SECTIONS 270-277 - California Statutes

FINANCIAL CODE

SECTION 270-277

270. (a) The commissioner shall annually collect pro rata from the
banks and trust companies under the supervision of the department a
fund in amount sufficient in the commissioner's judgment to meet the
expenses of the department in administering laws relating to banks or
trust companies or to the banking or trust business that are not
otherwise provided for and to provide a reasonable reserve for
contingencies.
(b) The amount of the annual assessment for the fund on any bank
or trust company shall not be less than five thousand dollars
($5,000). Above that minimum amount, except as otherwise provided
subdivision (c), the annual assessment shall not exceed the sum of
the products of a base assessment rate, or percentage thereof, and
segregated portions of its total resources, according to the
following table:

Segregated Total Resources Percentage of Base
(In Millions or Fractions
Thereof) Assessment Rate
First $2 100.0
Next $18 50.0
Next $80 12.0
Next $100 6.25
Next $800 6.0
Next $1,000 4.0
Next $4,000 3.5
Next $14,000 3.0
Next $20,000 2.5
Excess over $40,000 1.5

(c) (1) For purposes of determining the annual assessment on banks
and trust companies that have one or more foreign (other state)
branch offices, the resources of foreign (other state) branch offices
shall be excluded from total resources, except that the commissioner
may order the resources of foreign (other state) branch offices to
be included in total resources if and to the extent that it is
necessary in the commissioner's judgment to meet the expenses of the
department on account of foreign (other state) branch offices and a
reasonable reserve for contingencies.
(2) If the commissioner finds that a bank or trust company
allocated any resource to a foreign (other state) branch office for
the purpose, in whole or in part, of reducing its annual assessment,
the commissioner may, for purposes of calculating the annual
assessment on the bank or trust company, reallocate the resource to
the bank's or trust company's head office.
(d) The base assessment rate shall be set by the commissioner from
time to time at the commissioner's discretion, not to exceed two
dollars and twenty cents ($2.20) per one thousand dollars ($1,000) of
total resources.

271. The commissioner shall annually collect from national banking
associations and foreign (other state) banks operating trust
departments in this state an annual assessment to meet expenses of
the department, not exceeding one one-hundredth of 1 percent of the
amount required by law to be deposited with the Treasurer as surety
for the faithful performance and execution of all court and private
trusts accepted by them.

271.5. Whenever the commissioner makes an assessment pursuant to
Section 270 or 271, the commissioner shall fix the date when the
assessment is due and payable and shall mail or otherwise deliver to
each bank and trust company assessed an invoice showing the amount of
its assessment and the date when the assessment is due and payable.

272. The commissioner, in addition to the annual assessment, shall
collect from each bank authorized to engage in the trust business, to
defray the cost of examination, a fee not to exceed seventy-five
dollars ($75) per hour for each examiner necessarily engaged in the
examination of the trust company, trust business, or trust
department. The commissioner shall assess the fee upon completion of
the examination of the trust company or trust business and shall mail
or otherwise deliver an invoice for the fee to the institution. The
institution shall pay the fee within 30 days after the invoice is
mailed or otherwise delivered to it.

273. If any bank or trust company fails to make timely payment of
any assessment made pursuant to Section 270, 271, or 272, the
commissioner may, in the commissioner's sole discretion, (a) cancel
the certificate of authority of the bank or trust company to conduct
a banking or trust business or (b) levy a civil penalty pursuant to
Section 216.3.

273.5. As of the operative date of this section:
(a) The State Banking Fund is converted into a separate account in
the Financial Institutions Fund and designated as the State Banking
Account.
(b) All moneys and other assets and all liabilities of the State
Banking Fund shall be transferred to the State Banking Account.

274. Except as otherwise provided in Section 276 or 277, all
salaries and other expenses of the department, other than those
incurred in administering laws relating to savings associations or
the savings association business, credit unions or the credit union
business, industrial banks, the industrial banking business,
insurance premium finance agencies, the insurance premium finance
business, or Article 2 (commencing with Section 53630) of Chapter 4
of Part 1 of Division 2 of Title 5 of the Government Code, shall be
paid out of the State Banking Account in the Financial Institutions
Fund. Salaries and other expenses incurred in the liquidation or
conservation of any bank (other than an industrial bank) or of any
person licensed under Chapter 14 (commencing with Section 1800),
Chapter 14A (commencing with Section 1851), Division 15 (commencing
with Section 31000), or Division 16 (commencing with Section 33000),
including the compensation of employees of the department to the
extent that they are engaged in that liquidation or conservation, if
possible, and if advanced from the State Banking Account in the
Financial Institutions Fund, shall constitute a first charge against
the assets of the bank or licensee, as the case may be. Salaries and
other expenses incurred in the liquidation or conservation of any
industrial bank, including the compensation of employees of the
department to the extent that they are engaged in that liquidation or
conservation, if possible, and if advanced from the Industrial Bank
Account in the Financial Institutions Fund, shall constitute a first
charge against the assets of the industrial bank.

275. The commissioner shall deliver all moneys received or
collected by the commissioner under Section 270, 271, or 272 or
otherwise, other than moneys received or collected by the
commissioner under laws relating to savings associations, the savings
association business, credit unions, the credit union business,
industrial banks, the industrial banking business, insurance premium
finance agencies, the insurance premium finance business, or Article
2 (commencing with Section 53630) of Chapter 4 of Part 1 of Division
2 of Title 5 of the Government Code, to the Treasurer, who shall
deposit the moneys to the credit of the State Banking Account of the
Financial Institutions Fund.

276. (a) In this section, "assessment statute" means any statute
that authorizes the commissioner to make or collect an assessment
(other than a fine) on financial institutions, including the
following:
(1) Sections 270 to 271.5, inclusive.
(2) Section 1801.1.
(3) Section 33302.
(4) Article 2 (commencing with Section 8030) of Chapter 7 of
Division 2.
(5) Article 4 (commencing with Section 14350) of Chapter 3 of
Division 5.
(6) Section 1402.
(b) The commissioner may charge to and collect from the Financial
Institutions Fund, the Credit Union Fund, each of the accounts
included in the Financial Institutions Fund, and each of the programs
included in the State Banking Account an amount equal to the fund's,
account's, or program's pro rata share of those expenses of the
department which, in the opinion of the commissioner, it is not
feasible to attribute to any single one of the funds, accounts, or
programs. The fund's, account's, or program's pro rata share shall be
determined and paid in the manner and at the time ordered by the
commissioner.
(c) The provisions of any assessment statute that authorize the
commissioner to make or collect an assessment for the purposes
specified in the assessment statute include authority for the
commissioner to make and collect an assessment for the additional
purpose of providing money in an amount that will, in the
commissioner's judgment, be sufficient to make payments that may be
required under subdivision (b).

277. Notwithstanding any other provision of this code or of Section
53667 of the Government Code, the commissioner may, at any time
during a fiscal year, pay any expense of the department from any of
the following accounts and funds: the State Banking Account, the
Savings and Loan Account, the Industrial Bank Account, the Financial
Institutions Fund, the Credit Union Fund, and the Local Agency
Deposit Security Fund. However, if the commissioner pays an expense
of the department from an account or fund from which the expense is
not, except for this section, permitted to be paid, the commissioner
shall, as of a date within that fiscal year, reimburse the account or
fund from which the expense was paid by making a transfer from the
account or fund from which the expense would have been permitted to
be paid.