California banking laws—as with other states—are dictated by Article 4 of the Uniform Commercial Code. There may be some variation from state to state but generally, they are all the same. The Department of Financial Institutions (DFI) administers California banking laws and California banking regulations for the state’s 700 licensed financial institutions. Included in that number are 200 banks and 200 credit unions.

Banking laws in California include state and federal regulations. The majority of these laws safeguard businesses and individuals by guaranteeing the financial security of the state’s banking system. This guide will help you:

1. Understand basic terminology used in California banking laws

2. Find California banking law firms or California banking law practices

3. Stay on top of any recent CA banking laws

Action Steps
The best contacts and resources to help you get it done

Get familiar with CA banking law Terminology

The key to simplifying California banking laws and obtaining the best financial services for your business is to understand the 'lingo' and keep up-to-date with recent California banking laws.

I recommend: Check out the Financial Dictionary that offers succinct, easy-to-understand definitions of common terms used in the state of CA banking laws. Look to the Guide to California Law with information on California banking institutions. AllBusiness.com features over 3,000 basic legal terms found in California banking regulations.

Stay current on CA banking laws

Be aware of any changes in banking laws in California and their potential impact on your business.

I recommend: Businesses and consumers benefit from the California Bankers Association when it comes to proposed or recent California banking laws. Also, take advantage of online educational courses they offer. This site posts information on issues impacting CA banking laws and those that offer new opportunities or protections for the public. The state of California’s Department of Financial Institutions (DFI) also lists recently proposed California banking law changes.

Find law firms or lawyers specializing in banking laws in the state of California

California banking law firms are the best resource for understanding the state of CA banking laws. Their attorneys are familiar with all the issues relating to banking law in California.

I recommend: There are banking law attorneys all over California and whether you’re a banker or a business owner, you’ll be wise to have a banking attorney available to handle intricate legal transactions involving banks and other financial institutions in California. Contact Horgan Rosen Beckham & Coren, LLP in the LA area or the Bingham firm with offices in northern California and worldwide. Martindale.com is a good resource to find specialized banking attorneys statewide. Consider consulting (BB&K) Best, Best and Krieger, with several offices in California. Their specialty is representing both banking institutions and borrowers.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Develop a good understanding of California banking laws and how they affect your business. Select a California banking law firm to handle complex financial affairs and mergers.
• •  A CA. banking lender should avoid becoming too involved with offering suggestions about running a borrower's business. The lender could become liable if the debtor's business fails because of his banker's advice.