Financial Code

§ 1 This act is known and may be cited as the Financial Code. (Enacted by Stats. 1951, Ch. 364.) § 2 The provisions of this code insofar as they are substantially the same as existing statutory provisions relating to the same subject matter shall be construed as restatements and continuations, and not as new enactments. (Enacted by Stats. 1951, Ch. 364.) § 3 Any action or proceeding commenced before this code takes effect, or any right accrued, is not affected by this code, but all procedure taken shall conform to the provisions of this code as far as possible. (Enacted by Stats. 1951, Ch. 364.) § 4 Unless the context otherwise requires the general provisions hereinafter set forth govern the construction of this code. (Enacted by Stats. 1951, Ch. 364.) § 5 Division, part, chapter, article, and section headings do not in any manner affect the scope, meaning, or intent of the provisions of this code. (Enacted by Stats. 1951, Ch. 364.) § 6 Whenever a power is granted to, or a duty imposed on any person or board by any provision of this code, it may be exercised or performed by any deputy or person authorized by the person or board to whom the power is granted or on whom the duty is imposed, unless it is expressly provided that the power or duty shall be exercised or performed only by the person or board to whom the power is granted or on whom the duty is imposed. (Enacted by Stats. 1951, Ch. 364.) § 7 Whenever any reference is made to any portion of this code or of any other law, the reference applies to all amendments and additions thereto, now or hereafter made. (Enacted by Stats. 1951, Ch. 364.) § 8 “Writing” includes any form of recorded message capable of comprehension by ordinary visual means. Whenever any notice, report, petition, permit, statement, or record is required by this code, it shall be made in writing in the English language. Wherever any notice or other communication is required by this code to be mailed by registered mail by or to any person or corporation, the mailing of such notice or other communication by certified mail shall be deemed to be a sufficient compliance with the requirements of law. (Amended by Stats. 1959, Ch. 426.) § 9 “Section” means a section of this code unless some other statute is specifically mentioned, and “subdivision” means a subdivision of the section in which the term occurs unless some other section is expressly mentioned. (Enacted by Stats. 1951, Ch. 364.) § 10 The present tense includes the past and future tenses; and the future, the present. (Enacted by Stats. 1951, Ch. 364.) § 11 The masculine gender includes the feminine and neuter. (Enacted by Stats. 1951, Ch. 364.) § 11.2 “Spouse” includes “registered domestic partner,” as required by Section 297.5 of the Family Code. (Added by Stats. 2016, Ch. 50, Sec. 36. (SB 1005) Effective January 1, 2017.) § 12 The singular number includes the plural and the plural the singular. (Enacted by Stats. 1951, Ch. 364.) § 13 “City” includes incorporated city, city and county, municipal corporation, municipality, town and incorporated town. (Enacted by Stats. 1951, Ch. 364.) § 14 “County” includes city and county. (Enacted by Stats. 1951, Ch. 364.) § 15 “Shall” is mandatory and “may” is permissive. (Enacted by Stats. 1951, Ch. 364.) § 16 “Oath” includes affirmation. (Enacted by Stats. 1951, Ch. 364.) § 17 “Signature” or “subscription” includes mark. The mark shall be made as required in the Civil Code. (Enacted by Stats. 1951, Ch. 364.) § 18 “Person” includes any person, firm, partnership, association, corporation, company, limited liability company, syndicate, estate, trust, business trust, or organization of any kind. (Amended by Stats. 1994, Ch. 1010, Sec. 108. Effective January 1, 1995.) § 19 If any provision of this code, or its application to any person or circumstance, is held invalid, the remainder of the code, or the application of the provision to other persons or circumstances is not affected. (Enacted by Stats. 1951, Ch. 364.) § 20 The existence of corporations formed or existing on the date this code takes effect is not affected by the enactment of this code nor by any change in the requirements for the formation of corporations, nor by the amendment or repeal of the laws under which they were formed or created. (Enacted by Stats. 1951, Ch. 364.) § 21 All persons who, at the time this code goes into effect, hold office under any of the acts repealed by this code, which offices are continued by this code, continue to hold them according to their former tenure. (Enacted by Stats. 1951, Ch. 364.) § 22 Notwithstanding any other provision of this code, Chapter 10 (commencing with Section 10000) of Division 2 shall be known and may be cited as the Vuich-Calderon Financial Institutions Act of 1986. (Amended by Stats. 2000, Ch. 375, Sec. 8. Effective January 1, 2001.) § 99 Division 1, Chapter 1 This division, Division 1.1 (commencing with Section 1000), Division 1.2 (commencing with Section 2000), Division 1.6 (commencing with Section 4800), Division 2 (commencing with Section 5000), Division 5 (commencing with Section 14000), Division 7 (commencing with Section 18000), and Division 15 (commencing with Section 31000) shall be known, and may be cited, as the “Financial Institutions Law.” (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 101 Division 1, Chapter 1 If and to the extent that any provision of the Financial Institutions Law is preempted by federal law, the provision does not apply and shall not be enforced. (Amended by Stats. 2013, Ch. 334, Sec. 6. (SB 537) Effective January 1, 2014.) § 103 Division 1, Chapter 1 The word “bank” as used in the Financial Institutions Law means any incorporated banking institution that shall have been incorporated to engage in commercial banking business, industrial banking, or trust business. (Amended by Stats. 2013, Ch. 334, Sec. 7. (SB 537) Effective January 1, 2014.) § 105 Division 1, Chapter 1 Banks are divided into the following classes: (a) Commercial banks. (b) Industrial banks. (c) Trust companies. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 107 Division 1, Chapter 1 “Commercial bank” means a corporation organized for the purpose of engaging in the commercial banking business. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 109 Division 1, Chapter 1 “Commercial banking business” includes, but is not limited to, the business of soliciting, receiving, or accepting of money or its equivalent on deposit as a regular business whether the deposit is made subject to check or is evidenced by a certificate of deposit, a passbook, a note, a receipt, or other writing, provided that nothing herein shall apply to or include money or its equivalent left in escrow, or left with an agent pending investment in real estate or securities for, or on account of, his or her principal. In addition, “commercial banking business” means to lend money on the security of real or personal property or without security; to discount or deal in bills, notes, or other commercial paper; to buy and sell for the account of customers, and, if eligible for investment, for its own account, securities, gold and silver bullion, foreign coins, and bills of exchange; and generally to transact a commercial banking business. