2005 California Financial Code Sections 500-512 Article 2. Branches

500.  (a) In this article, "branch office" means any branch office
other than an automated teller machine branch office as defined in
Section 550 or a remote service facility as defined in subsection (d)
of Section 345.12 of Title 12 of the Code of Federal Regulations,
except that no place where a bank or trust company engages in
fiduciary business shall, solely on that account, be deemed to be a
branch office.
   (b) When authorized by the commissioner as provided in this
chapter, a bank or trust company, with the approval of its board, may
establish and maintain one or more branch offices.
501.  The request for authority to establish a branch office shall
be set forth in an application in such form and containing such
information as the commissioner may require and shall be accompanied
by an application fee of one thousand dollars ($1,000) for each new
branch office.
503.  In determining whether to approve or disapprove an application
by a bank for authority to establish a branch office, the
commissioner shall consider all of the following:
   (a) The financial history and condition of the bank.
   (b) The adequacy of the shareholders' equity in the bank.
   (c) The future earnings prospects of the bank.
   (d) The management of the bank.
   (e) The convenience and needs of the community to be served by the
branch office.
504.  When the commissioner has approved an application for
permission to establish a branch office, the commissioner shall issue
a certificate in duplicate authorizing the opening and operation of
the branch office and specifying the date on which and the conditions
under which it may be opened and the place where it will be located.
  The commissioner shall cause one copy to be transmitted to the
applicant and the other copy to be filed in the department.
505.  The failure of a bank or trust company to open and operate a
branch office within one year after the commissioner approves the
application therefor shall automatically terminate the right of the
bank or trust company to open the branch office except that the
commissioner, for good cause on written application made before the
expiration of the one-year period and accompanied by a fee of one
hundred dollars ($100), may extend for additional periods not in
excess of one year each the time within which the branch office may
be opened.
506.  A bank or trust company which opens a branch office without
first obtaining the approval of the commissioner shall be subject to
a civil penalty levied pursuant to Section 216.3.
507.  When authorized by the commissioner a bank or trust company
may change the location of a branch office from one location to
another in the same vicinity.  An application for such authorization
shall be in such form and contain such information as the
commissioner may require and be accompanied by a fee of two hundred
fifty dollars ($250).
509.  A bank or trust company which maintains a branch office or
branch offices shall give to each branch office maintained by it a
specific designation by name or number and include in the designation
the word "branch" or the word "office" and shall prominently display
the designation at the place of business of the branch.
510.  (a) A bank or trust company may close or discontinue the
operation of any branch office if, before the closing or
discontinuance, (1) the bank files with the commissioner a notice
containing the information in subdivision (b), and (2) the
commissioner within 60 days after the filing of the notice or any
longer period to which the bank consents, either (A) issues a written
statement not objecting to the notice or (B) does not issue a
written objection to the notice.
   (b) (1) A notice filed under subdivision (a) shall contain all of
the following information:
   (A) The name of the California state bank.
   (B) The location of the branch office proposed to be closed or
discontinued.
   (C) The location of the office to which the business of the branch
office proposed to be closed or discontinued is proposed to be
transferred.
   (D) The proposed date of closing or discontinuance.
   (E) A detailed statement of the reasons for the decision to close
the branch office.
   (F) Statistical or other information in support of the reasons
consistent with the institution's written policy for branch office
closings.
   (G) Any other information that the commissioner may require.
   (2) A notice filed under subdivision (a) shall be in the form,
shall be signed in the manner, and shall, if the commissioner
requires, be verified in the manner that the commissioner may
require.
   (c) For purposes of subdivision (a), a notice is deemed to be
filed with the commissioner at the time when the complete notice,
including any amendments or supplements, containing all the
information required by the commissioner, and otherwise complying
with subdivision (b), is received by the commissioner.
   (d) In determining whether or not to object to a notice filed
under subdivision (a), except if the commissioner finds that it is
necessary in the interests of safety and soundness that the branch
office be closed or discontinued, the commissioner shall consider
whether the closing or discontinuance of the branch office will have
a seriously adverse effect on the public convenience or advantage.
511.  A bank may arrange for the collection of savings from school
children by the principal of the school, by the teachers, or by
collectors, pursuant to regulations issued by the commissioner and
approved, in the case of public schools, by the board of education or
board of trustees of the city or district in which the school is
situated.  The principal, teacher, or person authorized by the bank
to make collections from the school children shall be the agent of
the bank and the bank is liable to the pupil for all deposits made
with such principal, teacher, or other authorized person to the same
extent as if the deposits were made directly with the bank.
512.  With the approval of the commissioner and subject to any
regulations that the commissioner may prescribe, a bank may transact
at a foreign (other state) or foreign (other nation) branch office
business that is permissible for banks organized under the laws of
the state or nation where the branch office is located but that would
not otherwise be permissible for the bank.