SECTIONS 3820-3828 - California Statutes

FINANCIAL CODE

SECTION 3820-3828

3820. No foreign (other state) state bank may transact core banking
business in this state except at a branch office established in
accordance with federal law and the law of the domicile of the bank.

3821. Section 3820 does not prohibit:
(a) Any foreign (other state) state bank that does not maintain a
California branch office from carrying on the activities described in
subdivision (d) of Section 191 of the Corporations Code.
(b) Any foreign (other state) state bank that does not maintain a
California branch office from making, in this state, loans secured by
liens on real property located in this state.
(c) Any foreign (other state) state bank from having a California
state bank as its agent pursuant to Chapter 6.5 (commencing with
Section 800).

3822. No foreign (other state) bank may establish or maintain a
California branch office unless it is qualified to transact
intrastate business in this state under Chapter 21 (commencing with
Section 2100) of Division 1 of Title 1 of the Corporations Code.

3823. No foreign (other state) bank may establish or maintain a
California branch office unless the bank is insured.

3824. (a) (1) No foreign (other state) bank may merge as the
surviving corporation with a California bank, except that an insured
foreign (other state) bank may do so in accordance with federal law,
the law of the domicile of the foreign (other state) bank, this
chapter, and Division 1.5 (commencing with Section 4800).
(2) No foreign (other state) bank may purchase the whole business
unit of a California bank, except that an insured foreign (other
state) bank may do so in accordance with federal law, the law of the
domicile of the foreign (other state) bank, this chapter, and
Division 1.5 (commencing with Section 4800).
(3) No foreign (other state) bank that does not already maintain a
California branch office may establish or maintain a California
branch office except in the manner described in paragraph (1) or (2)
and in accordance with federal law, the law of the domicile of the
foreign (other state) bank, and this chapter.
(b) This section constitutes:
(1) An election to permit early interstate merger transactions
pursuant to Section 44(a)(3) of the Federal Deposit Insurance Act (12
U.S.C. Sec. 1831u(a)(3)).
(2) An express prohibition against interstate branching through
the acquisition of a branch business unit located in this state of a
California bank (without acquisition of the whole business unit of
the California bank) pursuant to Section 44(a)(4) of the Federal
Deposit Insurance Act (12 U.S.C. Sec. 1831u(a)(4)).
(3) An express prohibition against interstate branching through de
novo establishment of California branch offices pursuant to Section
5155 of the Revised Statutes (12 U.S.C. Sec. 36) or Section 18(d) of
the Federal Deposit Insurance Act (12 U.S.C. Sec. 1828(d)).

3825. (a) No foreign (other state) bank that does not already
maintain a California branch office may:
(1) Merge as the surviving bank with a California bank pursuant to
paragraph (1) of subdivision (a) of Section 3824, unless the
California bank has been in existence for at least five years.
(2) Purchase the whole business unit of a California bank pursuant
to paragraph (2) of subdivision (a) of Section 3824 unless the
California bank has been in existence for at least five years.
(b) For purposes of this section, a California bank that is
established solely for the purpose of, and does not open for business
prior to, acquiring the whole business unit of a second California
bank through a merger or purchase is deemed to have been in existence
for the same period of time as the second California bank.

3826. The minimum age requirement set forth in Section 3825 does
not apply in any case in which the factor set forth in subdivision
(a) and any of the factors set forth in subdivision (b) apply.
(a) The foreign (other state) bank, by itself or in concurrent
transactions with other depository corporations (as defined in
Section 4805.06), acquires the whole business unit of the California
bank or, if the California bank has been closed or placed in
conservatorship, all or substantially all of the insured deposits of
the California bank.
(b) (1) If the California bank is a national bank, one of the
following:
(A) The bank is in default or in danger of default, as defined in
Section 3(x) of the Federal Deposit Insurance Act (12 U.S.C. Sec.
1813(x)).
(B) The purchase or merger is one with respect to which the
Federal Deposit Insurance Corporation provides assistance under
Section 13(c) of the Federal Deposit Insurance Act (12 U.S.C. Sec.
1823(c)).
(2) If the California bank is a state bank, one of the following:
(A) The commissioner has taken possession of the property and
business of the bank pursuant to Section 3100.
(B) The purchase or merger is one with respect to which the
Federal Deposit Insurance Corporation provides assistance under
Section 13(c) of the Federal Deposit Insurance Act (12 U.S.C. Sec.
1823(c)).
(C) The commissioner finds that one or more of the factors listed
in Section 3100 exists and that imposing the minimum age requirement
of Section 3825 is not in the public interest.

