Article 2. Branching And Agency Powers of California Financial Code >> Division 2. >> Chapter 4. >> Article 2.

(a) A branch office is a legally established place of business of an association other than the home office, a remote service unit, or any agency, authorized by the board of directors and approved by the commissioner, where the business of an association may be conducted.
  (b) An association may, with the approval of the commissioner, conduct business outside this state, subject to the laws of the state in which the business is done.

(a) An agency of an association is a place or facility, stationary or mobile, other than the home office, a remote service unit, or a branch office, at or through which the association may transact business that is specified by the board of directors and approved by the commissioner.
  (b) The agency may perform other special duties and functions as may be directed from time to time by the home office or a branch office and approved by the commissioner.
  (c) An agency may perform only those activities, duties, or functions as are authorized for savings associations by the provisions of this division or regulations of the commissioner.

No association may establish or maintain a branch office or agency without the prior written approval of the commissioner, except that temporary and incidental agencies may be created for individual transactions and for special temporary purposes without approval.

(a) Each application for approval of the establishment and maintenance of a branch office or one or more agencies shall include the following:
  (1) The proposed location of the branch or agency.
  (2) The functions to be performed at the branch or agency.
  (3) Any additional information the commissioner deems necessary to reach a decision.
  (b) Each application shall be accompanied by the filing fee as prescribed pursuant to Section 9001 and by a budget of the association for the current earnings period and for the next succeeding annual period, which reflects the estimated additional expense of the maintenance of each branch or agency covered by the application.

Upon receipt of a complete application for a branch office, the commissioner shall give written notice of the filing of the application to each association. The notice shall state the name of the association and the name of the city or community in which the branch is proposed to be located.

(a) Before acting on an application for a branch office, the commissioner may hold a hearing at a time and place specified in a notice of hearing.
  (b) If a hearing is to be held, the hearing shall not be held less than 10 days after the mailing of a notice of hearing under subdivision (a).
  (c) Any person may appear at the hearing in person or by agent or attorney, and, pursuant to regulations issued by the commissioner, show cause why the application should not be approved.

(a) Upon review of the application for a branch office or agency and after a hearing on the branch application, if one is deemed necessary, the commissioner shall determine whether all of the following criteria are met:
  (1) The applicant's policies, financial condition, and operations afford no basis for supervisory objection.
  (2) The proposed branch office or agency will be opened within a reasonable time after approval, as determined by the commissioner.
  (b) If the commissioner determines that the criteria set forth in subdivision (a) are met the application shall be approved.
  (c) If the commissioner determines that the criteria set forth in subdivision (a) are not met the application shall be denied.

The provisions of this article relating to branch office and agency applications do not apply to a branch office or agency of an existing association acquired pursuant to a merger, consolidation, conversion, or transfer of assets.

The commissioner may adopt rules and regulations relating to any action pertaining to branch offices and agencies regulated by this article.