Section 1387 Of Article 2. California State Bank As Principal From California Financial Code >> Division 1.1. >> Chapter 11. >> Article 2.

. In determining whether to approve or deny an application by a California state bank for approval to have an insured depository institution engage in authorized agency activities as its agent, the commissioner shall consider both of the following:
  (a) Whether the proposed agency arrangement is consistent with the safe and sound operation of the California state bank.
  (b) Any other factors that the commissioner deems relevant.