California Department of Financial Institutions Allows State Banks Affected by Fires to Close
(San Francisco, CA) - The California Department of Financial Institutions (DFI) today authorized banks located in counties 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," William S. Haraf, Commissioner of Financial Institutions authorized banks located in counties declared to be in a state of emergency to close any or all of their offices.
Customers of closed banks have access to funds through the ATM network, Internet and telephone banking.
Commissioner Haraf urges financial institutions to review their lending policies in order to grant appropriate latitude to existing customers affected by the fire and to expedite the extension of new credit to finance cleanup or rebuilding.
DFI supervises over 700 state financial institutions. Maintaining the integrity of financial services remains the primary mission of the Department. The DFI is responsible for administering state laws regulating state-licensed financial institutions: banks, credit unions, industrial banks, trust companies, offices of foreign banks, issuers of travelers' checks and payment instruments (money orders), and money transmitters. In addition to posting information about licensees, the DFI Web site features consumer information on a variety of financial topics and DFI consumer brochures available in seven languages.
The Department reports to Dale E. Bonner, Secretary of the Business, Transportation and Housing Agency and Governor Arnold Schwarzenegger.
FINDING OF EMERGENCY AND DETERMINATION THAT BANKS MAY, AT THEIR DISCRETION, CLOSE CERTAIN OF THEIR PLACES OF BUSINESS AFFECTED BY THE EMERGENCY
Commissioner of Financial Institutions hereby determines that an extraordinary situation (as defined in Financial Code Section 3601) exists due to fires in California.
Accordingly, pursuant to Financial Code Section 3602, the Commissioner of Financial Institutions authorizes banks located in areas affected by the fires 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: August 31, 2009
WILLIAM S. HARAF
Commissioner of Financial Institutions
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