2005 California Financial Code Sections 750-782 CHAPTER 6. POWERS AND MISCELLANEOUS PROVISIONS

750.  A bank or trust company may purchase, acquire, hold, or lease
real property or an interest therein only as follows:
   (a) Such as may be necessary or convenient for the use, operation
or housing of its head office and branch offices, or for the storage
of records or other personal property, or for office space for use by
its officers or employees, or which may be reasonably necessary for
future expansion of its business, or which is otherwise reasonably
related to the conduct of its business.  Real property used by a bank
as its banking premises may include in addition to the space
required for the transaction of its business other space which may be
let as a source of income.
   (b) Such as may be conveyed to it in satisfaction in whole or in
part of debts previously contracted in the course of its business.
   (c) Such as it may purchase or acquire at foreclosure sales under
mortgages or deeds of trust held by it, or under judgments or decrees
in its favor.
   (d) Such as it may purchase or otherwise acquire when necessary to
minimize or prevent the loss or destruction of any lien or interest
therein.
   (e) Such as it may purchase or otherwise acquire pursuant to
Section 751.3.
   A bank or trust company may sell, lease, or encumber real property
or any interest therein owned by it, or, with the written approval
of the commissioner, exchange the same for other real property.
751.  Any real property not held for any purpose permitted by
subdivisions (a) and (e) of Section 750 shall be sold whenever the
same can be sold for an amount sufficient to reimburse the bank or
trust company for all loss arising out of the loan for which such
real property was security or arising out of the original investment.
  A bank or trust company shall not by the retention of any real
property acquired pursuant to this section engage in any business not
authorized by this division except to the extent necessary in the
orderly liquidation of an indebtedness owing to the bank.
751.3.  (a) The Legislature finds and declares:
   (1) That it is necessary to increase job opportunities in real
estate development and construction and to provide additional housing
and commercial facilities in this state.
   (2) That within the commercial banking community there exists the
expertise and ability to promote and assist in expansion of real
estate development projects in this state.
   (3) That it is proper and appropriate to utilize that expertise
and ability by authorizing commercial banks to engage in real estate
development and management on an entrepreneurial basis.
   (b) As used in this section, "real property investment" means all
forms of investing in real property, whether direct or in the form of
partnerships, joint ventures, or other methods of investment.  It
includes, but is not limited to, the purchasing, subdividing, and
developing of real property or any interest therein, the building of
residential housing or commercial improvements, and the owning,
renting, leasing, managing, operating for income, or selling of that
property.
   (c) Notwithstanding Section 1335, a commercial bank may acquire
and hold stock of one or more corporations the primary activities of
which are engaging in real property investment, in which event the
sum of (1) investments made by a commercial bank pursuant to the
authority of this subdivision, (2) any loans and guarantees extended
by a commercial bank to, or for the benefit of, corporations whose
stock it holds pursuant to the authority of this subdivision, and (3)
real property investments made pursuant to the authority of
subdivision (d), unless a higher percentage is approved by the
commissioner in writing, shall not exceed 10 percent of the total
assets of the bank.
   (d) A commercial bank may engage in real property investment.  The
total of all real property investments made pursuant to the
authority of this subdivision, unless a higher percentage is approved
by the commissioner in writing, shall not exceed the total
shareholders' equity of the bank.
   (e) Prior to initially engaging in real property investment
activities authorized by this section, a commercial bank shall make
application with the commissioner for approval of its general plan of
real property investment.  The application for approval shall be in
letter form, shall contain a copy of the general plan for real
property investment as approved or adopted by the board of directors
of the bank, which shall include a brief description of either the
activities of the corporations the bank will invest in or the
activities the bank will engage in, or both, the approximate amount
to be invested, the extent, if any, of diversification of those
activities or investment, and the approximate date of the initial
investment, and shall be signed by the chief executive officer of the
bank.  Unless the commissioner finds (1) that the capital, assets,
management, earnings, and liquidity of the commercial bank are, on a
composite basis, not satisfactory, or (2) that the plan for the
commercial bank to engage in real property investment or to acquire
and hold the stock of one or more real property investment
corporations is unsafe or unsound, the commissioner shall approve the
application.  An application for approval shall be deemed approved
on the 46th day after the application is filed with the commissioner,
unless the commissioner earlier makes a final decision on the
application or extends the period for approving or denying the
application.  For purposes of this subdivision, an application for
approval shall be deemed to be filed with the commissioner on the
date when the application, substantially in compliance with the
requirements of this subdivision, is received by the commissioner.
