California Code
Financial Code - FIN
DIVISION 1 - FINANCIAL INSTITUTIONS

CHAPTER 1 - Definitions

Section 99. - 99. This division, Division 1.1 (commencing with Section 1000), Division...

Section 101. - 101. If and to the extent that any provision of...

Section 103. - 103. The word “bank” as used in the Financial Institutions...

Section 105. - 105. Banks are divided into the following classes: (a) Commercial...

Section 107. - 107. “Commercial bank” means a corporation organized for the purpose...

Section 109. - 109. “Commercial banking business” includes, but is not limited to,...

Section 111. - 111. “Industrial bank” means a corporation organized for the purpose...

Section 113. - 113. “Industrial banking business” includes the making of loans and...

Section 115. - 115. “Trust business” means the business of acting as executor,...

Section 117. - 117. “Trust company” means a corporation, industrial bank, or a...

Section 119. - 119. “Bank” or “banks” includes a public bank, as defined...

Section 121. - 121. (a) “Office” includes head office, branch office, and any...

Section 123. - 123. “Real property” and “personal property” have the meanings defined...

Section 125. - 125. “Commissioner” means the Commissioner of Financial Protection and Innovation...

Section 127. - 127. “Person” means an individual, sole proprietorship, partnership, joint venture,...

Section 129. - 129. Unless the provision or the context otherwise requires, the...

Section 131. - 131. References in this division to the voting of shares...

Section 133. - 133. If the articles of a bank provide for more...

Section 135. - 135. Any requirement in this division for a vote of...

Section 137. - 137. “Approved by (or approval of) the board” means approved...

Section 139. - 139. “Approved by (or approval of) the outstanding shares” has...

Section 141. - 141. “Approved by (or approval of) the shareholders” has the...

Section 143. - 143. “Articles” has the meaning set forth in Section 154...

Section 145. - 145. “Board” has the meaning set forth in Section 155...

Section 147. - 147. “California” means: (a) When used with respect to a...

Section 149. - 149. “CAMELS composite rating” shall have the meaning set forth...

Section 151. - 151. “Certificate of correction” means a certificate executed and filed...

Section 153. - 153. “Certificate of determination” has the meaning set forth in...

Section 155. - 155. “Certificate of revocation” means a certificate executed and filed...

Section 157. - 157. “Common shares” has the meaning set forth in Section...

Section 159. - 159. (a) “Confidential information” means any information regarding a licensee...

Section 161. - 161. “Constituent corporation,” when used with respect to a corporation:...

Section 163. - 163. “Contributed capital” means all of shareholders’ equity other than...

Section 165. - 165. “Credit union” means a corporation of the type described...

Section 167. - 167. “Directors” has the meaning set forth in Section 164...

Section 169. - 169. “Disappearing,” when used with respect to a corporation, means...

Section 171. - 171. “Distribution to its shareholders” has the meaning set forth...

Section 173. - 173. (a) “Foreign,” when used with respect to a bank,...

Section 175. - 175. “Foreign nation” means any nation other than the United...

Section 177. - 177. (a) The definition of “state of the United States”...

Section 179. - 179. “Foreign (other state)”: (a) When used with respect to...

Section 181. - 181. “Insured”: (a) When used with respect to a bank...

Section 183. - 183. “Law of the domicile” means: (a) When used with...

Section 185. - 185. “Licensee” has the following meanings: (a) Any bank authorized...

Section 186. - 186. “Majority-owned subsidiary” has the meaning set forth for “subsidiary”...

Section 187. - 187. “Member of the public” means any person, except an...

Section 188. - 188. “Money transmitter” means a person authorized pursuant to Chapter...

Section 189. - 189. (a) “National bank” or “national banking association” means a...

Section 190. - 190. “Officer” means: (a) When used with respect to a...

Section 191. - 191. “Officers’ certificate” has the meaning set forth in Section...

Section 193. - 193. “Resulting,” when used with respect to a corporation, means:...

