Legal Question in Credit and Debt Law in California

Regulation and compliance

If a financial instutions has the head quarters on indian reservation or own by a tribe, does that mean they are not require to be license in all states or follow Federa and state regulation? Do they have some type of shelter?

Asked on 5/09/09, 11:27 am

2 Answers from Attorneys

David Gibbs The Gibbs Law Firm, APC

Re: Regulation and compliance

Contrary to Attorney Bakondi's reply, the answer to your question is pretty clear. A financial institution (I assume for purposes of making loans) must be licensed within the jurisdictions in which it is operating. Just because their headquarters are on an indian reservation, they are not exempt, by way of example, from being licensed with the State of California if they are making loans off the reservation in the State of California. The situation is exactly the same as a foreign bank (oversees) doing business anywhere in the US (except indian reservations) - they too have to hold a license for any state in which they do business. The only place they can operate without being licensed is within the confines of that reservation.

*Due to the limitations of the LawGuru Forums, The Gibbs Law Firm, APC's (the "Firm") participation in responding to questions posted herein does not constitute legal advice, nor legal representation of the person or entity posting a question. No Attorney/Client relationship is or shall be construed to be created hereby. The information provided is general and requires that the poster obtain specific legal advice from an attorney. The poster shall not rely upon the information provided herein as legal advice nor as the basis for making any decisions of legal consequence.

Read more
Answered on 5/11/09, 12:04 pm

Daniel Bakondi The Law Office of Daniel Bakondi

Re: Regulation and compliance

It sounds like you need more in depth assistance. Please feel free to contact my office and explain your situation.


Daniel Bakondi, Esq.


No attorney-client nor confidential relationship is created through this communication. You may not rely in any way on this communication, and nothing herein constitutes legal advice nor legal opinion. Your issue may be time sensitive and may result in loss of rights if you do not obtain an attorney immediately.

Read more
Answered on 5/09/09, 12:54 pm

Related Questions & Answers

More Credit, Debt and Collections Law questions and answers in California