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PRESS RELEASE 03-14
October 28, 2003
Contact: Alana Golden, Public Information Officer
(916) 323-7012 or (916) 322-5966
www.dfi.ca.gov

Commissioner of Financial Institutions Determines that an Extraordinary Situation Exists - Authorizes Banks Located in the Counties Proclaimed in State of Emergency to Close and Provides Flexibility Needed to Service Customers in Fire-Affected Areas

San Francisco - The Department of Financial Institutions (DFI) today authorized banks located in the counties of Los Angeles, San Bernardino, San Diego and Ventura declared to be in a state of emergency by the Governor to close any or all of their offices affected by the fires.

Pursuant to California Financial Code Section 3600, the "Bank Extraordinary Situation Closing Act," Commissioner of Financial Institutions, Donald R. Meyer, authorized banks located in counties declared to be in a state of emergency to close any or all of their offices. Any office or offices so closed shall remain closed until the Commissioner proclaims that the extraordinary situation has ended or until such earlier time as the officers of the bank determine that one or more closed offices should reopen and, in either event, for such further time thereafter as may reasonably be required for the reopening of the office or offices.

Customers of closed banks have access to funds through the ATM network, Internet banking and telephone banking.

Meyer urged financial institutions to review their lending policies in order to grant appropriate latitude to existing customers affected by the fires and to expedite the extension of new credit to finance cleanup or rebuilding.

Banks closed under authority of the proclamation may reopen them at the discretion of their officers. Banks that need to relocate offices or set up temporary offices will be permitted to do so without observing the normal application procedures. The Commissioner has requested that financial institutions taking these steps notify the Department by phone, e-mail or FAX as soon as possible.

Commissioner Meyer also requested that financial institutions in the affected areas contact the appropriate Assistant Deputy Commissioner for an extension of time should an extension be needed to meet any regulatory reporting requirement.

Department of Financial Institutions Proclamation on Fire-Affected Counties

PROCLAMATION

 

FINDING OF EMERGENCY AND DETERMINATION THAT BANKS MAY, AT THEIR DISCRETION, CLOSE CERTAIN OF THEIR PLACES OF BUSINESS AFFECTED BY THE EMERGENCY

 

California Commissioner of Financial Institutions, Donald R. Meyer, hereby determines that an extraordinary situation (as defined in Financial Code Section 3601) exists in the counties of Los Angeles, San Bernardino, San Diego and Ventura.

Accordingly, pursuant to Financial Code Section 3602, the Commissioner of Financial Institutions authorizes banks located in these counties to close any or all of their offices. Any office or offices so closed shall remain closed until the Commissioner proclaims that the extraordinary situation has ended or until such earlier time as the officers of the bank determine that one or more closed offices should reopen and, in either event, for such further time thereafter as may reasonably be required for the reopening of the office or offices.

Dated October 28, 2003

 

DONALD R. MEYER
Commissioner of Financial Institutions