Section 195. - 195. “ROCA supervisory rating” shall have the meaning set forth...

Section 197. - 197. “Savings association” includes a savings association, a savings and...

Section 199. - 199. “Series,” when used with respect to shares, has the...

Section 201. - 201. “Shares” has the meaning set forth in Section 184...

Section 203. - 203. “Shareholder” has the meaning set forth in Section 185...

Section 205. - 205. “State”: (a) When used with respect to a corporation,...

Section 207. - 207. “State of the United States” means any state of...

Section 209. - 209. “Surviving,” when used with respect to a corporation, means...

Section 211. - 211. “Uniform Interagency Trust Rating System (UITRS)” shall have the...

Section 213. - 213. “Uniform Rating System for Informational Technology (URSIT)” shall have...

Section 215. - 215. “Vote” has the meaning set forth in Section 194...

Section 217. - 217. “Voting power” has the meaning set forth in Section...

CHAPTER 2 - Transition Provisions

Section 250. - 250. In this chapter, unless the provision or context requires...

Section 251. - 251. For purposes of Chapter 23 (commencing with Section 2300)...

Section 252. - 252. (a) Sections 600 and 600.2 of the revised Banking...

Section 253. - 253. In case the board of a subject institution has,...

Section 254. - 254. Article 3 (commencing with Section 640), Chapter 5 of...

CHAPTER 3 - Department of Financial Protection and Innovation

ARTICLE 1 - General Provisions

Section 300. - 300. (a) In this section: (1) “Business and industrial development...

Section 301. - 301. (a) This chapter is applicable to this division, Division...

ARTICLE 2 - Commissioner of Financial Protection and Innovation

Section 320. - 320. (a) The chief officer of the Department of Financial...

Section 321. - 321. (a) In this section, “order” means any approval, consent,...

Section 322. - 322. The commissioner is appointed by the Governor, and holds...

Section 323. - 323. The commissioner shall be a citizen of the United...

Section 324. - 324. The annual salary of the commissioner is provided for...

Section 325. - 325. Before entering upon the duties of his or her...

Section 326. - 326. (a) The Commissioner of Financial Protection and Innovation is...

Section 327. - 327. (a) The commissioner shall apply the Interagency Guidance on...

Section 328. - 328. (a) The commissioner may make the agreements that he...

Section 329. - 329. (a) For purposes of this section, the following definitions...

Section 330. - 330. The authority vested in the Superintendent of Banks under...

Section 331. - 331. The commissioner may adopt and implement any method of...

Section 331.5. - 331.5. (a) (1) A licensee subject to the commissioner’s jurisdiction...

Section 332. - 332. (a) (1) In this section, “federal law” includes, but...

Section 333. - 333. The powers of supervision and examination of all licensees...

Section 334. - 334. The commissioner may promulgate or waive such rules and...

Section 335. - 335. (a) The commissioner, whenever in his or her opinion...

Section 336. - 336. The commissioner may, at any time, require a licensee...

Section 337. - 337. (a) The commissioner, when conducting examinations under Section 500,...

ARTICLE 3 - Deputies and Employees

Section 350. - 350. The chief deputy shall be appointed by the Governor...

Section 351. - 351. (a) The chief officer of the Division of Corporations...

Section 352. - 352. The commissioner may employ deputies in addition to the...

Section 353. - 353. Before entering upon the duties of his or her...

Section 354. - 354. The commissioner may require, at any time, of any...

Section 355. - 355. The Commissioner of Financial Protection and Innovation, the Senior...

Section 356. - 356. If the commissioner is unable to perform his or...

Section 357. - 357. If a deputy commissioner or any examiner has knowledge...

ARTICLE 4 - Administration of the Department

Section 370. - 370. The commissioner may have an office in the City...

Section 372. - 372. The department may expend moneys in accordance with law...

Section 373. - 373. The commissioner shall adopt and keep an official seal....

Section 374. - 374. (a) Whenever it is necessary for the commissioner to...

Section 375. - 375. Official reports made by the commissioner and verified reports...

