§ 1428 Withdrawal Period Exceptions

Financial Code·California

AI SummaryVerified

The law lets the financial regulator change how quickly people can take money out of deposits if keeping the original rule would put a bank in an unsafe or unsound condition.

Key Takeaways

•The regulator can adjust withdrawal timing for deposits.
•The change is only allowed if the current rule would cause unsafe or unsound banking practices.
•This applies to banks that fall under the regulator's authority.

Example

A bank wants to let customers withdraw their savings immediately, but the regulator worries that allowing instant withdrawals could cause the bank to fail.

Because the original withdrawal rule might lead to unsafe practices, the regulator can issue a new rule that gives the bank a longer waiting period before customers can take their money out.

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

Official Source

View on CA.gov

§ 1428 Withdrawal Period Exceptions

The commissioner is authorized to issue regulations which provide for a different period of time for withdrawal as a matter of right against deposited items, if there has been a determination that the application of the regulations adopted pursuant to this article would result in unsafe or unsound practices by a depository institution subject to the regulatory jurisdiction of the commissioner. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)

Last verified: January 11, 2026

Key Terms

commissioner withdrawal as a matter of right deposited items unsafe or unsound practices depository institution

References

Official text at leginfo.legislature.ca.gov
California Legislature. Financial Code. Section 1428.

§ 1428 Withdrawal Period Exceptions

Financial Code·California

AI SummaryVerified

§ 1428 Withdrawal Period Exceptions

The law lets the financial regulator change how quickly people can take money out of deposits if keeping the original rule would put a bank in an unsafe or unsound condition.

Key Takeaways

•The regulator can adjust withdrawal timing for deposits.
•The change is only allowed if the current rule would cause unsafe or unsound banking practices.
•This applies to banks that fall under the regulator's authority.

Example

A bank wants to let customers withdraw their savings immediately, but the regulator worries that allowing instant withdrawals could cause the bank to fail.

Because the original withdrawal rule might lead to unsafe practices, the regulator can issue a new rule that gives the bank a longer waiting period before customers can take their money out.

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

Official Source

View on CA.gov

§ 1428 Withdrawal Period Exceptions

Last verified: January 11, 2026

Key Terms

commissioner withdrawal as a matter of right deposited items unsafe or unsound practices depository institution

References

Official text at leginfo.legislature.ca.gov
California Legislature. Financial Code. Section 1428.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References