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 111 Division 1, Chapter 1 “Industrial bank” means a corporation organized for the purpose of engaging in the industrial banking business. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 113 Division 1, Chapter 1 “Industrial banking business” includes the making of loans and acceptance of deposits, including deposits evidenced by investment or thrift certificates, but excluding demand deposits. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 115 Division 1, Chapter 1 “Trust business” means the business of acting as executor, administrator, guardian or conservator of estates, assignee, receiver, depositary or trustee under the appointment of any court, or by authority of any law of this or any other state or of the United States, or as trustee for any purpose permitted by law. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 117 Division 1, Chapter 1 “Trust company” means a corporation, industrial bank, or a commercial bank that is authorized to engage in the trust business. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 119 Division 1, Chapter 1 “Bank” or “banks” includes a public bank, as defined in Section 57600 of the Government Code, commercial banks, industrial banks, and trust companies unless the context otherwise requires. However, “bank” does not include a savings association or a credit union. (Amended by Stats. 2019, Ch. 442, Sec. 4. (AB 857) Effective January 1, 2020.) § 121 Division 1, Chapter 1 (a) “Office” includes head office, branch office, and any other authorized place of business of a licensee. (b) “Head office” means the principal place of business of a licensee. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 123 Division 1, Chapter 1 “Real property” and “personal property” have the meanings defined in and shall be construed in accordance with Title 1 (commencing with Section 654) of Part 1 of Division 2 of the Civil Code. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 125 Division 1, Chapter 1 “Commissioner” means the Commissioner of Financial Protection and Innovation and “department” means the Department of Financial Protection and Innovation. (Amended by Stats. 2022, Ch. 452, Sec. 97. (SB 1498) Effective January 1, 2023.) § 127 Division 1, Chapter 1 “Person” means an individual, sole proprietorship, partnership, joint venture, association, trust, estate, business trust, corporation, joint stock company, limited liability company, unincorporated association, sovereign government or agency, instrumentality, or political subdivision thereof, or any similar entity or organization. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 129 Division 1, Chapter 1 Unless the provision or the context otherwise requires, the definitions set forth in this chapter govern the construction of the Financial Institutions Law. (Amended by Stats. 2013, Ch. 334, Sec. 8. (SB 537) Effective January 1, 2014.) § 131 Division 1, Chapter 1 References in this division to the voting of shares shall be construed in accordance with Section 111 of the Corporations Code. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 133 Division 1, Chapter 1 If the articles of a bank provide for more or less than one vote for any share on any matter, the references in Sections 139 and 141 to a majority or other proportion of shares means, as to such matter, a majority or other proportion of the votes entitled to be cast. Whenever, under Division 1 (commencing with Section 100), Title 1 of the Corporations Code, this division, or Division 1.1 (commencing with Section 1000), shares are disqualified from voting on any matter, they shall not be considered outstanding for the determination of a quorum at any meeting to act upon, or the required vote to approve action upon, such matter under any provision of Division 1 (commencing with Section 100), Title 1 of the Corporations Code, of this division, Division 1.1 (commencing with Section 1000), or of the articles or bylaws. (Amended by Stats. 2013, Ch. 334, Sec. 9. (SB 537) Effective January 1, 2014.) § 135 Division 1, Chapter 1 Any requirement in this division for a vote of each class of outstanding shares shall be construed in accordance with Section 117 of the Corporations Code. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 137 Division 1, Chapter 1 “Approved by (or approval of) the board” means approved or ratified by the vote of the board or by the vote of a committee authorized to exercise the powers of the board, except as to any matter not within the competence of the committee under Section 311 of the Corporations Code or any matter for which this division also requires approval of the shareholders or approval of the outstanding shares. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 139 Division 1, Chapter 1 “Approved by (or approval of) the outstanding shares” has the meaning set forth in Section 152 of the Corporations Code and shall include approval by the affirmative vote of a majority of the outstanding shares of each class or series entitled, by any provision of the articles, of this division, or of Division 1 (commencing with Section 100), Title 1 of the Corporations Code, to vote as a class or series on the subject matter being voted upon, and shall also include approval by the affirmative vote of such greater proportion (including all) of the outstanding shares of any class or series if such greater proportion is required by the articles, by this division, or by Division 1 (commencing with Section 100), Title 1 of the Corporations Code. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 141 Division 1, Chapter 1 “Approved by (or approval of) the shareholders” has the meaning set forth in Section 153 of the Corporations Code and shall include approval or ratification by the affirmative vote or written consent of such proportion (including all) greater than a majority of the shares of any class or series as may be provided in the articles, in this division, or in Division 1 (commencing with Section 100), Title 1 of the Corporations Code for all or any specified shareholder action. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 143 Division 1, Chapter 1 “Articles” has the meaning set forth in Section 154 of the Corporations Code. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 145 Division 1, Chapter 1 “Board” has the meaning set forth in Section 155 of the Corporations Code. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 147 Division 1, Chapter 1 “California” means: (a) When used with respect to a bank, in the case of a state bank, a bank that is organized under the laws of this state and, in the case of a national bank, a national bank that maintains its main office in this state. (b) When used with respect to an office of a bank, an office which is located in this state. (c) When used with respect to any corporation other than a bank, a corporation that is organized under the laws of this state. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 149 Division 1, Chapter 1 “CAMELS composite rating” shall have the meaning set forth in Section 327.8(j) of Title 12 of the Code of Federal Regulations. