LawWiki
HomeCodesSearchGlossaryAPIAbout
LawWiki

Plain English summaries of California law with zero-hallucination AI. Every summary is verified against official source text.

Product

  • Search
  • Codes
  • About

Legal

  • Privacy Policy
  • Terms of Service
  • Disclaimer

© 2026 LawWiki. All rights reserved.

HomeFinancial CodeDiv. 1.1Ch. 21Art. 1§ 1867 Corporate Depositary Approval Rules

§ 1867 Corporate Depositary Approval Rules

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

§ 1867 Corporate Depositary Approval Rules

Key Takeaways

  • •A company can't put its money in another bank or financial company unless most of its leaders agree and the government official says it's okay.
  • •The government official can change their mind and say no later.
  • •This rule doesn’t apply if the bank or financial company owns most of the company’s shares.

Example

A small tech company wants to put its extra money in a big bank.

The tech company’s leaders must vote and agree on this bank. Then, they need the government official to say yes. If the big bank already owns most of the tech company, they don’t need to follow this rule.

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

Official Source
View on CA.gov

§ 1867 Corporate Depositary Approval Rules

No corporation shall deposit any of its funds with any other moneyed corporation unless the other corporation has been nominated and designated as a depositary for the funds of the depositing corporation by the vote of a majority of the directors of the depositing corporation and has been approved by the commissioner as a depositary. The commissioner may in his or her discretion revoke his or her approval of any such depositary. This limitation shall not apply to the deposit of funds by a corporation with another moneyed corporation, that owns all or a majority of the capital stock of the corporation. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)

Last verified: January 23, 2026

Key Terms

depositarymajority of the directorscommissionermoneyed corporationcapital stock

Related Statutes

  • § 1883 Foreign Corporation Licensing Requirements
  • § 1852 Corporation Formation Authorization
  • § 1854 Corporation Articles Approval Filing
  • § 1856 Corporate Investment Equity Limits
  • § 1858 Corporate Stock Purchase Limits

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Financial Code. Section 1867.
View Official Source