This following sentence summarizes the" law". This Financial Code plus (A) the Corporation Code, (B) rulings made by the Commissioner (see 112 below) -- and (C) relevant law cases are the defining laws.
99. This division is known and may be cited as the âBanking Law.â A corporation must be formed
107.5. It shall be unlawful for any person, corporation, limited liability company, partnership, firm, or any other form of business entity allowed by law, to engage in or transact commercial banking business, industrial banking business, or trust business within this state except by means of a corporation duly organized for that purpose. The âcommissionerâ runs the show
112. âCommissionerâ means the Commissioner of Financial Institutions and âdepartmentâ means the Department of Financial Institutions. This is the only way to operate a bank
116. No corporation shall hereafter be organized under the laws of this state to transact the business of a commercial bank, industrial bank, or trust company except as provided in this division. You shall use generally accepted accounting principles -- but that can be changed if the commissioner says it is OK.
118. (a) All references in this division and in Division 1 (commencing with Section 100), Title 1 of the Corporations Code to financial statements, balance sheets, income statements and statements of changes in financial position of a bank and all references to assets, liabilities, earnings, retained earnings, shareholdersâ equity, and similar accounting items of a bank mean such financial statements or such items prepared or determined in conformity with generally accepted accounting principles then applicable, fairly presenting in conformity with generally accepted accounting principles the matters which they purport to present, subject to any specific accounting treatment required by any provision of Division 1 (commencing with Section 100), Title 1 of the Corporations Code, of this division, or of any regulation or order issued under this division.
(b) The commissioner may, by regulation or order, require that any financial statement or accounting item of a bank be prepared or determined in a manner other than in conformity with generally accepted accounting principles if the commissioner finds that such other manner is necessary or appropriate to carry out the purposes or
provisions of this division.
Rules related to stock shares and voting of shares
119. References in this division to the voting of shares shall be construed in accordance with Section 111 of the Corporations Code. 120. If the articles of a bank provide for more or less than one vote for any share on any matter, the references in Sections 123 and 124 to a majority or other proportion of shares means, as to such matter, a majority or other proportion of the votes entitled to be cast. Whenever, under Division 1 (commencing with Section 100), Title 1 of the Corporations Code or this division, shares are disqualified from voting on any matter, they shall not be considered outstanding for the determination of a quorum at any meeting to act upon, or the required vote to approve action upon, such matter under any provision of Division 1 (commencing with Section 100), Title 1 of
the Corporations Code, of this division, or of the articles or bylaws. 121. Any requirement in this division for a vote of each class of outstanding shares shall be construed in accordance with Section 117 of the Corporations Code. Regarding the Board of Directors and Shareholders of the Corporation
122. âApproved by (or approval of) the boardâ means approved or ratified by the vote of the board or by the vote of a committee authorized to exercise the powers of the board, except as to any matter not within the competence of the committee under Section 311 of the Corporations Code or any matter for which this division also requires approval of the shareholders or approval of the outstanding shares. 123. âApproved by (or approval of) the outstanding sharesâ has the meaning set forth in Section 152 of the Corporations Code and shall include approval by the affirmative vote of a majority of the outstanding shares of each class or series entitled, by any provision of the articles, of this division, or of Division 1 (commencing with Section 100), Title 1 of the Corporations Code, to vote as a class or series on the subject matter being voted upon, and shall also include approval by the affirmative vote of such greater proportion (including all) of the outstanding shares of any class or series if such greater proportion is required by the articles, by this division, or by Division 1 (commencing with Section 100), Title 1 of the Corporations Code. 124. âApproved by (or approval of) the shareholdersâ has the meaning set forth in Section 153 of the Corporations Code and shall include approval or ratification by the affirmative vote or written consent of such proportion (including all) greater than a majority of the shares of any class or series as may be provided in the
articles, in this division, or in Division 1 (commencing with Section 100), Title 1 of the Corporations Code for all or any specified shareholder action. 130. âCommon sharesâ has the meaning set forth in Section 159 of the Corporations Code. Contributed Capital definition
