Commercial Bank of California is a minority-owned bank providing a unique array of specialized services to public sector entities at the state, local, and semi-private levels. We are proud to be the largest Latino-owned bank in California. Our experience and commitment to the communities we serve equals your success.
Whether your needs involve specialty financing, managing budgetary issues, improving financial accountability, or simple treasury management, the Public Sector team at Commercial Bank of California has a unique set of skills, products, and services to help you maximize results for your stakeholders in your community. We bring banking expertise, sophisticated technology, and innovation to every challenge to ensure you receive the latest in creative yet pragmatic solutions.
The Public Sector Specialty Services
- Comprehensive deposit services, including Remote Deposit, courier deposits, and armored transport services.
- Sophisticated online banking services, including wire transfer and ACH transaction origination.
- Merchant Card Services
- CDARS investments
- Lock-box Services
At Commercial Bank of California, we understand the unique needs of your public sector entity. Our personalized service and experience is your key to success.
Public funds deposited at Commercial Bank enjoy safety and security that is second to none. Our CDARS investment program allows you to earn competitive returns and on time deposits while enjoying full FDIC insurance on all deposited funds. We also offer the financial strength of a bank ranked among the highest in the nation by capitalization. While we are big enough to meet your needs, we remain small enough to care. Our size allows us to maintain a culture of innovative problem solving, while our experience working with California municipalities gives us a unique understanding of your needs.
How does CDARS work?
We are a member of the CDARS Network of participating financial institutions. When you open a large certificate of deposit with us, we place a portion of your funds into CDs issued by other banks in the Network in amounts below the FDIC insurance limit. In this way, all of your principal and interest are fully covered by FDIC insurance. With help from a sophisticated matching system, we exchange deposits with other members of the Network. These exchanges, which occur on a dollar-for-dollar basis, bring the full amount of your original deposit back to our bank.
- As a result, we can make the full amount of your deposit available for lending in the local community, and your public unit can access FDIC insurance coverage through many banks while working directly with just one and receiving just one regular statement.
- When deposited funds are exchanged on a dollar-for-dollar basis with other banks in the Network, the relationship institution can use the full amount of a deposit placed through CDARS for local lending, satisfying some depositors’ local investment goals or mandates. In certain states, and with a depositor’s consent, the relationship institution may choose to receive fee income instead of deposits from other Network members. Under these circumstances, deposited funds would not be available for local lending. CDARS satisfies the FDIC’s requirements for agency pass-through deposit insurance coverage. Limits apply. Funds may be submitted for placement only after a depositor enters into a CDARS Deposit Placement Agreement with us. The agreement contains important information and conditions regarding the placement of funds by us. If a depositor is subject to restrictions with respect to the placement of funds in depository institutions, it is the responsibility of the depositor to determine whether the placement of the depositor’s funds through CDARS satisfies those restrictions. CDARS is a registered service mark of Promontory Inter nancial Network, LLC. 0316
CALIFORNIA GOVERNMENT CODE
Title 5. Local Agencies
Division 2. Cities, Counties, and Other Agencies
Part 1. Powers and Duties Common to Cities, Counties, and Other Agencies Chapter 4. Financial Affairs
Article 1. Investment of Surplus
53601.8. Notwithstanding Section 53601 or any other provision of this code, a local agency that has the authority under law to invest funds, at its discretion, may invest a portion of its surplus funds in deposits at a commercial bank, savings bank, savings and loan association, or credit union that uses a private sector entity that assists in the place-ment of deposits. The following conditions shall apply:
(a) The local agency shall choose a
nationally or state chartered commercial bank, savings bank, savings and loan association, or credit union in this state to invest the funds, which shall be known as the “selected” depository institution.
(b) The selected depository institution may use a private sector entity to help place local agency deposits with one or more commercial banks, savings banks, savings and loan associations, or credit unions that are located in the United States and are within the network used by the private sector entity for this purpose.
(c) Any private sector entity used by a selected depository institution to help place its local agency deposits shall maintain policies and procedures requiring both of the following:
(1) The full amount of each deposit placed pursuant to subdivision (b) and the interest that may accrue on each such deposit shall at all times be insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration.
(2) Every depository institution where funds are placed shall be capitalized at a level that is sufficient, and be otherwise eligible, to receive such deposits pursuant to regulations of the Federal Deposit Insurance Corporation or the National Credit Union Administration, as applicable.
(d) The selected depository institution shall serve as a custodian for each such deposit.
(e) On the same date that the local agency’s funds are placed pursuant to subdivision (b) by the private sector
entity, the selected depository institution shall receive an amount of insured deposits from other financial institutions that, in total, are equal to, or greater than, the full amount of the principal that the local agency initially deposited through the selected depository institution pursuant to subdivision (b).
(f) Notwithstanding subdivisions (a) to (e), inclusive, no credit union may act as a selected depository institution under this section or Section 53635.8 unless both of the following conditions are satisfied:
(1) The credit union offers federal depository insurance through the National Credit Union Administration.
(2) The credit union is in possession of written guidance or other written communication from the National
Credit Union Administration authorizing participation of federally insured credit unions in one or more certificate of deposit placement services and affirming that the moneys held by those credit unions while participating in a deposit placement service will at all times be insured by the federal government.
(g) It is the intent of the Legislature that this section shall not restrict competition among private sector entities that provide placement services pursuant to this section.
(h) The deposits placed pursuant to this section and Section 53635.8 shall not, in total, exceed 30 percent of the agency’s funds that may be invested for this purpose.
(i) This section shall remain in effect only until January 1, 2021, and as of that date is repealed.
Through the CDARS® service, we can provide your public unit with easy access to multi-million-dollar FDIC protection on its CD investments.