§ 1334 Bank Officer Loan Limits

Financial Code·California

AI SummaryVerified

This law says bank workers can't promise to pay back more money than the bank is allowed to lend. If they do, they can get in trouble.

Key Takeaways

•Bank workers can't promise to pay back more money than the bank is allowed to lend.
•If they do, they can be charged with a crime called a misdemeanor.
•This law is about keeping banks safe and following the rules.

Example

A bank worker signs a paper saying the bank will pay back a $1 million loan, but the bank's rules say they can only lend $500,000.

The worker broke the law by promising more money than the bank is allowed to lend.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 1334 Bank Officer Loan Limits

An officer or agent of any bank in this state, who makes or delivers any guaranty or endorsement on behalf of such bank, whereby it may become liable upon any of its discounted notes, bills or obligations, in a sum beyond the amount of loans and discounts which such bank may legally make, is guilty of a misdemeanor. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)

Last verified: January 11, 2026

Key Terms

guaranty endorsement misdemeanor loans and discounts

References

Official text at leginfo.legislature.ca.gov
California Legislature. Financial Code. Section 1334.

Key Takeaways

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Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References