of such personal property may be, to be opened and the contents thereof to be sold at the time and place fixed for the sale with or without such container, or the container may be sold without the contents. If such statement is included in the notice, the bank, at any time within 10 days before the date fixed for the sale, may open any such container and remove the contents in the presence of two employees of the bank, one of whom shall be an officer thereof, both of whom shall make and sign an inventory of the contents. Thereafter, on the day fixed for the sale, the contents may be sold as a whole or separately and with or without the container, or the container may be sold without the contents. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  166. 1643.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 17. Safe Deposit [1620 - 1651] ( Chapter 17 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Remedies for Nonpayment of Rent [1630 - 1651] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    The bank must deduct specified charges and expenses from sale proceeds, then credit any remaining balance to the account named on the receipt.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 17. Safe Deposit [1620 - 1651] ( Chapter 17 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Remedies for Nonpayment of Rent [1630 - 1651] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 mailing thereof, and reasonable expenses for notices, advertising, and sale, and shall credit the balance of the proceeds, if any, to an account in the name of the person in whose name the receipt for such personal property was issued. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  167. 1644.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 17. Safe Deposit [1620 - 1651] ( Chapter 17 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Remedies for Nonpayment of Rent [1630 - 1651] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    The bank does not have to offer items with no apparent intrinsic or marketable value for sale, must keep unsold items for at least one year after notice of sale is mailed, and may destroy them later unless they are delivered to the person named on the receipt or ordered delivered.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 17. Safe Deposit [1620 - 1651] ( Chapter 17 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Remedies for Nonpayment of Rent [1630 - 1651] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 for sale. The documents, letters, and articles and any other articles which have been offered for sale and for which no purchaser has been found, shall be retained by the bank for not less than one year from the date when notice of sale was mailed. At any time thereafter, unless sooner delivered to or on the order of the person in whose name the receipt was issued, the documents, letters and articles may be destroyed in the presence of an officer of the bank and of a notary public. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  168. 1645.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 17. Safe Deposit [1620 - 1651] ( Chapter 17 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Remedies for Nonpayment of Rent [1630 - 1651] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    A bank may sell the contents of a safe-deposit box or stored property to recover unpaid rental or other charges, and this includes listed securities and other property found in the box or container.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 17. Safe Deposit [1620 - 1651] ( Chapter 17 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Remedies for Nonpayment of Rent [1630 - 1651] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 other charges, includes power to sell any bonds, stock certificates, promissory notes, choses in action, or other securities, and any other tangible or intangible property found in such box or in the container in which such personal property was received for safekeeping or storage, regardless of whether it appears from such securities or property that the person in whose name the box stood or to whom the safekeeping or storage receipt was issued, possesses title to any interest in such securities or other property or power to transfer such title or interest. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  169. 1646.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 17. Safe Deposit [1620 - 1651] ( Chapter 17 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Remedies for Nonpayment of Rent [1630 - 1651] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    A bank in this situation is entitled to the same remedies for the safe-deposit box or property as if the bank had originally received or rented it.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 17. Safe Deposit [1620 - 1651] ( Chapter 17 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Remedies for Nonpayment of Rent [1630 - 1651] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 interest, or a bank holding the contents of such box, shall be entitled to the remedies as to such box or the contents thereof or as to the safekeeping or storage of such property in like manner and to the same extent as if such box had been rented from or such safekeeping or storage of personal property had been received by such bank in the first instance. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  170. 1647.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 17. Safe Deposit [1620 - 1651] ( Chapter 17 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Remedies for Nonpayment of Rent [1630 - 1651] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    A bank may recover the debt owed to it, including the full amount or any unpaid balance, without first selling the deposited property, and the article does not block other remedies.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 17. Safe Deposit [1620 - 1651] ( Chapter 17 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Remedies for Nonpayment of Rent [1630 - 1651] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 against the person in whose name the safe-deposit box stood or stands, or in whose name the safekeeping or storage receipt was issued, nor bar the right of a bank to so recover, at its option, either the entire amount of the debt due to it without recourse to sale of the property, if any, or so much of the debt due to it as shall not have been paid by the proceeds of the sale of all or any portion of the property deposited with it. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  171. 1648.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 17. Safe Deposit [1620 - 1651] ( Chapter 17 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Remedies for Nonpayment of Rent [1630 - 1651] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    A bank may collect due securities income and deduct amounts owed to it, then credit any remainder to the relevant boxholder or receipt holder.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 17. Safe Deposit [1620 - 1651] ( Chapter 17 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Remedies for Nonpayment of Rent [1630 - 1651] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 article, is due and payable at the time such securities come into the bank’s possession, or thereafter while such securities remain in the possession of the bank, shall become due and payable, the bank at its election may collect such principal, interest, or dividends and from the proceeds thereof may deduct all sums then due to it from the person to whom such safe-deposit box was rented or to whom such safekeeping or storage receipt was issued. The remainder of the money so collected, if any, shall be credited by the bank to the account of the delinquent boxholder or of the person in whose name the safekeeping or storage receipt was issued. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  172. 1649.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 17. Safe Deposit [1620 - 1651] ( Chapter 17 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Remedies for Nonpayment of Rent [1630 - 1651] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    This section says when this article requires notice, publication, or crediting an account for a safe-deposit box held in multiple names, the notice and account rules apply in the ways described here.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 17. Safe Deposit [1620 - 1651] ( Chapter 17 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Remedies for Nonpayment of Rent [1630 - 1651] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 receipt was issued in the names of two or more persons, notice addressed to either or to any one of the two or more persons shall be binding upon and effective as to the remaining person or all remaining persons, and notice addressed to the name of any deceased individual shall be binding upon his or her legal representatives and on his or her heirs and legatees. (b) Whenever this article requires that notice be published prior to a sale, the notice shall include the name and address of the person in whose name the safe-deposit box stood on the records of the bank or the safekeeping or storage receipt was issued. The names and addresses of all persons whose property is to be sold at the same time and place may be included in a single published notice. (c) Whenever this article requires that an amount be credited to the account of a person in whose name a safe-deposit box stood on the records of the bank or a safekeeping or storage receipt was issued, and the box stood or the receipt was issued in two or more names, the account shall be in both or all the names, subject to withdrawal by or upon the written order of any one or more of those persons, or by their successors or legal representatives. (d) Whenever this article requires that a notice shall be mailed to the person in whose name the safe-deposit box stood on the records of the bank or a safekeeping or storage receipt was issued, the notice shall be deemed to have been so mailed if it is enclosed in a sealed envelope addressed to the person in whose name the safe-deposit box stood in the office of the bank at which the records of the safe-deposit box rentals are kept, or to the person in whose name the receipt was issued, as the case may be, addressed to the person at the address or place appearing on the safe-deposit or storage records of the office, and the envelope with postage prepaid has been deposited by at least first-class mail in the United States mail. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  173. 165.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 1. Definitions [99 - 217] ( Chapter 1 added by Stats. 2011, Ch. 243, Sec. 2. )

