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HomeFinancial CodeDiv. 1.1Ch. 19Art. 4§ 1711 Foreign Bank Facility Approval

§ 1711 Foreign Bank Facility Approval

Financial Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 1711 Foreign Bank Facility Approval

This law tells the state banking commissioner how to judge whether the people running a foreign bank that wants to open a branch in California are honest and financially stable.

Key Takeaways

  • •Omission counts as an 'act' under the law.
  • •The commissioner can presume good character without solid evidence to the contrary.
  • •Misconduct such as fraud convictions, civil judgments, license suspensions, false statements, or rule violations can disqualify a person.
  • •The listed misconducts are not the only reasons the commissioner can find someone unfit.

Example

A bank from another country wants to open a new office in California, but it doesn't have U.S. insurance. The state regulator must decide if the bank's leaders are trustworthy.

The regulator can assume the bank's directors and top officers are of good character unless there is clear proof they have committed fraud, lied on applications, or broken banking rules. If any of those misconducts are found, the regulator can reject the application.

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

Official Source
View on CA.gov

§ 1711 Foreign Bank Facility Approval

(a) In this section, “act” includes (without limitation) omission. (b) For purposes of making findings on an application by an uninsured foreign (other state) bank for approval to establish a facility: (1) The commissioner may, in the absence of credible evidence to the contrary, presume that the directors, executive officers, and any controlling person of the bank, the directors and executive officers of any controlling person of the bank, and the members of the proposed management of the facility are each of good character and sound financial standing. (2) The commissioner may find that the bank, a director, executive officer, or controlling person of the bank, a director or executive officer of a controlling person of the bank, or any member of the proposed management of the facility is not of good character if the person has done any of the following: (A) Has been convicted of, or has pleaded nolo contendere to, any crime involving an act of fraud or dishonesty. (B) Has consented to or suffered a judgment in any civil action based upon conduct involving an act of fraud or dishonesty. (C) Has consented to or suffered the suspension or revocation of any professional, occupational, or vocational license based upon conduct involving an act of fraud or dishonesty. (D) Has willfully made or caused to be made in any application or report filed with the commissioner or in any proceeding before the commissioner any statement that was at the time and in the light of the circumstances under which it was made false or misleading with respect to any material fact, or has willfully omitted to state in any such application or report any material fact that was required to be stated in the application or report. (E) Has willfully committed any violation of, or has willfully aided, abetted, counseled, commanded, induced, or procured the violation by any other person of, any provision of this division or of any regulation or order issued under this division. (c) Paragraph (2) of subdivision (b) is not an exclusive list of the grounds upon which the commissioner may find, for purposes of making findings on an application by an uninsured foreign (other state) bank for approval to establish a facility, that the bank, a director, executive officer, or controlling person of the bank, a director or executive officer of a controlling person of the bank, or any member of the proposed management of the facility is not of good character. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)

Last verified: January 11, 2026

Key Terms

actgood characterfraud or dishonestyuninsured foreign (other state) bankcommissioner

Related Statutes

  • § 1716 Foreign Bank Office Closure
  • § 1717 Foreign Bank License Surrender
  • § 1718 Foreign Bank Service Process
  • § 1757 Foreign Bank Office Approval
  • § 1710 Foreign Bank Control Definitions

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Financial Code. Section 1711.
View Official Source