State Codes and Statutes

Statutes > California > Fin > 1500-1505

FINANCIAL CODE
SECTION 1500-1505



1500.  No corporation shall engage in the trust business unless:
   (a) Its articles comply with the requirements of subdivision (b),
(d), or (e) of Section 600; and
   (b) It has received from the commissioner a certificate of
authority pursuant to Section 401 to engage in the trust business,
or, if it is a bank, has received the authorization of the
commissioner to engage in the trust business pursuant to Section
1500.1; and
   (c) It has deposited with the State Treasurer money or securities
in compliance with Article 3 (commencing with Section 1540) of this
chapter.



1500.1.  Any commercial bank or industrial bank, with the prior
authorization of the commissioner, may engage in the trust business,
if its articles comply with the requirements of subdivision (b) of
Section 600. Any bank so authorized shall, in the conduct of its
trust business, comply with and be governed by all of the provisions
of this chapter, except the provisions of Section 1560. 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 one thousand dollars ($1,000).



1500.6.  No California state bank may engage in trust business at a
place unless the place is its head office, an authorized branch
office, or an authorized place of business.



1501.2.  The following persons are exempt from Section 1500:
   (a) Any natural person serving as trustee of one or more trusts
where at least one trustor is a family member of that trustee. For
purposes of this section, "family member" means any lineal ancestor,
lineal descendant, person having a common lineal ancestor of not more
than four generations distant, spouse, father-in-law, mother-in-law,
sister-in-law, brother-in-law, stepparent, or stepchild.
   (b) Any member of the State Bar, as specified in Section 6002 of
the Business and Professions Code, any certified public accountant,
as defined in Section 5033 of the Business and Professions Code, and
any professional corporation of one or more members of the State Bar
or certified public accountants, where these professionals are acting
as trustee of a trust established by them for their respective
clients, provided that the member of the State Bar, certified public
accountant, or professional corporation engages in no advertising for
trust business in this state.
   (c) Subject to all applicable limitations and restrictions in law
for nonprofit corporations, any nonprofit corporation acting as
trustee incidental to the purposes for which it was organized.
   (d) Any person appointed as receiver, trustee, or other fiduciary
by a court of competent jurisdiction acting pursuant to that
authority.
   (e) Any person licensed as a professional fiduciary pursuant to
Chapter 6 (commencing with Section 6500) of Division 3 of the
Business and Professions Code.



1502.  In this section, "subject national banking association" means
a national banking association that (a) maintains its main office or
a branch office in this state, (b) is authorized to transact a trust
business, and (c) has complied with the requirements of Article 3
(commencing with Section 1540) of this chapter and of all other laws
of this state relating to the deposit of securities for the
protection of court and private trusts. A subject national banking
association may engage in and conduct a trust business and may be
appointed by any court to act in any fiduciary capacity in which a
trust company is authorized to act. All acts provided in this code to
be performed by the commissioner, the State Treasurer, or other
public officials for or in respect to the deposit of securities by
trust companies, shall be performed for subject national banking
associations equally with trust companies. Every subject national
banking association shall be permitted to use the word "trust" in its
corporate name and to advertise its authority to engage in and
conduct a trust business and to advertise for and solicit trust
business in this state, notwithstanding any contrary provision in
this division or in any other law. The commissioner shall have access
to reports of examination made by the Comptroller of the Currency
insofar as they relate to the trust department of a subject national
banking association. For purposes of Article 3 (commencing with
Section 1540), the principal place of business of a national banking
association that maintains its main office in another state of the
United States and maintains a California branch office shall be
deemed to be situated in the city where the California branch office
is located or, if the national banking association maintains
California branch offices in two or more cities, in the city with the
largest population.



