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, have an insured depository institution engage in authorized agency activities as its agent.
Agency ActivitiesCalifornia State Bank As Principal
Section § 1384
This law allows a California state bank to use an insured depository institution as an agent to perform certain approved activities. However, this can only happen with the commissioner's prior approval and must follow any rules the commissioner sets.
California state bank insured depository institution commissioner's approval
Section § 1385
In California, if a state bank wants permission for an insured depository institution to act on its behalf for certain tasks, the bank must apply in a specific way. This includes following the form and providing details as required by the commissioner. The application must be signed and possibly verified according to what the commissioner decides through regulations or orders.
An application by a California state bank for approval to have an insured depository institution engage in authorized agency activities as its agent shall be 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 insured depository institution agency activities
Section § 1386
If a California state bank wants to get approval for an insured bank to conduct certain activities on its behalf, they need to pay a $250 filing fee with their application.
An application by a California state bank for approval to have an insured depository institution engage in authorized agency activities as its agent shall be accompanied by a filing fee of two hundred fifty dollars ($250).
California state bank insured depository institution authorized agency activities
Section § 1387
This law section explains that when a California state bank wants to allow an insured depository institution to act on its behalf for certain activities, the commissioner must decide whether to approve this by considering two key points. First, they must check if this arrangement is safe and sensible for the bank. Second, they can consider any other relevant factors they think are important.
In determining whether to approve or deny an application by a California state bank for approval to have an insured depository institution engage in authorized agency activities as its agent, the commissioner shall consider both of the following:
(a)CA Financial Code § 1387(a) Whether the proposed agency arrangement is consistent with the safe and sound operation of the California state bank.
(b)CA Financial Code § 1387(b) Any other factors that the commissioner deems relevant.
California state bank insured depository institution agency activities
Section § 1388
This law means that if a California state bank isn't allowed to do something directly, it can't get another bank that's insured by the government to do it for them either.
No California state bank may have an insured depository institution conduct as its agent any activity that the California state bank is prohibited from conducting itself.
California state bank insured depository institution bank agent activities
Section § 1389
If an insured bank is acting as an agent for a California state bank, its office won't be considered an office of the California state bank, just because of that agency work.
No office of an insured depository institution that is performing authorized agency activities as agent for a California state bank in accordance with this article shall, on that account, be deemed to be an office of the California state bank.
insured depository institution agency activities agent for state bank
Section § 1390
This law says that if a bank regulator, known as the commissioner, decides that a bank is doing something it shouldn't be doing, or doing something in a way that's risky for business, they can tell the bank to stop that activity.
If the commissioner finds that any activity performed by an insured depository institution as agent for a California state bank is not an authorized agency activity 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.
insured depository institution California state bank authorized agency activity
