Chapter 4.5. Bank Extraordinary Situation Closing of California Financial Code >> Division 1.1. >> Chapter 4.5.
This chapter is known and may be cited as the "Bank
Extraordinary Situation Closing Act."
"Extraordinary situation" means any condition or occurrence,
other than as set forth in Section 592, that may interfere or is
inconsistent with the conduct of normal business operations at one or
more offices of a bank or which poses a threat to the safety or
security of persons or property, or both.
Whenever the commissioner determines that an extraordinary
situation exists anywhere in this state the commissioner may, by
proclamation, authorize banks located in the affected area or areas
to close any or all of their offices. The office or offices so closed
shall remain closed until the commissioner proclaims that the
extraordinary situation has ended or until such earlier time as the
officers of the bank determine that one or more closed offices should
reopen and in either event for such further time thereafter as may
reasonably be required to reopen.
(a) Whenever the officers of a bank are of the opinion that
an extraordinary situation exists which affects or may affect one or
more of a bank's offices, they shall have the authority in the
reasonable and proper exercise of their discretion to determine not
to open such offices on any business or banking day, or, if such
offices have opened to close one or more of them during the
continuation of such extraordinary situation even if the commissioner
has not issued and does not issue a proclamation of extraordinary
situation. The office or offices so closed shall remain closed until
such time as the officers determine with respect to each such office
that the extraordinary situation has ended and for such further time
thereafter as may reasonably be required to be reopened; however, in
no case shall such office or offices remain closed for more than 48
consecutive hours excluding other legal holidays without requesting
the approval of the commissioner nor, in case such request is denied
by the commissioner, for more than 24 consecutive hours excluding
other legal holidays after such denial.
(b) The officers of a bank may close one or more of the bank's
offices on any day or days designated for mourning, rejoicing, or
other special observance by proclamation of the Governor or the
President of the United States.
A bank closing an office or offices pursuant to the authority
granted under subdivision (a) of Section 1093 shall give prompt
notice of its action to the commissioner, by any means available.
Any day on which a bank or any one or more of its offices is
closed pursuant to the authorization granted by this chapter shall
be, with respect to such bank or any of its offices which are closed,
a legal holiday for all purposes with respect to any banking
business of any character. No liability, or loss of rights of any
kind, on the part of any bank or director, officer, or employee
thereof, shall accrue or result by virtue of any closing authorized
by this chapter.
Provisions of this chapter shall be construed and applied as
being in addition to, and not a substitution for, or limitation of,
any other law of this state or the United States authorizing the
closing of a bank or excusing the delay by a bank in the performance
of its duties and obligations because of extraordinary situations or
conditions beyond the bank's control or otherwise.