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HomeFinancial CodeDiv. 1.6Ch. 3Art. 2§ 4861 Seller Post-Sale Obligations

§ 4861 Seller Post-Sale Obligations

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

§ 4861 Seller Post-Sale Obligations

Key Takeaways

  • •After selling their business, the seller must give back any official papers or licenses they got from the government.
  • •The seller might also have to write a report about the sale if the government asks for it.
  • •If the seller is a special kind of California bank, they have to close down unless the government lets them change into a different kind of company.

Example

A small local bank in California sells its business to a bigger bank.

After the sale, the small bank must return its banking license to the government and might have to write a report about the sale. If the government allows it, the small bank could change into a different type of company instead of closing down completely.

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

Official Source
View on CA.gov

§ 4861 Seller Post-Sale Obligations

Promptly after a sale becomes effective: (a) The seller shall: (1) Surrender to the commissioner for cancellation the certificates of authority or licenses issued to it by the commissioner. (2) File with the commissioner any report regarding the sale that the commissioner may require. (b) In case the seller is a California state depository corporation, the seller shall wind up and dissolve. However, if the seller is a California state bank, the seller may, in the alternative and with the approval of the commissioner, change into a nonbank corporation by amending its articles and changing its name. (Amended by Stats. 1996, Ch. 1064, Sec. 495. Effective January 1, 1997. Operative July 1, 1997.)

Last verified: January 23, 2026

Key Terms

corporationcommissionportlicenseoperative julycancellationauthority

Related Statutes

  • § 4874 Seller Post-Sale Obligations
  • § 4876.08 Bank Sale Post-Approval Requirements
  • § 4877.06 Branch Sale Reporting Requirements
  • § 4878.07 Bank Trust Business Sale
  • § 4846 Bank Business Unit Sales

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Financial Code. Section 4861.
View Official Source