Each industrial bank shall be an insured bank at all times while it is engaged in the industrial banking business.
Industrial BanksIndustrial Bank Business
Section § 1540
This law states that an industrial bank must always have insurance while it operates as an industrial banking business.
industrial bank insured bank industrial banking business
Section § 1541
This law states that industrial banks in California can take deposits through accounts or certificates that can be cashed out before their maturity date. However, these banks are not allowed to accept demand deposits, which are funds that can be withdrawn at any time without notice.
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.
industrial bank deposits deposit account
Section § 1542
This section specifies that certain rules and regulations typically applied to California state commercial banks also apply to industrial banks. These include banking practices and operations as outlined in various chapters across the division, covering aspects like governance, compliance, and other institutional requirements.
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)CA Financial Code § 1542(a) Chapter 4 (commencing with Section 1070).
(b)CA Financial Code § 1542(b) Chapter 4.5 (commencing with Section 1090).
(c)CA Financial Code § 1542(c) Chapter 5 (commencing with Section 1100).
(d)CA Financial Code § 1542(d) Chapter 8 (commencing with Section 1280).
(e)CA Financial Code § 1542(e) Chapter 10 (commencing with Section 1320).
(f)CA Financial Code § 1542(f) Chapter 11 (commencing with Section 1380).
(g)CA Financial Code § 1542(g) Chapter 12 (commencing with Section 1400).
(h)CA Financial Code § 1542(h) Chapter 13 (commencing with Section 1450).
(i)CA Financial Code § 1542(i) Chapter 14 (commencing with Section 1460).
(j)CA Financial Code § 1542(j) Chapter 16 (commencing with Section 1550).
(k)CA Financial Code § 1542(k) Chapter 17 (commencing with Section 1620).
(l)CA Financial Code § 1542(l) Chapter 18 (commencing with Section 1660).
(m)CA Financial Code § 1542(m) Chapter 19 (commencing with Section 1670).
(n)CA Financial Code § 1542(n) Chapter 5 (commencing with Section 500) of Division 1.
(o)CA Financial Code § 1542(o) Chapter 6 (commencing with Section 550) of Division 1.
(p)CA Financial Code § 1542(p) Division 1.6 (commencing with Section 4800).
industrial bank rules state commercial bank bank compliance
