Representative Offices - Foreign (Other Nation) Credit Unions - Financial - CA

Section § 16525

This California law states that foreign credit unions need a license to open or operate any type of office, like a branch or representative office, in California. Furthermore, no individual is allowed to set up such an office on behalf of a foreign credit union unless the credit union itself has obtained the necessary license. If someone opens an office in this way, it is treated as if the foreign credit union itself established the office, and thus needs to follow the licensing requirements.

(a) No foreign (other nation) credit union shall establish or maintain an office in this state at which it engages in representational functions unless it is licensed to maintain a representative office, agency, or branch office at that place.

(b)

(1) No person shall establish or maintain an office in this state as representative of a foreign (other nation) credit union unless the foreign (other nation) credit union is licensed to maintain the office as a representative office.

(2) For purposes of this chapter, if any person establishes or maintains an office in this state as representative of a foreign (other nation) credit union, the foreign (other nation) credit union shall be deemed to establish and maintain the office as a representative office.

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Section § 16526

This law states that a foreign credit union (from outside the U.S.) must get approval from the state commissioner before opening a representative office in California. The commissioner will approve the application if the credit union, its leaders, and the proposed office management have good character and sound finances. The credit union's financial history must be satisfactory, and management must be competent. The credit union is expected to follow all relevant laws once the office is open. If these conditions are met, the commissioner will issue the necessary license; otherwise, the application will be denied.

(a) No foreign (other nation) credit union shall establish or maintain a representative office unless the commissioner shall have first approved the establishment of the office and issued a license authorizing the foreign (other nation) credit union to maintain the office.

(b) If the commissioner finds the following with respect to an application by a foreign (other nation) credit union for approval to establish a representative office, the commissioner shall approve the application:

(1) That the foreign (other nation) credit union, the directors and executive officers of the foreign (other nation) credit union, and the proposed management of the office are each of good character and sound financial standing.

(2) That the financial history and condition of the foreign (other nation) credit union are satisfactory.

(3) That the management of the foreign (other nation) credit union and the proposed management of the office are adequate.

(4) That it is reasonable to believe that, if licensed to maintain the office, the foreign (other nation) credit union will operate the office in compliance with all applicable laws, regulations, and orders.

If the commissioner finds otherwise, the commissioner shall deny the application.

(c) Whenever an application by a foreign (other nation) credit union for approval to establish a representative office has been approved and all conditions precedent to the issuance of a license authorizing the foreign (other nation) credit union to maintain the office have been fulfilled, the commissioner shall issue the license.

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Section § 16527

This law outlines the process for a foreign credit union to move their office within California. First, the credit union must get approval from the commissioner before relocating. If the new location is nearby, the commissioner will approve the move if it won't harm public convenience. If it's not nearby, the move can only be approved if it doesn't hurt the existing area's convenience and benefits the new location's public convenience.

If these conditions aren't met, the commissioner will deny the application. Once approved, and all requirements are met, the commissioner will give a license for the new location. After moving, the credit union must return the old location's license.

(a) No foreign (other nation) credit union that is licensed to maintain a representative office shall relocate the office unless the commissioner shall have first approved the relocation and issued a license authorizing the credit union to maintain the office at the new site.

(b)

(1) In case the new site of a representative office is in the same vicinity as the old site, the commissioner shall approve an application by a foreign (other nation) credit union for approval to relocate the representative office if the commissioner finds that the relocation of the office will not be substantially detrimental to the public convenience and advantage.

(2) In case the new site of a representative office is not in the same vicinity as the old site, the commissioner shall approve an application by a foreign (other nation) credit union for approval to relocate the representative office if the commissioner finds both of the following:

(i) The relocation of the office from the old site will not be substantially detrimental to the public convenience and advantage in the area that is primarily served by the office at the old site.

(ii) The relocation of the office to the new site will promote the public convenience and advantage.

If the commissioner does not make the findings required under either paragraph (1) or (2), the commissioner shall deny the application.

(c) Whenever an application by a foreign (other nation) credit union for approval to relocate a representative office has been approved and all conditions precedent to the issuance of a license authorizing the foreign (other nation) credit union to maintain the office at the new site have been fulfilled, the commissioner shall issue the license.

(d) Promptly after a foreign (other nation) credit union that is licensed to maintain a representative office relocates the office, the foreign (other nation) credit union shall surrender to the commissioner the license that authorized it to maintain the office at the old site.

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Section § 16528

This law states that a foreign credit union, which is basically a credit union from another country, can have a representative office in California. However, it's only allowed to perform representational tasks and cannot open accounts, take deposits, or conduct any business at that office. The commissioner may set additional rules for these activities.

A foreign (other nation) credit union that is licensed to maintain a representative office may, subject to any regulations that the commissioner may prescribe, engage in representational functions at the office but shall not solicit or accept share accounts or deposits or otherwise transact business at the office.

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Section § 16529

If a foreign credit union wants to close its representative office in California, it must first get approval from the commissioner. The commissioner will approve the closing if it won't significantly harm public convenience. After approval and fulfilling any conditions, the credit union can close the office and must return its license.

(a)

(1) No foreign (other nation) credit union that is licensed to maintain a representative office shall close the office unless the commissioner shall have first approved the closing.

(2) Paragraph (1) shall not be deemed to prohibit a foreign (other nation) credit union that is licensed to maintain a representative office from closing the office in accordance with Article 8 (commencing with Section 16800).

(b) If the commissioner finds, with respect to an application by a foreign (other nation) credit union for approval to close a representative office, that the closing of the office will not be substantially detrimental to the public convenience and advantage, the commissioner shall approve the application. If the commissioner finds otherwise, the commissioner shall deny the application.

(c) Whenever an application by a foreign (other nation) credit union for approval to close a representative office has been approved and all conditions precedent to the closing have been fulfilled, the foreign (other nation) credit union may close the office and shall promptly thereafter surrender to the commissioner the license that authorized it to maintain the office.

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Section § 16530

If a foreign credit union gets approval to open a representative office in California but doesn't set it up within a year, that approval will automatically be canceled. However, the credit union can request the commissioner to extend this one-year deadline.

The approval of an application for approval to establish a representative office shall be revoked by operation of law if the applicant foreign (other nation) credit union does not establish and maintain the office within one year after the date of the approval, unless prior to the expiration of the one-year period the commissioner extends the time within which the foreign (other nation) credit union may establish the representative office.

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