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 151 Division 1, Chapter 1 “Certificate of correction” means a certificate executed and filed with the Secretary of State pursuant to Section 109 of the Corporations Code, subject, however, to the provisions of Section 1105. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 153 Division 1, Chapter 1 “Certificate of determination” has the meaning set forth in Section 156 of the Corporations Code, subject, however, to the provisions of Section 1104. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 155 Division 1, Chapter 1 “Certificate of revocation” means a certificate executed and filed with the Secretary of State pursuant to the second and third sentences of subdivision (c) of Section 110 of the Corporations Code, subject, however, to the provisions of Section 1106. (Amended by Stats. 2013, Ch. 334, Sec. 10. (SB 537) Effective January 1, 2014.) § 157 Division 1, Chapter 1 “Common shares” has the meaning set forth in Section 159 of the Corporations Code. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 159 Division 1, Chapter 1 (a) “Confidential information” means any information regarding a licensee contained in, or related to, any of the following: (1) Applications filed with the commissioner. (2) Examination, operating, condition, or any other reports prepared by, on behalf of, or for the use of, the commissioner. (3) Information received in confidence by the commissioner. (b) Confidential information is the property of the commissioner. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 161 Division 1, Chapter 1 “Constituent corporation,” when used with respect to a corporation: (a) In the case of a merger, has the meaning set forth in Section 161 of the Corporations Code. (b) In the case of a consolidation, means a corporation that is consolidated with one or more other corporations. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 163 Division 1, Chapter 1 “Contributed capital” means all of shareholders’ equity other than retained earnings. However, nothing in this section shall prohibit a bank from transferring amounts from time to time from its retained earnings to its contributed capital, subject to any applicable statutes, regulations, and generally accepted accounting principles. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 165 Division 1, Chapter 1 “Credit union” means a corporation of the type described in Section 14002 organized under the laws of this state or a corporation of similar type organized under the laws of the United States or of any state of the United States other than this state. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 167 Division 1, Chapter 1 “Directors” has the meaning set forth in Section 164 of the Corporations Code. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 169 Division 1, Chapter 1 “Disappearing,” when used with respect to a corporation, means a constituent corporation that is not the surviving corporation. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 171 Division 1, Chapter 1 “Distribution to its shareholders” has the meaning set forth in Section 166 of the Corporations Code. However, in Division 1 (commencing with Section 100), Title 1 of the Corporations Code, in this division, and in Division 1.1 (commencing with Section 1000), “distribution to its shareholders” does not include any purchase of shares by a bank or by a majority-owned subsidiary of a bank which is necessary to reduce or avoid loss to such bank or to such subsidiary on an extension of credit previously made in good faith. Also, in this division and in Division 1.1 (commencing with Section 1000), “distribution to its shareholders” includes any distribution made by a bank or by a majority-owned subsidiary of a bank to the shareholders of any corporation of which such bank is a majority-owned subsidiary. (Amended by Stats. 2013, Ch. 334, Sec. 11. (SB 537) Effective January 1, 2014.) § 173 Division 1, Chapter 1 (a) “Foreign,” when used with respect to a bank, an office of a bank, or any corporation other than a bank, means foreign (other nation) or foreign (other state). (b) “Foreign banking corporation” means a foreign bank. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 175 Division 1, Chapter 1 “Foreign nation” means any nation other than the United States, including, without limitation, any subdivision, territory, trust territory, dependency, colony, or possession of any nation other than the United States. “Foreign nation” includes Puerto Rico, Guam, American Samoa, the Virgin Islands, and any territory, trust territory, dependency, or insular possession of the United States. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 177 Division 1, Chapter 1 (a) The definition of “state of the United States” in Section 207 does not apply to this section. In this section, “state of the United States” means any state of the United States or the District of Columbia. (b) “Foreign (other nation)”: (1) When used with respect to a bank, means any bank (including, without limitation, any commercial bank, merchant bank, or other institution that engages in banking activities that are usual in connection with the business of banking in the nation in which the institution is organized or operating) other than (A) a bank that is organized under the laws of a state of the United States or (B) a national bank that maintains its main office in a state of the United States. (2) When used with respect to an office of a bank, means an office that is located in a place other than a state of the United States. (3) When used with respect to any corporation other than a bank, means a corporation that is organized under the laws of a foreign nation. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 179 Division 1, Chapter 1 “Foreign (other state)”: (a) When used with respect to a bank, means a bank that is organized under the laws of any state of the United States other than this state, or a national bank that maintains its main office in any state of the United States other than this state, and includes any savings bank, as defined in Section 3(g) of the Federal Deposit Insurance Act (12 U.S.C. Sec. 1813(g)), that is organized under the laws of a state other than this state. (b) When used with respect to an office of a bank, means an office that is located in a state other than this state. (c) When used with respect to a corporation other than a bank, means a corporation that is organized under the laws of any state of the United States other than this state or under the laws of the United States. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 181 Division 1, Chapter 1 “Insured”: (a) When used with respect to a bank or an office of a bank, means a bank or office the deposits of which are insured by the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act (12 U.S.C. Sec. 1811 et seq.). (b) When used with respect to a deposit, means a deposit that is insured by the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act (12 U.S.C. Sec. 1811 et seq.). (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 183 Division 1, Chapter 1 “Law of the domicile” means: (a) When used with respect to a national bank, the law of the United States. (b) When used with respect to a state bank, the law of the state of the United States under which the bank is organized. (c) When used with respect to a foreign (other nation) bank, the law of the foreign nation under which the bank is organized. