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HomeFinancial CodeDiv. 1.1Ch. 19Art. 4§ 1712 Foreign Bank Office Licensing

§ 1712 Foreign Bank Office Licensing

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

§ 1712 Foreign Bank Office Licensing

This law says that a foreign bank that isn’t insured in its home state can’t open a branch in this state to do non‑banking work unless it gets a special license to run that branch as a facility.

Key Takeaways

  • •A foreign bank that isn’t insured in its home state can’t open a branch here to do non‑banking work.
  • •The bank must be licensed to keep the branch as a facility before it can open or operate it.
  • •Anyone acting as the bank’s representative in the state is treated as if the bank itself opened the facility, so the licensing rule still applies.

Example

A bank from another country wants to open a small office in the state to sell insurance products, which is not its main banking business.

Because the bank isn’t insured where it’s based, it must first get a license that allows it to keep that office as an official facility. Without the license, the office can’t be set up or kept open.

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

Official Source
View on CA.gov

§ 1712 Foreign Bank Office Licensing

(a) No uninsured foreign (other state) bank may establish or maintain an office in this state at which it engages in noncore banking business unless the uninsured foreign (other state) bank is licensed to maintain the office as a facility. (b) (1) No person may establish or maintain an office in this state as representative of an uninsured foreign (other state) bank unless the uninsured foreign (other state) bank is licensed to maintain the office as a facility. (2) For purposes of this article, if any person establishes or maintains an office in this state as representative of an uninsured foreign (other state) bank, the uninsured foreign (other state) bank is deemed to establish and maintain the office as a facility. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)

Last verified: January 11, 2026

Key Terms

uninsured foreign (other state) banknoncore banking businesslicensed to maintain the office as a facility

Related Statutes

  • § 1710 Foreign Bank Control Definitions
  • § 1711 Foreign Bank Facility Approval
  • § 1715 Foreign Bank Noncore Business
  • § 1716 Foreign Bank Office Closure
  • § 1717 Foreign Bank License Surrender

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Financial Code. Section 1712.
View Official Source