California Government Code

§ 57601

GOV § 57601 Effective Jan 1, 2020Div. 5 · Title 5

Statute text

(a)If a public bank is organized as a nonprofit mutual benefit corporation, the articles of incorporation shall include the following purpose statement: “This corporation is a nonprofit mutual benefit corporation organized under the Nonprofit Mutual Benefit Corporation Law as a public bank. The purpose of the corporation is to engage in the commercial banking business or industrial banking business and any other lawful activities which are not prohibited to a public bank by applicable laws or regulations.”

(b)If a public bank is organized as a nonprofit public benefit corporation, the articles of incorporation shall include the following purpose statement: “This corporation is a nonprofit public benefit corporation and is not organized for the private gain of any person. It is organized under the Nonprofit Public Benefit Corporation Law for the public purpose of engaging in the commercial banking business or industrial banking business as a public bank.”

(c)Notwithstanding Sections 5410 and 7411 of the Corporations Code, a public bank may make distributions to its members.

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Legislative history

Added by Stats. 2019, Ch. 442, Sec. 16. (AB 857) Effective January 1, 2020.