reglab/statecodes huggingface dataset:
2023 California Code › Financial Code - FIN › DIVISION 1.1 - BANKING › CHAPTER 1 - General Provisions › Section 1004.

1004. (a) A California state bank is a corporation incorporated under Division 1 (commencing with Section 100) of Title 1 of the Corporations Code or, in the case of a public bank, a corporation incorporated under Part 2 (commencing with Section 5110) or Part 3 (commencing with Section 7110) of Division 2 of Title 1 of the Corporations Code, that is, with the approval of the commissioner, incorporated for the purpose of engaging in, or that is authorized by the commissioner to engage in, the commercial or industrial banking business.
(b) (1) All provisions of law applicable to corporations generally, including, but not limited to, the General Corporation Law (Division 1 (commencing with Section 100), Title 1 of the Corporations Code) shall apply to a bank that is not a public bank. However, whenever any provision of this division or any regulation or order issued under any provision (other than this section) of this division applicable to banks is inconsistent with any provision of law applicable to corporations generally, that provision of this division or that regulation or order shall apply and the provision of law applicable to corporations generally shall not apply.
(2) All provisions of law applicable to nonprofit corporations generally, including, but not limited to, the Nonprofit Corporation Law (Division 2 (commencing with Section 5000), Title 1 of the Corporations Code) shall apply to public banks. Whenever a provision of Division 5 of Title 5 of the Government Code applicable to public banks is inconsistent with a provision of law applicable to nonprofit mutual benefit corporations or nonprofit public benefit corporations generally, the provision of Division 5 of Title 5 of the Government Code applicable to public banks shall apply, and the inconsistent provision of law applicable to nonprofit mutual benefit corporations or nonprofit public benefit corporations generally shall not apply to a public bank.
(c) As used in this section, public bank has the same meaning as defined in Section 57600 of the Government Code.
(Amended by Stats. 2019, Ch. 442, Sec. 5. (AB 857) Effective January 1, 2020.)
2023 California Code › Financial Code - FIN › DIVISION 1.1 - BANKING › CHAPTER 1 - General Provisions › Section 1005.

1005. It shall be unlawful for any person, corporation, limited liability company, partnership, firm, or any other form of business entity allowed by law, to engage in or transact commercial banking business, industrial banking business, or trust business within this state except by means of a corporation duly organized for that purpose.
(Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.1 - BANKING › CHAPTER 1 - General Provisions › Section 1006.

1006. No corporation shall hereafter be organized under the laws of this state to transact the business of a commercial bank, industrial bank, or trust company, except as provided in this chapter.
(Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.1 - BANKING › CHAPTER 1 - General Provisions › Section 1007.

1007. Neither the enactment of this code nor the amendment or repeal thereof, nor the repeal of any statute affected thereby, shall take away or impair any liability or cause of action existing or incurred against any bank or trust company, or the shareholders, directors, or officers thereof.
(Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.1 - BANKING › CHAPTER 1 - General Provisions › Section 1008.

1008. When applicable to a corporation organized as a public bank, as defined in Section 57600 of the Government Code, references in this division to share, shareholder, or stockholder shall mean membership or member in the public bank, as applicable.
(Added by Stats. 2019, Ch. 442, Sec. 6. (AB 857) Effective January 1, 2020.)
2023 California Code › Financial Code - FIN › DIVISION 1.1 - BANKING › CHAPTER 2 - Application › Section 1020.

1020. The request for authority to organize and establish a corporation to engage in the banking or trust business shall be set forth in an application in such form and containing such information as the commissioner may require and shall be accompanied by a fee of five thousand dollars ($5,000).
(Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.1 - BANKING › CHAPTER 2 - Application › Section 1021.

1021. Upon receiving a request for an application, the commissioner shall inform the prospective applicant in writing that the commissioner is available to confer with such prospective applicant in advance of the filing of an application for the purpose of discussing questions relating to such application. However, no application shall be decided in advance of filing.
(Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.1 - BANKING › CHAPTER 2 - Application › Section 1022.

