§ 1333 Bank Director Misconduct Penalties

Financial Code·California

AI SummaryVerified

This law says that if a bank director helps with fraud when the bank goes broke or breaks the rules on purpose, they can get in trouble.

Key Takeaways

•Bank directors can't do sneaky stuff that helps the bank go broke.
•Directors must follow the rules and do their jobs carefully.
•If a bank goes broke and the directors didn't do their jobs right, it's considered fraud.

Example

A bank director hides money from the bank to make it look like the bank has more money than it really does, and then the bank goes broke.

The director can be punished because they did something sneaky and against the rules, which helped the bank go broke.

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

Official Source

View on CA.gov

§ 1333 Bank Director Misconduct Penalties

(a) Every director of a bank in this state who does either of the following is guilty of a misdemeanor: (1) In case of the fraudulent insolvency of such bank, the director participated in the fraud. (2) Willfully does any act as the director that is expressly forbidden by law or willfully omits to perform any duty imposed by law upon him or her as the director. (b) The insolvency of a bank is deemed fraudulent for the purposes of this section, unless its affairs appear upon investigation to have been administered clearly, legally, and with the same care and diligence that agents receiving a compensation for their services are bound, by law, to observe. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)

Last verified: January 11, 2026

Key Terms

director bank fraudulent insolvency misdemeanor willfully duty imposed by law

References

Official text at leginfo.legislature.ca.gov
California Legislature. Financial Code. Section 1333.

§ 1333 Bank Director Misconduct Penalties

Financial Code·California

AI SummaryVerified

§ 1333 Bank Director Misconduct Penalties

This law says that if a bank director helps with fraud when the bank goes broke or breaks the rules on purpose, they can get in trouble.

Key Takeaways

•Bank directors can't do sneaky stuff that helps the bank go broke.
•Directors must follow the rules and do their jobs carefully.
•If a bank goes broke and the directors didn't do their jobs right, it's considered fraud.

Example

A bank director hides money from the bank to make it look like the bank has more money than it really does, and then the bank goes broke.

The director can be punished because they did something sneaky and against the rules, which helped the bank go broke.

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

Official Source

View on CA.gov

§ 1333 Bank Director Misconduct Penalties

Last verified: January 11, 2026

Key Terms

director bank fraudulent insolvency misdemeanor willfully duty imposed by law

References

Official text at leginfo.legislature.ca.gov
California Legislature. Financial Code. Section 1333.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References