134. âContributed capitalâ means all of shareholdersâ equity other than retained earnings. However, nothing in this section shall prohibit a bank from transferring amounts from time to time from its retained earnings to its contributed capital, subject to any applicable statutes, regulations, and generally accepted accounting
principles. 139. âDistribution to its shareholdersâ has the meaning set forth in Section 166 of the Corporations Code. However, in Division 1 (commencing with Section 100), Title 1 of the Corporations Code and
in this division, 145. âSharesâ has the meaning set forth in Section 184 of the Corporations Code. 146. âShareholderâ has the meaning set forth in Section 185 of the Corporations Code. Again -- the Commissioner is boss
210. The chief officer of the Department of Financial Institutions is the Commissioner of Financial Institutions. The Commissioner of Financial Institutions is the head of the department and, except as otherwise provided in this code, is subject to the provisions of the Government Code relating to department heads, but need not reside in Sacramento. 215. The commissioner is responsible for the performance of all duties, the exercise of all powers and jurisdiction, and the assumption and discharge of all responsibilities vested by law in the department. The commissioner has and may exercise all the powers necessary or convenient for the administration and enforcement of,
among other laws, the laws described in Section 200. The commissioner may issue such rules and regulations consistent with law as he or she may deem necessary or advisable in executing the powers, duties, and responsibilities of the department. Incidental fees
253. (a) Whenever it is necessary for the commissioner to approve any instrument and to affix his or her official seal thereto, the commissioner shall charge a fee of twenty-five dollars ($25) therefor.
(b) Whenever it is proper for the department to furnish a copy of any paper that has been filed therein and to certify to the paper, the commissioner may charge twenty-five cents ($0.25) for each page
copied.
(c) Whenever the commissioner is required or requested to certify copies of documents, the commissioner may charge a fee of twenty-five dollars ($25) for certifying the copied documents and for affixing his or her official seal.. The commissioner publishes monthly reports
258. At least once each month, the commissioner shall issue and disseminate as the commissioner deems appropriate a bulletin containing the following information:
(a) Information regarding any of the following actions taken since issuance of the previous bulletin:
(1) The filing, approval, or denial under Chapter 3 (commencing with Section 350) of an application for authority to organize a California state bank, or the issuance under Chapter 3 of a certificate of authority to a California state bank. Pledge of securities ?????
259. Notwithstanding any other provision of this code, whenever any provision of this division requires the pledge of securities to be deposited with the Treasurer, to insure the performance of any act or duty, the securities after first being approved by the commissioner and upon the written order of the commissioner, shall be deposited with the Treasurer. The Treasurer, with the consent of the owner of the securities deposited or to be deposited with the Treasurer, may place the securities in the custody of a qualified trust company or bank in the same manner and under the same conditions provided in Article 3 (commencing with Section 16550) of Chapter 4 of Part 2 of Division 4 of Title 2 of the Government Code. State will charge $5,000 / year -- based on $2,000,000 on total resources (capital or assets?)
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 commissionerâs 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
Next $18
Next $80
Next $100
Next $800
Next $1,000
Next $4,000
Next $14,000
Next $20,000
Excess over $40,000 | 100.0
50.0
12.0
6.25
6.0
4.0
3.5
3.0
2.5
1.5 | $75 / hour fee for examinations
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. ?????????? one or more persons ???
350. When authorized by the commissioner as provided in this chapter a corporation may be formed by one or more persons in accordance with the laws of this state for the purpose of conducting a commercial banking business or a trust business, or both of them. The Corporate Securities Law shall not apply to securities issued by and representing an interest in or a direct obligation of a bank or trust company incorporated under the laws of this state. Close corporation -- IMPORTANT. DOES THIS MEAN THAT THE BANK MUST HAVE AT LEAST 35 STOCKHOLDERS? SECTION 158 OF THE CORPORATIONS CODE DESCRIBES A CLOSE COROPORATION AS ESSENTIALLY A CORPORATION THAT HAS A CLAUSE IN ITS ARTICLES THAT LIMIT THE STOCKHOLDERS TO 35. THAT SUGGESTS THE FOLLOWING QUESTION -- âIS A CORPORATION A CLOSE CORPORATION IF IT HAS 30 STOCKHOLDERS BUT DOES NOT HAVE THAT CLAUSE IN ITS ARTICLES. IN OTHER WORDS -- MUST A BANK HAVE MORE THAN 35 STOCKHOLDERS?
