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Can you summarize Fin Code CACL Division 1 Chapter 5?
FINANCIAL INSTITUTIONS [99. - 819.] > Examinations and Reports-Banking [500. - 521.]
Short Summary
This section of the California Financial Code governs the examinations of California state banks, foreign banks, and California state trust companies. It defines a ‘foreign bank’ as the business in California of every foreign bank licensed under Article 3 of Chapter 20 of Division 1.1. The commissioner is responsible for causing examinations to be conducted on California state banks and foreign banks, with a minimum frequency of once every 12 months. However, certain banks meeting federal criteria may be examined pursuant to federal law. California state trust companies are required to be examined at least once every 24 months. The commissioner also has the authority to examine subsidiaries of California state banks, state trust companies, and foreign banks. The officers and employees of the banks being examined are required to cooperate and provide access to relevant securities, books, records, and accounts. This section was added to the Financial Code in 2011 and became effective on January 1, 2012.
Whom does it apply to?
California state banks, foreign banks, and California state trust companies
What does it govern?
Examinations of California state banks, foreign banks, and California state trust companies
What are exemptions?
Certain banks meeting federal criteria may be examined pursuant to federal law
What are the Penalties?
No specific penalties mentioned
Jurisdiction
California