California Financial Code 1803 – (a) (1) No foreign (other nation) bank shall establish or …
(a) (1) No foreign (other nation) bank shall establish or maintain an agency or branch office unless the commissioner shall have first approved the establishment of that 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 from establishing or maintaining a federal agency or federal branch in this state.
Terms Used In California Financial Code 1803
- Agency: means a depositary agency or a nondepositary agency. See California Financial Code 1750
- Branch office: means a limited branch office, a retail branch office, or a wholesale branch office. See California Financial Code 1750
- 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.
(b) If the commissioner finds the following with respect to an application by a foreign (other nation) bank for approval to establish an agency or branch 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 a safe and sound manner and in compliance with all applicable laws, regulations, and orders.
(5) That the bank’s plan to establish and to maintain the office affords reasonable promise of successful operation.
(6) That the bank’s establishment and maintenance of the office will promote the public convenience and advantage.
(7) In case the office is to be a branch office, that the foreign nation where the bank is domiciled permits banks organized under the laws of this state and national banks headquartered in this state to establish and maintain in those foreign nation offices substantially equivalent to agencies, offices substantially equivalent to branch offices, or wholly (except for directors’ qualifying shares) owned banks organized under the laws of the foreign nation.
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 an agency or branch 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.)