1022. Upon the filing of an application the commissioner shall make or cause to be made a careful investigation and examination relative to the following:
(a) The character, reputation, and financial standing of the organizers or incorporators and their motives in seeking to organize the proposed bank or trust company.
(b) The need for banking or trust facilities or additional banking or trust facilities, as the case may be, giving particular consideration to the adequacy of existing banking or trust facilities and the need for further banking or trust facilities.
(c) The character, financial responsibility, banking or trust experience, and business qualifications of the proposed officers of the bank or trust company.
(d) The character, financial responsibility, business experience, and standing of the proposed stockholders and directors.
(e) Other facts and circumstances bearing on the proposed bank or trust company and its relation to the locality as in the opinion of the commissioner may be relevant.
(Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.1 - BANKING › CHAPTER 2 - Application › Section 1023.

1023. The commissioner may give or withhold his or her approval of the application in his or her discretion, but he or she shall not approve the application until he or she has ascertained to his or her satisfaction:
(a) That the public convenience and advantage will be promoted by the establishment of the proposed bank or trust company.
(b) That the proposed bank or trust company will have a reasonable promise of successful operation.
(c) That the bank is being formed for no other purpose than the legitimate objects contemplated by this division.
(d) That the proposed capital structure is adequate.
(e) That the proposed officers and directors have sufficient banking or trust experience, ability, and standing to afford reasonable promise of successful operation.
(f) That the name of the proposed bank or trust company does not resemble, so closely as to be likely to cause confusion, the name of any other bank or trust company transacting business in this state or which had previously transacted business in this state.
(g) That the applicant has complied with all of the applicable provisions of this division.
(Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.1 - BANKING › CHAPTER 2 - Application › Section 1024.

1024. (a) In this section, “control” has the meaning set forth in Section 1250.
(b) For purposes of Section 1023, the commissioner may find:
(1) That a proposed officer or director of a proposed bank or trust company does not have sufficient standing to afford reasonable promise of successful operation if such person has been convicted of, or has pleaded nolo contendere to, any crime involving fraud or dishonesty.
(2) That the establishment of a proposed bank or trust company will not promote the public convenience and advantage if any person who is proposed to control the proposed bank or trust company or any director or officer of such person has been convicted of, or has pleaded nolo contendere to, any crime involving fraud or dishonesty.
(c) Subdivision (b) shall not be deemed to be the only grounds upon which the commissioner may find, for purposes of Section 1023, that a proposed officer or director of a proposed bank or trust company does not have sufficient standing to afford reasonable promise of successful operation or that the establishment of a proposed bank or trust company will not promote the public convenience and advantage.
(Amended by Stats. 2013, Ch. 334, Sec. 32. (SB 537) Effective January 1, 2014.)
2023 California Code › Financial Code - FIN › DIVISION 1.1 - BANKING › CHAPTER 2 - Application › Section 1025.

1025. At least 30 days before denying an application, the commissioner shall by mail or other method of service give written notice of the intended denial of an application and of the right of the applicant to meet with the commissioner regarding the reasons for such denial. The request for such meeting shall be in writing and delivered to the commissioner within 20 calendar days of the date of giving of the notice of intended denial. If a request is made for such meeting, the application may not be denied until after the meeting.
(Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.1 - BANKING › CHAPTER 2 - Application › Section 1026.

1026. The commissioner may, in approving an application to organize and establish a corporation to engage in the banking or trust business pursuant to Section 1023, impose any conditions the commissioner deems reasonable or necessary or advisable in the public interest.
(Amended by Stats. 2013, Ch. 334, Sec. 33. (SB 537) Effective January 1, 2014.)
2023 California Code › Financial Code - FIN › DIVISION 1.1 - BANKING › CHAPTER 2 - Application › Section 1027.

1027. (a) With the approval of the commissioner, a bank may be formed to facilitate a merger or an acquisition of control. The new bank may survive the merger or acquisition of control.
(b) Sections 1020, 1021, 1022, 1023, and 1024 shall not apply to the formation of a bank pursuant to subdivision (a).
(c) Article 4 (commencing with Section 370) of Chapter 3 of Division 1 shall apply to a bank formed pursuant to subdivision (a).
(d) A request for approval to form a bank in accordance with subdivision (a) shall be accompanied by a fee of two thousand five hundred dollars ($2,500).
(Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.1 - BANKING › CHAPTER 3 - Authorization to Engage in Banking › Section 1040.

1040. In this article:
(a) “Preopening expenditure” means any obligation incurred, or sum disbursed, by a bank prior to the time when it commences to transact banking business, for the purpose of organizing such bank.
(b) “Preopening noncapital expenditure” means any preopening expenditure other than such preopening expenditures as may be capitalized.
(Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.1 - BANKING › CHAPTER 3 - Authorization to Engage in Banking › Section 1041.

