California Department of Business Oversight
Volume 6, Number 12 – July 2019
IT System Surveys for Banks and Credit Unions Due July 19
The Department of Business Oversight in June emailed its biennial IT survey to all banks’ and credit unions’ designated email addresses in accordance with Financial Code section 331.5.
The email contained information on accessing and submitting the electronic 2019 IT Systems Survey designed to help the DBO determine the level of each licensee’s IT risk and prepare for examinations.
Licensees are required to submit the survey pursuant to Financial Code section 455. Responses will be kept confidential and used only in the examination process.
All surveys are due by July 19. If you have questions, please contact:
- For Banks, Trust Companies, Foreign Banks and Foreign Branches: Financial Institutions Manager Matthew Fujikawa, or Senior Financial Institutions Examiner Nicholas Lee.
- For Credit Unions: Financial Institutions Examiner Eric Kwon.
For any technical problems, please send an email to email@example.com.
FY 2019-20 Assessment for Financial Institutions
The DBO has mailed annual assessment invoices for Fiscal Year 2019-20 to state-chartered banks and credit unions, and other financial institutions.
Assessments are due by July 30, with more time allowed for payments made via electronic funds transfers (EFT).
Following is assessment information for various types of financial institutions:
- Commercial Banks, Foreign Banks and Trust Companies: The base rate was set at $1.39 per $1,000 of assets, the same as last year’s rate. Invoices were mailed on June 29. Non-EFT payments are due by July 30. Electronic payments are due no later than August 6.
- Credit Unions: The 2019-20 assessment rate was set at $1.01 per $1,000 of assets, an increase of $0.12 from last year’s rate. Invoices were mailed on June 29. Non-EFT payments are due by July 30. Electronic payments are due no later than August 6.
- Industrial Banks: The 2019-20 assessment rate was set at $1.39 per $1,000 of assets, the same as last year’s rate. Invoices were mailed on June 29. Non-EFT payments are due by July 30. Electronic payments are due no later than August 6.
- Money Transmitters: The 2019-20 assessment rate was set at $0.02 per $1,000 of money received for transmission by a licensee in calendar year 2017, the same as last year’s rate. The 2019-20 assessment rate for issuers of travelers checks and payment instruments was set at $0.63 per $1,000 of total payment instruments and stored value sold by a licensee, the same as last year’s rate. Invoices were mailed on June 29. Non-EFT payments are due by July 30. Electronic payments are due no later than August 6.
More information about the assessment calculations for non-money transmitter
institutions can be found on the DBO website’s Assessment Calculation page.
DBO posts 2018 Report on Pilot Program for Increased Access to Responsible Small Dollar Loans
The DBO has published the 2018 Annual Report of activity under the Pilot Program for Increased Access to Responsible Small Dollar Loans (RSDL). The report contains detailed information gathered earlier this year from the lenders who participate in the Pilot Program.
Pursuant to legislation enacted in 2013, the Pilot Program was created to increase the availability of responsible small dollar installment loans of at least $300 but less than $2,500. Legislation enacted last year raised the maximum amount to $7,500, starting Jan. 1, 2019. The program is designed to provide an alternative to payday loans and other more expensive forms of consumer credit.
For questions or comments about the report, contact examination manager Charles Agbonkpolor at Charles.Agbonkpolor@dbo.ca.gov.
Three Openings on Escrow Advisory Committee
Licensed escrow agents and attorney with escrow agent clients are encouraged to apply for three openings on the DBO Escrow Advisory Committee.
The Committee consists of 11 members, including the Commissioner or the Commissioner’s designee. The Commissioner appoints the members, other than those representing the Escrow Institute of California and Escrow Agents’ Fidelity Corporation. The Committee was established in Financial Code section 17214 to help the Commissioner carry out his duties under the Escrow Law.
Appointed members serve for two years without compensation or reimbursement for expenses. The committee meets quarterly at the DBO’s 4th Street, Los Angeles office. The next meeting is tentatively scheduled for Sept. 12, 2019.