Upon the filing of the application for approval, the applicant shall
pay to the commissioner a filing fee of five hundred dollars ($500).
   (f) The legality of any investment lawfully made pursuant to this
section as it read prior to the amendment of this section shall not
be affected by the existing form of this section, nor shall this
section be construed to require the changing of any investments
heretofore lawfully made.
751.7.  A commercial bank may provide real estate appraisal services
and may charge a fee therefor.
752.  A bank or trust company may purchase, acquire, and hold not
less than 75 percent of the outstanding shares of a corporation
engaged exclusively in holding real property of the character
described in subdivision (a) of Section 750 for the purposes therein
set forth or in holding, separately or in addition to that real
property, tangible personal property necessary or convenient for the
use of the bank or trust company in the conduct of its business or
for future expansion of its business.  The purchase or acquisition of
stock of any such corporation shall be approved by two-thirds of all
the directors of the bank or trust company and be approved in
writing by the commissioner.  An application for approval shall be in
such form and contain such information as the commissioner may by
order or regulation require and shall be accompanied by a fee of five
hundred dollars ($500).
753.  (a) (1) In this section, "federal law" includes, but is not
limited to, the United States Constitution, any federal statute, any
federal court decision, and any regulation, circular, bulletin,
interpretation, decision, order, and waiver issued by a federal
agency.
   (2) The definitions set forth in Section 1700 apply to this
section.
   (b) (1) Notwithstanding any other provision of law, except as
provided in subdivision (c), if the commissioner finds that any
provision of federal law applicable to national banking associations
doing business in this state is substantively different from the
provisions of this code applicable to banks organized under the laws
of this state, the commissioner may by regulation make that provision
of federal law applicable to banks organized under the laws of this
state.
   (2) If the commissioner finds that any provision of federal law
applicable to foreign (other nation) banks with respect to federal
agencies or federal branches in this state is substantively different
from the provisions of this code applicable to foreign (other
nation) banks with respect to agencies or branch offices licensed by
the commissioner under Chapter 13.5 (commencing with Section 1700),
the commissioner may by regulation make that provision of federal law
applicable to foreign (other nation) banks with respect to agencies
or branch offices licensed by the commissioner under Chapter 13.5.
   (c) (1) Section 11343.4 and Article 5 (commencing with Section
11346) and Article 6 (commencing with Section 11349) of Chapter 3.5
of Part 1 of Division 3 of Title 2 of the Government Code do not
apply to any regulation adopted under  subdivision (b).
   (2) The commissioner shall file any regulation adopted pursuant to
  subdivision (b), together with a citation to this section as
authority for the adoption and a citation to the provisions of
federal law made applicable by the regulation, with the Office of
Administrative Law for filing with the Secretary of State and
publication in the California Code of Regulations.
   (3) Any regulation adopted under subdivision (b) shall become
effective on the date when it is filed with the Secretary of State
unless the commissioner prescribes a later date in the regulation or
in a written instrument filed with the regulation.
   (4) Any regulation adopted under subdivision (b) shall expire at
12 p.m.  on December 31 of the year following the calendar year in
which it becomes effective.
   (5) Any regulation adopted pursuant to subdivision (b) shall be
subject to the following restrictions:
   (A) The commissioner shall not renew or reinstate the regulation
adopted pursuant to subdivision (b).
   (B) The commissioner shall not adopt a new regulation pursuant to
subdivision (b), to address the same conformity issue that was
addressed by the regulation that expired pursuant to subdivision (c).
   (d) The commissioner may adopt regulations pursuant to subdivision
(b) that are exempt from the expiration and restrictions of
subdivision (c) if the regulations are adopted in compliance with all
provisions of Chapter 3.5 (commencing with Section 11340) of Part 1
of Division 3 of the Government Code, including those listed in
paragraph (1) of subdivision (c).
754.  A bank or trust company may become a member of the Federal
Reserve System, may subscribe for, purchase, and hold the amounts of
the capital stock of the Federal Reserve bank serving the district in
which the bank or trust company is located as may be required to
maintain the membership and, when not in conflict with the laws of
this state, may exercise all powers conferred upon the members and
may assume and discharge all obligations required of the members.
