October 18, 1989


The earthquake in the San Francisco area has forced a number of banks to close some of their offices. By law, they are unable to close unless an “Extraordinary Situation” exists, which certainly does in this case. The Financial Code covers this situation by having the Superintendent of Banks issue a Proclamation authorizing the banks to take this action.

In conjunction with the Proclamation, the Superintendent requests that the state banks review their policies and adopt an approach of leniency and forbearance concerning those borrowers whose homes and businesses may have suffered damages from the quake or whose jobs may have suffered from employment interruption which could impair their ability to meet their obligations.

In addition, the Superintendent requests that consideration be given to expediting the granting of loans to help rebuild the homes and businesses of these borrowers as state banks have done in previous disasters of this type.

Continued cooperation in these matters will be greatly appreciated.

Some of the banks may find that they have to relocate offices, or apply for extensions or temporary offices in order to keep operating in the effected areas. The Department is standing by to give immediate approval of these requests in order to facilitate the quickest restoration of service to the public. Please contact by telephone the assistant deputy who represents your bank.

Superintendent of Banks




A. Findings.

The Superintendent of Banks (“Superintendent”) finds:

1. A major earthquake with the epicenter near Santa Cruz, California, occurred at approximately 5:04 p.m. on October 17, 1989.

2. The damage and disruption resulting from this earthquake may interfere with, and are inconsistent with, the conduct of normal business operations at bank offices in the area consisting of the City and County of San Francisco, the Counties of Alameda, Contra Costa, Marin, Monterey, Napa, San Benito, San Mateo, Santa Clara, Santa Cruz, Solano, and Sonoma (“the Affected Area”).

3. An extraordinary situation within the meaning of the Bank Extraordinary Situation Closing Act, Chapter 20 (commencing with Section 3600), Division 1 of the Financial Code, exists in the Affected Area.

B. Authorization to Close Offices.

Pursuant to the Bank Extraordinary Situation Closing Act, the Superintendent authorizes banks located in the Affected Area to close any or all of their offices. Any offices of a bank so closed shall remain closed until the Superintendent proclaims that the extraordinary situation has ended or until such earlier time as the officers of the bank determine that one or more offices should reopen and in either event for such further time thereafter as may reasonably be required to reopen.

Superintendent of Banks
Assistant Deputy
Superintendent of Banks

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Last updated: Jun 27, 2019 @ 3:43 pm