3827. (a) In case a foreign (other state) state bank that maintains
a California branch office is a commercial bank, in addition to
other provisions of this division that are otherwise applicable to
the bank, the following provisions of this division apply to the bank
with respect to its business in this state as if the bank were a
California state commercial bank:
(1) Sections 764, 765, 775, 777.5, and 779.
(2) Chapter 7 (commencing with Section 850).
(3) Chapter 8 (commencing with Section 952).
(4) Sections 1227.2, 1227.3, 1338, 1380, 1381, and 1382.
(5) Chapter 13 (commencing with Section 1650).
(6) Article 1 (commencing with Section 3350) of Chapter 18.
(7) Chapter 20 (commencing with Section 3600).
(b) In case a foreign (other state) state bank that maintains a
California branch office is an industrial bank, in addition to other
provisions of this division that are otherwise applicable to the
bank, the provisions cited in paragraphs (1) to (7), inclusive, of
subdivision (a) and the provisions of Chapter 11 (commencing with
Section 1400) apply to the industrial bank with respect to its
business in this state as if the bank were a California state
industrial bank.
(c) In case a foreign (other state) state bank that maintains a
California branch office is authorized pursuant to the law of its
domicile to transact trust business, in addition to other provisions
of this division that are otherwise applicable to the bank, the
following provisions of Chapter 12 (commencing with Section 1500)
apply to the bank with respect to its business in this state as if
the bank were a California state bank authorized to transact trust
business:
(1) Article 3 (commencing with Section 1540). For purposes of
Article 3 (commencing with Section 1540), the bank's principal place
of business is deemed to be situated in the city in which its
California branch office is located or, if it maintains California
branch offices in two or more cities, in the city with the largest
population.
(2) Article 4 (commencing with Section 1560), except Section 1560.
(3) Article 5 (commencing with Section 1580), except Sections
1583, 1584, 1585, 1588, and 1590.
(d) Subject to the provisions of subdivision (d), in case a
foreign (other state) state bank that maintains a California branch
office is authorized pursuant to the law of its domicile to transact
trust business, the bank may engage in and conduct trust business in
this state and may be appointed by any court to act in any fiduciary
capacity in which a California state trust company is authorized to
act.
(e) No foreign (other state) state bank that maintains a
California branch office may transact at the branch office any
business that it is not authorized to transact or is prohibited from
transacting under the law of its domicile or that banks organized
under the laws of this state are not authorized to transact or are
prohibited from transacting.
(f) Whenever any provision of this chapter or of any regulation or
order issued under this chapter that is applicable to or with
respect to a foreign (other state) state bank that maintains a
California branch office is inconsistent with any provision of any
other chapter of this division, the former provision applies, and the
latter provision does not apply.

3828. Notwithstanding Section 3824, a foreign (other state) bank
that does not maintain offices in California may merge with or
purchase the whole business unit of a foreign (other state) bank that
already maintains one or more offices in California in accordance
with Section 3824 pursuant to federal law and the law of the domicile
of the surviving or purchasing bank. The surviving or purchasing
bank may retain the offices established in this state by the
disappearing or selling bank. Thereafter, the surviving or purchasing
bank may establish and maintain additional offices as if it were the
disappearing or selling bank.