   A bank or trust company may become a member of a federal home loan
bank in the manner provided in the Federal Home Loan Bank Act, and,
for the purpose of becoming a member, may invest any part of its
shareholders' equity in the capital stock of the federal home loan
bank as may be required by the provisions of the Federal Home Loan
Bank Act.
755.  A bank may become a member of the Federal Deposit Insurance
Corporation or of any successor corporation having for its purpose
the insurance of deposits and may do all things and assume and
discharge all obligations required of such members when not in
conflict with the laws of this State.
756.  A bank or trust company may become a member of any federal
agency, membership in which is open to banking institutions, and may
comply with all the requirements and conditions imposed upon such
members when not in conflict with the laws of this state, except that
the power conferred by this section shall not be exercised unless
the commissioner makes a general order authorizing banks generally as
a class, or trust companies generally as a class, or banks doing a
commercial or trust business, respectively, as a class, to become
such members upon such terms and conditions as may be prescribed in
such order.
757.  (a) A bank or trust company may engage in the business of
renting safe deposit boxes and may receive personal property for
safekeeping and storage on its banking premises.
   (b) A copy of any safe deposit rental agreement, or personal
property safekeeping and storage agreement, which is prepared by the
bank or trust company and signed by the customer shall be delivered
to the customer at the time the agreement is signed if the agreement
is signed at a place of business of the bank or trust company.  If
the agreement is not signed at a place of business of the bank or
trust company, the bank or trust company shall mail or deliver a copy
of the agreement to the customer within 10 calendar days after the
bank or trust company receives it.  The contract shall not contain
any blank spaces to be filled in after the customer signs the
contract.  If more than one customer has signed the agreement, the
bank or trust company may comply with this section by mailing or
delivering the copy to any one of the customers who reside at the
same address.  A copy shall also be mailed or delivered to any other
customer who has signed the agreement and who does not reside at the
same address.  As used in this section, "copy" means a reproduction,
facsimile, or duplicate.  A bank or trust company which fails to
comply with this section is liable to its customer for any actual
damages suffered by the customer as a result of that failure.  The
remedy provided by this section is nonexclusive and is in addition to
any remedies or penalties available under other laws of this state.
758.  With the prior written consent of the commissioner, a bank or
trust company may purchase and hold not less than 75 percent of the
outstanding shares of the stock of a corporation authorized to
conduct a safe deposit business, organized and existing under the
laws of this state and conducting a safe deposit business in the same
city or locality in which an office of such bank or trust company is
situated.  No such safe deposit corporation shall conduct a safe
deposit business in any city or locality in which such bank or trust
company does not maintain an office.  The aggregate investment of any
bank or trust company in such corporation at any one time shall not
exceed 10 percent of the shareholders' equity of such bank or trust
company.
759.  With the prior written consent of the commissioner, a bank may
purchase and hold the whole or any part of the stock of not more
than one corporation authorized to conduct a trust business,
organized and existing under the laws of this state and transacting a
trust business in the same county in which the head office of such
bank is situated.  An application for consent shall be in such form
and contain such information as the commissioner may by order or
regulation require and shall be accompanied by a fee of five hundred
dollars ($500).  No bank's investment in any such corporation at any
one time shall exceed 25 percent of the bank's shareholders' equity.
No such trust company shall engage in or combine the business of a
commercial bank or a title insurance company.
760.1.  A bank may invest in shares of the stock of one or more
corporations which are engaged primarily in civic, public, or social
welfare activities.  The total amount invested by a bank in shares of
the stock of any one such corporation shall not exceed 2 percent of
the bank's shareholders' equity and the total amount invested by a
bank in shares of the stock of all such corporations shall not exceed
5 percent of the bank's shareholders' equity.
761.  No bank shall purchase, acquire, or hold the stock of any
corporation except as expressly authorized by this division, or
pursuant to a plan of reorganization approved by the commissioner by
which all of the stock of one or more banks organized under the laws
of this state shall be acquired and immediately reissued
proportionately to the stockholders of the acquiring bank.
761.5.  (a) In this section:
   (1) "Depository institution" has the meaning set forth in Section
3(c) of the Federal Deposit Insurance Act (12 U.S.C. Sec. 1813(c)).