NOTE --THE LAW, AS WRITTEN, DOES NOT ACTUALLY SAY ANY BANK WITH LESS THAN 35 STOCKHOLDERS IS A CLOSE CORPORATION.
351. No bank shall be a close corporation (as defined in Section 158 of the Corporations Code). $5,000 application fee (is that fee gone -- even if application is turned down?)
360. The request for authority to organize and establish a corporation to engage in the banking or trust business shall be set forth in an application in such form and containing such information as the commissioner may require and shall be accompanied by a fee of five thousand dollars ($5,000). A meeting to discuss questions shall be held after the application is submitted --
360.5. Upon receiving a request for an application, the commissioner shall inform the prospective applicant in writing that the commissioner is available to confer with such prospective applicant in advance of the filing of an application for the purpose of discussing questions relating to such application. However, no application shall be decided in advance of filing. These are the only things that are supposed to be taken into consideration. There is no mention about a minimum size of the capitalization, so I suppose that means there is no minimum requirement.
361. Upon the filing of an application the commissioner shall make or cause to be made a careful investigation and examination relative to the following: Organizers have to have good character, reputation and motives
(a) The character, reputation, and financial standing of the organizers or incorporators and their motives in seeking to organize the proposed bank or trust company.
There must be a need for a bank
(b) The need for banking or trust facilities or additional banking or trust facilities, as the case may be, giving particular consideration to the adequacy of existing banking or trust facilities and the need for further banking or trust facilities.
The officers of the bank must be capable
(c) The character, financial responsibility, banking or trust experience, and business qualifications of the proposed officers of the bank or trust company.
The stockholders must be financially responsible and experienced
(d) The character, financial responsibility, business experience, and standing of the proposed stockholders and directors.
(e) Other facts and circumstances bearing on the proposed bank or trust company and its relation to the locality as in the opinion of the commissioner may be relevant. 362. The commissioner may give or withhold his or her approval of the application in his or her discretion, but he or she shall not approve the application until he or she has ascertained to his or her satisfaction:
There is a need for the bank
(a) That the public convenience and advantage will be promoted by the establishment of the proposed bank or trust company.
There is reasonable promise of success
(b) That the proposed bank or trust company will have a reasonable promise of successful operation.
There are no hidden motives
(c) That the bank is being formed for no other purpose than the legitimate objects contemplated by this division.
(d) That the proposed capital structure is adequate.
(e) That the proposed officers and directors have sufficient banking or trust experience, ability, and standing to afford reasonable promise of successful operation.
The name of the bank is legitimate
(f) That the name of the proposed bank or trust company does not resemble, so closely as to be likely to cause confusion, the name of any other bank or trust company transacting business in this state or which had previously transacted business in this state.
(g) That the applicant has complied with all of the applicable provisions of this division. 362.5. (a) In this section:
(b) For purposes of Section 362, the commissioner may find:
(1) That a proposed officer or director of a proposed bank or trust company does not have sufficient standing to afford reasonable promise of successful operation if such person has been convicted of, or has pleaded nolo contendere to, any crime involving fraud or dishonesty.
(2) That the establishment of a proposed bank or trust company will not promote the public convenience and advantage if any person who is proposed to control the proposed bank or trust company or any director or officer of such person has been convicted of, or has pleaded nolo contendere to, any crime involving fraud or dishonesty. (c) Subdivision (b) shall not be deemed to be the only grounds upon which the commissioner may find, for purposes of Section 362, that a proposed officer or director of a proposed bank or trust company does not have sufficient standing to afford reasonable promise of successful operation or that the establishment of a proposed bank or trust company will not promote the public convenience and advantage. 363. At least 30 days before denying an application, the commissioner shall by mail or other method of service give written notice of the intended denial of an application and of the right of the applicant to meet with the commissioner regarding the reasons for such denial. The request for such meeting shall be in writing and delivered to the commissioner within 20 calendar days of the date of giving of the notice of intended denial. If a request is made for such meeting, the application may not be denied until after the meeting.
Articles of Incorporation must be filed
400. The articles of incorporation of the proposed bank or trust company shall be submitted to the commissioner for his or her approval before they are filed with the Secretary of State pursuant to the Corporations Code. After the articles have been filed with the Secretary of State the proposed bank or trust company shall:
(a) File with the commissioner a copy of its articles of incorporation, certified by the Secretary of State.
