§ 4874 Seller Post-Sale Obligations

• •After selling their business, the seller must give back any official papers or licenses they got from the government.
• •The seller has to fill out and send any reports the government asks for about the sale.
• •The seller must close down their business completely, unless they are a special kind of bank in California. If they are, they can change into a different kind of company with the government's okay.

A small local bank in California sells its business to a bigger bank.

After the sale, the small bank must give back its banking license to the government and fill out any required sale reports. Instead of shutting down completely, the small bank can ask the government for permission to change into a different type of company, like a financial advice business, and change its name.