Chapter 4. Bank Offices of California Financial Code >> Division 1.1. >> Chapter 4.
For purposes of this chapter, the following definitions
(a) "Automated teller machine" means any electronic information
processing device used by a financial institution and its customers
for the primary purpose of executing transactions solely between the
financial institution and its customers, if the transactions are not
incidental to sales between the customer and a business entity other
than a financial institution.
(b) "Branch office" means any office at which core banking
business is conducted other than an automated teller machine, a
device used to facilitate check guarantee or check authorization, or
a remote service facility as defined in subsection (d) of Section
345.12 of Title 12 of the Code of Federal Regulations.
(c) "Core banking business" means the business of receiving
deposits, paying checks, making loans, and other activities that the
commissioner may specify by order or regulation. "Core banking
business," when used to describe the trust business, includes
receiving fiduciary assets and administering fiduciary accounts.
(d) "Facility," means an office at which a bank engages in noncore
banking business but at which it does not engage in core banking
(e) "Head office" means the office designated by the bank as its
(f) "Noncore banking business" means all activities permissible
for banks, except core banking business, and except those activities
prohibited by law or determined by the commissioner by regulation or
order not to be noncore banking business.
(g) "Office" means the head office, any branch office, and any
facility office of a bank.
(h) "Redesignate offices" means (1) the relocation by a bank of
its head office to the site of a branch or facility office in this
state and the concurrent establishment by the bank of an office at
the former site of the head office, or (2) the relocation by a bank
of a branch office to the site of a facility office and the
concurrent establishment by the bank of a branch or facility office
at the former site of the branch office.
The commissioner shall issue a certificate in duplicate
authorizing a bank to establish and maintain an office. A bank shall
pay a fee of twenty-five dollars ($25) for every certificate the
commissioner issues pursuant to this section.
Every bank shall establish and maintain a head office which
shall be located in this state.
A bank, with the approval of its board, may establish and
maintain one or more offices.
A bank, with the approval of its board, may relocate an
A bank, with the approval of its board, may redesignate
Each time a bank establishes an office, relocates an office,
or redesignates an office, the bank shall, within 10 days of the
establishment, relocation, or redesignation of the offices, file a
notice with the commissioner. The notice shall include:
(a) The type of office or offices to be established, relocated, or
(b) The complete address of the office or offices to be
established, relocated, or redesignated. If an office is being
relocated, the old address of the office and the address at which the
office will be relocated.
(c) The date the office or offices were established, relocated, or
(d) The appropriate fee for the certificate or certificates to be
issued by the commissioner.
On or before January 1 of each year, every bank shall file
with the commissioner a list of all offices that are currently
maintained and operated by the bank. The report shall designate the
type of each office that is being maintained and operated, and the
complete address of each office.
(a) A bank may close or discontinue the operation of any
branch office if, before the closing or discontinuance, (1) the bank
files with the commissioner a notice containing the information in
subdivision (b), and (2) the commissioner within 60 days after the
filing of the notice or any longer period to which the bank consents,
filing of the notice or any longer period to which the bank
consents, either (A) issues a written statement not objecting to the
notice, or (B) does not issue a written objection to the notice.
(b) (1) A notice filed under subdivision (a) shall contain all of
the following information:
(A) The name of the California state bank.
(B) The location of the branch office proposed to be closed or
(C) The location of the office to which the business of the branch
office proposed to be closed or discontinued is proposed to be
(D) The proposed date of closing or discontinuance.
(E) A detailed statement of the reasons for the decision to close
the branch office.
(F) Statistical or other information in support of the reasons
consistent with the institution's written policy for branch office
(G) Any other information that the commissioner may require.
(2) A notice filed under subdivision (a) shall be in the form,
shall be signed in the manner, and shall, if the commissioner
requires, be verified in the manner that the commissioner may
(c) For purposes of subdivision (a), a notice is deemed to be
filed with the commissioner at the time when the complete notice,
including any amendments or supplements, containing all the
information required by the commissioner, and otherwise complying
with subdivision (b), is received by the commissioner.
(d) In determining whether or not to object to a notice filed
under subdivision (a), except if the commissioner finds that it is
necessary in the interests of safety and soundness that the branch
office be closed or discontinued, the commissioner shall consider
whether the closing or discontinuance of the branch office will have
a seriously adverse effect on the public convenience or advantage.
If the commissioner finds for any reason that the
establishment, relocation, or redesignation of office would be unsafe
or unsound for a bank, the commissioner may order the bank not to
establish, relocate, or redesignate offices without the prior
approval of the commissioner. The order may contain any other
restrictions and conditions as the commissioner deems necessary.
If a bank violates any provision of this chapter or fails to
comply with any order, the commissioner may levy a penalty against
the bank pursuant to Section 329.
A bank, with the approval of its board, may discontinue a
facility office. Within 10 days of the date of the closure of the
facility office, the bank shall file a notice of that discontinuance
with the commissioner. The notice shall contain the information
required by Section 1076. There shall be no fee associated with the
discontinuance of a facility office.
Any bank that establishes a branch office in this state in
accordance with Section 36(g)(1)(A) of the National Bank Act (12
U.S.C. Sec. 36(g)(1)(A)), or Section 18(d)(4)(A)(i) of the Federal
Deposit Insurance Act (12 U.S.C. Sec. 1828(d)(4)(A)(i)), as those
sections were amended by the Dodd-Frank Wall Street Reform and
Consumer Protection Act of 2010, shall, within 10 days of the
establishment, relocation, or redesignation of the offices, file a
notice with the commissioner that includes all of the following:
(a) The name of the bank establishing the branch office or
(b) The home state or state of incorporation of the bank
establishing the branch office or offices.
(c) The complete address of the office or offices established or
to be established.
(d) The date the branch office or offices were or will be opened.
(e) Any other information, if any, that the commissioner deems