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 185 Division 1, Chapter 1 “Licensee” has the following meanings: (a) Any bank authorized by the commissioner pursuant to Section 1042 to transact banking or trust business. (b) Any industrial bank authorized by the commissioner pursuant to Section 1042 to transact industrial banking business. (c) Any trust company authorized by the commissioner pursuant to Section 1042 to transact trust business. (d) Any foreign (other nation) bank that is licensed under Article 2 (commencing with Section 1780) of Chapter 20 or under Article 3 (commencing with Section 1800) of Chapter 20. (e) Any person licensed by the commissioner as a money transmitter pursuant to Division 1.2 (commencing with Section 2000). (f) Any person authorized by the commissioner to conduct the business of a savings association pursuant to Division 2 (commencing with Section 5000). (g) Any credit union authorized by the commissioner to conduct business pursuant to Section 14154. (h) Any foreign (other state) credit union licensed by the commissioner to conduct business pursuant to Chapter 11 (commencing with Section 16000) of Division 5. (i) Any foreign (other nation) credit union licensed by the commissioner to conduct business pursuant to Chapter 12 (commencing with Section 16500) of Division 5. (j) Any industrial loan company authorized by the commissioner to conduct insurance premium finance business pursuant to Division 7 (commencing with Section 18000). (k) Any corporation licensed by the commissioner as a business and industrial development corporation pursuant to Section 31154. (Amended by Stats. 2013, Ch. 334, Sec. 12. (SB 537) Effective January 1, 2014.) § 186 Division 1, Chapter 1 “Majority-owned subsidiary” has the meaning set forth for “subsidiary” in subdivision (a) of Section 189 of the Corporations Code. (Added by Stats. 2013, Ch. 334, Sec. 13. (SB 537) Effective January 1, 2014.) § 187 Division 1, Chapter 1 “Member of the public” means any person, except an agent, officer, or employee of the department acting within the scope of his or her agency, office, or employment. Member of the public does not include a director, officer, employee, attorney, accountant, or consultant of a licensee, provided that the confidential information in question only pertains to the licensee that employs or utilizes the director, officer, employee, attorney, accountant, or consultant. (Repealed and added by Stats. 2013, Ch. 334, Sec. 15. (SB 537) Effective January 1, 2014.) § 188 Division 1, Chapter 1 “Money transmitter” means a person authorized pursuant to Chapter 3 (commencing with Section 2030) of Division 1.2 to engage in the business of money transmission. (Added by Stats. 2013, Ch. 334, Sec. 16. (SB 537) Effective January 1, 2014.) § 189 Division 1, Chapter 1 (a) “National bank” or “national banking association” means a national banking association organized under the National Bank Act. (b) For purposes of the Financial Institutions Law, a national bank is deemed to be a corporation. (Amended by Stats. 2013, Ch. 334, Sec. 17. (SB 537) Effective January 1, 2014.) § 190 Division 1, Chapter 1 “Officer” means: (a) When used with respect to a corporation, any person appointed or designated as an officer of the corporation by or pursuant to applicable law or the articles of incorporation or bylaws of the corporation or any person who performs with respect to the corporation functions usually performed by an officer of a corporation. (b) When used with respect to a specified person other than a natural person or a corporation, any person who performs with respect to the specified person, functions usually performed by an officer of a corporation with respect to the corporation. (Added by Stats. 2013, Ch. 334, Sec. 18. (SB 537) Effective January 1, 2014.) § 191 Division 1, Chapter 1 “Officers’ certificate” has the meaning set forth in Section 173 of the Corporations Code. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 193 Division 1, Chapter 1 “Resulting,” when used with respect to a corporation, means: (a) In the case of a consolidation, the corporation into which the constituent corporations are consolidated. (b) In the case of a conversion, the corporation into which the converting corporation is converted. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 195 Division 1, Chapter 1 “ROCA supervisory rating” shall have the meaning set forth in Section 327.8(k) of Title 12 of the Code of Federal Regulations. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 197 Division 1, Chapter 1 “Savings association” includes a savings association, a savings and loan association, and a savings bank. However, “savings association” does not include any savings bank of the type defined in Section 3(g) of the Federal Deposit Insurance Act (12 U.S.C. Section 1813(g)). (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 199 Division 1, Chapter 1 “Series,” when used with respect to shares, has the meaning set forth in Section 183 of the Corporations Code. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 201 Division 1, Chapter 1 “Shares” has the meaning set forth in Section 184 of the Corporations Code. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 203 Division 1, Chapter 1 “Shareholder” has the meaning set forth in Section 185 of the Corporations Code. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 205 Division 1, Chapter 1 “State”: (a) When used with respect to a corporation, means a corporation that is organized under the laws of a state of the United States. (b) When used with respect to an office of a foreign (other nation) bank, means an office that the bank is authorized to maintain under the laws of a state of the United States. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 207 Division 1, Chapter 1 “State of the United States” means any state of the United States, the District of Columbia, any territory of the United States, Puerto Rico, Guam, American Samoa, the Trust Territory of the Pacific Islands, the Virgin Islands, and the Northern Mariana Islands. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 209 Division 1, Chapter 1 “Surviving,” when used with respect to a corporation, means a corporation in which one or more other corporations are merged. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 211 Division 1, Chapter 1 “Uniform Interagency Trust Rating System (UITRS)” shall have the meaning set forth in the policy statement regarding the uniform interagency trust rating system published by the Federal Financial Institutions Examination Council on October 13, 1998 (63 Fed. Reg. 54704). (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 213 Division 1, Chapter 1 “Uniform Rating System for Informational Technology (URSIT)” shall have the meaning set forth in the policy statement regarding the uniform rating system for information technology published by the Federal Financial Institutions Examination Council on January 20, 1999, and implemented on or before April 1, 1999 (64 Fed. Reg. 3109). (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 215 Division 1, Chapter 1 “Vote” has the meaning set forth in Section 194 of the Corporations Code. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 217 Division 1, Chapter 1 “Voting power” has the meaning set forth in Section 194.5 of the Corporations Code. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 250 Division 1, Chapter 2 In this chapter, unless the provision or context requires otherwise: (a) “New General Corporation Law” means Division 1 (commencing with Section 100), Title 1 of the Corporations Code, as in effect on and after January 1, 1977. (b) “Prior Banking Law” means this division, as in effect on December 31, 1978. (c) “Prior General Corporation Law” means Division 1 (commencing with Section 100), Title 1 of the Corporations Code, as in effect on December 31, 1976. (d) “Revised Banking Law” means this division, as in effect on and after January 1, 1979, and as repealed and readded as of January 1, 2012. (e) “Subject institution” means: (1) Any corporation incorporated under the laws of this state which is, with the approval of the commissioner, incorporated for the purpose of engaging in, or which is authorized by the commissioner to engage in, the commercial banking business under this division. (2) Any corporation incorporated under the laws of this state which is, with the approval of the commissioner, incorporated for the purpose of engaging in, or which is authorized by the commissioner to engage in, the trust business under this division. (3) Any corporation incorporated under the laws of this state which is, with the approval of the commissioner, incorporated for the purpose of engaging in, or which is authorized by the commissioner to engage in, business under Article 1 (commencing with Section 1850) of Chapter 21 of Division 1.1. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 251 Division 1, Chapter 2 For purposes of Chapter 23 (commencing with Section 2300) of the new General Corporation Law, in the case of any subject institution existing on January 1, 1979: (a) The term “new law” shall mean the new General Corporation Law, subject, however, to the provisions of Section 101 of the revised Banking Law. (b) The term “prior law” shall mean the prior General Corporation Law, subject, however, to the provisions of Section 101 of the prior Banking Law. (c) The term “effective date” shall mean January 1, 1979. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 252 Division 1, Chapter 2 (a) Sections 600 and 600.2 of the revised Banking Law shall not apply to any subject institution existing on January 1, 1979, unless and until an amendment of the articles of such subject institution is filed with the Secretary of State pursuant to Section 2302 of the new General Corporation Law. (b) An amendment of the articles of a subject institution existing on January 1, 1979, which is filed with the Secretary of State pursuant to Section 2302 of the new General Corporation Law may be adopted by approval of the board alone in accordance with the second sentence of Section 2302 of the new General Corporation Law, notwithstanding the fact that such amendment changes such articles to conform to the provisions of Sections 600 and 600.2 of the revised Banking Law. (c) Neither Article 6 (commencing with Section 690), Chapter 5 of the revised Banking Law nor Section 904 of the new General Corporation Law shall apply to an amendment of the articles of a subject institution existing on January 1, 1979, which is filed with the Secretary of State pursuant to Section 2302 of the new General Corporation Law on account of the fact that such amendment conforms such articles to the provisions of Section 600.2 of the revised Banking Law. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 253 Division 1, Chapter 2 In case the board of a subject institution has, prior to January 1, 1979, adopted a resolution levying an assessment on the common shares of such subject institution in accordance with an order issued by the commissioner pursuant to Section 661 of the prior Banking Law: (a) If the assessment has, prior to January 1, 1979, become a lien on the common shares in accordance with Section 2704 of the prior General Corporation Law, the assessment shall be collected pursuant to the prior General Corporation Law: (b) Otherwise, the resolution shall be deemed to be rescinded on January 1, 1979. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 254 Division 1, Chapter 2 Article 3 (commencing with Section 640), Chapter 5 of the revised Banking Law applies to any distribution to its shareholders made after January 1, 1979, by a subject institution existing on January 1, 1979, except that any such distribution effected pursuant to a contract for the purchase or redemption of shares entered into by such subject institution prior to January 1, 1979, may be made if permissible under the applicable provisions of the revised Banking Law and the new General Corporation Law or under the applicable provisions of the prior Banking Law and the prior General Corporation Law in effect at the time such contract was entered into. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 300 Division 1, Chapter 3, Article 1 (a) In this section: (1) “Business and industrial development corporation” means a corporation licensed under Division 15 (commencing with Section 31000). (2) “Payment instrument” has the same meaning as set forth in Section 2003. (3) “Stored Value” has the same meaning as set forth in subdivision (x) of Section 2003. (b) There is in the state government, in the Business and Consumer Services Agency, a Department of Financial Protection and Innovation, which has charge of the execution of, among other laws, the laws of this state relating to any of the following: (1) banks or trust companies or the banking or trust business; (2) savings associations or the savings association business; (3) credit unions or the credit union business; (4) persons who engage in the business of receiving money for transmission or such business; (5) issuers of stored value or such business; (6) issuers of payment instruments or the payment instrument business; (7) business and industrial development corporations or the business and industrial development corporation business; (8) insurance premium finance agencies or the insurance premium finance business; (9) persons offering or making any contract constituting bucketing; (10) persons offering or selling off-exchange commodities; (11) deferred deposit originators; (12) finance lenders and brokers; (13) residential mortgage lenders and servicers; (14) capital access companies; (15) check sellers, bill payers, and proraters; (16) securities issuers, broker-dealers, agents, investment advisers, and investment adviser representatives; (17) mortgage loan originators employed or supervised by finance lenders or residential mortgage lenders; (18) escrow agents; (19) franchisors; (20) persons holding securities as custodians on behalf of securities owners; (21) persons offering or providing consumer financial products or services in this state; and (22) PACE program administrators. (c) The amendments made to this section by the act adding this subdivision shall become operative on July 1, 2026. (Amended by Stats. 