1041. The articles of incorporation of the proposed bank or trust company shall be submitted to the commissioner for his or her approval before they are filed with the Secretary of State pursuant to the Corporations Code. After the articles have been filed with the Secretary of State the proposed bank or trust company shall:
(a) File with the commissioner a copy of its articles of incorporation, certified by the Secretary of State.
(b) File with the commissioner a statement in the form and with any supporting data as the commissioner may require showing that the entire contributed capital has been fully paid in lawful money, unconditionally, and that the funds representing the contributed capital, less sums spent as authorized by this article for preopening expenditures are on deposit in a state or national bank in this state, subject to withdrawal on demand.
(c) Pay to the commissioner a fee of two thousand five hundred dollars ($2,500).
(Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.1 - BANKING › CHAPTER 3 - Authorization to Engage in Banking › Section 1042.

1042. If the commissioner finds that the proposed bank or trust company has in good faith complied with all the requirements of law and fulfilled all the conditions precedent to commencing business imposed by this code or by regulation, the commissioner shall, within 30 days after the statement and supporting data specified in Section 1041 have been filed with him or her, issue in duplicate a certificate of authorization to transact business as a bank or trust company, as the case may be, and shall transmit one copy to the bank or trust company and place one copy on file in the department. The certificate of authorization shall state that the corporation named therein has complied with all the provisions of this code governing organization of banks or trust companies and that it is authorized to transact the business specified therein.
(Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.1 - BANKING › CHAPTER 3 - Authorization to Engage in Banking › Section 1043.

1043. It shall be unlawful to accept payment of subscriptions for shares of any corporation proposing to engage in the banking or trust business unless authority to organize such corporation has been granted by the commissioner.
(Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.1 - BANKING › CHAPTER 3 - Authorization to Engage in Banking › Section 1044.

1044. No corporation organized to transact a commercial banking or trust business shall transact any business until the commissioner has issued his or her certificate authorizing it to transact such business. No bank or trust company shall incur any indebtedness except that which is incidental to its organization until the amount of its contributed capital has been fully paid in lawful money to the cashier or chief financial officer thereof.
(Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.1 - BANKING › CHAPTER 3 - Authorization to Engage in Banking › Section 1045.

1045. If the proposed bank or trust company fails to file evidence of incorporation and organization with the commissioner pursuant to Section 1041 within one year after the approval of the application for authority to organize the bank or trust company, the right to organize the bank or trust company automatically terminates. The commissioner, however, for good cause on written application filed before the expiration of the original period or any additional period, as the case may be, and payment of a fee of one hundred dollars ($100), may extend for additional periods not in excess of six months each the time within which the bank or trust company may be organized.
(Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.1 - BANKING › CHAPTER 3 - Authorization to Engage in Banking › Section 1046.

1046. If the proposed bank or trust company fails to open for business within 90 days after the issuance of the certificate of authorization, the right to transact business automatically terminates. The commissioner, however, for good cause on written application filed before the end of said 90-day period, may extend for one additional period of not to exceed 90 days the time within which the bank or trust company may open for business.
(Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.1 - BANKING › CHAPTER 3 - Authorization to Engage in Banking › Section 1047.

1047. It is unlawful to apply any part of the funds collected from subscribers or shareholders to the payment of commissions or fees for obtaining subscriptions or selling shares or, except with the prior approval of the commissioner, to the payment of preopening noncapital expenditures.
(Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.1 - BANKING › CHAPTER 3 - Authorization to Engage in Banking › Section 1048.

1048. Every bank and trust company shall keep posted in a conspicuous place in its banking room at its head office the certificate of authority to transact a banking or trust business issued by the commissioner.
(Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.1 - BANKING › CHAPTER 4 - Bank Offices › Section 1070.

