§ 1008 Public Bank Membership Terms

Financial Code·California

AI SummaryVerified

This law says that when a company is a public bank, words like share, shareholder, or stockholder actually mean member or membership in that bank.

Key Takeaways

•The rule only applies to corporations that are organized as public banks.
•Terms "share," "shareholder," and "stockholder" are re‑defined to mean "member" or "membership" for those banks.
•It changes the language used, but does not change any other rights or duties.

Example

A public bank sends a notice saying you are a shareholder of the bank.

Because the bank is a public bank, the notice is really telling you that you are a member of the bank, not that you own stock like in a regular company.

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

Official Source

View on CA.gov

§ 1008 Public Bank Membership Terms

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.)

Last verified: January 10, 2026

Key Terms

public bank share shareholder stockholder membership member

References

Official text at leginfo.legislature.ca.gov
California Legislature. Financial Code. Section 1008.

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Key Takeaways

Example

Key Terms

Related Statutes

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