2026, Ch. 28, Sec. 15. (SB 170) Effective June 29, 2026. Operative July 1, 2026, by its own provisions.) § 301 Division 1, Chapter 3, Article 1 (a) This chapter is applicable to this division, Division 1.1 (commencing with Section 1000), Division 1.2 (commencing with Section 2000), Division 1.6 (commencing with Section 4800), Division 5 (commencing with Section 14000), Division 7 (commencing with Section 18000), and Division 15 (commencing with Section 31000). (b) Except as provided in subdivision (c), this article, and Articles 2 (commencing with Section 320) and 3 (commencing with Section 350) are applicable to the administration of laws by the Division of Corporations. (c) Sections 329, 330, 332, 335, 336, 357, 378, 379, and 381 are not applicable to the Division of Corporations. (Amended by Stats. 2013, Ch. 353, Sec. 47. (SB 820) Effective September 26, 2013. Operative July 1, 2013, by Sec. 129 of Ch. 353.) § 320 Division 1, Chapter 3, Article 2 (a) The chief officer of the Department of Financial Protection and Innovation is the Commissioner of Financial Protection and Innovation. The Commissioner of Financial Protection and Innovation is the head of the department with the authority and responsibility over all officers, employees, and activities in the department and, except as otherwise provided in this code and the Corporations Code, is subject to the provisions of the Government Code relating to department heads. (b) The Commissioner of Financial Protection and Innovation shall employ legal counsel to act as the attorney for the commissioner in actions or proceedings brought by or against the commissioner under or pursuant to any law under the jurisdiction of the Department of Financial Protection and Innovation, or in which the commissioner joins or intervenes as to a matter within the jurisdiction of the Department of Financial Protection and Innovation, as a friend of the court or otherwise. (c) The Commissioner of Financial Protection and Innovation shall employ stenographic reporters to take and transcribe the testimony in any formal hearing or investigation before the commissioner or before a person authorized by the commissioner. (d) Sections 11040 and 11042 of the Government Code do not apply to the Department of Financial Protection and Innovation. (Amended by Stats. 2020, Ch. 157, Sec. 2. (AB 1864) Effective January 1, 2021.) § 321 Division 1, Chapter 3, Article 2 (a) In this section, “order” means any approval, consent, authorization, exemption, denial, prohibition, requirement, or other administrative action, applicable to a specific case. (b) Upon the operative date of this section, as amended during the 2019–20 legislative session, the office of the Commissioner of Business Oversight and the Department of Business Oversight shall be renamed the office of the Commissioner of Financial Protection and Innovation and the Department of Financial Protection and Innovation. All powers, duties, responsibilities, and functions of the Commissioner of Business Oversight and the Department of Business Oversight shall be the powers, duties, responsibilities, and functions of the Commissioner of Financial Protection and Innovation and the Department of Financial Protection and Innovation, respectively. The Commissioner of Financial Protection and Innovation and the Department of Financial Protection and Innovation shall retain all of the rights, property, debts, and liability of the Commissioner of Business Oversight and the Department of Business Oversight, respectively. The change of name shall not affect the validity of any action or proceeding by or against the Commissioner of Business Oversight or the Department of Business Oversight, or a predecessor commissioner or department, nor the validity of any permit, certificate, license, or any other action taken under the name of the Commissioner of Business Oversight or the Department of Business Oversight, or a predecessor commissioner or department. All agreements entered into with, and orders and regulations issued by, the Commissioner of Business Oversight or the Department of Business Oversight, or a predecessor commissioner or department, shall continue in effect as agreements, orders, and regulations of the Commissioner of Financial Protection and Innovation or the Department of Financial Protection and Innovation. References in the California Constitution or in any statute or regulation to the Superintendent of Banks or the Commissioner of Financial Institutions or the Commissioner of Corporations or the Commissioner of Business Oversight or to the State Banking Department or the Department of Financial Institutions or the Department of Corporations or the Department of Business Oversight mean the Commissioner of Financial Protection and Innovation or the Department of Financial Protection and Innovation, respectively. (c) (1) The name change of the Department of Business Oversight to the Department of Financial Protection and Innovation shall not result in any change to the status or authority of the department. (2) (A) All appointments by the Governor to the Department of Business Oversight shall continue as appointments to the Department of Financial Protection and Innovation. (B) The confirmation by the Senate of the Commissioner and Senior Deputy Commissioner of Business Oversight for the Division of Corporations shall remain in effect as confirmation by the Senate of the Commissioner and Senior Deputy Commissioner of Corporations and Financial Institutions to the renamed Department of Financial Protection and Innovation. (Amended by Stats. 2020, Ch. 157, Sec. 3. (AB 1864) Effective January 1, 2021.) § 322 Division 1, Chapter 3, Article 2 The commissioner is appointed by the Governor, and holds office at the pleasure of the Governor. The appointment of the commissioner is subject to confirmation by the Senate. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 323 Division 1, Chapter 3, Article 2 The commissioner shall be a citizen of the United States and a resident of the state for at least three years prior to his or her appointment. The commissioner shall be chosen solely for his or her qualifications and fitness to perform the duties of his or her office. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 324 Division 1, Chapter 3, Article 2 The annual salary of the commissioner is provided for by Chapter 6 (commencing with Section 11550) of Part 1 of Division 3 of Title 2 of the Government Code. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 325 Division 1, Chapter 3, Article 2 Before entering upon the duties of his or her office, the commissioner shall take and subscribe to the constitutional oath of office and file the same with the Secretary of State. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 326 Division 1, Chapter 3, Article 2 (a) The Commissioner of Financial Protection and Innovation is responsible for the performance of all duties, the exercise of all powers and jurisdiction, and the assumption and discharge of all responsibilities vested by law in the department and the divisions thereunder. The commissioner has and may exercise all the powers necessary or convenient for the administration and enforcement of, among other laws, the laws described in Section 300. The commissioner may issue rules and regulations consistent with law as the commissioner may deem necessary or advisable in executing the powers, duties, and responsibilities of the department. (b) In addition to the authority under subdivision (a), the commissioner may bring a civil action or other appropriate proceeding, pursuant to Section 5552 of Title 12 of the United States Code, to enforce the provisions of the Consumer Financial Protection Act of 2010 (12 U.S.C. Sec. 5481 et seq.), or regulations issued by the federal Consumer Financial Protection Bureau thereunder, with respect to an entity that is licensed, registered, or subject to oversight by the commissioner, and to secure remedies under provisions of the Consumer Financial Protection Act of 2010. (c) Nothing in this section shall be construed to expand upon or limit the authority granted by Section 5552 of Title 12 of the United States Code (Section 1042 of Subtitle D of Title X of the Dodd-Frank Wall Street Reform and Consumer Protection Act). (Amended by Stats. 2020, Ch. 157, Sec. 4. (AB 1864) Effective January 1, 2021.) § 327 Division 1, Chapter 3, Article 2 (a) The commissioner shall apply the Interagency Guidance on Nontraditional Mortgage Product Risks issued in September 2006 and the Statement on Subprime Mortgage Lending issued in June 2007 by the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Office of Thrift Supervision, and the National Credit Union Administration to state-regulated financial institutions, including, but not limited to, privately insured, state-chartered credit unions. (b) The commissioner may issue emergency and final regulations to clarify the application of this section as soon as possible. (c) A bank or credit union to which the commissioner applies the documents described in subdivision (a) shall adopt and adhere to policies and procedures that are reasonably intended to achieve the objectives set forth in those documents. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 328 Division 1, Chapter 3, Article 2 (a) The commissioner may make the agreements that he or she deems necessary or appropriate in exercising his or her powers. (b) (1) The agreements authorized under subdivision (a) may include, but are not limited to, agreements with agencies of this state, of other states of the United States, of the United States, or of foreign nations that regulate financial institutions, relating to examinations of banks, savings associations, credit unions, industrial loan companies, and other matters. (2) Any agreement with a government agency that regulates financial institutions is exempt from the advertising and competitive bidding requirements of the Public Contract Code. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 329 Division 1, Chapter 3, Article 2 (a) For purposes of this section, the following definitions apply: (1) “Applicable law” means: (A) With respect to any bank, Division 1.6 (commencing with Section 4800), and any of the following provisions: (i) Article 6 (commencing with Section 405) of Chapter 3. (ii) Article 3 (commencing with Section 1130) of Chapter 5 of Division 1.1. (iii) Chapter 6 (commencing with Section 1200) of Division 1.1. (iv) Chapter 10 (commencing with Section 1320) of Division 1.1. (v) Chapter 14 (commencing with Section 1460) of Division 1.1. (vi) Article 1 (commencing with Section 1530) of Chapter 15 of Division 1.1. (vii) Chapter 16 (commencing with Section 1550) of Division 1.1. (viii) Chapter 20 (commencing with Section 1750) of Division 1.1. (ix) Section 456. (x) Section 457. (xi) Section 459. (xii) Section 460. (xiii) Section 461. (xiv) Section 1331. (xv) Chapter 21 (commencing with Section 1850) of Division 1.1. (xvi) Chapter 18 (commencing with Section 1660) of Division 1.1. (xvii) Chapter 19 (commencing with Section 1670) of Division 1.1. (B) With respect to any savings association, any provision of Division 1.6 (commencing with Section 4800) and Division 2 (commencing with Section 5000). (C) With respect to any insurance premium finance agency, any provision of Division 7 (commencing with Section 18000). (D) With respect to any business and industrial development corporation, any provision of Division 15 (commencing with Section 31000). (E) With respect to any credit union, any of the following provisions: (i) Section 14252. (ii) Section 14253. (iii) Section 14255. (iv) Article 4 (commencing with Section 14350) of Chapter 3 of Division 5. (v) Section 14401. (vi) Section 14404. (vii) Section 14408, only as that section applies to gifts to directors, volunteers, and employees, and the related family or business interests of the directors, volunteers, and employees. (viii) Section 14409. (ix) Section 14410. (x) Article 5 (commencing with Section 14600) of Chapter 4 of Division 5. (xi) Article 6 (commencing with Section 14650) of Chapter 4 of Division 5, excluding subdivision (a) of Section 14651. (xii) Section 14803. (xiii) Section 14851. (xiv) Section 14858. (xv) Section 14860. (xvi) Section 14861. (xvii) Section 14863. (F) With respect to any money transmitter, any provision of Division 1.2 (commencing with Section 2000). (2) “Licensee” means any bank, savings association, credit union, trust company, money transmitter, insurance premium finance agency, or business and industrial development corporation that is authorized by the commissioner to conduct business in this state. (b) Notwithstanding any other provision of this code that applies to a licensee or a subsidiary of a licensee, after notice and an opportunity to be heard, the commissioner may, by order that shall include findings of fact which incorporates a determination made in accordance with subdivision (e), levy civil penalties against any licensee or any subsidiary of a licensee who has violated any provision of applicable law, any order issued by the commissioner, any written agreement between the commissioner and the licensee or subsidiary of the licensee, or any condition of any approval issued by the commissioner. The commissioner shall have the sole authority to bring any action with respect to a violation of applicable law subject to a penalty imposed under this section. Except as provided in paragraphs (1) and (2), any penalty imposed by the commissioner may not exceed one thousand dollars ($1,000) a day, provided that the aggregate penalty of all offenses in any one action against any licensee or subsidiary of a licensee shall not exceed fifty thousand dollars ($50,000). (1) If the commissioner determines that any licensee or subsidiary of the licensee has recklessly violated any applicable law, any order issued by the commissioner, any provision of any written agreement between the commissioner and the licensee or subsidiary, or any condition of any approval issued by the commissioner, the commissioner may impose a penalty not to exceed