1070. For purposes of this chapter, the following definitions apply:
(a) “Automated teller machine” means any electronic information processing device used by a financial institution and its customers for the primary purpose of executing transactions solely between the financial institution and its customers, if the transactions are not incidental to sales between the customer and a business entity other than a financial institution.
(b) “Branch office” means any office at which core banking business is conducted other than an automated teller machine, a device used to facilitate check guarantee or check authorization, or a remote service facility as defined in subsection (d) of Section 345.12 of Title 12 of the Code of Federal Regulations.
(c) “Core banking business” means the business of receiving deposits, paying checks, making loans, and other activities that the commissioner may specify by order or regulation. “Core banking business,” when used to describe the trust business, includes receiving fiduciary assets and administering fiduciary accounts.
(d) “Facility,” means an office at which a bank engages in noncore banking business but at which it does not engage in core banking business.
(e) “Head office” means the office designated by the bank as its headquarters.
(f) “Noncore banking business” means all activities permissible for banks, except core banking business, and except those activities prohibited by law or determined by the commissioner by regulation or order not to be noncore banking business.
(g) “Office” means the head office, any branch office, and any facility office of a bank.
(h) “Redesignate offices” means (1) the relocation by a bank of its head office to the site of a branch or facility office in this state and the concurrent establishment by the bank of an office at the former site of the head office, or (2) the relocation by a bank of a branch office to the site of a facility office and the concurrent establishment by the bank of a branch or facility office at the former site of the branch office.
(Amended by Stats. 2015, Ch. 190, Sec. 33. (AB 1517) Effective January 1, 2016.)
2023 California Code › Financial Code - FIN › DIVISION 1.1 - BANKING › CHAPTER 4 - Bank Offices › Section 1071.

1071. The commissioner shall issue a certificate in duplicate authorizing a bank to establish and maintain an office. A bank shall pay a fee of twenty-five dollars ($25) for every certificate the commissioner issues pursuant to this section.
(Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.1 - BANKING › CHAPTER 4 - Bank Offices › Section 1076.

1076. Each time a bank establishes an office, relocates an office, or redesignates an office, the bank shall, within 10 days of the establishment, relocation, or redesignation of the offices, file a notice with the commissioner. The notice shall include:
(a) The type of office or offices to be established, relocated, or redesignated.
(b) The complete address of the office or offices to be established, relocated, or redesignated. If an office is being relocated, the old address of the office and the address at which the office will be relocated.
(c) The date the office or offices were established, relocated, or redesignated.
(d) The appropriate fee for the certificate or certificates to be issued by the commissioner.
(Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.1 - BANKING › CHAPTER 4 - Bank Offices › Section 1077.

1077. On or before January 1 of each year, every bank shall file with the commissioner a list of all offices that are currently maintained and operated by the bank. The report shall designate the type of each office that is being maintained and operated, and the complete address of each office.
(Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.1 - BANKING › CHAPTER 4 - Bank Offices › Section 1078.

1078. (a) A bank may close or discontinue the operation of any branch office if, before the closing or discontinuance, (1) the bank files with the commissioner a notice containing the information in subdivision (b), and (2) the commissioner within 60 days after the filing of the notice or any longer period to which the bank consents, filing of the notice or any longer period to which the bank consents, either (A) issues a written statement not objecting to the notice, or (B) does not issue a written objection to the notice.
(b) (1) A notice filed under subdivision (a) shall contain all of the following information:
(A) The name of the California state bank.
(B) The location of the branch office proposed to be closed or discontinued.
(C) The location of the office to which the business of the branch office proposed to be closed or discontinued is proposed to be transferred.
(D) The proposed date of closing or discontinuance.
(E) A detailed statement of the reasons for the decision to close the branch office.
(F) Statistical or other information in support of the reasons consistent with the institution’s written policy for branch office closings.
(G) Any other information that the commissioner may require.
(2) A notice filed under subdivision (a) shall be in the form, shall be signed in the manner, and shall, if the commissioner requires, be verified in the manner that the commissioner may require.
(c) For purposes of subdivision (a), a notice 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 (b), is received by the commissioner.
(d) In determining whether or not to object to a notice filed under subdivision (a), except if the commissioner finds that it is necessary in the interests of safety and soundness that the branch office be closed or discontinued, the commissioner shall consider whether the closing or discontinuance of the branch office will have a seriously adverse effect on the public convenience or advantage.
(Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.1 - BANKING › CHAPTER 4 - Bank Offices › Section 1079.

1079. If the commissioner finds for any reason that the establishment, relocation, or redesignation of office would be unsafe or unsound for a bank, the commissioner may order the bank not to establish, relocate, or redesignate offices without the prior approval of the commissioner. The order may contain any other restrictions and conditions as the commissioner deems necessary.
(Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.1 - BANKING › CHAPTER 4 - Bank Offices › Section 1080.

