§ 1380 Bank Agency Activities Definition

This law defines what banks and similar places can and can't do when handling loans and deposits. It lists specific tasks they are allowed to perform, like taking deposits or closing loans, and explains what kinds of banks are covered.

Key Takeaways

•Banks can do things like take deposits, close loans, and give out loan info.
•Not all bank activities are allowed—some might be restricted by other rules.
•Only banks with government insurance (like FDIC) are covered by this law.

Example

You go to your local bank to deposit money into your savings account.

The bank can take your deposit because it is an 'authorized agency activity' under this law. The bank is also covered by this law because it is an 'insured depository institution,' meaning your money is protected by the government.

In this chapter, unless the context otherwise requires: (a) “Authorized agency activities” means receiving deposits, renewing time deposits, closing loans, servicing loans, and receiving payments on loans and other obligations. “Authorized agency activities” includes ministerial functions such as providing loan applications, assembling documents, providing a location for returning documents necessary for making a loan, providing loan account information, receiving payments, disbursing loan funds, evaluating loan applications, and other activities that the commissioner may specify by order or regulation. However, “authorized agency activities” does not include any other activities that the commissioner may specify by order or regulation. (b) “Insured depository institution” means any bank, savings and loan association, savings association, savings bank, or industrial loan company the deposits of which are insured by the Federal Deposit Insurance Corporation. “Insured depository institution” includes any depository institution affiliate within the meaning of Section 18(r) of the Federal Deposit Insurance Act (12 U.S.C. Sec. 1828(r)). (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)

Key Takeaways

•Banks can do things like take deposits, close loans, and give out loan info.
•Not all bank activities are allowed—some might be restricted by other rules.
•Only banks with government insurance (like FDIC) are covered by this law.

Example

You go to your local bank to deposit money into your savings account.

Key Takeaways

Example

Key Terms

References

§ 1380 Bank Agency Activities Definition

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References