§ 1394 Bank Agency Approval Factors

Financial Code·California

AI SummaryVerified

This law tells the banking commissioner to look at two things before saying yes or no when a California state bank wants to act as an agent for another insured bank.

Key Takeaways

•The commissioner must see if the agency deal is safe for the state bank.
•The commissioner can also consider any other relevant reasons.
•Both factors together decide if the application is approved or denied.

Example

A California state bank wants to handle loan paperwork for a nearby credit union.

The commissioner will check if letting the state bank do that will keep the state bank safe and sound, and will also think about any other reasons that might matter before giving permission.

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

Official Source

View on CA.gov

§ 1394 Bank Agency Approval Factors

In determining whether to approve or deny an application by a California state bank for approval to engage in authorized agency activities as agent for an insured depository institution, the commissioner shall consider both of the following factors: (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 insured depository institution

References

Official text at leginfo.legislature.ca.gov
California Legislature. Financial Code. Section 1394.

§ 1394 Bank Agency Approval Factors

Financial Code·California

AI SummaryVerified

§ 1394 Bank Agency Approval Factors

This law tells the banking commissioner to look at two things before saying yes or no when a California state bank wants to act as an agent for another insured bank.

Key Takeaways

•The commissioner must see if the agency deal is safe for the state bank.
•The commissioner can also consider any other relevant reasons.
•Both factors together decide if the application is approved or denied.

Example

A California state bank wants to handle loan paperwork for a nearby credit union.

The commissioner will check if letting the state bank do that will keep the state bank safe and sound, and will also think about any other reasons that might matter before giving permission.

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

Official Source

View on CA.gov

§ 1394 Bank Agency Approval Factors

Last verified: January 11, 2026

Key Terms

authorized agency activities safe and sound operation California state bank insured depository institution

References

Official text at leginfo.legislature.ca.gov
California Legislature. Financial Code. Section 1394.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References