California Financial Code 1781 – (a) (1) No foreign (other nation) bank shall establish or …
(a) (1) No foreign (other nation) bank 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 bank to maintain the office.
(2) Paragraph (1) shall not be deemed to prohibit a foreign (other nation) bank that maintains a federal agency or federal branch in this state from establishing or maintaining one or more representative offices in this state.
Terms Used In California Financial Code 1781
- Controlling person: when used with respect to a foreign (other nation) bank, means any person who, directly or indirectly, controls the bank. See California Financial Code 1750
- Federal agency: has the meaning set forth in Section 1(b) of the International Banking Act of 1978. See California Financial Code 1750
- Federal branch: has the meaning set forth in Section 1(b) of the International Banking Act of 1978. See California Financial Code 1750
- License: means a license issued under this chapter, authorizing a foreign bank to maintain an office. See California Financial Code 1750
- licensed: means to be issued or to hold a license. See California Financial Code 1750
- Office: when used with respect to a foreign (other nation) bank, means any agency, branch office, or representative office of the bank. See California Financial Code 1750
- Person: includes any person, firm, partnership, association, corporation, company, limited liability company, syndicate, estate, trust, business trust, or organization of any kind. See California Financial Code 18
- Precedent: A court decision in an earlier case with facts and law similar to a dispute currently before a court. Precedent will ordinarily govern the decision of a later similar case, unless a party can show that it was wrongly decided or that it differed in some significant way.
- Representative office: when used with respect to a foreign (other nation) bank, means an office in this state at which the bank engages in representational functions but at which it does not transact commercial banking business. See California Financial Code 1750
(b) If the commissioner finds the following with respect to an application by a foreign (other nation) bank for approval to establish a representative office, the commissioner shall approve the application:
(1) That the bank, any controlling person of the bank, the directors and executive officers of the bank or of any controlling person of the bank, 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 bank are satisfactory.
(3) That the management of the bank and the proposed management of the office are adequate.
(4) That it is reasonable to believe that, if licensed to maintain the office, the bank 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) bank for approval to establish a representative office has been approved and all conditions precedent to the issuance of a license authorizing the bank to maintain the office have been fulfilled, the commissioner shall issue the license.
(Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)