§ 1513 Bank Investment Retention Rights

Financial Code·California

AI SummaryVerified

This law says that banks don't have to sell off investments they already made, even if new banking rules are added later.

Key Takeaways

•Banks keep investments made before new rules.
•New rules don't force banks to sell existing investments.
•The rule applies to all authorized investments made at the time.

Example

A bank bought some corporate bonds in 2010 when the rules allowed it. In 2023 a new Banking Code is adopted.

Because the bank made those bond purchases before the new code, it can keep the bonds and does not have to sell them just because the new code exists.

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

Official Source

View on CA.gov

§ 1513 Bank Investment Retention Rights

If any commercial bank has made investments which it was authorized to make at the time they were made it shall not be required to dispose of such investments by reason of adoption of the Banking Code, this code, or any amendments to this article. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)

Last verified: January 11, 2026

Key Terms

commercial bank investments Banking Code amendments

References

Official text at leginfo.legislature.ca.gov
California Legislature. Financial Code. Section 1513.

Key Takeaways

Example

Key Terms

Related Statutes

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Key Takeaways

Example

Key Terms

Related Statutes

References