SECTIONS 16020-16024 - California Statutes

FINANCIAL CODE

SECTION 16020-16024

16020. (a) Except for the activities described in paragraph (2) of
subdivision (c) of Section 16001, no foreign (other state) credit
union shall transact business in this state except at a branch office
or facility that it is licensed to maintain and at which it is
permitted by this chapter to transact the business transacted.
(b) Subdivision (a) shall not be deemed to prohibit any of the
following:
(1) Any foreign (other state) credit union from carrying on the
activities described in subdivision (d) of Section 191 of the
Corporations Code.
(2) The advertising or solicitation of shares or deposits in this
state by a foreign (other state) credit union made through the media
of the mail, radio, television, magazines, newspapers, the Internet,
or similar media, provided that shares or deposits are not accepted
or received in this state.
(3) The acceptance of loan applications through agents in this
state, provided the loan applications are approved or rejected, and
the loans are funded, outside of this state.
(c) For the purposes of subdivision (a), no foreign (other state)
credit union shall be deemed to be transacting business in this state
merely because a majority-owned subsidiary transacts business in
this state.

16021. (a) No foreign (other state) credit union shall establish or
maintain a California branch office unless the commissioner shall
have first approved its establishment and issued a license
authorizing the foreign (other state) credit union to maintain the
California branch office.
(b) Notwithstanding subdivision (a), this article does not apply
to any branch office or other office in this state of a foreign
(other state) credit union that was established prior to January 1,
2001, in compliance with existing law.

16022. (a) If the commissioner finds all of the following with
respect to an application by a foreign (other state) credit union for
approval to establish a California branch office, the commissioner
shall approve the application:
(1) That the foreign (other state) credit union, the directors and
officers of the foreign (other state) credit union, and the proposed
management of the branch office are each of good character and sound
financial standing.
(2) That the financial history and condition of the foreign (other
state) credit union are satisfactory.
(3) That the management of the foreign (other state) credit union
and the proposed management of the branch office are adequate.
(4) That it is reasonable to believe that, if licensed to maintain
the branch office, the foreign (other state) credit union will
operate the branch office in a safe and sound manner and in
compliance with all applicable laws, regulations, and orders.
(5) That the foreign (other state) credit union's plan to
establish and to maintain the branch office affords reasonable
promise of successful operation.
(6) That the foreign (other state) credit union's establishment
and maintenance of the branch office will promote the convenience and
advantage of its members, and is necessary or convenient to meet the
needs of the foreign (other state) credit union's members.
(7) Not more than 50 percent of the members of the foreign (other
state) credit union are or will be residents of this state.
If the commissioner finds otherwise, the commissioner shall deny
the application.
(b) Whenever an application by a foreign (other state) credit
union for approval to establish a California branch office has been
approved and all conditions precedent to the issuance of a license
authorizing the foreign (other state) credit union to maintain the
California branch office have been fulfilled, the commissioner shall
issue the license.

16023. The approval of an application for approval to establish a
California branch office shall be revoked by operation of law if the
applicant foreign (other state) credit union does not establish and
maintain the California branch office within one year after the date
of the approval, unless prior to the expiration of the one-year
period the commissioner extends the time within which the foreign
(other state) credit union may establish the California branch
office.

16024. (a) Within 30 days of establishing a California facility, a
foreign (other state) credit union shall notify the commissioner in
writing of its intent to establish a California facility. The notice
shall identify the proposed location of the facility, describe its
proposed activities, and contain any other information which the
commissioner may by regulation or order specify.
(b) A foreign (other state) credit union shall not commence
business at a proposed facility without a license having been issued
by the commissioner.