Assembly Bill 2165 (Hawkins & Hanna – 1961)
Chapter 1324, Statutes of 1961, AB 2165
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Sections 6450 through 6453 of the California Corporations Code, relating to Chapter 3.5 "Doing Business in This State," were added in 1961 following legislative passage of Assembly Bill 2165. (See Exhibit #1c) This bill was introduced by Assembly members Richard T. Hanna and Augustus F. Hawkins on March 10, 1961. (See Exhibits #1a and #5) The bill was carried for the California Mortgage Bankers Association. (See Exhibit #3, document PE-4)
The Assembly Committee on Finance and Insurance and the Senate Committee on Insurance and Financial Institutions considered the policy issues raised by the bill. (See Exhibit #2) Following legislative approval, Assembly Bill 2165 was signed by former Governor Edmund G. Brown on July 8, 1961 becoming Chapter 1324 of the Statutes of 1961. (See Exhibits #1c and #2)
The sponsor of this measure, the California Mortgage Bankers Association, was described by Assembly member Hawkins as “composed of institutions in this State which act, principally, as correspondents for eastern lenders in the real estate field.” (See Exhibit #3, document PE-4)
The Summary Digest of Statutes Enacted prepared by the Legislative Counsel summarized Assembly Bill 2165 as follows:
Enumerates various activities in which a foreign lending institution may engage in this State without being deemed to be doing business in this State. Defines lending institution as used in the bill. The activities enumerated all relate basically to loan servicing and to dealing in real or personal property or with security interest in real or personal property.
Provides for appointment of Secretary of State as an agent for the institution for purposes of service of process if it engages in any of the enumerated activities.
Specifies that no foreign lending institution, solely by reason of any of the enumerated activities, shall be subject to provisions setting forth requirements to qualify to do business in this State or be subject to Bank and Corporation Tax Law.
(See Exhibit #4; See also Exhibit #3, document PE-3)