1503.  No foreign corporation, other than a national banking
association or a foreign (other state) state bank that is authorized
to conduct a trust business in this state, shall have or exercise the
powers of a trust company nor directly or indirectly transact or
conduct in this state a trust business as defined in Section 106.
However, a foreign corporation that is authorized by its articles to
exercise trust powers may act as trustee for the following purposes:
   (a) To deliver bonds and receive payments therefor.
   (b) To deliver permanent bonds in exchange for temporary bonds of
the same issue.
   (c) To deliver refunding bonds in exchange for those of a prior
issue or issues.
   (d) To register bonds or to exchange registered bonds for coupon
bonds or coupon bonds for registered bonds.
   (e) To pay interest on the bonds, and take up and cancel coupons
representing the interest payment.
   (f) To redeem and cancel bonds when called for redemption or to
pay and cancel bonds when due.
   (g) To certify registered bonds for the purpose of exchanging
registered bonds for coupon bonds.
   A foreign corporation that is authorized by its articles to
exercise trust powers may be appointed and may accept appointment and
act as trustee under any mortgage, deed of trust, or other
instrument securing bonds or other obligations issued or to be issued
by any railroad corporation that owns a railroad operating in the
State of California and extending into another state.
   A foreign corporation exercising in this state the powers
conferred by this section shall not establish or maintain directly or
indirectly any branch office or agency in this state unless it has
complied with all of the applicable provisions of Chapter 13.5
(commencing with Section 1700) or of Chapter 22 (commencing with
Section 3800).


1504.  Pursuant to the authority contained in Section 1 of Article
XV of the California Constitution, the restrictions upon rates of
interest contained in Section 1 of Article XV of the California
Constitution shall not apply to any obligations of, loans made or
arranged by, or forbearances of, any of the following that is
authorized to engage in the trust business, when acting in its
fiduciary capacity:
   (a) Any California state bank.
   (b) Any national bank that maintains its main office or a branch
office in this state.
   (c) Any foreign (other state) state bank that maintains a branch
office in this state.
   This section creates and authorizes an exempt class of persons
pursuant to Section 1 of Article XV of the Constitution.
   This section does not exempt a bank authorized to transact a trust
business or a subsidiary thereof from complying with all other laws
and regulations governing the business in which the bank or
subsidiary is engaged.



1505.  The Legislature finds and declares that it is important to
inform taxpayers that they may make voluntary contributions to
certain funds or programs, as provided on the state income tax
return. The Legislature further finds and declares that many
taxpayers remain unaware of the voluntary contribution check-offs on
the state income tax return. Therefore, it is the intent of the
Legislature to encourage all persons who prepare state income tax
returns to inform their clients in writing, prior to the completion
of any tax return, that they may make a contribution to any voluntary
contribution check-off on the state income tax return if they so
choose.


State Codes and Statutes

Statutes > California > Fin > 1500-1505

FINANCIAL CODE
SECTION 1500-1505



1500.  No corporation shall engage in the trust business unless:
   (a) Its articles comply with the requirements of subdivision (b),
(d), or (e) of Section 600; and
   (b) It has received from the commissioner a certificate of
authority pursuant to Section 401 to engage in the trust business,
or, if it is a bank, has received the authorization of the
commissioner to engage in the trust business pursuant to Section
1500.1; and
   (c) It has deposited with the State Treasurer money or securities
in compliance with Article 3 (commencing with Section 1540) of this
chapter.



1500.1.  Any commercial bank or industrial bank, with the prior
authorization of the commissioner, may engage in the trust business,
if its articles comply with the requirements of subdivision (b) of
Section 600. Any bank so authorized shall, in the conduct of its
trust business, comply with and be governed by all of the provisions
of this chapter, except the provisions of Section 1560. 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 one thousand dollars ($1,000).



1500.6.  No California state bank may engage in trust business at a
place unless the place is its head office, an authorized branch
office, or an authorized place of business.



