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HomeFinancial CodeDiv. 1Ch. 6Art. 1§ 553 Commissioner Enforcement Orders

§ 553 Commissioner Enforcement Orders

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

§ 553 Commissioner Enforcement Orders

Key Takeaways

  • •If a bank or person breaks the rules and makes money unfairly, they might have to pay it back or cover losses.
  • •The bank might be stopped from growing or have to sell off loans or assets if they did something wrong.
  • •The bank could be forced to fix mistakes, hire better workers, or stop doing certain things if they broke the law.

Example

A bank gives out risky loans it shouldn't and makes a lot of money from them.

The bank might have to pay back the money it made unfairly, stop giving out those loans, or even sell them off to fix the problem.

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

Official Source
View on CA.gov

§ 553 Commissioner Enforcement Orders

In addition to any other action or requirement the commissioner deems necessary or advisable, an order issued pursuant to Section 580, 581, 582, 585, 586, or 587 may require the person subject to the order to do any of the following: (a) Make restitution or provide reimbursement, indemnification, or guarantee against loss, if the subject institution, subject person, or holding company was unjustly enriched by the action or violation or if the action or violation involved a reckless disregard for any provision of this division, of any regulation or order issued under this division, of any other applicable law, or of any agreement with the commissioner. (b) Restrict the growth of the subject institution. (c) Dispose of any loan or other asset. (d) Correct violations of law. (e) Employ qualified officers or employees, who may be subject to approval of the commissioner. (f) Limit the activities or functions of the subject institution, subject person, or holding company. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)

Last verified: January 23, 2026

Key Terms

restitutionagreementregulationinstitutioncommissionemployeeviolationaddition

Related Statutes

  • § 566 Commissioner Enforcement Actions
  • § 580 Cease And Desist Orders
  • § 585 Bank Officer Removal Authority
  • § 23051 Commissioner Enforcement Authority
  • § 5330 Civil Penalties Savings Associations

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Financial Code. Section 553.
View Official Source