Section 376. - 376. At least once each month, the commissioner shall issue...

Section 377. - 377. Notwithstanding any other provision of this code, whenever any...

Section 378. - 378. Whenever the commissioner is notified of or discovers a...

Section 379. - 379. (a) For the purposes of this section the following...

Section 380. - 380. (a) The commissioner shall inform appropriate state and federal...

Section 381. - 381. Chapter 5 (commencing with Section 11500) of Part 1...

ARTICLE 5 - Financial Institutions Fund

Section 400. - 400. As of the operative date of this section, there...

ARTICLE 6 - State Banking Account

Section 405. - 405. (a) The commissioner shall annually collect pro rata from...

Section 406. - 406. The commissioner shall annually collect from national banking associations...

Section 407. - 407. Whenever the commissioner makes an assessment pursuant to Section...

Section 408. - 408. The commissioner, in addition to the annual assessment, shall...

Section 409. - 409. If any bank or trust company fails to make...

Section 410. - 410. As of the operative date of this section: (a)...

Section 411. - 411. Except as otherwise provided in Section 413 or 414,...

Section 412. - 412. The commissioner shall deliver all moneys received or collected...

Section 413. - 413. (a) In this section, “assessment statute” means any statute...

Section 414. - 414. Notwithstanding any other provision of this code or of...

CHAPTER 4 - Operations

Section 450. - 450. (a) In this section, “governmental agency” includes, without limitation,...

Section 451. - 451. With the prior approval of the commissioner, a foreign...

Section 452. - 452. (a) Directors, officers, employees, attorneys, accountants, or consultants of...

Section 453. - 453. Every licensee shall make and file with the commissioner...

Section 454. - 454. The commissioner shall call for the report specified in...

Section 455. - 455. The commissioner may at any time require any licensee...

Section 456. - 456. Every licensee shall keep its corporate records, financial records,...

Section 457. - 457. Every licensee shall notify the commissioner of any change...

Section 458. - 458. (a) Each report required under this article, or under...

Section 459. - 459. (a) Every licensee shall file with the commissioner one...

Section 460. - 460. Any person intentionally making a false statement in any...

Section 461. - 461. Any debt due a licensee on which interest is...

Section 462. - 462. Any person that provides services to any licensee, at...

Section 463. - 463. (a) All references in this code and the Corporations...

Section 464. - 464. (a) An officer of a financial institution, within the...

CHAPTER 5 - Examinations and Reports-Banking

ARTICLE 1 - Examination

Section 500. - 500. (a) (1) For purposes of this section, “foreign bank”...

Section 501. - 501. (a) Whenever, in the judgment of the commissioner, it...

Section 502. - 502. (a) The commissioner may by order or regulation grant...

Section 503. - 503. The commissioner, whenever in his or her opinion the...

Section 504. - 504. The commissioner, for good cause, at any time and...

Section 505. - 505. The commissioner, a deputy commissioner, and every examiner assigned...

Section 506. - 506. Whenever he or she deems it expedient, the commissioner...

Section 507. - 507. During any emergency period declared by the President of...

Section 508. - 508. During any emergency period declared by the Governor no...

Section 509. - 509. (a) The commissioner may, in his or her discretion,...

ARTICLE 2 - Reports

Section 520. - 520. (a) A California state bank shall prominently display in...

Section 521. - 521. (a) A bank or credit union subject to the...

CHAPTER 6 - Enforcement

ARTICLE 1 - General Provisions

Section 550. - 550. In this article: (a) “Appropriate licensee business” means the...

Section 551. - 551. Any subject person who is entitled to a hearing...

Section 552. - 552. (a) Within 30 days after an order is issued...

Section 553. - 553. In addition to any other action or requirement the...

Section 554. - 554. If the commissioner takes possession of a subject institution...

ARTICLE 2 - Actions Involving the Conduct of Business by Unauthorized Persons

Section 560. - 560. No person who has not received a certificate from...

Section 561. - 561. No person who has not received a certificate from...