    Verify source ↗

    This section defines “credit union” for this code section.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 1. Definitions [99 - 217] ( Chapter 1 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 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 under the laws of the United States or of any state of the United States other than this state. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  174. 1650.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 17. Safe Deposit [1620 - 1651] ( Chapter 17 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Remedies for Nonpayment of Rent [1630 - 1651] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    When safe-deposit rental or similar charges are paid or deducted, the related tax must also be added and paid or deducted.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 17. Safe Deposit [1620 - 1651] ( Chapter 17 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Remedies for Nonpayment of Rent [1630 - 1651] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 and paid or deducted with said amount, the amount of any tax imposed by laws and regulations. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  175. 16500.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 12. Foreign (Other Nation) Credit Unions [16500 - 16906] ( Heading of Chapter 12 renumbered from Chapter 11 by Stats. 2002, Ch. 734, Sec. 43. ) ## ARTICLE 1. General Provisions [16500 - 16512] ( Article 1 added by Stats. 2000, Ch. 612, Sec. 4. )

    Verify source ↗

    This chapter may be cited as the “Foreign (Other Nation) Credit Union Law.”

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 12. Foreign (Other Nation) Credit Unions [16500 - 16906] ( Heading of Chapter 12 renumbered from Chapter 11 by Stats. 2002, Ch. 734, Sec. 43. ) ## ARTICLE 1. General Provisions [16500 - 16512] ( Article 1 added by Stats. 2000, Ch. 612, Sec. 4. ) ## 16500. This chapter may be cited as the “Foreign (Other Nation) Credit Union Law.” (Added by Stats. 2000, Ch. 612, Sec. 4. Effective January 1, 2001.)
  176. 16501.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 12. Foreign (Other Nation) Credit Unions [16500 - 16906] ( Heading of Chapter 12 renumbered from Chapter 11 by Stats. 2002, Ch. 734, Sec. 43. ) ## ARTICLE 1. General Provisions [16500 - 16512] ( Article 1 added by Stats. 2000, Ch. 612, Sec. 4. )

    Verify source ↗

    This section defines key terms used in the chapter on foreign credit unions.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 12. Foreign (Other Nation) Credit Unions [16500 - 16906] ( Heading of Chapter 12 renumbered from Chapter 11 by Stats. 2002, Ch. 734, Sec. 43. ) ## ARTICLE 1. General Provisions [16500 - 16512] ( Article 1 added by Stats. 2000, Ch. 612, Sec. 4. ) ## 16501. In this chapter: (a) “Agency,” when used with respect to a foreign (other nation) credit union, means an office in this state at which the foreign (other nation) credit union transacts credit union business, other than branch business. (b) “Branch business” means the business of issuing shares or certificates, receiving deposits, paying checks, making loans, and other activities that the commissioner may specify by order or regulation. (c) “Branch office,” when used with respect to a foreign (other nation) credit union, means an office in this state at which the foreign (other nation) credit union engages in branch business. (d) “Business in this state,” when used with respect to a foreign (other nation) credit union that is licensed to maintain one or more offices, includes the aggregate business of all of the offices. (e) “Foreign nation” means any nation other than the United States, including, without limitation, any subdivision, territory, trust territory, dependency, colony, or possession of any nation other than the United States. (f) “Foreign (other nation) credit union” means any credit union or similar institution that is organized under the laws of a foreign nation. (g) “Foreign (other state) state credit union” means a credit union that is organized under the laws of a state of the United States other than California. (h) “Home country,” when used with respect to a foreign (other nation) credit union, means the foreign nation under whose laws the foreign (other nation) credit union is organized. (i) “Home country regulator,” when used with respect to a foreign (other nation) credit union, means the regulatory agency in the home country of the foreign (other nation) credit union that has primary regulatory authority over the foreign (other nation) credit union. (j) (1) “License” means a license issued under this chapter, authorizing a foreign (other nation) credit union to maintain an office. (2) To be “licensed” means to be issued or to hold a license. (3) To be “licensed to transact business in this state,” when used with respect to a foreign (other nation) credit union, means that the foreign (other nation) credit union is licensed to maintain an agency or branch office. (k) “Office,” when used with respect to a foreign (other nation) credit union, means a branch office, an agency, or a representative office maintained by the foreign (other nation) credit union. (l) “Representative office,” when used with respect to a foreign (other nation) credit union, means an office in this state at which the foreign (other nation) credit union engages in representational functions but at which it does not transact business. (m) “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 Samoa, the Trust Territory of the Pacific Islands, the Virgin Islands, and the Northern Mariana Islands. (Amended by Stats. 2001, Ch. 159, Sec. 94. Effective January 1, 2002.)
  177. 16502.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 12. Foreign (Other Nation) Credit Unions [16500 - 16906] ( Heading of Chapter 12 renumbered from Chapter 11 by Stats. 2002, Ch. 734, Sec. 43. ) ## ARTICLE 1. General Provisions [16500 - 16512] ( Article 1 added by Stats. 2000, Ch. 612, Sec. 4. )

