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. 1Ch. 6Art. 2§ 565 Bank Securities Misrepresentation Ban

§ 565 Bank Securities Misrepresentation Ban

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

§ 565 Bank Securities Misrepresentation Ban

Key Takeaways

  • •Don't lie or trick people into thinking certain investments are safe or allowed for savings banks if they're not.
  • •This includes ads, flyers, or any other way of telling people about these investments.
  • •If you break this rule, you can be fined up to $1,000 or go to jail for up to a year, or both.

Example

Someone puts up a poster saying a risky investment is safe for savings banks.

If that investment isn't actually safe or allowed, the person who made the poster can get in trouble with the law.

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

Official Source
View on CA.gov

§ 565 Bank Securities Misrepresentation Ban

No person shall represent by advertisement, circular, or otherwise, or in any manner mislead anyone to believe, that any securities are legal investments for savings banks in this state or conform to the requirements of law relating to such investments, unless those securities are in fact at that time legal investments for such banks or do in fact so conform. Any person violating the provisions of this section shall be guilty of a misdemeanor and shall be punishable by a fine of not more than one thousand dollars ($1,000) or by imprisonment in a county jail not exceeding one year, or by both such fine and imprisonment. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)

Last verified: January 23, 2026

Key Terms

imprisonmentclaimsecuritiesfinemisdemeanoradvertisement

Related Statutes

  • § 14051 Credit Union False Statements
  • § 30209 Securities Depository Licensing
  • § 563 Exempted Financial Institutions
  • § 7250 Association Investment Permissions
  • § 7252 Savings Association Service Investments

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Financial Code. Section 565.
View Official Source