1501.2.  The following persons are exempt from Section 1500:
   (a) Any natural person serving as trustee of one or more trusts
where at least one trustor is a family member of that trustee. For
purposes of this section, "family member" means any lineal ancestor,
lineal descendant, person having a common lineal ancestor of not more
than four generations distant, spouse, father-in-law, mother-in-law,
sister-in-law, brother-in-law, stepparent, or stepchild.
   (b) Any member of the State Bar, as specified in Section 6002 of
the Business and Professions Code, any certified public accountant,
as defined in Section 5033 of the Business and Professions Code, and
any professional corporation of one or more members of the State Bar
or certified public accountants, where these professionals are acting
as trustee of a trust established by them for their respective
clients, provided that the member of the State Bar, certified public
accountant, or professional corporation engages in no advertising for
trust business in this state.
   (c) Subject to all applicable limitations and restrictions in law
for nonprofit corporations, any nonprofit corporation acting as
trustee incidental to the purposes for which it was organized.
   (d) Any person appointed as receiver, trustee, or other fiduciary
by a court of competent jurisdiction acting pursuant to that
authority.
   (e) Any person licensed as a professional fiduciary pursuant to
Chapter 6 (commencing with Section 6500) of Division 3 of the
Business and Professions Code.



1502.  In this section, "subject national banking association" means
a national banking association that (a) maintains its main office or
a branch office in this state, (b) is authorized to transact a trust
business, and (c) has complied with the requirements of Article 3
(commencing with Section 1540) of this chapter and of all other laws
of this state relating to the deposit of securities for the
protection of court and private trusts. A subject national banking
association may engage in and conduct a trust business and may be
appointed by any court to act in any fiduciary capacity in which a
trust company is authorized to act. All acts provided in this code to
be performed by the commissioner, the State Treasurer, or other
public officials for or in respect to the deposit of securities by
trust companies, shall be performed for subject national banking
associations equally with trust companies. Every subject national
banking association shall be permitted to use the word "trust" in its
corporate name and to advertise its authority to engage in and
conduct a trust business and to advertise for and solicit trust
business in this state, notwithstanding any contrary provision in
this division or in any other law. The commissioner shall have access
to reports of examination made by the Comptroller of the Currency
insofar as they relate to the trust department of a subject national
banking association. For purposes of Article 3 (commencing with
Section 1540), the principal place of business of a national banking
association that maintains its main office in another state of the
United States and maintains a California branch office shall be
deemed to be situated in the city where the California branch office
is located or, if the national banking association maintains
California branch offices in two or more cities, in the city with the
largest population.



1503.  No foreign corporation, other than a national banking
association or a foreign (other state) state bank that is authorized
to conduct a trust business in this state, shall have or exercise the
powers of a trust company nor directly or indirectly transact or
conduct in this state a trust business as defined in Section 106.
However, a foreign corporation that is authorized by its articles to
exercise trust powers may act as trustee for the following purposes:
   (a) To deliver bonds and receive payments therefor.
   (b) To deliver permanent bonds in exchange for temporary bonds of
the same issue.
   (c) To deliver refunding bonds in exchange for those of a prior
issue or issues.
   (d) To register bonds or to exchange registered bonds for coupon
bonds or coupon bonds for registered bonds.
   (e) To pay interest on the bonds, and take up and cancel coupons
representing the interest payment.
   (f) To redeem and cancel bonds when called for redemption or to
pay and cancel bonds when due.
   (g) To certify registered bonds for the purpose of exchanging
registered bonds for coupon bonds.
   A foreign corporation that is authorized by its articles to
exercise trust powers may be appointed and may accept appointment and
act as trustee under any mortgage, deed of trust, or other
instrument securing bonds or other obligations issued or to be issued
by any railroad corporation that owns a railroad operating in the
State of California and extending into another state.
   A foreign corporation exercising in this state the powers
conferred by this section shall not establish or maintain directly or
indirectly any branch office or agency in this state unless it has
complied with all of the applicable provisions of Chapter 13.5
(commencing with Section 1700) or of Chapter 22 (commencing with
Section 3800).


