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HomeFinancial CodeDiv. 2Ch. 7Art. 6§ 8229 Conservator Savings Account Rules

§ 8229 Conservator Savings Account Rules

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

§ 8229 Conservator Savings Account Rules

Key Takeaways

  • •If a bank is being managed by a conservator, you still have to pay back loans or deposits as agreed in your contract.
  • •The conservator can let you withdraw your savings, but they can't give you interest on it without approval.
  • •The conservator can take new deposits, but these might be kept separate and not used to pay off the bank's old debts.
  • •All the bank's costs during this time are paid by the bank itself.

Example

You have a savings account at a bank that is now being managed by a conservator.

You can still deposit or withdraw money, but you might not earn any interest on your savings until the conservator gets approval. Also, if you took a loan from the bank, you still have to pay it back as you promised.

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

Official Source
View on CA.gov

§ 8229 Conservator Savings Account Rules

(a) While the association is in the charge of a conservator, savings account holders, borrowers, and other obligors of the association shall continue to make payments to the association in accordance with the terms and conditions of their contracts, and the conservator may permit savings account holders to withdraw their accounts from the association pursuant to the provisions of this division but shall not declare, credit, or distribute interest for savings accounts without prior approval of the commissioner. (b) The conservator shall have power to accept savings accounts and additions to savings accounts, but any amounts received by the conservator may be segregated if the commissioner shall so order in writing. If so ordered, these amounts shall not be subject to offset and shall not be used to liquidate any indebtedness of the association existing at the time the conservator was appointed for it or any subsequent indebtedness incurred for the purposes of liquidating the indebtedness of the association existing at the time the conservator was appointed. (c) All expenses of the association during conservatorship shall be paid by the association. (Amended by Stats. 1984, Ch. 868, Sec. 17.7.)

Last verified: January 23, 2026

Key Terms

associationcommissioncontractinstitutionaccordanceconservatorship

Related Statutes

  • § 8010 Asset Overvaluation Adjustment
  • § 8035 Domestic Association Asset Acquisition
  • § 8158 Financial Records Access Authority
  • § 8201 Savings Association Removal Authority
  • § 8225 Commissioner Authority Over Associations

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Financial Code. Section 8229.
View Official Source