California Legislature—2015–16 Regular Session

Assembly BillNo. 1933


Introduced by Assembly Member Travis Allen

February 12, 2016


An act to amend Section 1100 of the Financial Code, relating to banking.

LEGISLATIVE COUNSEL’S DIGEST

AB 1933, as introduced, Travis Allen. Banking.

Existing law regulates the practice of banking in California and classifies these institutions as a commercial banks, industrial banks, and trust companies. Existing law prescribes requirements for the articles of different classes of banks.

This bill would make nonsubstantive changes to the requirements for bank articles, as described above.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

P1    1

SECTION 1.  

Section 1100 of the Financial Code is amended
2to read:

3

1100.  

The articles of each bank shall contain the applicable
4one of the following statements:

5(a) In case the bank is, or is proposed to be, a commercial bank
6not authorized to engage in trust business, that the purpose of the
7corporation is to engage in commercial banking business and any
8other lawful activitiesbegin delete whichend deletebegin insert thatend insert are not, by applicable laws or
9regulations, prohibited to a commercial bank.

P2    1(b) In case the bank is, or is proposed to be, a commercial bank
2authorized to engage in trust business, that the purpose of the
3corporation is to engage in commercial banking business and trust
4business and any other lawful activitiesbegin delete whichend deletebegin insert thatend insert are not, by
5applicable laws or regulations, prohibited to a commercial bank
6authorized to engage in trust business.

7(c) In case the bank is, or is proposed to be, an industrial bank
8not authorized to engage in trust business, that the purpose of the
9corporation is to engage in industrial banking business and any
10other lawful activitiesbegin delete whichend deletebegin insert thatend insert are not, by applicable laws or
11regulations, prohibited to an industrial bank.

12(d) In case the bank is, or is proposed to be, an industrial bank
13authorized to engage in trust business, that the purpose of the
14corporation is to engage in industrial banking business and trust
15business and any other lawful activitiesbegin delete whichend deletebegin insert thatend insert are not, by
16applicable laws or regulations, prohibited to an industrial bank
17authorized to engage in trust business.

18(e) In case the bank is, or is proposed to be, a trustbegin delete company
19(otherend delete
begin insert company, otherend insert than a commercial bank authorized to engage
20in trustbegin delete business),end deletebegin insert business,end insert that the purpose of the corporation is
21to engage in trust business and any other lawful activitiesbegin delete whichend delete
22begin insert thatend insert are not, by applicable laws or regulations, prohibited to a trust
23company.



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