Financial institutions.

Existing law, the Banking Law, provides for the regulation and certification of state chartered banks by the Commissioner of Financial Institutions. Existing law, the California Credit Union Law, provides for the regulation and certification of state chartered credit unions by the commissioner. This bill would prohibit a state chartered bank or credit union that is a recipient of federal or state emergency economic assistance from using money derived from that assistance for specified purposes, except as specified. The bill would make a bank or credit union that violates these provisions subject to a civil penalty of at least $100,000 per violation, would require those penalties to be deposited in either the State Banking Account or the Credit Union Fund, and would prohibit those banks or credit unions from receiving any future emergency economic assistance, as specified.