California Banking Laws

California banking laws are outlined in the state financial code.

The State of California Department of Financial Institutions governs banking laws and regulations. The California Financial Code specifies both the existing rules by which lending institutions must conduct business and proposed legislation.

Financial Code

According to the California Financial Code, all commercial banks, industrial loan companies and savings associations are subject to Division 1.5 of the regulatory document. The state laws and regulations address to issues pertaining to mergers, sales and conversions of accounts and lending practices.

Code of Regulations

The California Code of Regulations dictates the principle activities of financial institutions. The laws work in conjunction with the state financial code to ensure proper actions and privacy regulations. Departments and actions which fall under the California Code of Regulations includes industrial development, issuance of traveler's checks, money order processing, credit union account management and the fair lending policies enacted by the Housing Financial Discrimination Act of 1977.

Foreclosure Prevention Act

Regulations and procedures established under the California Foreclosure Prevention Act of 2009 also fall under the supervision of the California Department of Financial Institutions. The law relates to mortgage loans and established a mandatory waiting period before a notice of sale can be issued.

References

• California Department of Financial Institutions: Financial Code
• California Department of Financial Institutions: Code of Regulations
• California Department of Financial Institutions: California Foreclosure Prevention Act