1504.  Pursuant to the authority contained in Section 1 of Article
XV of the California Constitution, the restrictions upon rates of
interest contained in Section 1 of Article XV of the California
Constitution shall not apply to any obligations of, loans made or
arranged by, or forbearances of, any of the following that is
authorized to engage in the trust business, when acting in its
fiduciary capacity:
   (a) Any California state bank.
   (b) Any national bank that maintains its main office or a branch
office in this state.
   (c) Any foreign (other state) state bank that maintains a branch
office in this state.
   This section creates and authorizes an exempt class of persons
pursuant to Section 1 of Article XV of the Constitution.
   This section does not exempt a bank authorized to transact a trust
business or a subsidiary thereof from complying with all other laws
and regulations governing the business in which the bank or
subsidiary is engaged.



1505.  The Legislature finds and declares that it is important to
inform taxpayers that they may make voluntary contributions to
certain funds or programs, as provided on the state income tax
return. The Legislature further finds and declares that many
taxpayers remain unaware of the voluntary contribution check-offs on
the state income tax return. Therefore, it is the intent of the
Legislature to encourage all persons who prepare state income tax
returns to inform their clients in writing, prior to the completion
of any tax return, that they may make a contribution to any voluntary
contribution check-off on the state income tax return if they so
choose.



State Codes and Statutes

State Codes and Statutes

Statutes > California > Fin > 1500-1505

FINANCIAL CODE
SECTION 1500-1505



1500.  No corporation shall engage in the trust business unless:
   (a) Its articles comply with the requirements of subdivision (b),
(d), or (e) of Section 600; and
   (b) It has received from the commissioner a certificate of
authority pursuant to Section 401 to engage in the trust business,
or, if it is a bank, has received the authorization of the
commissioner to engage in the trust business pursuant to Section
1500.1; and
   (c) It has deposited with the State Treasurer money or securities
in compliance with Article 3 (commencing with Section 1540) of this
chapter.



1500.1.  Any commercial bank or industrial bank, with the prior
authorization of the commissioner, may engage in the trust business,
if its articles comply with the requirements of subdivision (b) of
Section 600. Any bank so authorized shall, in the conduct of its
trust business, comply with and be governed by all of the provisions
of this chapter, except the provisions of Section 1560. 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 one thousand dollars ($1,000).



1500.6.  No California state bank may engage in trust business at a
place unless the place is its head office, an authorized branch
office, or an authorized place of business.



1501.2.  The following persons are exempt from Section 1500:
   (a) Any natural person serving as trustee of one or more trusts
where at least one trustor is a family member of that trustee. For
purposes of this section, "family member" means any lineal ancestor,
lineal descendant, person having a common lineal ancestor of not more
than four generations distant, spouse, father-in-law, mother-in-law,
sister-in-law, brother-in-law, stepparent, or stepchild.
   (b) Any member of the State Bar, as specified in Section 6002 of
the Business and Professions Code, any certified public accountant,
as defined in Section 5033 of the Business and Professions Code, and
any professional corporation of one or more members of the State Bar
or certified public accountants, where these professionals are acting
as trustee of a trust established by them for their respective
clients, provided that the member of the State Bar, certified public
accountant, or professional corporation engages in no advertising for
trust business in this state.
   (c) Subject to all applicable limitations and restrictions in law
for nonprofit corporations, any nonprofit corporation acting as
trustee incidental to the purposes for which it was organized.
   (d) Any person appointed as receiver, trustee, or other fiduciary
by a court of competent jurisdiction acting pursuant to that
authority.
   (e) Any person licensed as a professional fiduciary pursuant to
Chapter 6 (commencing with Section 6500) of Division 3 of the
Business and Professions Code.



