§ 1338 Bank Insolvency Deposit Fraud

Financial Code·California

AI SummaryVerified

This law says that if someone who works at a bank takes money from customers knowing the bank is broke, they can get in trouble.

Key Takeaways

•Bank workers can't take deposits if they know the bank is broke.
•Doing this is a crime, even if the worker didn't steal the money.
•This applies to anyone working at a bank, not just the boss.

Example

A bank teller knows their bank is out of money but still takes deposits from customers.

The teller can be charged with a crime because they took money knowing the bank couldn't pay it back.

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

Official Source

View on CA.gov

§ 1338 Bank Insolvency Deposit Fraud

Every officer, agent, teller, or clerk of any bank, and every individual banker, or agent, teller, or clerk of any individual banker, who receives any deposits, knowing that the bank, association, or banker is insolvent, is guilty of a misdemeanor. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)

Last verified: January 11, 2026

Key Terms

officer agent teller clerk individual banker insolvent misdemeanor

References

Official text at leginfo.legislature.ca.gov
California Legislature. Financial Code. Section 1338.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References