    Verify source ↗

    This section says the chapter does not apply to a foreign (other state) state credit union and does not authorize it to do business in the state.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 12. Foreign (Other Nation) Credit Unions [16500 - 16906] ( Heading of Chapter 12 renumbered from Chapter 11 by Stats. 2002, Ch. 734, Sec. 43. ) ## ARTICLE 1. General Provisions [16500 - 16512] ( Article 1 added by Stats. 2000, Ch. 612, Sec. 4. ) ## 16502. Nothing in this chapter shall apply to a foreign (other state) state credit union or be deemed to authorize a foreign (other state) state credit union to transact business in this state. (Added by Stats. 2000, Ch. 612, Sec. 4. Effective January 1, 2001.)
  178. 16503.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 12. Foreign (Other Nation) Credit Unions [16500 - 16906] ( Heading of Chapter 12 renumbered from Chapter 11 by Stats. 2002, Ch. 734, Sec. 43. ) ## ARTICLE 1. General Provisions [16500 - 16512] ( Article 1 added by Stats. 2000, Ch. 612, Sec. 4. )

    Verify source ↗

    A foreign credit union may not open a branch office unless its deposit or share accounts are insured by the National Credit Union Administration or another insurer acceptable to the commissioner.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 12. Foreign (Other Nation) Credit Unions [16500 - 16906] ( Heading of Chapter 12 renumbered from Chapter 11 by Stats. 2002, Ch. 734, Sec. 43. ) ## ARTICLE 1. General Provisions [16500 - 16512] ( Article 1 added by Stats. 2000, Ch. 612, Sec. 4. ) ## 16503. No foreign (other nation) credit union may establish a branch office unless its deposit or share accounts are insured by the National Credit Union Administration or other insurer that is not unsatisfactory to the commissioner. (Added by Stats. 2000, Ch. 612, Sec. 4. Effective January 1, 2001.)
  179. 16504.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 12. Foreign (Other Nation) Credit Unions [16500 - 16906] ( Heading of Chapter 12 renumbered from Chapter 11 by Stats. 2002, Ch. 734, Sec. 43. ) ## ARTICLE 1. General Provisions [16500 - 16512] ( Article 1 added by Stats. 2000, Ch. 612, Sec. 4. )

    Verify source ↗

    Applications filed with the commissioner under this chapter must be in the required form, include required information, be signed as required, and be verified if the commissioner requires it.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 12. Foreign (Other Nation) Credit Unions [16500 - 16906] ( Heading of Chapter 12 renumbered from Chapter 11 by Stats. 2002, Ch. 734, Sec. 43. ) ## ARTICLE 1. General Provisions [16500 - 16512] ( Article 1 added by Stats. 2000, Ch. 612, Sec. 4. ) ## 16504. 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 the information, shall be signed in the manner, and shall (if the commissioner requires by regulation or order) be verified in the manner that the commissioner may by regulation or order require. (Added by Stats. 2000, Ch. 612, Sec. 4. Effective January 1, 2001.)
  180. 16505.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 12. Foreign (Other Nation) Credit Unions [16500 - 16906] ( Heading of Chapter 12 renumbered from Chapter 11 by Stats. 2002, Ch. 734, Sec. 43. ) ## ARTICLE 1. General Provisions [16500 - 16512] ( Article 1 added by Stats. 2000, Ch. 612, Sec. 4. )

    Verify source ↗

    Foreign credit unions must pay specified filing, license, annual office, and examination fees to the commissioner.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 12. Foreign (Other Nation) Credit Unions [16500 - 16906] ( Heading of Chapter 12 renumbered from Chapter 11 by Stats. 2002, Ch. 734, Sec. 43. ) ## ARTICLE 1. General Provisions [16500 - 16512] ( Article 1 added by Stats. 2000, Ch. 612, Sec. 4. ) ## 16505. 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) credit union that is not licensed to transact business in this state for approval to establish a branch office shall be one thousand dollars ($1,000). (b) The fee for filing with the commissioner an application by a foreign (other nation) credit union that is not licensed to transact business in this state for approval to establish an agency shall be five hundred dollars ($500). (c) The fee for filing with the commissioner an application by a foreign (other nation) credit union that is licensed to transact business in this state for approval to establish a branch office shall be five hundred dollars ($500). (d) The fee for filing with the commissioner an application by a foreign (other nation) credit union that is licensed to transact business in this state for approval to establish an agency shall be two hundred fifty dollars ($250). (e) The fee for filing with the commissioner an application by a foreign (other nation) credit union for approval to establish a representative office shall be two hundred fifty dollars ($250). (f) The fee for filing with the commissioner an application by a foreign (other nation) credit union for approval to relocate or to close an office shall be one hundred fifty dollars ($150). (g) The fee for issuing a license shall be twenty-five dollars ($25). (h) Each foreign (other nation) credit union that on June 1 of any year maintains one or more offices shall pay, on or before the following July 1, a fee of two hundred fifty dollars ($250) per branch office, one hundred dollars ($100) per agency, and fifty dollars ($50) per representative office. (i) If the commissioner makes an examination in connection with a pending application, the foreign (other nation) credit union making the application shall pay a fee for the examination, as determined by the commissioner. In determining the fee, the commissioner may use the estimated average hourly cost, including, but not limited to, overhead, for all persons performing the examination, plus, if in the opinion of the commissioner it is necessary for any examiner engaged in the examination to travel outside this state, the travel expenses of the examiner. (j) If the commissioner makes an examination of a foreign (other nation) credit union that is licensed to maintain an office, the foreign (other nation) credit union shall pay a fee for the examination, as determined by the commissioner. In determining the fee, the commissioner may use the estimated average hourly cost, including, but not limited to, overhead, for all persons performing the examination, plus, if in the opinion of the commissioner it is necessary for any examiner engaged in the examination to travel outside this state, the travel expenses of the examiner. (Amended by Stats. 2025, Ch. 20, Sec. 14. (AB 137) Effective June 30, 2025.)
  181. 16506.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 12. Foreign (Other Nation) Credit Unions [16500 - 16906] ( Heading of Chapter 12 renumbered from Chapter 11 by Stats. 2002, Ch. 734, Sec. 43. ) ## ARTICLE 1. General Provisions [16500 - 16512] ( Article 1 added by Stats. 2000, Ch. 612, Sec. 4. )