1080. If a bank violates any provision of this chapter or fails to comply with any order, the commissioner may levy a penalty against the bank pursuant to Section 329.
(Amended by Stats. 2013, Ch. 334, Sec. 34. (SB 537) Effective January 1, 2014.)
2023 California Code › Financial Code - FIN › DIVISION 1.1 - BANKING › CHAPTER 4 - Bank Offices › Section 1081.

1081. A bank, with the approval of its board, may discontinue a facility office. Within 10 days of the date of the closure of the facility office, the bank shall file a notice of that discontinuance with the commissioner. The notice shall contain the information required by Section 1076. There shall be no fee associated with the discontinuance of a facility office.
(Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.1 - BANKING › CHAPTER 4 - Bank Offices › Section 1082.

1082. Any bank that establishes a branch office in this state in accordance with Section 36(g)(1)(A) of the National Bank Act (12 U.S.C. Sec. 36(g)(1)(A)), or Section 18(d)(4)(A)(i) of the Federal Deposit Insurance Act (12 U.S.C. Sec. 1828(d)(4)(A)(i)), as those sections were amended by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, shall, within 10 days of the establishment, relocation, or redesignation of the offices, file a notice with the commissioner that includes all of the following:
(a) The name of the bank establishing the branch office or offices.
(b) The home state or state of incorporation of the bank establishing the branch office or offices.
(c) The complete address of the office or offices established or to be established.
(d) The date the branch office or offices were or will be opened.
(e) Any other information, if any, that the commissioner deems necessary.
(Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.1 - BANKING › CHAPTER 4 - Bank Offices › Section 1083.

1083. (a) A bank may participate in a financial education program that involves receiving deposits or paying withdrawals on the premises of, or at a facility used by, a school. The school premises or facility will not be considered a branch office of the bank, as that term is defined in Section 1070 of the Financial Code, if all of the following conditions are met:
(1) The bank does not establish and operate the school premises or facility in which the program is conducted.
(2) Bank employees work at the site only to participate in the program.
(3) The program is provided at the discretion of the school.
(4) The principal purpose of the program is financial education. For example, a program is educational if it is designed to teach students the principles of personal financial management, banking operations, or the benefits of saving for the future, and is not designed for the purpose of profitmaking.
(5) No services are provided to the general public.
(6) The program is conducted in a manner that is consistent with safe and sound banking practices and complies with applicable law.
(b) A bank that participates in a financial education program pursuant to this section shall be liable for all deposits made on the premises of, or at a facility used by, a school as if the deposit was made directly at a branch office of the bank.
(Added by Stats. 2016, Ch. 180, Sec. 1. (AB 1784) Effective January 1, 2017.)
2023 California Code › Financial Code - FIN › DIVISION 1.1 - BANKING › CHAPTER 4.5 - Bank Extraordinary Situation Closing › Section 1090.

1090. This chapter is known and may be cited as the “Bank Extraordinary Situation Closing Act.”
(Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.1 - BANKING › CHAPTER 4.5 - Bank Extraordinary Situation Closing › Section 1091.

1091. “Extraordinary situation” means any condition or occurrence, other than as set forth in Section 592, that may interfere or is inconsistent with the conduct of normal business operations at one or more offices of a bank or which poses a threat to the safety or security of persons or property, or both.
(Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.1 - BANKING › CHAPTER 4.5 - Bank Extraordinary Situation Closing › Section 1092.

1092. Whenever the commissioner determines that an extraordinary situation exists anywhere in this state the commissioner may, by proclamation, authorize banks located in the affected area or areas to close any or all of their offices. The office or offices so closed shall remain closed until the commissioner proclaims that the extraordinary situation has ended or until such earlier time as the officers of the bank determine that one or more closed offices should reopen and in either event for such further time thereafter as may reasonably be required to reopen.
(Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.1 - BANKING › CHAPTER 4.5 - Bank Extraordinary Situation Closing › Section 1093.