The vacancies are for representatives from a medium-size escrow company, an escrow company that has a business specialization and an attorney who has escrow agent clients.
Qualifying business specialization examples include joint control companies, companies that specialize in business bulk sale transfers, and internet escrow companies. Managers or corporate officers of independent escrow companies are eligible to serve on the committee.
Licensed escrow agents and attorney with escrow agent clients who qualify for one of the above positions are encouraged to apply by sending a letter of qualifications and/or resume to Paul Liang at the Department of Business Oversight, 320 West 4th Street, Suite 750, Los Angeles, CA 90013. The application deadline is July 21, 2019.
Questions should be directed to Paul.Liang@dbo.ca.gov or (213) 576-7535.
New, Improved DBO Website
The DBO launched a new, improved website on June 17. The website upgrade was designed to improve the user experience for our licensees, consumers and the general public. It may require users to re-establish and update frequently used links and bookmarked pages.
The DBO’s web team worked hard to make sure this transition was as smooth as possible. But we know some glitches are unavoidable. If you experience any issues with the new website, please report to them as soon as possible to firstname.lastname@example.org.
Additionally, we welcome and would appreciate any other feedback you would like to share.
DBO Licensee Notifications Required by Law
Licensees are reminded that they are required by the California Financial Code (FC) to provide certain information to the DBO:
- FC 331.5 Designated email address: A licensee subject to the commissioner’s jurisdiction shall establish and maintain an electronic service address designated for receiving communications and documents that are sent by the commissioner to licensees.
- FC 457 Change in officer: Every licensee shall notify the commissioner of any change in the following officers of the licensee, to the extent that those officers exist within the licensee: chairperson, chief executive officer, president, general manager, managing officer, chief financial officer, or chief credit officer.
- FC 1077 Annual list of all bank offices: On or before January 1 of each year, every bank shall file with the Commissioner a list of all offices that are currently maintained and operated by the bank. The report shall designate the type of each office that is being maintained and operated, and the complete address of each office.
- FC 14254.5 Opening, closing, or relocating a credit union branch office: Within 10 business days of opening, closing, or relocating a branch office, a credit union shall notify the commissioner in writing of the action, including the street and mailing addresses of the branch office.
Licensees may be subject to fines and penalties for failure to notify the DBO on a timely basis.
Commercial Bank Activity
Presidio Bank, San Francisco, to merge with and into Heritage Bank of Commerce, San Jose
Rabobank, N.A., Roseville, to merge with and into Mechanics Bank, Walnut Creek
Premium Finance Company Activity
New Premium Finance Company
C & A Funding, Inc.
600 West Broadway, San Diego
Capital Premium of California, Inc.
818 West 7th Street, Los Angeles
21109 Avenida de Sonrisa, Santa Clarita
Mojave Financial Corp.
6200 Canoga Avenue, Woodland Hills
Acquisition of Control
DMI Insurance Services, to acquire control of Insurance Installment Services, Inc.
Credit Union Activity
FedOne Federal Credit Union, Laguna Niguel, to merge with and into Credit Union of Southern California, Anaheim
Northern California Latvian Credit Union, San Francisco, to merge with and into California Lithuanian Credit Union, Santa Monica
Schools Financial Credit Union, Sacramento, to merge with and into SchoolsFirst Federal Credit Union, Santa Ana
Change of Name
Community Credit Union of Southern Humboldt, to change its name to Vocality Community Credit Union
S.F. Police Credit Union, to change its name to The Police Credit Union of California
Money Transmitter Activity
New Money Transmitter
EncoreFX Ltd. Filed: 6/21/19 VendEngine, Inc.
Change of Name
Bill.com, to change its name to Bill.com, LLC
MANUEL P. ALVAREZ
Commissioner of Business Oversight
The July 2019 Monthly Bulletin covers the month ended June 30, 2019. It is issued pursuant to Financial Code section 376. The Monthly Bulletin is available without charge via e-mail. To subscribe, go to: https://dfpi.ca.gov/connect-with-the-dbo-via-email/.