§ 1680 Foreign Bank Branch Requirements

Financial Code·California

AI SummaryVerified

This law says a bank from another state can only do regular banking in this state if it has a branch that follows both federal rules and the rules of the state where the bank is based.

Key Takeaways

•Out‑of‑state banks need a branch to do regular banking here.
•The branch must follow federal banking rules.
•The branch must also follow the banking rules of the bank’s home state.

Example

Bank XYZ is based in State A but wants to let people in our state open checking accounts.

Bank XYZ must first set up a branch here that obeys federal banking law and State A's banking law; only then can it let people open accounts or do other core banking services.

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

Official Source

View on CA.gov

§ 1680 Foreign Bank Branch Requirements

No foreign (other state) state bank may transact core banking business in this state except at a branch office established in accordance with federal law and the law of the domicile of the bank. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)

Last verified: January 11, 2026

Key Terms

foreign state bank core banking business branch office federal law law of the domicile

References

Official text at leginfo.legislature.ca.gov
California Legislature. Financial Code. Section 1680.

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Key Takeaways

Example

Key Terms

Related Statutes

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