Division 1.9. Persons Connected With Financial Institutions of California Financial Code >> Division 1.9.
(a) Any person convicted of a felony violation of any of the
provisions specified in subdivision (b) shall not serve in any
capacity as a director or officer or in any other position involving
any management duties with a financial institution in this state with
accounts insured by an agency or instrumentality of the United
States or a private share insurance or guaranty arrangement. This
subdivision does not, however, apply to any director or officer of a
financial institution, or to persons serving in managerial positions
for financial institutions, whose office or employment with a
financial institution commenced, and whose felony conviction
occurred, prior to January 1, 1991.
(b) Subdivision (a) applies to felony convictions of offenses
specified in Chapter 10 (commencing with Section 1320) of Division
1.1, Article 4 (commencing with Section 5300) of Chapter 1 of
Division 2, Article 8 (commencing with Section 14750) of Chapter 4 of
Division 5, and Chapter 6 (commencing with Section 18435) of
Division 7. Subdivision (a) also applies to felony convictions of
offenses specified in provisions of the laws of the United States
added or amended by the federal Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 (Public Law 101-73).
(c) On and after January 1, 1991, any person who seeks employment
by, or a controlling interest in, a financial institution specified
in subdivision (a) shall, as a condition to obtaining that employment
or controlling interest, permit the financial institution, its
regulatory agency, or both to have access to that person's state
summary criminal history information, as defined in Section 11105 of
the Penal Code, for purposes of determining whether the person has a
prior conviction of a felony offense specified in subdivision (b) or
any theft offense.
(d) Any state summary criminal history information obtained
pursuant to this subdivision shall be kept confidential and no
recipient under this subdivision shall disclose the contents other
than for the purpose of determining eligibility for employment by, or
acquisition of a controlling interest in, a financial institution
specified in subdivision (a).
(e) The authority granted by this section to the commissioner and
other regulatory agencies shall be in addition to any other authority
granted by law to obtain information about the background of any
person. Nothing in this section shall be construed to limit any
authority of the commissioner or any regulatory agency otherwise
provided by law.
(a) In response to a request by another bank, savings
association, credit union, or any other financial institution it is
not unlawful for a bank, savings association, credit union, or any
other financial institution to provide a written employment reference
which advises of the applicants' involvement in a theft,
embezzlement, misappropriation, or other defalcation which has been
reported to state or federal authorities pursuant to state or federal
banking or financial institutions law. In order for the immunity
provided in subdivision (b) to apply, a copy of the written
employment reference shall be sent concurrently by the financial
institution providing the reference, to the last known address of the
person concerning whom the reference is provided.
(b) No bank, savings association, credit union, or any other
financial institution shall be civilly liable for providing an
employment reference as specified in subdivision (a), unless the
information provided is false and the bank, savings association,
credit union, or other financial institution providing the false
information does so with knowledge and malice.