§ 1396 Bank Agency Activities Exemption

• •A California state bank’s office stays a state‑bank office, not the agent bank’s office.
• •The insured bank that uses the state bank as an agent isn’t automatically considered to be doing business in California.
• •This keeps the insured bank from having to follow extra California business rules just because it has an agent there.

A bank from Nevada hires a California state bank to collect loan payments from borrowers in California.

Even though the California state bank’s office handles the payments, the law says that office is still just a California state bank office, not a Nevada‑bank office, and the Nevada bank isn’t treated as if it’s running a business in California.