§ 1390 Bank Agency Termination Authority

Financial Code·California

AI SummaryVerified

This law says the banking boss can stop a bank from working with another company if the work isn't allowed or is risky for the bank.

Key Takeaways

•The banking boss (commissioner) can stop a bank from working with another company if the work isn’t allowed.
•The boss can also stop it if the work is risky or unsafe for the bank.
•The bank has to listen and end the deal if ordered.

Example

A bank hires a company to handle customer loans, but the company starts doing shady stuff like hiding fees.

The banking boss can tell the bank to stop working with that company because it’s breaking the rules or putting the bank in danger.

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

Official Source

View on CA.gov

§ 1390 Bank Agency Termination Authority

If the commissioner finds that any activity performed by an insured depository institution as agent for a California state bank is not an authorized agency activity 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. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)

Last verified: January 11, 2026

Key Terms

commissioner insured depository institution California state bank authorized agency activity safe and sound banking practices terminate the agency arrangement

References

Official text at leginfo.legislature.ca.gov
California Legislature. Financial Code. Section 1390.

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Key Takeaways

Example

Key Terms

Related Statutes

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