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HomeFinancial CodeDiv. 2Ch. 1Art. 4§ 5309 Institution Fraud Sentencing Enhancement

§ 5309 Institution Fraud Sentencing Enhancement

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

§ 5309 Institution Fraud Sentencing Enhancement

Key Takeaways

  • •If someone who works for or with a bank (like an employee or partner) keeps breaking bank rules on purpose or doesn't care if they hurt the bank, they can go to prison for up to 20 years.
  • •The prison time for each rule broken adds up—one after another—and cannot be shortened or canceled by a judge.
  • •The judge can give even more prison time if the law allows it.
  • •This rule doesn’t stop judges from giving extra prison time for other crimes related to hurting the bank.

Example

A bank manager keeps approving fake loans for friends, knowing it will hurt the bank. The bank loses a lot of money because of this.

The manager broke the rules many times on purpose, causing big problems for the bank. They could go to prison for up to 20 years, and the judge can’t make the sentence shorter.

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

Official Source
View on CA.gov

§ 5309 Institution Fraud Sentencing Enhancement

(a) A person shall be sentenced to consecutive terms for each violation of Section 5303, 5304, 5305, or 5306 up to a mandatory term of 20 years in state prison if all of the following are charged in the accusatory pleading and admitted by the defendant, or found to be true by the trier of fact: (1) The person is an institution affiliated party. (2) The person engaged in a pattern and practice of activity involving multiple violations of Section 5303, 5304, 5305, or 5306. (3) The person acted with intent to cause substantial harm, or with reckless disregard of the possibility of causing substantial harm, to the savings institution. (4) The violations did in fact result in substantial harm to the savings institution. (b) No part of a consecutive sentence required pursuant to subdivision (a) may be suspended or revoked by the court. (c) Nothing in subdivision (a) shall limit the court’s discretion to sentence the defendant to a consecutive term longer than provided for in that subdivision, if otherwise permitted by law. (d) Nothing in subdivision (a) shall limit the court’s discretion to order consecutive sentences for violations of Section 5303, 5304, 5305, or 5306 under any other provision of law. (Added by renumbering Section 5307 (as added by Stats. 1990, Ch. 118, Sec. 18.5) by Stats. 1991, Ch. 1091, Sec. 30.)

Last verified: January 23, 2026

Key Terms

sentenceinstitutioncrimedefendantif someonediscretionviolationactivity

Related Statutes

  • § 5311 Fine And Penalty Limits
  • § 5320 Property Forfeiture For Lending Crimes
  • § 22172 Mortgage Originator License Enforcement
  • § 5300 Violation Penalties And Punishment
  • § 5301 Savings Association Violation Referrals

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Financial Code. Section 5309.
View Official Source