The funds were transferred to seven state-chartered banks in late September.

California voters approved a proposition last month that allows state-chartered banks to sell insurance.

However, the bill does permit continued operations by 10 bank holding companies of state-chartered banks outside their home state that are permitted to sell insurance.

The Congress did not want state-chartered banks as competition in the inflation of currency.

That would allow state-chartered banks to, among other things, play a larger role in selling insurance.

It bought a small, state-chartered bank hoping to draw less scrutiny.

Would give state-chartered banks the same privileges as those with Federal charters.

State authorities, moreover, may continue to allow state-chartered banks to sell insurance.

For state-chartered banks, write to the banking department in the state where the bank has its headquarters.

Other states, including California, have granted the power to sell insurance to state-chartered banks.