five thousand dollars ($5,000) per day, provided that the aggregate penalty of all offenses in an action against any licensee or subsidiary of a licensee shall not exceed seventy-five thousand dollars ($75,000). (2) If the commissioner determines that any licensee or subsidiary of the licensee has knowingly violated any applicable law, any order issued by the commissioner, any provision of any written agreement between the commissioner and the licensee or subsidiary, or any condition of any approval issued by the commissioner, the commissioner may impose a penalty not to exceed ten thousand dollars ($10,000) per day, provided that the aggregate penalty of all offenses in an action against any licensee or subsidiary of a licensee shall not exceed 1 percent of the total assets of the licensee or subsidiary of a licensee subject to the penalty. (c) Nothing in this section shall be construed to impair or impede the commissioner from pursuing any other administrative action allowed by law. (d) Nothing in this section shall be construed to impair or impede the commissioner from bringing an action in court to enforce any law or order he or she has issued, including orders issued under this section. Nothing in this section shall be construed to impair or impede the commissioner from seeking any other damages or injunction allowed by law. (e) In determining the amount and the appropriateness of initiating a civil money penalty under subdivision (b), the commissioner shall consider all of the following: (1) Evidence that the violation or practice or breach of duty was intentional or was committed with a disregard of the law or with a disregard of the consequences to the institution. (2) The duration and frequency of the violations, practices, or breaches of duties. (3) The continuation of the violations, practices, or breaches of duty after the licensee or subsidiary of the licensee was notified, or, alternatively, its immediate cessation and correction. (4) The failure to cooperate with the commissioner in effecting early resolution of the problem. (5) Evidence of concealment of the violation, practice, or breach of duty or, alternatively, voluntary disclosure of the violation, practice, or breach of duty. (6) Any threat of loss, actual loss, or other harm to the institution, including harm to the public confidence in the institution, and the degree of that harm. (7) Evidence that a licensee or subsidiary of a licensee received financial gain or other benefit as a result of the violation, practice, or breach of duty. (8) Evidence of any restitution paid by a licensee or subsidiary of a licensee of losses resulting from the violation, practice, or breach of duty. (9) History of prior violations, practices, or breaches of duty, particularly where they are similar to the actions under consideration. (10) Previous criticism of the institution for similar actions. (11) Presence or absence of a compliance program and its effectiveness. (12) Tendency to engage in violations of law, unsafe or unsound financial institutions practices, or breaches of duties. (13) The existence of agreements, commitments, orders, or conditions imposed in writing intended to prevent the violation, practice, or breach of duty. (14) Whether the violation, practice, or breach of duty causes quantifiable, economic benefit or loss to the licensee or the subsidiary of the licensee. In those cases, removal of the benefit or recompense of the loss usually will be insufficient, by itself, to promote compliance with the applicable law, order, or written agreement. The penalty amount should reflect a remedial purpose and should provide a deterrent to future misconduct. (15) Other factors as the commissioner may, in his or her opinion, consider relevant to assessing the penalty or establishing the amount of the penalty. (f) The amounts collected under this section shall be deposited in the appropriate fund of the department. For purposes of this subdivision, the term “appropriate fund” means the fund to which the annual assessments of fined licensees, or the parent licensee of the fined subsidiary, are credited. (Amended by Stats. 2018, Ch. 699, Sec. 1. (SB 1361) Effective January 1, 2019.) § 330 Division 1, Chapter 3, Article 2 The authority vested in the Superintendent of Banks under subdivision (2) of Section 1 of Article XV of the California Constitution is delegated to the commissioner. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.) § 331 Division 1, Chapter 3, Article 2 The commissioner may adopt and implement any method of accepting electronic filings of applications, reports, or other matters, which, in the opinion of the commissioner, is secure. Any method of electronic filing chosen by the commissioner shall include a method to verify the identity of the person making the filing. The verification shall be deemed to satisfy all other verifications required by the commissioner, and shall have the same force and effect as the use of manual signatures. (Amended by Stats. 2018, Ch. 699, Sec. 2. (SB 1361) Effective January 1, 2019.) § 331.5 Division 1, Chapter 3, Article 2 (a) (1) A licensee subject to the commissioner’s jurisdiction shall establish and maintain an electronic service address designated for receiving communications and documents that are sent by the commissioner to licensees. This electronic service address shall be provided to the commissioner upon licensure. The electronic service address provided to the commissioner shall not be the electronic service address of any individual employee. A licensee shall have the capacity to receive an attachment that accompanies a message sent to its electronic service address, provided the size of the attachment is reasonable in relation to the technology available at the time the attachment is sent. (2) Prior to changing the electronic service address most recently provided to the commissioner, the licensee shall notify the commissioner of the change and provide to the commissioner his or her new electronic service address. The commissioner may impose a fine of up to fifty dollars ($50) per day, not to exceed one thousand dollars ($1,000) in the aggregate, on a licensee who fails to notify the commissioner before changing his or her electronic service address or fails to provide the commissioner a new electronic service address. (3) The commissioner shall provide each licensee that establishes and maintains an electronic service address in accordance with this section with an electronic service address designated for receiving correspondence from licensees subject to the commissioner’s jurisdiction. This service address shall have the capacity to receive an attachment that accompanies a message sent by the licensee, provided the size of the attachment is reasonable in relation to the technology available at the time the attachment is sent. (b) A communication sent to an electronic service address established pursuant to this section does not satisfy any notice requirement, or displace any law or regulation, that requires notice to be served in a different manner, if a hearing right attaches to the notice. (Added by Stats. 2018, Ch. 699, Sec. 3. (SB 1361) Effective January 1