Amended in Assembly March 15, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 1933

Introduced by Assembly Member begin delete Travis Allen end delete begin insert Travis Allen end insert

February 12, 2016

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

LEGISLATIVE COUNSEL’S DIGEST

AB 1933, as amended, begin delete Travis Allen end delete   begin insert Travis Allen end insert . Banking.

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Existing law

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begin insert The Banking Law end insert regulates the practice of banking in California and classifies these institutions as begin delete a end delete commercial banks, industrial banks, and trust companies. begin delete Existing end delete begin insert That end insert law prescribes requirements for the articles of different classes of begin delete banks. end delete begin insert banks and requires the articles to specify the classification of the bank. Existing law authorizes the Commissioner of Business Oversight to enforce, among other provisions, compliance with the requirements of the Banking Law. end insert

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

end delete begin insert

This bill would require a bank to post its classification in a prominent location on the bank’s Internet Web site.

end insert

Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

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

SECTION 1.  

Section 1100 of the Financial Code is amended
to read:

1100.  

begin delete The end delete begin insert (a) end insert begin insert   end insert begin insert The end insert articles of each bank shall contain the
applicable one of the following statements:

begin delete

(a)

end delete

begin insert (1) end insert  In case the bank is, or is proposed to be, a commercial bank
not authorized to engage in trust business, that the purpose of the
corporation is to engage in commercial banking business and any
other lawful activities that are not, by applicable laws or
regulations, prohibited to a commercial bank.

begin delete

(b)

end delete

begin insert (2) end insert  In case the bank is, or is proposed to be, a commercial bank
authorized to engage in trust business, that the purpose of the
corporation is to engage in commercial banking business and trust
business and any other lawful activities that are not, by applicable
laws or regulations, prohibited to a commercial bank authorized
to engage in trust business.

begin delete

(c)

end delete

begin insert (3) end insert  In case the bank is, or is proposed to be, an industrial bank
not authorized to engage in trust business, that the purpose of the
corporation is to engage in industrial banking business and any
other lawful activities that are not, by applicable laws or
regulations, prohibited to an industrial bank.

begin delete

(d)

end delete

begin insert (4) end insert  In case the bank is, or is proposed to be, an industrial bank
authorized to engage in trust business, that the purpose of the
corporation is to engage in industrial banking business and trust
business and any other lawful activities that are not, by applicable
laws or regulations, prohibited to an industrial bank authorized to
engage in trust business.

begin delete

(e)

end delete

begin insert (5) end insert  In case the bank is, or is proposed to be, a trust company,
other than a commercial bank authorized to engage in trust
business, that the purpose of the corporation is to engage in trust
business and any other lawful activities that are not, by applicable
laws or regulations, prohibited to a trust company.

begin insert

(b) A bank shall post the applicable statement included in the
articles of the bank from subdivision (a) in a prominent location
on the Internet Web site of the bank.

end insert