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HomeFinancial CodeDiv. 1.1Ch. 19Art. 2§ 1681 Foreign Bank Exemptions

§ 1681 Foreign Bank Exemptions

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

§ 1681 Foreign Bank Exemptions

This law says that out‑of‑state banks that don’t have a California branch are still allowed to do three things: follow the rules in Section 191(d) of the Corporations Code, make loans on California real‑estate, and use a California bank as their agent.

Key Takeaways

  • •Out‑of‑state banks without a CA branch can still do the activities listed in Section 191(d).
  • •They can make loans in California that are backed by California property.
  • •They can have a California state bank serve as their agent.

Example

A bank based in Texas, with no office in California, wants to give a loan to a family buying a house in Los Angeles.

Even though the Texas bank has no California branch, the law lets it make that loan (secured by the California house) and let a local California bank act as its representative for the deal.

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

Official Source
View on CA.gov

§ 1681 Foreign Bank Exemptions

Section 1680 does not prohibit: (a) Any foreign (other state) state bank that does not maintain a California branch office from carrying on the activities described in subdivision (d) of Section 191 of the Corporations Code. (b) Any foreign (other state) state bank that does not maintain a California branch office from making, in this state, loans secured by liens on real property located in this state. (c) Any foreign (other state) state bank from having a California state bank as its agent pursuant to Chapter 6.5 (commencing with Section 800). (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)

Last verified: January 11, 2026

Key Terms

foreign state bankCalifornia branch officesubdivision (d) of Section 191loans secured by liensChapter 6.5

Related Statutes

  • § 1680 Foreign Bank Branch Requirements
  • § 1682 Foreign Bank Branch Requirements
  • § 1683 Foreign Bank Branch Insurance
  • § 1684 Foreign Bank Mergers Restrictions
  • § 1685 Foreign Bank Merger Restrictions

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Financial Code. Section 1681.
View Official Source