SECTIONS 1900-1917

1900.  (a) (1) For purposes of this section, "foreign bank" meansthe business in this state of every foreign (other nation) banklicensed under Article 3 (commencing with Section 1750) of Chapter13.5. (2) For purposes of this subdivision, an examination made by thecommissioner in conjunction with or with assistance from a bankregulatory agency of the United States, of a state of the UnitedStates, or of a foreign nation is deemed to be an examination causedby the commissioner. (3) No provision of this subdivision shall be deemed to requirethat the commissioner cause an examination to be made onsite at theoffices of a bank. (4) The commissioner shall cause every California state bank andevery foreign bank to be examined to the extent and whenever and asoften as the commissioner shall deem it advisable, but in no caseless frequently than once every 12 months, except that the followingbanks shall be examined pursuant to federal law no less frequentlythan state banks and foreign banks that meet the respective federalcriteria: (A) California state banks that meet the criteria set forth inSection 1820(d)(4) of Title 12 of the United States Code. (B) Foreign banks that meet the criteria set forth in Section211.26(c)(2) of Title 12 of the Code of Federal Regulations. (5) The examinations required by paragraph (4) may be conducted inalternate examination periods, as appropriate, if the commissionerdetermines that an examination of the state bank by the appropriatefederal regulator, insuring or guaranteeing corporation during theintervening examination period carries out the purpose of thissection. The commissioner may not accept two consecutiveexaminations, or two consecutive examination reports, made by federalregulators, insuring or guaranteeing corporations, or agencies withrespect to the condition of the state bank. (6) The commissioner shall cause every California state trustcompany to be examined to the extent and whenever and as often as thecommissioner shall deem it advisable, but in no case less frequentlythan once every 24 months. (7) The commissioner may examine subsidiaries of every Californiastate bank, state trust company, and foreign (other nation) banklicensed under Article 3 (commencing with Section 1750) of Chapter13.5 to the extent and whenever and as often as the commissionershall deem it advisable. (b) The commissioner may at any time examine any of the following: (1) Any office of a bank organized under the laws of this state. (2) Any office of a foreign (other state) bank that maintains anoffice in this state. (3) Any office of a foreign (other nation) bank that maintains anoffice in this state. (c) The officers and employees of every California state bank,California state trust company, and foreign bank being examined shallexhibit to the examiners, on request, any or all of its securities,books, records, and accounts and shall otherwise facilitate theexamination so far as it may be in their power.1901.  (a) Whenever, in the judgment of the commissioner, it isnecessary or advisable to make an extra examination of or to devoteany extraordinary attention to any bank, any foreign bank, or anyoffice of a foreign bank, he or she has the authority to do so and tocharge and collect from the bank or foreign bank, in the case of anextra examination, an amount not exceeding seventy-five dollars ($75)per hour for each examiner engaged in the examination and, in thecase of extraordinary attention, an amount not exceeding thedepartment's expenses in providing the extraordinary attention,including, but not limited to, compensation of employees. (b) Whenever in the judgment of the commissioner it is necessaryor expedient for any examiner engaged in any examination to traveloutside this state, the commissioner may charge for the travelexpenses of the examiner.1902.  (a) The commissioner may by order or regulation grantexemptions from this section in cases where the commissioner findsthat the requirements of this section are not necessary. (b) Each California state bank shall, within 90 days after the endof each fiscal year, or within such extended time as thecommissioner may prescribe, file with the commissioner an auditreport for the fiscal year. (c) The audit report called for in subdivision (b) shall complywith all of the following provisions: (1) The audit report shall contain those audited financialstatements of the bank for or as of the end of the fiscal yearprepared in accordance with generally accepted accounting principlesand any other information that the commissioner may require. (2) The audit report shall be based upon an audit of the bankconducted in accordance with generally accepted auditing standardsand any other requirements that the commissioner may prescribe. (3) The audit report shall be prepared by an independent certifiedpublic accountant or independent public accountant who is notunsatisfactory to the commissioner. (4) The audit report shall include or be accompanied by acertificate or opinion of the independent certified public accountantor independent public accountant that is satisfactory in form andcontent to the commissioner. If the certificate or opinion isqualified, the commissioner may order the bank to take such action asthe commissioner may find necessary to enable the independentcertified public accountant or independent public accountant toremove the qualification.1906.  