   (2) "Depository institution holding company" has the meaning set
forth in Section 3(w) of the Federal Deposit Insurance Act (12 U.S.C.
Sec. 1813(w)).
   (b) Notwithstanding any provision of this code to the contrary,
and except as the commissioner may otherwise order, a California
state bank may purchase for its own account shares of the stock of an
insured bank or of a holding company that owns or controls an
insured bank if the stock of the bank or company is owned exclusively
(except to the extent directors' qualifying shares are required by
law) by depository institutions or depository institution holding
companies and if the bank or company and all subsidiaries thereof are
engaged exclusively in providing services to or for other depository
institutions, their holding companies, and the officers, directors,
and employees of these institutions and companies and in providing
correspondent banking services at the request of other depository
institutions or their holding companies.
762.  A bank or trust company may acquire stock in settlement or
reduction of a loan or in exchange for an investment previously made
in good faith where the acquisition of such stock is necessary in
order to minimize or avoid loss arising out of such loan or
investment.   Whenever any such stock can be sold for an amount
sufficient to reimburse the bank or trust company for all loss
arising out of the loan for which such stock was security or arising
out of the original investment the bank or trust company shall sell
the same.  A bank or trust company shall not by the retention of any
stock acquired pursuant to this section engage in any business not
authorized by this division except to the extent necessary in the
orderly liquidation of an indebtedness owing to the bank.
763.  The amount of funds of a bank or trust company which are
deposited in any other financial institution (except a Federal
Reserve bank) shall not at any time exceed 10 percent of the sum of
the shareholders' equity, allowance for loan losses, capital notes,
and debentures of the depositing bank or trust company unless the
financial institution has been designated as a depositary for the
funds of the depositing bank or trust company by the vote of a
majority of the directors of the depositing bank or trust company,
and unless the financial institution has been approved by the
commissioner as a depositary for the purposes of this section.  The
commissioner may in his or her discretion revoke his or her approval
of any such depositary and may in his or her discretion limit the
amount of funds that may be deposited by any bank or trust company
with any other financial institution.  A deposit by one bank or trust
company with another financial institution shall not be regarded as
a loan.
764.  Any court having jurisdiction of any estate in process of
administration or of any other proceeding, on application of any
person interested therein and after a hearing on such notice as the
court may direct or without notice if all parties in interest consent
thereto, may order any executor, administrator, guardian,
conservator, assignee, receiver, depositary, or trustee, whether such
officer or trustee has qualified as such or not, to deposit with any
bank or trust company any money then in his hands or under his
control or which may thereafter come into his hands until the further
order of the court.  Upon such deposit being made and while such
moneys remain on deposit with such bank or trust company, the officer
or trustee making the deposit shall be relieved of all
responsibility therefor, and the court by order shall reduce the bond
to be given or theretofore given by such officer or trustee so as to
cover only the estate remaining in his hands.  The money so
deposited shall be held by the bank or trust company under the
direction of the court and shall be repaid only on order of the
court.  If the amount sought to be deposited in any one bank does not
exceed the amount which will be covered by insurance of the Federal
Deposit Insurance Corporation an order for deposit hereunder may be
made ex parte without notice or hearing.
765.  When the court has ordered the deposit of money or assets of
an estate with a bank or trust company pursuant to Section 764 or
Section 1586 of this code, any bank or trust company having
possession or control of any such money or assets, upon the demand of
the bank or trust company which has been ordered to receive such
deposit, whether the officer or trustee directed to make such deposit
has or has not duly qualified, shall deliver such money or assets to
the bank or trust company named by the court to receive such
deposit.  The acceptance of such money or assets by the bank or trust
company named to receive the same shall relieve the bank which has
been in possession thereof from all further responsibility therefor.
766.  For the purpose of determining whether any loan or investment
is secured by a first lien on real property as required by any
provision of this division, none of the following shall be deemed a
prior encumbrance unless any installment or payment thereunder other
than a rental or royalty under a lease, is due and delinquent:
   (a) The lien of any tax, assessment, or bond levied or issued by
any state or territory of the United States or by any district,
political subdivision, or municipal corporation thereof, except the
lien of an assessment levied against a particular parcel of real
property and of any bond given or issued pursuant to law in lieu of
the payment of such assessment.