Section 562. - 562. No person who has not received a certificate from...

Section 563. - 563. No provision of Section 560, 561, or 562 prohibits...

Section 564. - 564. Any person or any bank violating any provision of...

Section 565. - 565. No person shall represent by advertisement, circular, or otherwise,...

Section 566. - 566. (a) The commissioner may bring an action in the...

Section 567. - 567. If the commissioner finds that a person has conducted,...

ARTICLE 3 - Orders Against Licensees and Subject Persons

Section 580. - 580. If, after notice and an opportunity to be heard,...

Section 581. - 581. If the commissioner finds that any of the factors...

Section 582. - 582. If the commissioner finds that a subject institution’s books...

Section 583. - 583. (a) The commissioner shall make public on the department’s...

ARTICLE 4 - Suspension or Removal of Subject Persons

Section 585. - 585. If, after notice and an opportunity to be heard,...

Section 586. - 586. If the commissioner finds that any of the factors...

Section 587. - 587. (a) If the commissioner finds that any of the...

Section 588. - 588. (a) Any subject institution, subject person of a subject...

Section 589. - 589. (a) In this section, “subject financial institution” means any:...

ARTICLE 5 - Suspension or Possession of a License

Section 590. - 590. The commissioner may revoke or suspend any license issued...

Section 591. - 591. If the commissioner finds that any of the factors...

Section 592. - 592. If the commissioner finds that any of the factors...

Section 593. - 593. (a) If the commissioner takes possession of the property...

Section 594. - 594. (a) Upon taking possession of the property and business...

Section 595. - 595. The commissioner is deemed to take possession of the...

CHAPTER 7 - Liquidation and Conservation

ARTICLE 1 - General Provisions

Section 600. - 600. In this chapter, “Federal Insurance Agency” means the Federal...

Section 601. - 601. Upon taking possession of the property and business of...

Section 602. - 602. No attachment shall be issued against the property of...

Section 603. - 603. Upon taking possession of the property and business of...

Section 604. - 604. Upon taking possession of the property and business of...

Section 605. - 605. The commissioner shall supervise the acts of the conservator,...

Section 606. - 606. If required by the commissioner, the conservator, liquidator, receiver,...

Section 607. - 607. (a) If the commissioner retains possession of the assets...

Section 608. - 608. The compensation of civil service employees, special deputies, counsel,...

Section 609. - 609. If a licensee is not insured by a Federal...

ARTICLE 2 - Conservation or Liquidation of an Insured Licensee

Section 620. - 620. If the licensee whose property and business has been...

Section 621. - 621. The Federal Insurance Agency may be, and act as,...

Section 622. - 622. If the Federal Insurance Agency accepts the appointment in...

Section 623. - 623. The Federal Insurance Agency conservator, liquidator, or receiver shall...

Section 624. - 624. (a) The commissioner may sell to any other licensee...

ARTICLE 3 - Conservatorship of an Uninsured Licensee

Section 640. - 640. Whenever the commissioner deems it necessary in order to...

Section 641. - 641. A conservator appointed in accordance with Section 640 has...

Section 642. - 642. The commissioner may order an examination at the earliest...

Section 643. - 643. While any licensee is in the hands of a...

Section 644. - 644. The commissioner, in his or her discretion, may permit...

Section 645. - 645. If the commissioner is satisfied that it may be...

Section 646. - 646. The conservator of a licensee that has been permitted...

Section 647. - 647. The commissioner may assess and collect from all licensees...

Section 648. - 648. Any licensee that the commissioner has taken possession of...

Section 649. - 649. All customers, creditors, stockholders, if applicable, and other interested...

Section 650. - 650. No plan of reorganization shall become effective until the...

Section 651. - 651. No creditor having security for the payment of his,...

Section 652. - 652. When any plan of reorganization becomes effective, all books,...

ARTICLE 4 - Liquidation of an Uninsured Licensee

Section 670. - 670. Upon taking possession of the property and business of...