The commissioner, whenever in his or her opinion thecondition of the bank, trust company, or foreign banking corporationis such as to require such audit, may require any bank, trustcompany, or foreign banking corporation to employ a certified publicaccountant to make a special audit of the affairs of such bank ortrust company at its expense.1907.  The commissioner, for good cause, at any time and from timeto time may employ appraisers to appraise the value of anyinvestment, asset, or property held or upon which a lien is held assecurity for a loan. The bank, trust company, or foreign bankingcorporation shall pay to the commissioner on demand the cost of suchappraisal.1908.  The commissioner, a deputy commissioner, and every examinerassigned to an examination may administer an oath to any person whosetestimony is required for the purposes of any examination authorizedby this division and may by issuance of subpoena compel theappearance of any person and the production of any evidence for thepurposes of the examination.1914.  Whenever he or she deems it expedient, the commissioner maycall a meeting of the stockholders of any bank or trust company.Notice of the time and place of the meeting shall be given to eachstockholder by a notice mailed to the stockholder by registered mailat the stockholder's last known address at least 15 days before thedate of the meeting. Any expenses of such meeting shall be borne bythe bank or trust company.1915.  During any emergency period declared by the President of theUnited States, each bank shall conform to any order of thecommissioner directed to it, relating to and conforming withregulations, limitations, or restrictions which are applicablethereto prescribed by the Secretary of the Treasury, the Comptrollerof the Currency, or the Board of Governors of the Federal ReserveSystem regulating or governing the operations of banks which aremembers of the Federal Reserve System.1916.  During any emergency period declared by the Governor no bankshall transact any banking business except to such extent and subjectto such regulations, limitations, or restrictions as may beprescribed by the commissioner, which, as to member banks, shall beas consistent as the exigencies of the situation permit with theprovisions of the Federal Reserve Act and regulations issuedthereunder or, as to insured banks, shall be as consistent as theexigencies of the situation permit with the rules and regulationsgoverning banks whose deposits are insured by the Federal DepositInsurance Corporation.1917.  (a) The commissioner may, in his or her discretion, bring anaction in the name of the people of this state in a superior court toenjoin a violation of, to enforce compliance with, or to collect apenalty or other liability imposed under, this division or anyregulation or order issued under this division. The amount of anypenalty or liability collected shall be deposited into the StateBanking Account in the Financial Institutions Fund. Upon a propershowing, a permanent or preliminary injunction, restraining order, orwrit of mandate shall be granted, and a monitor, receiver,conservator, or other designated fiduciary or officer of the courtmay be appointed for the defendant or the defendant's assets, orother appropriate relief may be granted. (b) A receiver, monitor, conservator, or other designatedfiduciary officer of the court appointed by the superior courtpursuant to this section may, with the approval of the court,exercise all of the powers of the defendant's officers, directors,partners, trustees, or of persons who exercise similar powers andperform similar duties, including the filing of a petition forbankruptcy. No action at law or in equity may be maintained by anyparty against the commissioner, or a receiver, monitor, conservator,or any other designated fiduciary officer of the court by reason oftheir exercising these powers or performing these duties pursuant tothe order of, or with the approval of, the superior court. (c) If the commissioner determines it is in the public interest,the commissioner may include in an action authorized by subdivision(a), a claim for ancillary relief, including, but not limited to, aclaim for restitution, disgorgement, or damages on behalf of theperson injured by the act or practice that is the subject matter ofthe action. The court has jurisdiction to award additional relief. (d) The provision of subdivision (a) that authorizes theappointment of a monitor, receiver, conservator, or other designatedfiduciary or officer of the court, and subdivisions (b) and (c) donot apply to any of the following: (1) A state bank that is authorized by the commissioner totransact commercial banking or trust business. (2) A national bank. (3) A foreign (other state) bank that maintains a branch office inthis state in accordance with federal law, the law of this state,and the law of the bank's domicile. (4) A foreign (other nation) bank that is licensed by thecommissioner to maintain a branch office or agency, as defined inSection 1700, in this state. (5) A foreign (other nation) bank that maintains a federal branchor agency, as defined in Section 1700, in this state. (e) The provisions of this section that authorize the commissionerto bring actions and seek relief are not intended to, and do not,affect any right that any other person may have to bring the same orsimilar actions, or to seek the same or similar relief.