(b) File with the commissioner a statement in the form and with any supporting data as the commissioner may require showing that the entire contributed capital has been fully paid in lawful money, unconditionally, and that the funds representing the contributed capital, less sums spent as authorized by this article for preopening expenditures are on deposit in a state or national bank in this state, subject to withdrawal on demand.
$2,500 fee
(c) Pay to the commissioner a fee of two thousand five hundred dollars ($2,500). A certificate of authorization to transact business is issued
401. If the commissioner finds that the proposed bank or trust company has in good faith complied with all the requirements of law and fulfilled all the conditions precedent to commencing business imposed by this code or by regulation, the commissioner shall, within 30 days after the statement and supporting data specified in Section 400 have been filed with him or her, issue in duplicate a certificate of authorization to transact business as a bank or trust company, as the case may be, and shall transmit one copy to the bank or trust company and place one copy on file in the department. The certificate of authorization shall state that the corporation named
therein has complied with all the provisions of this code governing organization of banks or trust companies and that it is authorized to transact the business specified therein.
402. It shall be unlawful to accept payment of subscriptions for shares of any corporation proposing to engage in the banking or trust business unless authority to organize such corporation has been granted by the commissioner. 403. No corporation organized to transact a commercial banking or trust business shall transact any business until the commissioner has issued his or her certificate authorizing it to transact such business. No bank or trust company shall incur any indebtedness except that which is incidental to its organization until the amount of its contributed capital has been fully paid in lawful money to the cashier or chief financial officer thereof. You have one year from the approval of the application to organize to incorporate
404. If the proposed bank or trust company fails to file evidence of incorporation and organization with the commissioner pursuant to Section 400 within one year after the approval of the application for authority to organize the bank or trust company, the right to organize the bank or trust company automatically terminates. ... Does not describe the place in business in any detail -- previously the law was that there had to be a separate building for a bank. In my opinion -- that leaves it open for being in a private residence. Note it make no mention of an online bank -- presumably they are OK.
540. As used in this article, âplace of businessâ means any place of business of a bank other than a head office, a branch office, or a place of business consented to by the commissioner pursuant to Section 776 of this code. 541. No bank shall establish or maintain a place of business unless it is authorized to do so by the commissioner. There is a $250 fee
542. An application for authority to establish and maintain a place of business shall be in such form and contain such information as the commissioner may prescribe, and shall be accompanied by a fee of two hundred fifty dollars ($250). 543. The commissioner may give or withhold approval of an application in his or her discretion, but he or she shall not approve the application until he or she has ascertained to his or her satisfaction that the public convenience and advantage will be promoted by the proposed place of business. 544. When the commissioner has approved an application, the commissioner shall issue a certificate in duplicate authorizing the bank to establish and maintain the place of business. The certificate shall specify the conditions, if any, under which the place of business may be established and maintained and the place where it will be located. The commissioner shall place one copy of the certificate on file with the department. The commissioner shall transmit one copy of the certificate to the applicant bank. Find out more about âpar valueâ of stock. In general, I THINK it is the price that the corporation will sell its treasury stock
620. A bank may, with the approval of its board, determine and from time to time redetermine the par value of any class or series of its shares unless its articles provide that such shares shall have par value and specify the par value of such shares.
Shares have to be paid for in cash
622. No bank shall issue any shares in consideration of:
(a) Services rendered in the organization of such bank; or
(b) Any note (whether or not negotiable and whether or not secured) made by the purchaser of such shares. These are the only factors to consider with regard to adequate capital.
