Effective Jan. 1, California credit unions with 10 or morelocations in the Golden State, regardless of a federal or statecharter, must file with the state's Department of Financial Institutions one or more centrallocations where legal papers can be served for notices of levy orattachment against deposit accounts, the contents of safe depositboxes and other property held by the credit union.

The requirement, put into place by the passage of state AssemblyBill 2364, must also be followed by banks and other depositinstitutions.

According to DFI Spokesman Patrick Carroll, current law requiresnotices be served at a financial institution's central location,and if such a location is not specified, the branch at which thesafe deposit box or accounts are held. Should the papers be servedat the wrong branch, the institution could refuse them.

Carroll said the new law requires financial institutions todesignate a central location and report it to the DFI so the stateregulatory agency can post a list of central locations on itswebsite. Information must include the physical address of thelocation and the days and hours legal service will be accepted.

Should institutions fail to designate a central location, all ofits locations become central locations and legal papers can beserved at any or all branches or administrative offices.

The law provides an exemption that will apply to most creditunions: institutions with fewer than 10 California branches orlocations have the option to designate one or more centrallocations, the DFI said in a release.

The DFI said it is in the process of developing an electronicform for collecting the information to publish on its website. DFIlicensees will receive an email from the regulator with a link to asecure Web form where they can input the information. Federallychartered credit unions may receive the email by subscribing to the“AB2364” topic on the DFI's website.