78-2

78-2

July 21, 1978

Dear M ________:

This is in response to your letter of June 30, 1978, in which you requested an opinion regarding the liability of a foreign banking corporation for the debts of its agency office located in the State of California.

Generally, since an agency is an office of the foreign corporation, the debt of the agency represents the debt of said corporation, payable at the agency office. Therefore, in general, the foreign corporation which has a California agency office is liable for the debt incurred at or by that agency office. As a practical matter, however, it may be difficult to obtain satisfaction of the corporations obligation from its non California assets.

We can, of course, express no opinion with respect to the liability of a foreign corporation under documents we have not reviewed.

If you have any further questions, please do not hesitate to contact us.

Very truly yours,

CARL J. SCHMITT Superintendent of Banks

By

MARGARET MARTINSEN Counsel