1093. (a) Whenever the officers of a bank are of the opinion that an extraordinary situation exists which affects or may affect one or more of a bank’s offices, they shall have the authority in the reasonable and proper exercise of their discretion to determine not to open such offices on any business or banking day, or, if such offices have opened to close one or more of them during the continuation of such extraordinary situation even if the commissioner has not issued and does not issue a proclamation of extraordinary situation. The office or offices so closed shall remain closed until such time as the officers determine with respect to each such office that the extraordinary situation has ended and for such further time thereafter as may reasonably be required to be reopened; however, in no case shall such office or offices remain closed for more than 48 consecutive hours excluding other legal holidays without requesting the approval of the commissioner nor, in case such request is denied by the commissioner, for more than 24 consecutive hours excluding other legal holidays after such denial.
(b) The officers of a bank may close one or more of the bank’s offices on any day or days designated for mourning, rejoicing, or other special observance by proclamation of the Governor or the President of the United States.
(Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.1 - BANKING › CHAPTER 4.5 - Bank Extraordinary Situation Closing › Section 1094.

1094. A bank closing an office or offices pursuant to the authority granted under subdivision (a) of Section 1093 shall give prompt notice of its action to the commissioner, by any means available.
(Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.1 - BANKING › CHAPTER 4.5 - Bank Extraordinary Situation Closing › Section 1095.

1095. Any day on which a bank or any one or more of its offices is closed pursuant to the authorization granted by this chapter shall be, with respect to such bank or any of its offices which are closed, a legal holiday for all purposes with respect to any banking business of any character. No liability, or loss of rights of any kind, on the part of any bank or director, officer, or employee thereof, shall accrue or result by virtue of any closing authorized by this chapter.
(Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.1 - BANKING › CHAPTER 4.5 - Bank Extraordinary Situation Closing › Section 1096.

1096. Provisions of this chapter shall be construed and applied as being in addition to, and not a substitution for, or limitation of, any other law of this state or the United States authorizing the closing of a bank or excusing the delay by a bank in the performance of its duties and obligations because of extraordinary situations or conditions beyond the bank’s control or otherwise.
(Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.1 - BANKING › CHAPTER 5 - Corporate Requirements › ARTICLE 1 - Articles, Bylaws, and Names › Section 1100.

1100. The articles of each bank shall contain the applicable one of the following statements:
(a) Except as provided in subdivision (f), if the bank is, or is proposed to be, a commercial bank not authorized to engage in trust business, that the purpose of the corporation is to engage in commercial banking business and any other lawful activities which are not, by applicable laws or regulations, prohibited to a commercial bank.
(b) Except as provided in subdivision (f), if the bank is, or is proposed to be, a commercial bank authorized to engage in trust business, that the purpose of the corporation is to engage in commercial banking business and trust business and any other lawful activities which are not, by applicable laws or regulations, prohibited to a commercial bank authorized to engage in trust business.
(c) Except as provided in subdivision (f), if the bank is, or is proposed to be, an industrial bank not authorized to engage in trust business, that the purpose of the corporation is to engage in industrial banking business and any other lawful activities which are not, by applicable laws or regulations, prohibited to an industrial bank.
(d) Except as provided in paragraph (f), if the bank is, or is proposed to be, an industrial bank authorized to engage in trust business, that the purpose of the corporation is to engage in industrial banking business and trust business and any other lawful activities which are not, by applicable laws or regulations, prohibited to an industrial bank authorized to engage in trust business.
(e) In case the bank is, or is proposed to be, a trust company (other than a commercial bank authorized to engage in trust business), that the purpose of the corporation is to engage in trust business and any other lawful activities which are not, by applicable laws or regulations, prohibited to a trust company.
(f) If the bank is, or is proposed to be, a public bank, the articles shall set forth a statement of purpose that is prescribed in subdivision (a) or (b) of Section 57601 of the Government Code.
(Amended by Stats. 2019, Ch. 442, Sec. 7. (AB 857) Effective January 1, 2020.)
2023 California Code › Financial Code - FIN › DIVISION 1.1 - BANKING › CHAPTER 5 - Corporate Requirements › ARTICLE 1 - Articles, Bylaws, and Names › Section 1101.

