§ 1388 Bank Agent Activity Limits

This law says a California state bank can't let another insured bank do for it any job that the state bank itself is not allowed to do.

Key Takeaways

•State banks must follow their own limits; they can't cheat by using another bank.
•The other bank must be an insured depository institution.
•The rule applies to any activity the state bank is prohibited from doing.

Example

A California state bank is not allowed to give loans for buying a certain type of property. It cannot hire an insured depository institution to make those loans on its behalf.

Even though the other bank could normally make that kind of loan, the state bank can't use it to get around the rule that stops the state bank from doing that loan.

No California state bank may have an insured depository institution conduct as its agent any activity that the California state bank is prohibited from conducting itself. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)

This law says a California state bank can't let another insured bank do for it any job that the state bank itself is not allowed to do.

Key Takeaways

•State banks must follow their own limits; they can't cheat by using another bank.
•The other bank must be an insured depository institution.
•The rule applies to any activity the state bank is prohibited from doing.

Example

A California state bank is not allowed to give loans for buying a certain type of property. It cannot hire an insured depository institution to make those loans on its behalf.

Even though the other bank could normally make that kind of loan, the state bank can't use it to get around the rule that stops the state bank from doing that loan.

Key Takeaways

Example

Key Terms

References

§ 1388 Bank Agent Activity Limits

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References