Section 671. - 671. The commissioner may sell any real or personal property...

Section 672. - 672. (a) The commissioner may, with the approval of the...

Section 673. - 673. Within six months after taking possession of the property...

Section 674. - 674. The commissioner, in his or her own name or...

Section 675. - 675. The commissioner, in the name of the delinquent licensee...

Section 676. - 676. The commissioner from time to time shall deposit all...

Section 677. - 677. The commissioner shall make an inventory of the assets...

Section 678. - 678. When the time fixed for the presentation of claims...

Section 679. - 679. The commissioner shall cause notice to be given by...

Section 680. - 680. All claims of every kind against the licensee or...

Section 681. - 681. At any time and from time to time after...

Section 682. - 682. (a) Expenses and claims of unsecured creditors have priority...

Section 683. - 683. Objections to any claim not rejected by the commissioner...

Section 684. - 684. Dividends remaining unpaid and any sums available for payment...

Section 685. - 685. Whenever, under the provisions of this article, the commissioner...

Section 686. - 686. All approved claims of customers and other creditors shall...

Section 687. - 687. If the licensee has in its possession for safekeeping...

Section 688. - 688. On the last day fixed in the notice for...

Section 689. - 689. If any property is not removed within the time...

Section 690. - 690. (a) When the commissioner has completed the liquidation of...

Section 691. - 691. Whenever this article requires court approval of any step...

Section 692. - 692. Whenever, in the opinion of the commissioner, the liquidation...

ARTICLE 5 - Disposal of Unclaimed Trust Property

Section 700. - 700. Whenever any licensee is being liquidated or whenever the...

Section 701. - 701. Upon the delivery of any money to the Treasurer...

Section 702. - 702. All money or other property delivered to the Treasurer...

ARTICLE 6 - Priorities

Section 710. - 710. The holder or transferor of a negotiable instrument transferred...

CHAPTER 8 - Voluntary Liquidation

Section 720. - 720. Any licensee that voluntarily has ceased to do the...

Section 721. - 721. If the licensee referred to in Section 720 is...

CHAPTER 9 - Approval of Names of Nonbank Corporations

Section 730. - 730. In this chapter: (a) “Nonbank corporation” means any corporation...

Section 731. - 731. An application for a certificate of approval of the...

Section 732. - 732. The fee for filing with the commissioner an application...

Section 733. - 733. If the commissioner finds, with respect to an application...

Section 734. - 734. Promptly after the articles of a nonbank corporation, with...

CHAPTER 10 - Legal Investments for Nonbank Licensees

Section 800. - 800. As used in this chapter, unless the context requires...

Section 801. - 801. Any securities or other assets that are described in...

Section 802. - 802. Where any laws of this state provide that the...

Section 803. - 803. Gold and silver bullion and United States mint certificates...

Section 804. - 804. Stock of a federal reserve bank or of a...

Section 805. - 805. Bonds or other interest-bearing notes and obligations of the...

Section 806. - 806. Bonds of the State of California and those for...

Section 807. - 807. Bonds of any flood control and water conservation districts,...

Section 808. - 808. Bonds of any other political subdivision, public corporation, or...

Section 809. - 809. (a) Any of the following subject to the conditions...

Section 810. - 810. Bonds of any irrigation district, water storage district, water...

Section 811. - 811. (a) Bonds, consolidated bonds, collateral trust debentures, consolidated debentures,...

Section 812. - 812. Bonds, notes or other obligations issued by the Federal...

Section 813. - 813. (a) Notes with a maturity not exceeding 15 months...

Section 814. - 814. Revenue securities of any state of the United States,...

Section 815. - 815. Bonds of any local public housing agency (as defined...

Section 816. - 816. Bonds secured by an insurance commitment of the Federal...

Section 817. - 817. Evidences of indebtedness of companies incorporated in the United...

Section 818. - 818. Fixed interest railroad bonds meeting the requirements of subdivisions...

Section 819. - 819. Bonds and debentures of gas, electric, or gas and...