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HomeGovernment CodeDiv. 4Pt. 2Ch. 4Art. 1§ 16501 Out-Of-State Bank Deposits

§ 16501 Out-Of-State Bank Deposits

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

§ 16501 Out-Of-State Bank Deposits

Key Takeaways

  • •The state can put money in banks outside California if those banks help the state with money stuff or hold the state's investments.
  • •The bank must have a 'satisfactory' or better rating from the government for helping people in their community, including poorer areas.
  • •The state's Treasurer and the Director of Finance must agree on the rules for doing this.

Example

California wants to put some of its extra money in a bank in New York.

The bank in New York must be helping the state with its money or holding California's investments. Also, the bank must have a good rating for helping people in its community, including poorer neighborhoods. The state's Treasurer and the Director of Finance must agree on the rules for this.

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

Official Source
View on CA.gov

§ 16501 Out-Of-State Bank Deposits

Under the conditions as the Treasurer with the approval of the Director of Finance may establish, the Treasurer may deposit money in banks outside this state when the banks are fiscal agents of the state or custodians of securities owned by the state, if the banks have an overall rating of not less than “satisfactory” in their most recent evaluation by the appropriate federal financial supervisory agency of the banks’ record of meeting the credit needs of the communities in which the bank is located, including low- and moderate-income neighborhoods, pursuant to Section 2906 of Title 12 of the United States Code. (Amended by Stats. 2000, Ch. 1036, Sec. 2. Effective January 1, 2001.)

Last verified: January 22, 2026

Key Terms

TreasurerDirector of Financefiscal agentscustodians of securitiessatisfactory ratingSection 2906 of Title 12 of the United States Code

Related Statutes

  • § 16506 State Funds Deposit Rules
  • § 12305 Treasurer’S Insurance For Securities
  • § 16502 State Funds Deposit Rules
  • § 16508 Treasurer'S Deposit Liability Limit
  • § 16509 Treasurer'S Securities Management

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Government Code. Section 16501.
View Official Source