§ 1387 Bank Agency Approval Criteria

Financial Code·California

AI SummaryVerified

This law says the commissioner decides if a California bank can work with an insured bank as its agent. They check if it's safe for the bank and if other important things make sense.

Key Takeaways

•The commissioner checks if the team-up is safe for the bank.
•They also look at other important things before saying yes or no.
•This is to make sure banks don’t take big risks that could hurt them or their customers.

Example

A small California bank wants to team up with a big bank to offer more services, like handling loans or deposits.

The commissioner will look at whether this team-up is safe for the small bank and if it helps customers without causing problems.

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

Official Source

View on CA.gov

§ 1387 Bank Agency Approval Criteria

In determining whether to approve or deny an application by a California state bank for approval to have an insured depository institution engage in authorized agency activities as its agent, the commissioner shall consider both of the following: (a) Whether the proposed agency arrangement is consistent with the safe and sound operation of the California state bank. (b) Any other factors that the commissioner deems relevant. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)

Last verified: January 11, 2026

Key Terms

authorized agency activities safe and sound operation California state bank

References

Official text at leginfo.legislature.ca.gov
California Legislature. Financial Code. Section 1387.

§ 1387 Bank Agency Approval Criteria

Financial Code·California

AI SummaryVerified

§ 1387 Bank Agency Approval Criteria

This law says the commissioner decides if a California bank can work with an insured bank as its agent. They check if it's safe for the bank and if other important things make sense.

Key Takeaways

•The commissioner checks if the team-up is safe for the bank.
•They also look at other important things before saying yes or no.
•This is to make sure banks don’t take big risks that could hurt them or their customers.

Example

A small California bank wants to team up with a big bank to offer more services, like handling loans or deposits.

The commissioner will look at whether this team-up is safe for the small bank and if it helps customers without causing problems.

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

Official Source

View on CA.gov

§ 1387 Bank Agency Approval Criteria

Last verified: January 11, 2026

Key Terms

authorized agency activities safe and sound operation California state bank

References

Official text at leginfo.legislature.ca.gov
California Legislature. Financial Code. Section 1387.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References