1502.  In this section, "subject national banking association" means
a national banking association that (a) maintains its main office or
a branch office in this state, (b) is authorized to transact a trust
business, and (c) has complied with the requirements of Article 3
(commencing with Section 1540) of this chapter and of all other laws
of this state relating to the deposit of securities for the
protection of court and private trusts. A subject national banking
association may engage in and conduct a trust business and may be
appointed by any court to act in any fiduciary capacity in which a
trust company is authorized to act. All acts provided in this code to
be performed by the commissioner, the State Treasurer, or other
public officials for or in respect to the deposit of securities by
trust companies, shall be performed for subject national banking
associations equally with trust companies. Every subject national
banking association shall be permitted to use the word "trust" in its
corporate name and to advertise its authority to engage in and
conduct a trust business and to advertise for and solicit trust
business in this state, notwithstanding any contrary provision in
this division or in any other law. The commissioner shall have access
to reports of examination made by the Comptroller of the Currency
insofar as they relate to the trust department of a subject national
banking association. For purposes of Article 3 (commencing with
Section 1540), the principal place of business of a national banking
association that maintains its main office in another state of the
United States and maintains a California branch office shall be
deemed to be situated in the city where the California branch office
is located or, if the national banking association maintains
California branch offices in two or more cities, in the city with the
largest population.



1503.  No foreign corporation, other than a national banking
association or a foreign (other state) state bank that is authorized
to conduct a trust business in this state, shall have or exercise the
powers of a trust company nor directly or indirectly transact or
conduct in this state a trust business as defined in Section 106.
However, a foreign corporation that is authorized by its articles to
exercise trust powers may act as trustee for the following purposes:
   (a) To deliver bonds and receive payments therefor.
   (b) To deliver permanent bonds in exchange for temporary bonds of
the same issue.
   (c) To deliver refunding bonds in exchange for those of a prior
issue or issues.
   (d) To register bonds or to exchange registered bonds for coupon
bonds or coupon bonds for registered bonds.
   (e) To pay interest on the bonds, and take up and cancel coupons
representing the interest payment.
   (f) To redeem and cancel bonds when called for redemption or to
pay and cancel bonds when due.
   (g) To certify registered bonds for the purpose of exchanging
registered bonds for coupon bonds.
   A foreign corporation that is authorized by its articles to
exercise trust powers may be appointed and may accept appointment and
act as trustee under any mortgage, deed of trust, or other
instrument securing bonds or other obligations issued or to be issued
by any railroad corporation that owns a railroad operating in the
State of California and extending into another state.
   A foreign corporation exercising in this state the powers
conferred by this section shall not establish or maintain directly or
indirectly any branch office or agency in this state unless it has
complied with all of the applicable provisions of Chapter 13.5
(commencing with Section 1700) or of Chapter 22 (commencing with
Section 3800).


1504.  Pursuant to the authority contained in Section 1 of Article
XV of the California Constitution, the restrictions upon rates of
interest contained in Section 1 of Article XV of the California
Constitution shall not apply to any obligations of, loans made or
arranged by, or forbearances of, any of the following that is
authorized to engage in the trust business, when acting in its
fiduciary capacity:
   (a) Any California state bank.
   (b) Any national bank that maintains its main office or a branch
office in this state.
   (c) Any foreign (other state) state bank that maintains a branch
office in this state.
   This section creates and authorizes an exempt class of persons
pursuant to Section 1 of Article XV of the Constitution.
   This section does not exempt a bank authorized to transact a trust
business or a subsidiary thereof from complying with all other laws
and regulations governing the business in which the bank or
subsidiary is engaged.



1505.  The Legislature finds and declares that it is important to
inform taxpayers that they may make voluntary contributions to
certain funds or programs, as provided on the state income tax
return. The Legislature further finds and declares that many
taxpayers remain unaware of the voluntary contribution check-offs on
the state income tax return. Therefore, it is the intent of the
Legislature to encourage all persons who prepare state income tax
returns to inform their clients in writing, prior to the completion
of any tax return, that they may make a contribution to any voluntary
contribution check-off on the state income tax return if they so
choose.


Categories