§ 1391 State Bank Agency Approval

Financial Code·California

AI SummaryVerified

This law lets California state banks work as agents for other banks, but only if the banking commissioner says it's okay first.

Key Takeaways

•California state banks can act as agents for other banks.
•They need the banking commissioner's approval first.
•The commissioner can set rules for how this works.

Example

A small local bank wants to help a bigger bank with some services, like handling loans or deposits.

The small bank can do this, but only if the banking commissioner gives permission and sets rules for how it should work.

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

Official Source

View on CA.gov

§ 1391 State Bank Agency Approval

Notwithstanding the provisions of Chapter 4 (commencing with Section 1070), a California state bank may, with the prior approval of the commissioner and subject to any regulations that the commissioner may prescribe, engage in authorized agency activities as agent for an insured depository institution. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)

Last verified: January 11, 2026

Key Terms

authorized agency activities insured depository institution commissioner

References

Official text at leginfo.legislature.ca.gov
California Legislature. Financial Code. Section 1391.

Key Takeaways

Example

Key Terms

Related Statutes

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Key Takeaways

Example

Key Terms

Related Statutes

References