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HomeFinancial CodeDiv. 2Ch. 10§ 10003 Foreign Association Approval

§ 10003 Foreign Association Approval

Financial Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 10003 Foreign Association Approval

This law says a foreign bank or its parent can’t run a savings bank in California or take over a California savings bank unless the state commissioner says it’s okay in writing.

Key Takeaways

  • •Foreign savings banks need written approval from the state commissioner before doing business or taking control in California.
  • •They must submit a written application, pay fees, and provide any data the commissioner asks for.
  • •The commissioner can set extra rules and work with other states to protect depositors, borrowers, and shareholders.

Example

A bank from Canada wants to buy a small savings bank in Los Angeles.

The Canadian bank has to fill out a written application, pay the required fees, give the commissioner all the requested information, and wait for written approval before it can own the California bank.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 10003 Foreign Association Approval

No foreign savings association may conduct the business of an association in California, and no foreign savings association or foreign holding company may acquire control of a California savings association, without the written approval of the commissioner. A foreign savings association or foreign holding company shall submit to the commissioner a written application for approval in the form and shall pay such fees as the commissioner prescribes. The foreign savings association or foreign holding company shall submit with the application such information, data, and records as the commissioner may require in order to make his or her determination. The commissioner may issue such regulations as he or she deems to be appropriate to preserve the public interest and integrity of the state’s savings association system and to protect the interests of savings account holders, borrowers, and stockholders resident in this state. The commissioner may make arrangements with the supervisory officials of other states for reciprocal examination of California savings associations, foreign savings associations and foreign holding companies, and the imposition of fees therefor and may condition his or her approval pursuant to this chapter upon the existence of those arrangements. (Added by renumbering Section 10002 by Stats. 1987, Ch. 1162, Sec. 20. Effective September 26, 1987. Section operative January 1, 1991, pursuant to Section 10009.)

Last verified: January 10, 2026

Key Terms

foreign savings associationCalifornia savings associationcommissionerwritten approvalpublic interestreciprocal examination

Related Statutes

  • § 10001 Savings Association Business Restrictions
  • § 10002 Foreign Savings Association Control
  • § 10006 Foreign Savings Association Application
  • § 10004 Unlicensed Foreign Savings Solicitation
  • § 10007 Foreign Holding Company Requirements

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Financial Code. Section 10003.
View Official Source