Financial institutions.

Existing law provides for the regulation and licensure by the Commissioner of Financial Institutions of state-chartered banks and credit unions, money transmitters, persons engaged in the business of issuing travelers checks, business and industrial development corporations, and corporations engaging in the business of selling, in this state, payment instruments issued by it. Each of the laws regulating these licensees establishes various enforcement provisions for violations of those laws. This bill would repeal specified portions of those enforcement provisions. The bill would recast, in one body of law, the enforcement provisions applicable to those licensees and would also recast various other provisions applicable to those licensees. The bill would recast provisions establishing the Deputy Commissioner of Financial Institutions for the Division of Credit Unions. The bill would recast provisions making it a crime for the deputy commissioner to fail to report to the commissioner information regarding the insolvency or unsafe condition of a licensee, if the deputy commissioner has knowledge of those facts. The bill would make other related changes, and would make other changes related to bank and trust company depositaries and stock acquisitions. Existing law authorizes the commissioner to examine the books, accounts, records, files, and any office of a credit union. Existing law authorizes the commissioner to take possession of the property and business of a credit union if the commissioner finds, among other things, that the credit union has inadequate capital or is insolvent. This bill would require the officers and employees of a credit union to exhibit the securities, books, records, and accounts to the examiners, on request. The bill would authorize the commissioner to take possession of the property and business of the credit union if the commissioner finds that the credit union has inadequate net worth, as defined, or is insolvent. The bill would also authorize the commissioner to call a meeting of the board of directors of a credit union, as specified. Existing law prohibits a corporation from engaging in the trust business unless it complies with specified requirements. Existing law exempts from those requirements, among others, certain persons or corporations acting as a trustee or any person appointed as a receiver, trustee, or other fiduciary by the court. This bill would exempt professional fiduciaries from those requirements.