820-826

FINANCIAL CODE
SECTION 820-826




820.  Notwithstanding the provisions of Chapter 4 (commencing with
Section 500) and Section 776, a California state bank may, with the
prior approval of the commissioner and subject to any regulations
that the commissioner may prescribe, engage in authorized agency
activities as agent for an insured depository institution.




821.  An application by a California state bank for approval to
engage in authorized agency activities as agent for an insured
depository institution shall be in the form, shall contain the
information, shall be signed in the manner, and shall, if the
commissioner so requires by regulation or order, be verified in the
manner that the commissioner may, by regulation or order, require.



822.  An application by a California state bank for approval to
engage in authorized agency activities as agent for an insured
depository institution shall be accompanied by a filing fee of two
hundred fifty dollars ($250).


823.  In determining whether to approve or deny an application by a
California state bank for approval to engage in authorized agency
activities as agent for an insured depository institution, the
commissioner shall consider both of the following factors:
   (a) Whether the proposed agency arrangement is consistent with the
safe and sound operation of the California state bank.
   (b) Any other factors that the commissioner deems relevant.



824.  No California state bank may conduct any activity as an agent
for an insured depository institution that the California state bank
would be prohibited from conducting as a principal.



825.  (a) No office of a California state bank that conducts
authorized agency activities as agent for an insured depository
institution in accordance with this article shall, on that account,
be deemed to be an office of the insured depository institution.
   (b) For purposes of this division, no insured depository
institution that has a California state bank engaged in authorized
agency activities as its agent shall on that account be deemed to be
transacting business in this state.



826.  If the commissioner finds that any activities performed by a
California state bank as agent for an insured depository institution
are not authorized agency activities or that the agency arrangement
is inconsistent with safe and sound banking practices, the
commissioner may order the California state bank to terminate the
agency arrangement.