    Verify source ↗

    A foreign credit union cannot get a license to maintain an office unless it first files the required appointment with the commissioner to accept service of process.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 12. Foreign (Other Nation) Credit Unions [16500 - 16906] ( Heading of Chapter 12 renumbered from Chapter 11 by Stats. 2002, Ch. 734, Sec. 43. ) ## ARTICLE 1. General Provisions [16500 - 16512] ( Article 1 added by Stats. 2000, Ch. 612, Sec. 4. ) ## 16506. (a) (1) No foreign (other nation) credit union shall be issued a license to maintain an office unless it shall have first filed with the commissioner, in the form that the commissioner may by regulation or order require, an appointment irrevocably appointing the commissioner and the commissioner’s successor from time to time in office to be the foreign (other nation) credit union’s attorney to receive service of any lawful process in any noncriminal judicial or administrative proceeding against the foreign (other nation) credit union or any of its successors that arises out of the activities in this state after the appointment has been filed, with the same force and validity as if served personally on the foreign (other nation) credit union or its successor, as the case may be. (2) Any foreign (other nation) credit union that maintains an office in this state and that has not filed with the commissioner an appointment pursuant to paragraph (1) shall be deemed by the maintenance of that office to have appointed the commissioner as its attorney to receive service of any lawful process in any noncriminal judicial or administrative proceeding against the foreign (other nation) credit union or any of its successors that arises out of the activities in this state with the same force and validity as if served personally on the foreign (other nation) credit union or its successor, as the case may be. (b) Service may be made on a foreign (other nation) credit union that has appointed or is deemed to have appointed the commissioner as its attorney for service of process by leaving a copy of the process at any office of the commissioner. However, the service is not effective unless (1) the party making the service, who may be the commissioner, forthwith sends notice of the service and a copy of the process by registered or certified mail to the foreign (other nation) credit union served at its last address on file with the commissioner at any of its offices in this state or at its head office, and (2) an affidavit of compliance with this subdivision by the party making service is filed in the case on or before the return date, if any, or within any further time that the court, in the case of a judicial proceeding, or the administrative agency, in the case of an administrative proceeding, allows. (Added by Stats. 2000, Ch. 612, Sec. 4. Effective January 1, 2001.)
  182. 16507.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 12. Foreign (Other Nation) Credit Unions [16500 - 16906] ( Heading of Chapter 12 renumbered from Chapter 11 by Stats. 2002, Ch. 734, Sec. 43. ) ## ARTICLE 1. General Provisions [16500 - 16512] ( Article 1 added by Stats. 2000, Ch. 612, Sec. 4. )

    Verify source ↗

    The commissioner may share information with federal and home country regulators when administering this chapter.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 12. Foreign (Other Nation) Credit Unions [16500 - 16906] ( Heading of Chapter 12 renumbered from Chapter 11 by Stats. 2002, Ch. 734, Sec. 43. ) ## ARTICLE 1. General Provisions [16500 - 16512] ( Article 1 added by Stats. 2000, Ch. 612, Sec. 4. ) ## 16507. In administering the provisions of this chapter, the commissioner may share information with federal and home country regulators of foreign (other nation) credit unions. (Added by Stats. 2000, Ch. 612, Sec. 4. Effective January 1, 2001.)
  183. 16508.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 12. Foreign (Other Nation) Credit Unions [16500 - 16906] ( Heading of Chapter 12 renumbered from Chapter 11 by Stats. 2002, Ch. 734, Sec. 43. ) ## ARTICLE 1. General Provisions [16500 - 16512] ( Article 1 added by Stats. 2000, Ch. 612, Sec. 4. )

    Verify source ↗

    A license may not be transferred or assigned.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 12. Foreign (Other Nation) Credit Unions [16500 - 16906] ( Heading of Chapter 12 renumbered from Chapter 11 by Stats. 2002, Ch. 734, Sec. 43. ) ## ARTICLE 1. General Provisions [16500 - 16512] ( Article 1 added by Stats. 2000, Ch. 612, Sec. 4. ) ## 16508. No license shall be transferable or assignable. (Added by Stats. 2000, Ch. 612, Sec. 4. Effective January 1, 2001.)
  184. 16509.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 12. Foreign (Other Nation) Credit Unions [16500 - 16906] ( Heading of Chapter 12 renumbered from Chapter 11 by Stats. 2002, Ch. 734, Sec. 43. ) ## ARTICLE 1. General Provisions [16500 - 16512] ( Article 1 added by Stats. 2000, Ch. 612, Sec. 4. )

    Verify source ↗

    A licensed foreign credit union must post a public notice at its office in a conspicuous place.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 12. Foreign (Other Nation) Credit Unions [16500 - 16906] ( Heading of Chapter 12 renumbered from Chapter 11 by Stats. 2002, Ch. 734, Sec. 43. ) ## ARTICLE 1. General Provisions [16500 - 16512] ( Article 1 added by Stats. 2000, Ch. 612, Sec. 4. ) ## 16509. A foreign (other nation) credit union that is licensed to establish an office shall post at a conspicuous place at the office a notice to the public which states the name of the foreign (other nation) credit union, the type of office it is, and the foreign country under whose laws it was organized or chartered. (Added by Stats. 2000, Ch. 612, Sec. 4. Effective January 1, 2001.)
  185. 1651.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 17. Safe Deposit [1620 - 1651] ( Chapter 17 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Remedies for Nonpayment of Rent [1630 - 1651] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. )

    Verify source ↗

    Banks or trust companies may receive U.S. Government bonds for safekeeping, collection, or storage, and must give the depositor a receipt and keep adequate records.

    ## Financial Code - FIN ## DIVISION 1.1. BANKING [1000 - 1910] ( Division 1.1 added by Stats. 2011, Ch. 243, Sec. 3. ) ## CHAPTER 17. Safe Deposit [1620 - 1651] ( Chapter 17 added by Stats. 2011, Ch. 243, Sec. 3. ) ## ARTICLE 2. Remedies for Nonpayment of Rent [1630 - 1651] ( Article 2 added by Stats. 2011, Ch. 243, Sec. 3. ) ## 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 depositor and shall maintain adequate records of all transactions therewith. In every case of such deposit the depositary bank shall have the right to return to the depositor either the identical bonds deposited by him or other bonds of the same issue, par value, and character. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
  186. 16510.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 12. Foreign (Other Nation) Credit Unions [16500 - 16906] ( Heading of Chapter 12 renumbered from Chapter 11 by Stats. 2002, Ch. 734, Sec. 43. ) ## ARTICLE 1. General Provisions [16500 - 16512] ( Article 1 added by Stats. 2000, Ch. 612, Sec. 4. )

