§ 1121 Bank Share Payment Requirement

Financial Code·California

AI SummaryVerified

This law says banks and trust companies can’t give out any shares until the buyer has paid the full price.

Key Takeaways

•Only banks and trust companies are covered.
•The rule applies to any time after October 1, 1949.
•Shares must be fully paid before the bank or trust company can issue them.

Example

John wants to buy a share of a local bank but only pays half of the price and asks the bank to give him the share right away.

Because the bank gave John a share before he paid the whole amount, the bank would be breaking this law.

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

Official Source

View on CA.gov

§ 1121 Bank Share Payment Requirement

No bank or trust company after October 1, 1949, shall issue any shares before they are fully paid for. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)

Last verified: January 10, 2026

Key Terms

bank trust company shares fully paid for

References

Official text at leginfo.legislature.ca.gov
California Legislature. Financial Code. Section 1121.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References