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• California Codes
  • California Financial Code
    • FINANCIAL CODE SECTION 350-351

350.  When authorized by the commissioner as provided in this
chapter a corporation may be formed by one or more persons in
accordance with the laws of this state for the purpose of conducting
a commercial banking business or a trust business, or both of them.
The qualification requirements of the Corporate Securities Law of
1968 shall not apply to the offer and sale of securities issued by
and representing an interest in or a direct obligation of a bank or
trust company incorporated under the laws of this state if the
securities are offered and sold pursuant to the commissioner's
authorization described in Section 691 or the securities are exempt
from authorization pursuant to Section 691.1, or by a regulation or
order of the commissioner.



351.  No bank shall be a close corporation (as defined in Section
158 of the Corporations Code).