1101. (a) In this section:
(1) “Assessment provision” means the provision in the articles of a bank that complies with the requirements of Section 600.2, as in effect immediately before the effective date of this section, or any predecessor statute.
(2) “Bank” means any (A) California state bank or (B) corporation organized under the laws of this state for the purpose of transacting business pursuant to Article 1 (commencing with Section 1850) of Chapter 21.
(b) On and after the effective date of this section, the assessment provision in the articles of a bank shall no longer be of any force or effect.
(c) Notwithstanding Sections 902 and 903 of the Corporations Code, a bank may, on or after the effective date of this section, amend its articles by deleting the assessment provision with the approval of its board alone and without any approval of its outstanding shares.
(d) (1) Any order issued before the effective date of this section by the commissioner pursuant to Section 662, as in effect immediately before the effective date of this section or any predecessor statute, shall, if and to the extent that the bank has not before that date levied and collected through sale of shares or otherwise, an assessment on its common shares, be deemed rescinded.
(2) Any proceeding commenced before the effective date of this section by a bank to assess its common shares in accordance with an order issued by the commissioner pursuant to Section 662, as in effect immediately before the effective date of this section or any predecessor statute, shall be terminated on the effective date of this section. On and after the effective date of this section, the bank shall take no further action to levy or collect the assessment on its common shares, and any lien on the common shares created by the assessment shall be deemed extinguished.
(Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.1 - BANKING › CHAPTER 5 - Corporate Requirements › ARTICLE 1 - Articles, Bylaws, and Names › Section 1102.

1102. (a) No amendment of the articles of a bank (other than an amendment set forth in an agreement of merger or in a certificate of ownership executed pursuant to Section 1110 of the Corporations Code that requires the approval of the commissioner pursuant to Chapter 4 (commencing with Section 4880) of Division 1.6) shall become effective unless the certificate of amendment or other instrument setting forth the amendment is filed with the Secretary of State with the commissioner’s approval endorsed thereon. Promptly after the amendment becomes effective, the bank shall file with the commissioner a copy of the certificate of amendment or other instrument certified by the Secretary of State.
(b) Any amendment of the articles of a bank set forth in an agreement of merger or in a certificate of ownership executed pursuant to Section 1110 of the Corporations Code that requires the approval of the commissioner pursuant to Chapter 4 (commencing with Section 4880) of Division 1.6, shall become effective at the time when the merger becomes effective pursuant to this division.
(Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.1 - BANKING › CHAPTER 5 - Corporate Requirements › ARTICLE 1 - Articles, Bylaws, and Names › Section 1103.

1103. No restated articles of a bank shall become effective unless the certificate setting forth such restated articles is filed with the Secretary of State with the commissioner’s approval endorsed thereon. Promptly after the restated articles become effective, such bank shall file with the commissioner a copy of such certificate certified by the Secretary of State.
(Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.1 - BANKING › CHAPTER 5 - Corporate Requirements › ARTICLE 1 - Articles, Bylaws, and Names › Section 1104.

1104. No certificate of determination of a bank shall become effective unless such certificate of determination is filed with the Secretary of State with the commissioner’s approval endorsed thereon. Promptly after the certificate of determination becomes effective, such bank shall file with the commissioner a copy of the certificate of determination certified by the Secretary of State.
(Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.1 - BANKING › CHAPTER 5 - Corporate Requirements › ARTICLE 1 - Articles, Bylaws, and Names › Section 1105.

1105. No certificate of correction of a bank shall become effective unless such certificate of correction is filed with the Secretary of State with the commissioner’s approval endorsed thereon. Promptly after the certificate of correction becomes effective, such bank shall file with the commissioner a copy of the certificate of correction certified by the Secretary of State.
(Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.1 - BANKING › CHAPTER 5 - Corporate Requirements › ARTICLE 1 - Articles, Bylaws, and Names › Section 1106.

1106. No certificate of revocation of a bank shall become effective unless such certificate of revocation is filed with the Secretary of State with the commissioner’s approval endorsed thereon. Promptly after the certificate of revocation becomes effective, such bank shall file with the commissioner a copy of the certificate of revocation certified by the Secretary of State.
(Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.1 - BANKING › CHAPTER 5 - Corporate Requirements › ARTICLE 1 - Articles, Bylaws, and Names › Section 1107.

1107. (a) A bank may change its name if it files with the commissioner a report on the proposed change not less than 30 days before the change. The report shall be in the form, shall contain the information, shall be signed in the manner, and shall, if the commissioner so requires, be verified in the manner the commissioner may require.
(b) Whenever a bank changes its name, the bank shall surrender to the commissioner for cancellation the certificates of authority under its old name for its head office, any branch offices, and any places of business. The commissioner shall issue to the bank replacement certificates under the bank’s new name and the bank shall pay to the commissioner a fee of twenty-five dollars ($25) for each replacement certificate.
(c) The commissioner may not deny an application for approval of an amendment of the articles of incorporation of a bank which changes the name of the bank or any other application of a bank relating to a change in the name of the bank because the new name of the bank resembles so closely, as to be likely to cause confusion, the name of any other bank.
(Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.1 - BANKING › CHAPTER 5 - Corporate Requirements › ARTICLE 2 - Shares › Section 1120.