    Verify source ↗

    A foreign credit union licensed to have more than one office must designate one office as its primary office.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 12. Foreign (Other Nation) Credit Unions [16500 - 16906] ( Heading of Chapter 12 renumbered from Chapter 11 by Stats. 2002, Ch. 734, Sec. 43. ) ## ARTICLE 1. General Provisions [16500 - 16512] ( Article 1 added by Stats. 2000, Ch. 612, Sec. 4. ) ## 16510. Whenever a foreign (other nation) credit union is licensed to establish more than one office, it shall designate one of its offices as its primary office. (Added by Stats. 2000, Ch. 612, Sec. 4. Effective January 1, 2001.)
  187. 16511.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 12. Foreign (Other Nation) Credit Unions [16500 - 16906] ( Heading of Chapter 12 renumbered from Chapter 11 by Stats. 2002, Ch. 734, Sec. 43. ) ## ARTICLE 1. General Provisions [16500 - 16512] ( Article 1 added by Stats. 2000, Ch. 612, Sec. 4. )

    Verify source ↗

    A licensed foreign credit union must keep all office business in one building or adjoining buildings, unless the commissioner approves part of it being done elsewhere in the same vicinity.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 12. Foreign (Other Nation) Credit Unions [16500 - 16906] ( Heading of Chapter 12 renumbered from Chapter 11 by Stats. 2002, Ch. 734, Sec. 43. ) ## ARTICLE 1. General Provisions [16500 - 16512] ( Article 1 added by Stats. 2000, Ch. 612, Sec. 4. ) ## 16511. Each foreign (other nation) credit union that is licensed to establish an office shall conduct all of the business of the office in a single building or in adjoining buildings. However, with the approval of the commissioner, the foreign (other nation) credit union may conduct part of the business of the office elsewhere in the same vicinity. (Added by Stats. 2000, Ch. 612, Sec. 4. Effective January 1, 2001.)
  188. 16512.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 12. Foreign (Other Nation) Credit Unions [16500 - 16906] ( Heading of Chapter 12 renumbered from Chapter 11 by Stats. 2002, Ch. 734, Sec. 43. ) ## ARTICLE 1. General Provisions [16500 - 16512] ( Article 1 added by Stats. 2000, Ch. 612, Sec. 4. )

    Verify source ↗

    If this chapter conflicts with another chapter of the division, the provision in this chapter or its related regulation/order applies for a foreign credit union with a branch office or facility, and the other chapter provision does not.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 12. Foreign (Other Nation) Credit Unions [16500 - 16906] ( Heading of Chapter 12 renumbered from Chapter 11 by Stats. 2002, Ch. 734, Sec. 43. ) ## ARTICLE 1. General Provisions [16500 - 16512] ( Article 1 added by Stats. 2000, Ch. 612, Sec. 4. ) ## 16512. Whenever any provision of this chapter or of any regulation or order issued under this chapter that is applicable to or with respect to a foreign (other nation) credit union that maintains a branch office or facility is inconsistent with any provision of any other chapter of this division, the former provision applies, and the latter provision does not apply. (Added by Stats. 2000, Ch. 612, Sec. 4. Effective January 1, 2001.)
  189. 16525.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 12. Foreign (Other Nation) Credit Unions [16500 - 16906] ( Heading of Chapter 12 renumbered from Chapter 11 by Stats. 2002, Ch. 734, Sec. 43. ) ## ARTICLE 2. Representative Offices [16525 - 16530] ( Article 2 added by Stats. 2000, Ch. 612, Sec. 4. )

    Verify source ↗

    A foreign credit union may not operate a representational office in this state unless licensed for that place, and no person may maintain such an office for a foreign credit union unless the credit union is licensed to do so.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 12. Foreign (Other Nation) Credit Unions [16500 - 16906] ( Heading of Chapter 12 renumbered from Chapter 11 by Stats. 2002, Ch. 734, Sec. 43. ) ## ARTICLE 2. Representative Offices [16525 - 16530] ( Article 2 added by Stats. 2000, Ch. 612, Sec. 4. ) ## 16525. (a) No foreign (other nation) credit union shall establish or maintain an office in this state at which it engages in representational functions unless it is licensed to maintain a representative office, agency, or branch office at that place. (b) (1) No person shall establish or maintain an office in this state as representative of a foreign (other nation) credit union unless the foreign (other nation) credit union is licensed to maintain the office as a representative office. (2) For purposes of this chapter, if any person establishes or maintains an office in this state as representative of a foreign (other nation) credit union, the foreign (other nation) credit union shall be deemed to establish and maintain the office as a representative office. (Added by Stats. 2000, Ch. 612, Sec. 4. Effective January 1, 2001.)
  190. 16526.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 12. Foreign (Other Nation) Credit Unions [16500 - 16906] ( Heading of Chapter 12 renumbered from Chapter 11 by Stats. 2002, Ch. 734, Sec. 43. ) ## ARTICLE 2. Representative Offices [16525 - 16530] ( Article 2 added by Stats. 2000, Ch. 612, Sec. 4. )

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    A foreign credit union may not establish or keep a representative office unless the commissioner first approves it and issues a license.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 12. Foreign (Other Nation) Credit Unions [16500 - 16906] ( Heading of Chapter 12 renumbered from Chapter 11 by Stats. 2002, Ch. 734, Sec. 43. ) ## ARTICLE 2. Representative Offices [16525 - 16530] ( Article 2 added by Stats. 2000, Ch. 612, Sec. 4. ) ## 16526. (a) No foreign (other nation) credit union shall establish or maintain a representative office unless the commissioner shall have first approved the establishment of the office and issued a license authorizing the foreign (other nation) credit union to maintain the office. (b) If the commissioner finds the following with respect to an application by a foreign (other nation) credit union for approval to establish a representative office, the commissioner shall approve the application: (1) That the foreign (other nation) credit union, the directors and executive officers of the foreign (other nation) credit union, and the proposed management of the office are each of good character and sound financial standing. (2) That the financial history and condition of the foreign (other nation) credit union are satisfactory. (3) That the management of the foreign (other nation) credit union and the proposed management of the office are adequate. (4) That it is reasonable to believe that, if licensed to maintain the office, the foreign (other nation) credit union will operate the office in compliance with all applicable laws, regulations, and orders. If the commissioner finds otherwise, the commissioner shall deny the application. (c) Whenever an application by a foreign (other nation) credit union for approval to establish a representative office has been approved and all conditions precedent to the issuance of a license authorizing the foreign (other nation) credit union to maintain the office have been fulfilled, the commissioner shall issue the license. (Added by Stats. 2000, Ch. 612, Sec. 4. Effective January 1, 2001.)
  191. 16527.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 12. Foreign (Other Nation) Credit Unions [16500 - 16906] ( Heading of Chapter 12 renumbered from Chapter 11 by Stats. 2002, Ch. 734, Sec. 43. ) ## ARTICLE 2. Representative Offices [16525 - 16530] ( Article 2 added by Stats. 2000, Ch. 612, Sec. 4. )

