California Financial Code Section 3100

The commissioner may, whenever it appears to him or her that any of the conditions described in subdivisions (a) to (h), inclusive, exist with respect to a bank, forthwith take possession of the property and business of the bank and retain possession until the bank resumes business or its affairs are finally liquidated as herein provided. The bank, with the consent of the commissioner, may resume business subject to any conditions that may be prescribed by the commissioner. The term bank wherever used in this chapter includes trust companies. (a) The tangible shareholders` equity of the bank is less than: (1) In case the bank is a commercial bank or industrial bank, the greater of three percent of the bank`s total assets or one million dollars ($1,000,000); or (2) In case the bank is a trust company other than a commercial bank authorized to engage in trust business, one million dollars ($1,000,000). (b) The bank has violated its articles or any law of this state. (c) The bank is conducting its business in an unsafe or unauthorized manner. (d) The bank refuses to submit its books, papers, and affairs to the inspection of any examiner. (e) Any officer of the bank refuses to be examined upon oath touching the concerns of the bank. (f) The bank has failed to pay any of its obligations as they came due or that is reasonably expected to be unable to pay its obligations as they come due. (g) The bank is in a condition that it is unsound, unsafe, or inexpedient for it to transact business. (h) The bank neglects or refuses to observe any order of the commissioner made pursuant to Section 1913 unless the enforcement of the order is restrained in a proceeding brought by the bank.