   (b) A lien created by a contract and given to secure the payment
for water to be furnished under such contract for the irrigation of
the real property or any part thereof.
   (c) A lease of the real property under which all rents or
royalties are reserved to the owner.
   (d) The lien of a bond given or issued pursuant to law in lieu of
the payment of an assessment levied against a particular parcel of
real property and the lien of any assessment levied to pay such bond,
if the unpaid balance of such bond and the amount of such loan or
investment combined do not exceed the percentage of the sound market
value of the real property permitted to be so loaned or invested by
any such provision of this division.
   (e) A lien given to secure the payment of any assessment or
subscription to meet the requirements of any law of the United States
in respect to any irrigation project of the United States in any
state or territory of the United States which may be levied, made, or
received by any corporation or association formed to carry out the
provisions of any such law, if the unpaid balance of such assessment
or subscription and the amount of such loan or investment combined do
not exceed the percentage of the sound market value of the real
property permitted to be so loaned or invested by any such provision
of this division.
768.  No loan made by any bank in excess of any limitations
contained in this division or which is made in violation of any of
the provisions of this division shall be invalid or illegal as to the
lender for that reason, nor shall any loan made to any bank in
excess of the amounts permitted by this division be invalid or
illegal as to the lender for that reason.
769.  A bank may purchase and hold the stock of small business
investment companies authorized to operate under the Small Business
Investment Act, as amended, in an amount not aggregating more than 10
percent of the bank's shareholders' equity.
771.  Two or more banks may invest in the stock of a corporation
engaged exclusively in the business of performing for one or more
banks such bank services as check and deposit sorting and posting,
computation and posting of interest and other credits and charges,
preparation and mailing of checks, statements, notices and similar
items, or any other clerical, bookkeeping, accounting, statistical,
or similar functions performed for a bank; provided that the
aggregate investment of any bank in the corporation at any one time
shall not exceed 10 percent of the shareholders' equity of the bank;
and provided, further, that the corporation shall furnish to the
commissioner satisfactory assurances that the performance of services
by the corporation will be subject to regulation and examination by
the commissioner to the same extent as if the services were being
performed by the bank itself on its own premises.
772.  Notwithstanding the provisions of Section 1335, except as
provided in Section 1336, and subject to regulations and rules the
commissioner may prescribe, a bank may invest in equity or other
securities of one or more corporations, limited liability
corporations, limited liability companies, limited partnerships,
trusts, business trusts, or other similar business organizations.
   Any reference to "corporation" in regulations adopted by the
commissioner to implement this section shall be deemed to include
limited liability corporations, limited liability companies, limited
partnerships, trusts, business trusts, or other similar business
organizations.
773.  Subject to such regulations and rules as the superintendent
may prescribe, a bank may issue and sell securities which are
guaranteed pursuant to Section 306(g) of the National Housing Act, as
amended.
774.  Subject to such regulations and rules as the commissioner may
prescribe, a bank may acquire and hold shares of stock issued by a
corporation authorized to be created pursuant to Title IX of the
Housing and Urban Development Act of 1968, and may make investments
in a partnership, limited partnership, or joint venture formed
pursuant to Section 907(a) or 907(c) of such act.
775.  Notwithstanding any other provision of law, any commercial
bank (as defined in Section 105) and any trust company (as defined in
Section 107) holding securities in a fiduciary capacity or while
engaged in a trust business (as defined in Section 106), or while
acting in any capacity under a court or private trust, or while
acting in such capacity with one or more persons as cofiduciary or
cofiduciaries, unless the instrument creating such trust contains a
provision to the contrary, is authorized to deposit or arrange for
the deposit of such securities in a securities depository, as defined
in Section 30004, which is licensed under Section 30200 or exempted
from licensing thereunder by Section 30005 or 30006.  When such
securities are so deposited, they may be held in the custody of the
securities depository in which they are deposited or in the custody
of any other securities depository so licensed or exempted and in
which the securities depository in which such securities were
deposited maintains an account, or in the custody of any bank or
trust company with authority to accept custody of such securities,
which accepts custody of such securities on behalf of a securities
depository.  Such securities may be held in the name of the nominee
of the securities depository in which they are deposited, or in the
name of the nominee of any other securities depository with which the
securities depository in which they are deposited maintains an
account.  The custodian of securities so deposited may merge
certificates representing securities of the same class of the same
issuer and may hold such certificates in bulk with any other
securities deposited in any securities depository by any person
regardless of the ownership of such securities, and certificates of
small denomination may be merged into one or more certificates of
larger denomination.  Any commercial bank or trust company which
deposits or arranges for the deposit of such securities in such a
securities depository shall maintain records which at all times show
the ownership of the securities so deposited.  A commercial bank or
trust company so depositing securities pursuant to this section shall
be subject to such rules and regulations as in the case of
state-chartered institutions, the commissioner and, in the case of
national banking associations, the Comptroller of the Currency may
from time to time issue.
