§ 1005 Banking Business Requirements

Financial Code·California

AI SummaryVerified

This law says only a specially created corporation can do banking or trust work in the state; all other people or businesses can't.

Key Takeaways

•Only a corporation formed for banking or trust can operate those services in the state.
•All other types of businesses (LLCs, partnerships, firms, etc.) are prohibited from doing banking or trust work.
•The rule covers commercial banking, industrial banking, and trust business.

Example

A limited liability company (LLC) tries to open a small bank to take deposits and give loans.

Because the LLC is not a corporation set up just for banking, the law says it can't do that and would be breaking the rule.

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

Official Source

View on CA.gov

§ 1005 Banking Business Requirements

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.)

Last verified: January 10, 2026

Key Terms

commercial banking business industrial banking business trust business corporation duly organized

References

Official text at leginfo.legislature.ca.gov
California Legislature. Financial Code. Section 1005.

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Key Takeaways

Example

Key Terms

Related Statutes

References