§ 1256 Bank Acquisition Conditions

Financial Code·California

AI SummaryVerified

This law lets the commissioner add rules when they approve someone buying a bank or taking control of a bank owner, if those rules are needed for the public good.

Key Takeaways

•The commissioner can set conditions when approving a bank takeover.
•Conditions must be reasonable, necessary, or advisable for the public interest.
•The rule applies to buying control of a bank or the person who controls the bank.

Example

A company wants to buy a small town's bank.

The commissioner can say, "You must keep the downtown branch open and keep offering low‑interest loans to local families," before saying yes to the purchase.

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

Official Source

View on CA.gov

§ 1256 Bank Acquisition Conditions

The commissioner may, in approving a proposal to acquire control of a bank or a controlling person pursuant to Section 1254, impose such conditions as the commissioner deems reasonable or necessary or advisable in the public interest. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)

Last verified: January 10, 2026

Key Terms

commissioner acquire control bank controlling person public interest

References

Official text at leginfo.legislature.ca.gov
California Legislature. Financial Code. Section 1256.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References