Statutes, codes, and regulations
California Code Of Regulations
Title 10 - InvestmentChapter 1 - Commissioner of Business Oversight, Division of Financial InstitutionsSubchapter 10 - BanksArticle 4 - Establishment of California State BanksSubarticle 2 - Establishment of California State Commercial Bank, Industrial Bank, or Independent Trust Company
Part 3 - Administrative Standards and Procedures
Section 10.3301.1 - Reasonable Promise of Successful Operation

Cal. Code Regs. tit. 10 § 10.3301.1

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Current through Register 2025 Notice Reg. No. 2, January 10, 2025
Section 10.3301.1 - Reasonable Promise of Successful Operation

In evaluating an application for authority to organize and establish a corporation to engage in the banking or trust business, Financial Code section 1023 requires the commissioner to ascertain whether a proposed applicant will have a reasonable promise of successful operation. As an administrative standard, reasonable promise of successful operation is evaluated by the likelihood of achieving the goals laid out in the applicant's financial projections, such as financial stability, solvency, and reserves.

Cal. Code Regs. Tit. 10, § 10.3301.1

1. New section filed 9-14-2021; operative 1-1-2022 (Register 2021, No. 38).

Note: Authority cited: Section 326, Financial Code. Reference: Section 1023, Financial Code.

1. New section filed 9-14-2021; operative 1/1/2022 (Register 2021, No. 38).