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    A foreign credit union with a licensed representative office may relocate it only after the commissioner approves the move and issues a new license.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 12. Foreign (Other Nation) Credit Unions [16500 - 16906] ( Heading of Chapter 12 renumbered from Chapter 11 by Stats. 2002, Ch. 734, Sec. 43. ) ## ARTICLE 2. Representative Offices [16525 - 16530] ( Article 2 added by Stats. 2000, Ch. 612, Sec. 4. ) ## 16527. (a) No foreign (other nation) credit union that is licensed to maintain a representative office shall relocate the office unless the commissioner shall have first approved the relocation and issued a license authorizing the credit union to maintain the office at the new site. (b) (1) In case the new site of a representative office is in the same vicinity as the old site, the commissioner shall approve an application by a foreign (other nation) credit union for approval to relocate the representative office if the commissioner finds that the relocation of the office will not be substantially detrimental to the public convenience and advantage. (2) In case the new site of a representative office is not in the same vicinity as the old site, the commissioner shall approve an application by a foreign (other nation) credit union for approval to relocate the representative office if the commissioner finds both of the following: (i) The relocation of the office from the old site will not be substantially detrimental to the public convenience and advantage in the area that is primarily served by the office at the old site. (ii) The relocation of the office to the new site will promote the public convenience and advantage. If the commissioner does not make the findings required under either paragraph (1) or (2), the commissioner shall deny the application. (c) Whenever an application by a foreign (other nation) credit union for approval to relocate a representative office has been approved and all conditions precedent to the issuance of a license authorizing the foreign (other nation) credit union to maintain the office at the new site have been fulfilled, the commissioner shall issue the license. (d) Promptly after a foreign (other nation) credit union that is licensed to maintain a representative office relocates the office, the foreign (other nation) credit union shall surrender to the commissioner the license that authorized it to maintain the office at the old site. (Added by Stats. 2000, Ch. 612, Sec. 4. Effective January 1, 2001.)
  192. 16528.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 12. Foreign (Other Nation) Credit Unions [16500 - 16906] ( Heading of Chapter 12 renumbered from Chapter 11 by Stats. 2002, Ch. 734, Sec. 43. ) ## ARTICLE 2. Representative Offices [16525 - 16530] ( Article 2 added by Stats. 2000, Ch. 612, Sec. 4. )

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    A licensed foreign credit union may run representational functions at its representative office, but it may not solicit or accept share accounts or deposits, or otherwise do business there, unless regulations the commissioner prescribes say otherwise.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 12. Foreign (Other Nation) Credit Unions [16500 - 16906] ( Heading of Chapter 12 renumbered from Chapter 11 by Stats. 2002, Ch. 734, Sec. 43. ) ## ARTICLE 2. Representative Offices [16525 - 16530] ( Article 2 added by Stats. 2000, Ch. 612, Sec. 4. ) ## 16528. A foreign (other nation) credit union that is licensed to maintain a representative office may, subject to any regulations that the commissioner may prescribe, engage in representational functions at the office but shall not solicit or accept share accounts or deposits or otherwise transact business at the office. (Added by Stats. 2000, Ch. 612, Sec. 4. Effective January 1, 2001.)
  193. 16529.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 12. Foreign (Other Nation) Credit Unions [16500 - 16906] ( Heading of Chapter 12 renumbered from Chapter 11 by Stats. 2002, Ch. 734, Sec. 43. ) ## ARTICLE 2. Representative Offices [16525 - 16530] ( Article 2 added by Stats. 2000, Ch. 612, Sec. 4. )

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    A foreign credit union with a representative office may close it only with prior commissioner approval, unless another Article 8 process applies.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 12. Foreign (Other Nation) Credit Unions [16500 - 16906] ( Heading of Chapter 12 renumbered from Chapter 11 by Stats. 2002, Ch. 734, Sec. 43. ) ## ARTICLE 2. Representative Offices [16525 - 16530] ( Article 2 added by Stats. 2000, Ch. 612, Sec. 4. ) ## 16529. (a) (1) No foreign (other nation) credit union that is licensed to maintain a representative office shall close the office unless the commissioner shall have first approved the closing. (2) Paragraph (1) shall not be deemed to prohibit a foreign (other nation) credit union that is licensed to maintain a representative office from closing the office in accordance with Article 8 (commencing with Section 16800). (b) If the commissioner finds, with respect to an application by a foreign (other nation) credit union for approval to close a representative office, that the closing of the office will not be substantially detrimental to the public convenience and advantage, the commissioner shall approve the application. If the commissioner finds otherwise, the commissioner shall deny the application. (c) Whenever an application by a foreign (other nation) credit union for approval to close a representative office has been approved and all conditions precedent to the closing have been fulfilled, the foreign (other nation) credit union may close the office and shall promptly thereafter surrender to the commissioner the license that authorized it to maintain the office. (Added by Stats. 2000, Ch. 612, Sec. 4. Effective January 1, 2001.)
  194. 16530.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 12. Foreign (Other Nation) Credit Unions [16500 - 16906] ( Heading of Chapter 12 renumbered from Chapter 11 by Stats. 2002, Ch. 734, Sec. 43. ) ## ARTICLE 2. Representative Offices [16525 - 16530] ( Article 2 added by Stats. 2000, Ch. 612, Sec. 4. )

