§ 503 Bank Audit Requirements

Financial Code·California

AI SummaryVerified

Key Takeaways

•The boss in charge of banks can make a bank hire an outside money expert to check their books.
•The bank has to pay for this check-up, not the boss.
•This only happens if the boss thinks the bank might be in trouble.

Example

A bank starts losing a lot of money and customers complain they can't get their cash.

The banking boss can say, 'Hey, you need to hire an expert to check your money records and make sure everything is okay. You have to pay for it, not me.'

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

Official Source

View on CA.gov

§ 503 Bank Audit Requirements

The commissioner, whenever in his or her opinion the condition of the bank, trust company, or foreign banking corporation is such as to require such audit, may require any bank, trust company, or foreign banking corporation to employ a certified public accountant to make a special audit of the affairs of such bank or trust company at its expense. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)

Last verified: January 23, 2026

Key Terms

corporation commission the california condition

References

Official text at leginfo.legislature.ca.gov
California Legislature. Financial Code. Section 503.

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Example

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Key Takeaways

Example

Key Terms

Related Statutes

References