1120. A bank may, with the approval of its board, determine and from time to time redetermine the par value of any class or series of its shares unless its articles provide that such shares shall have par value and specify the par value of such shares.
(Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.1 - BANKING › CHAPTER 5 - Corporate Requirements › ARTICLE 2 - Shares › Section 1121.

1121. No bank or trust company after October 1, 1949, shall issue any shares before they are fully paid for.
(Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.1 - BANKING › CHAPTER 5 - Corporate Requirements › ARTICLE 2 - Shares › Section 1122.

1122. No bank shall issue any shares in consideration of:
(a) Services rendered in the organization of such bank; or
(b) Any note (whether or not negotiable and whether or not secured) made by the purchaser of such shares.
(Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.1 - BANKING › CHAPTER 5 - Corporate Requirements › ARTICLE 3 - Distributions to Shareholders › Section 1130.

1130. This article does not apply to any distribution made to the shareholders of a bank in any proceeding to wind up and dissolve or to liquidate such bank.
(Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.1 - BANKING › CHAPTER 5 - Corporate Requirements › ARTICLE 3 - Distributions to Shareholders › Section 1131.

1131. Section 500 of the Corporations Code does not apply to the making by a bank or by any majority-owned subsidiary of a bank of any distribution to the shareholders of such bank.
(Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.1 - BANKING › CHAPTER 5 - Corporate Requirements › ARTICLE 3 - Distributions to Shareholders › Section 1132.

1132. Neither a bank nor any majority-owned subsidiary of a bank shall make any distribution to the shareholders of such bank in an amount which exceeds the lesser of:
(a) The retained earnings of the bank; or
(b) The net income of the bank for its last three fiscal years, less the amount of any distributions made by the bank or by any majority-owned subsidiary of the bank to the shareholders of the bank during such period.
(Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.1 - BANKING › CHAPTER 5 - Corporate Requirements › ARTICLE 3 - Distributions to Shareholders › Section 1133.

1133. Notwithstanding the provisions of Section 1132, a bank or a majority-owned subsidiary of a bank may, with the prior approval of the commissioner, make a distribution to the shareholders of such bank in an amount not exceeding the greatest of:
(a) The retained earnings of the bank;
(b) The net income of the bank for its last fiscal year; or
(c) The net income of the bank for its current fiscal year.
(Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.1 - BANKING › CHAPTER 5 - Corporate Requirements › ARTICLE 3 - Distributions to Shareholders › Section 1134.

1134. Notwithstanding the provisions of Section 1132, a bank may:
(a) With the prior approval of the commissioner, make a distribution to its shareholders by means of redeeming its redeemable shares; and
(b) With the prior approval of its outstanding shares and of the commissioner, otherwise make a distribution to its shareholders in connection with a reduction of its contributed capital.
(Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.1 - BANKING › CHAPTER 5 - Corporate Requirements › ARTICLE 3 - Distributions to Shareholders › Section 1135.

1135. If the commissioner finds that the shareholders’ equity of a bank is not adequate or that the making by a bank or by any majority-owned subsidiary of a bank of a distribution to the shareholders of the bank would be unsafe or unsound for the bank, the commissioner may order the bank and its majority-owned subsidiaries not to make any distribution to the shareholders of the bank. In addition to the order authorized by this section, the commissioner may levy a civil penalty against the bank pursuant to Section 329.
(Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.1 - BANKING › CHAPTER 5 - Corporate Requirements › ARTICLE 4 - Shareholders Equity › Section 1150.

1150. In determining for purposes of this division whether the shareholders’ equity of a bank or of a proposed bank is adequate, the commissioner shall consider:
(a) The nature and volume of the business of the bank;
(b) The amount, nature, quality, and liquidity of the assets of the bank;
(c) The amount and nature of the liabilities (including, but not limited to, any capital notes or debentures and any contingent liabilities) of the bank;
(d) The amount and nature of the fixed charges of the bank;
(e) The history of, and prospects for, the bank to earn and retain income;
(f) The quality of the operations of the bank;
(g) The quality of the management of the bank;
(h) The nature and quality of the ownership of the bank; and
(i) Such other factors as are in the opinion of the commissioner relevant.
(Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)