    Verify source ↗

    An approved representative office application is revoked automatically if the foreign credit union does not establish and maintain the office within one year, unless the commissioner extends the time first.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 12. Foreign (Other Nation) Credit Unions [16500 - 16906] ( Heading of Chapter 12 renumbered from Chapter 11 by Stats. 2002, Ch. 734, Sec. 43. ) ## ARTICLE 2. Representative Offices [16525 - 16530] ( Article 2 added by Stats. 2000, Ch. 612, Sec. 4. ) ## 16530. The approval of an application for approval to establish a representative office shall be revoked by operation of law if the applicant foreign (other nation) credit union does not establish and maintain the office within one year after the date of the approval, unless prior to the expiration of the one-year period the commissioner extends the time within which the foreign (other nation) credit union may establish the representative office. (Added by Stats. 2000, Ch. 612, Sec. 4. Effective January 1, 2001.)
  195. 16550.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 12. Foreign (Other Nation) Credit Unions [16500 - 16906] ( Heading of Chapter 12 renumbered from Chapter 11 by Stats. 2002, Ch. 734, Sec. 43. ) ## ARTICLE 3. Branch Offices and Agencies [16550 - 16555] ( Article 3 added by Stats. 2000, Ch. 612, Sec. 4. )

    Verify source ↗

    A foreign credit union may not do business in the state except at a licensed branch office or agency, subject to stated exceptions.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 12. Foreign (Other Nation) Credit Unions [16500 - 16906] ( Heading of Chapter 12 renumbered from Chapter 11 by Stats. 2002, Ch. 734, Sec. 43. ) ## ARTICLE 3. Branch Offices and Agencies [16550 - 16555] ( Article 3 added by Stats. 2000, Ch. 612, Sec. 4. ) ## 16550. (a) No foreign (other nation) credit union shall transact business in this state except at a branch office or agency that it is licensed to maintain and at which it is permitted by this chapter to transact the business transacted. (b) Subdivision (a) shall not be deemed to prohibit any of the following: (1) Any foreign (other nation) credit union from carrying on the activities described in subdivision (d) of Section 191 of the Corporations Code. (2) The advertising or solicitation of shares or deposits in this state by a foreign (other nation) credit union made through the media of the mail, radio, television, magazines, newspapers, the Internet, or similar media, provided that shares or deposits are not accepted or received in this state. (3) The acceptance of loan applications through agents in this state, provided the loan applications are approved or rejected, and the loans are funded, outside of this state. (c) For the purposes of subdivision (a), no foreign (other nation) credit union shall be deemed to be transacting business in this state merely because a majority-owned subsidiary transacts business in this state. (Added by Stats. 2000, Ch. 612, Sec. 4. Effective January 1, 2001.)
  196. 16551.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 12. Foreign (Other Nation) Credit Unions [16500 - 16906] ( Heading of Chapter 12 renumbered from Chapter 11 by Stats. 2002, Ch. 734, Sec. 43. ) ## ARTICLE 3. Branch Offices and Agencies [16550 - 16555] ( Article 3 added by Stats. 2000, Ch. 612, Sec. 4. )

    Verify source ↗

    A foreign credit union may not be licensed to keep a branch office or agency unless it is qualified to do intrastate business in California, except as allowed by Section 8910 of the Corporations Code.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 12. Foreign (Other Nation) Credit Unions [16500 - 16906] ( Heading of Chapter 12 renumbered from Chapter 11 by Stats. 2002, Ch. 734, Sec. 43. ) ## ARTICLE 3. Branch Offices and Agencies [16550 - 16555] ( Article 3 added by Stats. 2000, Ch. 612, Sec. 4. ) ## 16551. No foreign (other nation) credit union shall be licensed to maintain a branch office or agency unless it is qualified to transact intrastate business in this state under Chapter 21 (commencing with Section 2100) of Division 1 of Title 1 of the Corporations Code, except as provided in Section 8910 of the Corporations Code. (Added by Stats. 2000, Ch. 612, Sec. 4. Effective January 1, 2001.)
  197. 16552.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 12. Foreign (Other Nation) Credit Unions [16500 - 16906] ( Heading of Chapter 12 renumbered from Chapter 11 by Stats. 2002, Ch. 734, Sec. 43. ) ## ARTICLE 3. Branch Offices and Agencies [16550 - 16555] ( Article 3 added by Stats. 2000, Ch. 612, Sec. 4. )

    Verify source ↗

    A foreign credit union may not establish or keep a branch office or agency unless the commissioner first approves it and issues a license.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 12. Foreign (Other Nation) Credit Unions [16500 - 16906] ( Heading of Chapter 12 renumbered from Chapter 11 by Stats. 2002, Ch. 734, Sec. 43. ) ## ARTICLE 3. Branch Offices and Agencies [16550 - 16555] ( Article 3 added by Stats. 2000, Ch. 612, Sec. 4. ) ## 16552. (a) No foreign (other nation) credit union shall establish or maintain a branch office or agency unless the commissioner shall have first approved its establishment and issued a license authorizing the foreign (other nation) credit union to maintain the branch office or agency. (b) If the commissioner finds all of the following with respect to an application by a foreign (other nation) credit union for approval to establish a branch office or agency, the commissioner shall approve the application: (1) That the foreign (other nation) credit union, the directors and officers of the foreign (other nation) credit union, and the proposed management of the office are each of good character and sound financial standing. (2) That the financial history and condition of the foreign (other nation) credit union are satisfactory. (3) That the management of the foreign (other nation) credit union and the proposed management of the office are adequate. (4) That it is reasonable to believe that, if licensed to maintain the office, the foreign (other nation) credit union will operate the office in a safe and sound manner and in compliance with all applicable laws, regulations, and orders. (5) That the foreign (other nation) credit union’s plan to establish and to maintain the office affords reasonable promise of successful operation. (6) That the foreign (other nation) credit union’s establishment and maintenance of the office will promote the public convenience and advantage, and is necessary or convenient to meet the needs of the foreign (other nation) credit union’s members. (7) Not more than 50 percent of the members of the foreign (other nation) credit union are or will be residents of this state. If the commissioner finds otherwise, the commissioner shall deny the application. (c) Whenever an application by a foreign (other nation) credit union for approval to establish a branch office or agency has been approved and all conditions precedent to the issuance of a license authorizing the foreign (other nation) credit union to maintain the branch office or agency have been fulfilled, the commissioner shall issue the license. (Added by Stats. 2000, Ch. 612, Sec. 4. Effective January 1, 2001.)
  198. 16553.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 12. Foreign (Other Nation) Credit Unions [16500 - 16906] ( Heading of Chapter 12 renumbered from Chapter 11 by Stats. 2002, Ch. 734, Sec. 43. ) ## ARTICLE 3. Branch Offices and Agencies [16550 - 16555] ( Article 3 added by Stats. 2000, Ch. 612, Sec. 4. )