660. In determining for purposes of this division whether the shareholdersâ equity of a bank or of a proposed bank is adequate, the commissioner shall consider:
(a) The nature and volume of the business of the bank;
(b) The amount, nature, quality, and liquidity of the assets of the bank;
(c) The amount and nature of the liabilities (including, but not limited to, any capital notes or debentures and any contingent liabilities) of the bank;
(d) The amount and nature of the fixed charges of the bank;
(e) The history of, and prospects for, the bank to earn and retain income;
(f) The quality of the operations of the bank;
(g) The quality of the management of the bank;
(h) The nature and quality of the ownership of the bank; and
(i) Such other factors as are in the opinion of the commissioner relevant. Tells how profits and capital are to be handled
661. For purposes of any statute, regulation, or requirement of any governmental official or agency which refers to the capital (including, without limitation, stated capital, paid-in capital, and paid-up capital, but excluding contributed capital), surplus, or undivided profits of a bank, a bank, with the approval of its board, may establish and maintain capital, surplus, and undivided profits accounts and may from time to time allocate and reallocate its shareholdersâ equity among such accounts; provided, however:
(a) That no part of the contributed capital of the bank shall be allocated to the undivided profits account of the bank;
(b) That the undivided profits account of the bank shall at no time exceed the retained earnings of the bank; and
(c) That, in case the articles of the bank provide that any of the bankâs shares shall have par value and specify the par value of such shares or in case the bank has determined the par value of any of its shares pursuant to Section 620, the capital account of the bank shall be not less than the aggregate par value of such shares which
are outstanding. The bank can sell notes and debentures (the right to buy stock??). I donât think we will ever do this.
670. A bank at any time may, with the approval of its board, issue, sell or hypothecate its capital notes or debentures which may be payable upon such terms and may bear such rate of interest, if any, as may be provided therein or which may be convertible into shares. Such capital notes and debentures shall be subordinate to the claims of creditors and depositors and it shall be provided in any such capital notes or debentures that in the event of liquidation all depositors and other creditors of the bank shall be entitled to be paid in full with such interest as may be provided by law before any payment shall be made on account of principal of or interest on such capital notes or debentures and it may be provided in any such capital notes or debentures that after payment in full of all sums owing to such depositors and creditors the holders of such capital notes or debentures shall be entitled to be paid from the remaining assets of the bank the unpaid principal amount of the capital notes or debentures plus accrued and unpaid interest thereon before any payment or other distribution, whether in cash, property or otherwise, shall be made on account of any shares of the bank. It shall be provided in such capital notes or debentures that no payment shall at any time be made on account of the principal thereof, unless following such payment the aggregate of the shareholdersâ equity and capital notes or debentures thereafter outstanding shall be the equal of such aggregate at the date of the original issue of such capital notes or debentures, or as may be otherwise authorized by the commissioner. You need 5 to 25 directors
680. The board of a bank or trust company hereafter organized shall consist of not less than five nor more than 25 directors, and no bank or trust company shall amend its articles or bylaws so as to reduce the number of directors below five. You canât sell stock without permission -- or change rights of stockholders
688. (a) For purposes of Section 316 of the Corporations Code, the making of a loan or guarantee by a bank or any other extending of credit by a bank contrary to any provision of this division shall be deemed to be contrary to Section 315 of the Corporations Code. 691. No bank organized under the laws of this state shall offer or sell any security issued by it unless the commissioner has issued a permit authorizing such sale. 692. An application for a permit shall be in such form and contain such information as the commissioner may prescribe. 692.1. The commissioner shall charge and collect fees for applications filed under this article as fixed in this section.
(a) The fee for a negotiating permit shall be fifty dollars ($50). (b) The fee for a permit to exchange a security or to make any change in the rights, preferences, privileges, or restrictions of or on outstanding securities shall be fifty dollars ($50). (c) The fee for any permit to sell securities other than as specified in subdivision (b) shall be one hundred dollars ($100) plus one-tenth of one percent (0.1%) of the aggregate value of the securities sought to be sold, up to a maximum aggregate fee of one thousand seven hundred fifty dollars ($1,750). 693. If the commissioner finds that the proposed sale of securities is fair, just, and equitable, he or she shall issue to the applicant a permit authorizing it to offer and sell the securities in such amount and upon such terms and conditions as he or she may provide in the permit. If the commissioner finds otherwise, he or she shall deny the application. 698. Nothing contained in this article shall affect the Corporate Securities Law of 1968, Division 1 (commencing with Section 25000) of Title 4 of the Corporations Code. 700. Unless the context otherwise requires, in this article:
(a) âBankâ means a bank organized under the laws of this state. Control of the bank is 25% or more
(b) âControlâ means possession, direct or indirect, of the power: (1) To vote 25 percent or more of any class of the voting securities issued by a person; or
(2) To direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract (other than a commercial contract for goods or nonmanagement services), or otherwise; provided, however, that no individual shall be deemed to control a person solely on account of being a director, officer, or employee of such person.