   This section shall apply to securities now held or hereafter held
by a commercial bank or trust company in the above designated
capacities.  A commercial bank or trust company may but shall not be
required to own capital stock of a securities depository in which it
deposits securities pursuant to this section.
775.1.  Notwithstanding any other provision of law, any commercial
bank (as defined in Section 105) and any trust company (as defined in
Section 107) holding securities in a fiduciary capacity or while
engaged in a trust business (as defined in Section 106), or while
acting in any capacity under a court or private trust, or while
acting in such capacity with one or more persons as cofiduciary or
cofiduciaries, unless the instrument creating such trust contains a
provision to the contrary, is authorized to deposit or arrange for
the deposit with a federal reserve bank of any such securities the
principal and interest of which the United States or any department,
agency or instrumentality thereof has agreed to pay, or has
guaranteed payment, to be credited to one or more accounts on the
books of such federal reserve bank in the name of such commercial
bank or trust company, to be designated fiduciary or safekeeping
accounts, to which accounts other similar securities may be credited.
  Any commercial bank or trust company which deposits or arranges for
the deposit of such securities pursuant to this section shall
maintain records which at all times show the ownership of the
securities so deposited.  A commercial bank or trust company so
depositing securities pursuant to this section shall be subject to
such rules and regulations as in the case of state-chartered
institutions, the commissioner and, in the case of national banking
associations, the Comptroller of the Currency, may from time to time
issue.  Ownership of, and other interests in, the securities credited
to such account may be transferred by entries on the books of said
federal reserve bank without physical delivery of any securities.  A
commercial bank or trust company acting as custodian for a fiduciary
shall, on demand by the fiduciary, certify in writing to the
fiduciary the securities deposited by such commercial bank or trust
company pursuant to this section for the account of the fiduciary.  A
fiduciary shall, on demand by any party to its accounting, certify
in writing to such party the securities deposited for its account as
such fiduciary pursuant to this section.  This section shall apply to
all fiduciaries and custodians for fiduciaries, acting on the
effective date of this section or who thereafter may act regardless
of the state of the instrument or court order by which they are
appointed.
776.  (a) Every bank and branch shall conduct all of its business in
one building or in adjoining buildings except that under special
circumstances a bank or branch may conduct a portion of its business
at an extension office elsewhere in the same vicinity provided the
notice requirements of subdivision (b) are complied with and provided
further that the commissioner either (1) issues a written statement
not objecting to the notice or (2) does not issue a written objection
to the notice.
   (b) The California state bank shall file a notice with the
commissioner no fewer than 30 days prior to conducting any portion of
its business at an extension office, which notice shall provide the
following information:
   (1) The name of the California state bank, and, if applicable, the
popular name of the branch whose business will be conducted at an
extension office.
   (2) The address of the proposed extension office.
   (3) A description of the proposed business to be conducted at the
extension.
   (4) The date on which the bank proposes to commence business at
the extension.
   (5) Any other information that the commissioner may, by regulation
or order, require.
777.  A commercial bank may provide management consulting advice and
services and may charge a fee therefor.
777.5.  (a) Notwithstanding the provisions of Sections 1051, 1052,
and 1054 of the Labor Code and Section 2947 of the Penal Code, a bank
or any affiliate thereof, licensed under the laws of any state or of
the United States, or any officer or employee thereof, may deliver
fingerprints taken of a director, an officer, an employee, or an
applicant for employment to local, state, or federal law enforcement
agencies for the purpose of obtaining information as to the existence
and nature of a criminal record, if any, of the person fingerprinted
relating to convictions, and to any arrest for which that person is
released on bail or on his or her own recognizance pending trial, for
the commission or attempted commission of a crime involving robbery,
burglary, theft, embezzlement, fraud, forgery, bookmaking, receiving
stolen property, counterfeiting, or involving checks or credit cards
or using computers.
