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HomeFinancial CodeDiv. 1.1Ch. 16Art. 1§ 1551 Bank Trust Business Authorization

§ 1551 Bank Trust Business Authorization

Financial Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 1551 Bank Trust Business Authorization

This law lets certain banks do trust work if they get permission from the commissioner, follow most banking rules, and pay a $1,000 fee when they apply.

Key Takeaways

  • •Banks need the commissioner's permission to offer trust services.
  • •They must follow most rules in the chapter except Section 1580.
  • •An application must include specific information and a $1,000 fee.

Example

A community bank wants to manage college savings accounts for families.

The bank must first get approval from the commissioner, submit an application with required details and a $1,000 fee, and then it can handle those accounts while following most banking rules but not the rules in Section 1580.

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

Official Source
View on CA.gov

§ 1551 Bank Trust Business Authorization

Any commercial bank or industrial bank, with the prior authorization of the commissioner, may engage in the trust business, if its articles comply with the requirements of subdivision (b) of Section 1100. Any bank so authorized shall, in the conduct of its trust business, comply with and be governed by all of the provisions of this chapter, except the provisions of Section 1580. An application for such authorization shall be in such form and contain such information as the commissioner may require, and be accompanied by a fee of one thousand dollars ($1,000). (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)

Last verified: January 11, 2026

Key Terms

commercial bankindustrial banktrust businesscommissionerSection 1100Section 1580

Related Statutes

  • § 1100 Bank Purpose Statements
  • § 1550 Corporate Trust Business Requirements
  • § 1552 Bank Trust Business Locations
  • § 1554 National Bank Trust Requirements
  • § 1556 Trust Business Interest Exemption

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Financial Code. Section 1551.
View Official Source