MAY become a member of the Federal Reserve System? Isnât it necessary? If you do not join, what are the reserve requirements and where are those reserves deposited?
754. A bank or trust company may become a member of the Federal Reserve System, may subscribe for, purchase, and hold the amounts of the capital stock of the Federal Reserve bank serving the district in which the bank or trust company is located as may be required to maintain the membership and, when not in conflict with the laws of this state, may exercise all powers conferred upon the members and may assume and discharge all obligations required of the members. What is Federal Home Bank Act -- does that affect a starting bank?
A bank or trust company may become a member of a federal home loan bank in the manner provided in the Federal Home Loan Bank Act, and, for the purpose of becoming a member, may invest any part of its shareholdersâ equity in the capital stock of the federal home loan bank as may be required by the provisions of the Federal Home Loan Bank Act. Notice âMAY BECOMEâ -- can we operate without insurance. For reverse mortgages -- I see no need for insurance.
755. A bank may become a member of the Federal Deposit Insurance Corporation or of any successor corporation having for its purpose the insurance of deposits and may do all things and assume and discharge all obligations required of such members when not in conflict with the laws of this State. 756. A bank or trust company may become a member of any federal agency, membership in which is open to banking institutions, and may comply with all the requirements and conditions imposed upon such members when not in conflict with the laws of this state, except that the power conferred by this section shall not be exercised unless the commissioner makes a general order authorizing banks generally as a class, or trust companies generally as a class, or banks doing a commercial or trust business, respectively, as a class, to become such members upon such terms and conditions as may be prescribed in such order. Can invest 2% of shareholders equity in charitable organizations
760.1. A bank may invest in shares of the stock of one or more corporations which are engaged primarily in civic, public, or social welfare activities. The total amount invested by a bank in shares of the stock of any one such corporation shall not exceed 2 percent of the bankâs shareholdersâ equity and the total amount invested by a
bank in shares of the stock of all such corporations shall not exceed 5 percent of the bankâs shareholdersâ equity. 763. The amount of funds of a bank or trust company which are deposited in any other financial institution (except a Federal Reserve bank) shall not at any time exceed 10 percent of the sum of the shareholdersâ equity, allowance for loan losses, capital notes, and debentures of the depositing bank or trust company unless the financial institution has been designated as a depositary for the funds of the depositing bank or trust company by the vote of a majority of the directors of the depositing bank or trust company, and unless the financial institution has been approved by the commissioner as a depositary for the purposes of this section. The commissioner may in his or her discretion revoke his or her approval of any such depositary and may in his or her discretion limit the amount of funds that may be deposited by any bank or trust company with any other financial institution. A deposit by one bank or trust company with another financial institution shall not be regarded as a loan. Can support an SBIC -- up to 10% of stockholders equity
769. A bank may purchase and hold the stock of small business investment companies authorized to operate under the Small Business Investment Act, as amended, in an amount not aggregating more than 10 percent of the bankâs shareholdersâ equity. Can buy into corporation operating under Title IX of the Housing and Urban Development Act of 1968. What is this about?
774. Subject to such regulations and rules as the commissioner may prescribe, a bank may acquire and hold shares of stock issued by a corporation authorized to be created pursuant to Title IX of the Housing and Urban Development Act of 1968, and may make investments in a partnership, limited partnership, or joint venture formed pursuant to Section 907(a) or 907(c) of such act. With regard to a place of business -- it does not rule out a home. ALSO -- WHAT ABOUT AN ONLINE BANK? WHERE IS THE OFFICE OF AN ONLINE BANK -- CAN IT BE A PRIVATE HOME?
776. (a) Every bank and branch shall conduct all of its business in one building or in adjoining buildings except that under special circumstances a bank or branch may conduct a portion of its business at an extension office elsewhere in the same vicinity provided the notice requirements of subdivision (b) are complied with and provided further that the commissioner either (1) issues a written statement not objecting to the notice or (2) does not issue a written objection to the notice.
A bank may provide consulting for a fee
777. A commercial bank may provide management consulting advice and services and may charge a fee therefor. ---------------------- end ------------------------------- |