LawWiki
HomeCodesSearchGlossaryAPIAbout
LawWiki

Plain English summaries of California law with zero-hallucination AI. Every summary is verified against official source text.

Product

  • Search
  • Codes
  • About

Legal

  • Privacy Policy
  • Terms of Service
  • Disclaimer

© 2026 LawWiki. All rights reserved.

HomeFinancial CodeDiv. 1Ch. 6Art. 1§ 554 Emergency Commissioner Actions

§ 554 Emergency Commissioner Actions

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

§ 554 Emergency Commissioner Actions

Key Takeaways

  • •If the boss (commissioner) takes over a bank or punishes someone without warning, they must give a written note right away explaining why.
  • •The note must clearly say what the bank or person did wrong.
  • •If the boss takes over a bank, they need strong proof to show why it was necessary.

Example

A bank is in big trouble because it lost a lot of money and can't pay people back.

The boss (commissioner) can take over the bank right away, but they must give the bank a written note at the same time. The note must say exactly why the bank is in trouble, like 'You lost too much money and can't pay people.' The boss also needs strong proof, like bank records, to show why taking over was the right thing to do.

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

Official Source
View on CA.gov

§ 554 Emergency Commissioner Actions

If the commissioner takes possession of a subject institution without a prior notice or hearing, or takes action against a subject person without prior notice or hearing, the commissioner shall, upon taking possession or taking that action, concurrently provide to the subject institution or subject person a written order. The order shall set forth the condition or conditions of the subject institution or action or actions of the subject person that constitute the basis or bases for the commissioner’s action. In any case where the commissioner takes possession of a subject institution, the commissioner shall establish, by clear evidence, the basis for his or her action. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)

Last verified: January 23, 2026

Key Terms

institutionpossessioncommissionhearingconditionevidence

Related Statutes

  • § 582 Inaccurate Records Order
  • § 551 Hearing Waiver Rights
  • § 552 Order Hearing And Rescission
  • § 553 Commissioner Enforcement Orders
  • § 581 Emergency Cease And Desist

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Financial Code. Section 554.
View Official Source