Notwithstanding the provisions of Chapter 4 (commencing with Section 1070), a California state bank may, with the prior approval of the commissioner and subject to any regulations that the commissioner may prescribe, engage in authorized agency activities as agent for an insured depository institution.
Agency ActivitiesCalifornia State Bank As Agent
Section § 1391
This law states that a California state bank can act on behalf of an insured depository institution in certain business activities. However, the bank must first get approval from the commissioner and follow any rules set by the commissioner.
California state bank authorized agency activities insured depository institution
Section § 1392
This law section explains that if a California state bank wants to act as an agent for an insured depository institution, it needs to apply for approval. The application must follow the specific form, contain certain information, and be signed in a way decided by the commissioner. The commissioner can also require the application to be verified, as outlined in regulations or orders.
An application by a California state bank for approval to engage in authorized agency activities as agent for an insured depository institution shall be in the form, shall contain the information, shall be signed in the manner, and shall, if the commissioner so requires by regulation or order, be verified in the manner that the commissioner may, by regulation or order, require.
California state bank application approval authorized agency activities
Section § 1393
If a California state bank wants to apply to act as an agent for another insured bank, it needs to pay a filing fee of $250 along with its application.
An application by a California state bank for approval to engage in authorized agency activities as agent for an insured depository institution shall be accompanied by a filing fee of two hundred fifty dollars ($250).
California state bank authorized agency activities insured depository institution
Section § 1394
This law section explains how a California state bank can get approval to act as an agent for an insured depository institution. The commissioner will look at whether the arrangement is safe and stable for the bank and may consider other relevant factors when making the decision.
In determining whether to approve or deny an application by a California state bank for approval to engage in authorized agency activities as agent for an insured depository institution, the commissioner shall consider both of the following factors:
(a)CA Financial Code § 1394(a) Whether the proposed agency arrangement is consistent with the safe and sound operation of the California state bank.
(b)CA Financial Code § 1394(b) Any other factors that the commissioner deems relevant.
California state bank agency activities insured depository institution
Section § 1395
A California state bank cannot act as an agent for a federally insured bank to do anything that it isn't allowed to do on its own.
No California state bank may conduct any activity as an agent for an insured depository institution that the California state bank would be prohibited from conducting as a principal.
California state bank agent activities insured depository institution
Section § 1396
If a California state bank acts as an agent and carries out activities for another bank that has deposit insurance, this won't count as being a branch of the insured bank.
Similarly, if the insured bank uses a California state bank to handle its activities as an agent, it isn't considered to be doing business in California just because of that relationship.
(a)CA Financial Code § 1396(a) No office of a California state bank that conducts authorized agency activities as agent for an insured depository institution in accordance with this article shall, on that account, be deemed to be an office of the insured depository institution.
(b)CA Financial Code § 1396(b) For purposes of this division, no insured depository institution that has a California state bank engaged in authorized agency activities as its
agent shall on that account be deemed to be transacting business in this state.
California state bank agency activities insured depository institution
Section § 1397
This law allows the commissioner to instruct a California state bank to stop acting as an agent for another insured bank if those activities are not allowed or if they go against safe banking practices.
If the commissioner finds that any activities performed by a California state bank as agent for an insured depository institution are not authorized agency activities or that the agency arrangement is inconsistent with safe and sound banking practices, the commissioner may order the California state bank to terminate the agency arrangement.
California state bank insured depository institution agent activities