   (b) The Department of Justice shall, pursuant to Section 11105 of
the Penal Code, and a local agency may, pursuant to Section 13300 of
the Penal Code, furnish to the officer of the bank or affiliate
responsible for the final decision regarding employment of the person
fingerprinted, or to his or her designees having responsibilities
for personnel or security decisions in the usual scope and course of
their employment with the bank or affiliate, summary criminal history
information when requested pursuant to this section. If, upon
evaluation of the criminal history information received pursuant to
this section, the bank or affiliate determines that employment of the
person fingerprinted would constitute an unreasonable risk to that
bank or affiliate or its customers, the person may be denied
employment.
   (c) A request for records pursuant to this section made of the
Department of Justice shall be on a form approved by the department.
The department may charge a fee to be paid by the requesting bank or
affiliate pursuant to subdivision (e) of Section 11105 of the Penal
Code.  No request shall be submitted without the written consent of
the person fingerprinted.
   (d) Any criminal history information obtained pursuant to this
section is confidential and no recipient shall disclose its contents
other than for the purpose for which it was acquired.
   (e) "Affiliate," as used in this section, means any corporation
controlling, controlled by, or under common control with, a bank,
whether directly, indirectly, or through one or more intermediaries.
778.  (a) A commercial bank may provide electronic data-processing
services and may charge a fee therefor.
   (b) As used in this section, "electronic data-processing" means
the process that encompasses all computerized and auxiliary automated
information handling, including systems analysis and design,
conversion of data, computer programming, information storage and
retrieval, data transmission, requisite system controls, simulation,
and all the related operator-machine interaction.
779.  (a) Notwithstanding Section 726 of the Code of Civil Procedure
or any other provision of law to the contrary, a state or nationally
chartered bank, its subsidiaries or affiliates transacting business
in this state, or any successor in interest thereto, that originates,
acquires, or purchases, in whole or in part, any loan secured
directly or collaterally, in whole or in part, by a mortgage or deed
of trust on real property, or any interest therein, may bring an
action for recovery of damages, including exemplary damages not to
exceed 50 percent of the actual damages, against a borrower where the
action is based on fraud under Section 1572 of the Civil Code and
the fraudulent conduct by the borrower induced the original lender to
make that loan.
   (b) The provisions of this section shall not apply to loans
secured by single-family, owner-occupied residential real property,
when the property is actually occupied by the borrower as represented
to the lender in order to obtain the loan and the loan is for an
amount of one hundred fifty thousand dollars ($150,000) or less, as
adjusted annually, commencing on January 1, 1987, to the Consumer
Price Index as published by the United States Department of Labor.
   (c) Any action maintained under this section for damages shall not
constitute a money judgment for deficiency or a deficiency judgment
within the meaning of Section 580a, 580b, or 580d of the Code of
Civil Procedure.
782.  Notwithstanding Section 1335, a bank may invest in shares of
an investment company (1) registered with the Securities and Exchange
Commission pursuant to the federal Investment Company Act of 1940,
as amended (15 U.S.C.  Sec. 80a-1 et seq.) and for which the shares
are registered under the federal Securities Act of 1933, as amended
(15 U.S.C. Sec. 77a et seq.), and (2) the portfolio of which consists
solely of the following:
   (a) Debt obligations in which a bank is permitted to invest
without limitation pursuant to subdivision (a), (b), (c), or (d) of
Section 1336 and repurchase agreements fully collateralized by those
obligations.
   (b) Loans of federal funds and similar loans of unsecured day(s)
funds, maturing in six months or less to institutions insured by the
Federal Deposit Insurance Corporation (Federal Funds).  Loans under
this subdivision are limited to transactions described in subsection
(a) or (b) of Section 32.102 of Title 12 of the Code of Federal
Regulations involving investment companies in which the entire
beneficial interest is held exclusively by depository institutions,
as permitted by Section 204.123 of Title 12 of the Code of Federal
Regulations.
   The commissioner may, by regulation, prescribe further conditions
respecting investment by banks under this section as may be necessary
for the safety or soundness of banks or as may otherwise be in the
public interest.