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HomeFinancial CodeDiv. 5Ch. 12Art. 6§ 16604 Foreign Credit Union Assets

§ 16604 Foreign Credit Union Assets

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

§ 16604 Foreign Credit Union Assets

This law says that a foreign credit union with a licensed office here must keep that office's money separate from its other money, and anyone the office owes money to gets paid before other creditors.

Key Takeaways

  • •Foreign credit unions must keep office assets separate from other assets.
  • •Creditors of the local office have priority over other creditors.
  • •The rule applies only to licensed foreign credit union offices in this state.

Example

A credit union from another country opens a branch in this state and buys computers from a local supplier.

The branch must keep its cash in its own account, not mixed with the credit union's other funds. If the branch runs out of money and can't pay the supplier, the supplier gets paid first from the branch's cash before any other debts are settled.

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

Official Source
View on CA.gov

§ 16604 Foreign Credit Union Assets

(a) A foreign (other nation) credit union which is licensed to establish and maintain an office or offices shall keep the assets of the offices separate and apart from the assets of its business outside this state. (b) Persons who are creditors of a foreign (other nation) credit union as a result of the business of an office of the foreign (other nation) credit union in this state shall be entitled to priority over other creditors with respect to the assets of the business in this state of the foreign (other nation) credit union. (Added by Stats. 2000, Ch. 612, Sec. 4. Effective January 1, 2001.)

Last verified: January 11, 2026

Key Terms

foreign (other nation) credit unionassetscreditorspriority

Related Statutes

  • § 16103 Foreign Credit Union Assets
  • § 16600 Foreign Credit Union Activities
  • § 16602 Foreign Credit Union Rules
  • § 16603 Foreign Credit Union Exemption
  • § 16607 Foreign Credit Union Assets

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Financial Code. Section 16604.
View Official Source