General Provisions - Agency Activities - Financial - CA

Section § 1380

This section defines key concepts related to financial activities in California. "Authorized agency activities" involve handling various aspects of deposits and loans, such as receiving deposits, loan servicing, and processing applications. These activities cover actions like providing loan information or disbursing funds, as specified by the commissioner. However, it does not include anything outside the commissioner’s defined activities.

Furthermore, an "insured depository institution" refers to banks or similar entities whose deposits are covered by the Federal Deposit Insurance Corporation. It also includes related affiliates as specified in federal law.

In this chapter, unless the context otherwise requires:

(a) “Authorized agency activities” means receiving deposits, renewing time deposits, closing loans, servicing loans, and receiving payments on loans and other obligations. “Authorized agency activities” includes ministerial functions such as providing loan applications, assembling documents, providing a location for returning documents necessary for making a loan, providing loan account information, receiving payments, disbursing loan funds, evaluating loan applications, and other activities that the commissioner may specify by order or regulation. However, “authorized agency activities” does not include any other activities that the commissioner may specify by order or regulation.

(b) “Insured depository institution” means any bank, savings and loan association, savings association, savings bank, or industrial loan company the deposits of which are insured by the Federal Deposit Insurance Corporation. “Insured depository institution” includes any depository institution affiliate within the meaning of Section 18(r) of the Federal Deposit Insurance Act (12 U.S.C. Sec. 1828(r)).

authorized agency activities receiving deposits loan servicing ...

Section § 1381

This law says that the rules in this chapter don't apply to a California state bank when it acts as an agent for another bank, or when another bank acts for it, as long as the office involved isn't considered the main office of the bank for regulatory reasons.

This chapter does not apply to a California state bank having an insured depository institution engage in authorized agency activities as its agent or to a California state bank engaging in authorized agency activities as agent for an insured depository institution in any case other than a case where, but for the provisions of Sections 1389 and 1396, an office of the agent would for regulatory purposes be considered to be an office of the principal.

California state bank insured depository institution authorized agency activities ...

Section § 1382

This section outlines the requirements for a California state bank involved with an insured depository institution to gain approval for certain actions. If these two entities are "affiliated," meaning one controls the other or they share a controlling party, the bank can meet approval obligations by notifying the commissioner. Approval is deemed given if, within 30 days, the commissioner does not object to the notice. The notification must include details about the bank, the affiliated institution, the proposed business activities, and any other information the commissioner asks for. A $250 filing fee is required. The commissioner considers certain factors when deciding whether or not to object to the notice.

(a) In this section, “affiliated,” when used with respect to a California state bank and an insured depository institution, means that the California state bank controls the insured depository institution, the insured depository institution controls the California state bank, or the California state bank and the insured depository institution are under common control, directly or indirectly through one or more intermediaries. For purposes of this subdivision, “control” has the meaning set forth in Section 1250.

(b) In case a California state bank and an insured depository institution are affiliated, the prior approval requirement set forth in Section 1384 or 1391 is deemed to be satisfied if the California state bank files a notice with the commissioner and, within 30 days or any longer period to which the California state bank consents, the commissioner either (1) issues a written statement not objecting to the notice or (2) does not issue a written objection to the notice.

(c)

(1) A notice filed by a California state bank under subdivision (b) shall contain the following information:

(A) The name of the California state bank.

(B) The name and location of the main or head office of the affiliated insured depository institution.

(C) A description of the proposed agency, including identification of the institution that is to be the principal, identification of the institution that is to be the agent, and specification of the activities in which the agent is to engage on behalf of the principal.

(D) Any other information that the commissioner may require.

(2) A notice filed by a California state bank under subdivision (b) shall be in the form, 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.

(3) A notice filed by a California state bank under subdivision (b) shall be accompanied by a filing fee of two hundred fifty dollars ($250).

(d) For purposes of subdivision (b), a notice by a California state bank is deemed to be filed with the commissioner at the time when the complete notice, including any amendments or supplements, containing all the information required by the commissioner, and otherwise complying with subdivision (c) is received by the commissioner.

(e) In determining whether or not to object to a notice by a California state bank, the commissioner shall consider the factors set forth in Section 1387 or 1394, as the case may be.

California state bank insured depository institution affiliated institutions ...