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    Approval to establish a branch office or agency is revoked if the foreign credit union does not establish and maintain it within one year, unless the commissioner extends the time first.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 12. Foreign (Other Nation) Credit Unions [16500 - 16906] ( Heading of Chapter 12 renumbered from Chapter 11 by Stats. 2002, Ch. 734, Sec. 43. ) ## ARTICLE 3. Branch Offices and Agencies [16550 - 16555] ( Article 3 added by Stats. 2000, Ch. 612, Sec. 4. ) ## 16553. The approval of an application for approval to establish a branch office or agency shall be revoked by operation of law if the applicant foreign (other nation) credit union does not establish and maintain the office within one year after the date of the approval, unless prior to the expiration of the one-year period the commissioner extends the time within which the foreign (other nation) credit union may establish the branch office or agency. (Added by Stats. 2000, Ch. 612, Sec. 4. Effective January 1, 2001.)
  199. 16554.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 12. Foreign (Other Nation) Credit Unions [16500 - 16906] ( Heading of Chapter 12 renumbered from Chapter 11 by Stats. 2002, Ch. 734, Sec. 43. ) ## ARTICLE 3. Branch Offices and Agencies [16550 - 16555] ( Article 3 added by Stats. 2000, Ch. 612, Sec. 4. )

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    A licensed foreign credit union may relocate a branch office or agency only after the commissioner approves the move and issues a new license.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 12. Foreign (Other Nation) Credit Unions [16500 - 16906] ( Heading of Chapter 12 renumbered from Chapter 11 by Stats. 2002, Ch. 734, Sec. 43. ) ## ARTICLE 3. Branch Offices and Agencies [16550 - 16555] ( Article 3 added by Stats. 2000, Ch. 612, Sec. 4. ) ## 16554. (a) No foreign (other nation) credit union which is licensed to maintain a branch office or agency shall relocate the office unless the commissioner shall have first approved the relocation and issued a license authorizing the foreign (other nation) credit union to maintain the office at the new site. (b) (1) In case the new site of the office is in the same vicinity as the old site, the commissioner shall approve an application by a foreign (other nation) credit union for approval to relocate a branch office or agency if the commissioner finds all of the following: (A) That it will not be unsafe or unsound for the foreign (other nation) credit union to relocate the office. (B) That the relocation of the office will not be substantially detrimental to the public convenience and advantage, or that the relocation is necessary in the interests of the safety and soundness of the foreign (other nation) credit union. (2) In case the new site of the office is not in the same vicinity as the old site, the commissioner shall approve an application by a foreign (other nation) credit union for approval to relocate a branch office or agency if the commissioner finds all of the following: (A) That the foreign (other nation) credit union’s plan to relocate the office and to maintain the office at the new site affords reasonable promise of successful operation. (B) That the relocation of the office from the old site will not be substantially detrimental to the public convenience and advantage in the area which is primarily served by the office at the old site, or that the relocation is necessary in the interests of the safety and soundness of the foreign (other nation) credit union. (C) That the relocation of the office to the new site will promote the public convenience and advantage. If the commissioner finds otherwise, the commissioner shall deny the application. (c) Whenever an application by a foreign (other nation) credit union for approval to relocate a branch office or agency has been approved and all conditions precedent to the issuance of a license authorizing the foreign (other nation) credit union to maintain the office at the new site have been fulfilled, the commissioner shall issue the license. (d) Promptly after a foreign (other nation) credit union that is licensed to maintain a branch office or agency relocates the office, the foreign (other nation) credit union shall surrender to the commissioner the license which authorized it to maintain the office at the old site. (Added by Stats. 2000, Ch. 612, Sec. 4. Effective January 1, 2001.)
  200. 16555.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 12. Foreign (Other Nation) Credit Unions [16500 - 16906] ( Heading of Chapter 12 renumbered from Chapter 11 by Stats. 2002, Ch. 734, Sec. 43. ) ## ARTICLE 3. Branch Offices and Agencies [16550 - 16555] ( Article 3 added by Stats. 2000, Ch. 612, Sec. 4. )

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    A foreign credit union with a branch office or agency cannot close it unless the commissioner first approves, except when closing under Article 8.

    ## Financial Code - FIN ## DIVISION 5. CREDIT UNIONS [14000 - 16906] ( Division 5 repealed and added by Stats. 1979, Ch. 112. ) ## CHAPTER 12. Foreign (Other Nation) Credit Unions [16500 - 16906] ( Heading of Chapter 12 renumbered from Chapter 11 by Stats. 2002, Ch. 734, Sec. 43. ) ## ARTICLE 3. Branch Offices and Agencies [16550 - 16555] ( Article 3 added by Stats. 2000, Ch. 612, Sec. 4. ) ## 16555. (a) (1) No foreign (other nation) credit union that is licensed to maintain a branch office or agency shall close the office unless the commissioner shall have first approved the closing. (2) Paragraph (1) shall not be deemed to prohibit a foreign (other nation) credit union that is licensed to maintain a branch office or agency from closing an office in accordance with Article 8 (commencing with Section 16800). (b) If the commissioner finds the following with respect to an application by a foreign (other nation) credit union for approval to close a branch office or agency, the commissioner shall approve the application: (1) That it will not be unsafe or unsound for the foreign (other nation) credit union to close the office. (2) That the closing of the office will not be substantially detrimental to the public convenience and advantage or that the closing of the office is necessary in the interests of the safety and soundness of the foreign (other nation) credit union. If the commissioner finds otherwise, the commissioner shall deny the application. (c) Whenever an application by a foreign (other nation) credit union for approval to close a branch office or agency has been approved and all conditions precedent to the closing have been fulfilled, the foreign (other nation) credit union may close the office and shall promptly thereafter surrender to the commissioner the license which authorized it to maintain the office. (Added by Stats. 2000, Ch. 612, Sec. 4. Effective January 1, 2001.)

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