Bill Text: TX HB1095 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to the regulation of state banks.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2023-03-15 - Withdrawn from schedule [HB1095 Detail]
Download: Texas-2023-HB1095-Introduced.html
| 88R51 SRA-F | ||
| By: Slawson | H.B. No. 1095 | |
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| relating to the regulation of state banks. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Section 34.103(c), Finance Code, is amended to | ||
| read as follows: | ||
| (c) A state bank may not establish or acquire a subsidiary | ||
| or a controlling interest in a subsidiary that engages in | ||
| activities as principal in which the bank is prohibited from | ||
| engaging directly unless: | ||
| (1) the state bank's investment in the subsidiary has | ||
| been allowed [ |
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| Corporation under Section 24, Federal Deposit Insurance Act (12 | ||
| U.S.C. Section 1831a); or | ||
| (2) with respect to a subsidiary engaged in activities | ||
| as principal that a national bank may conduct only through a | ||
| financial subsidiary, including firm underwriting of equity | ||
| securities other than as permitted by Section 34.101, and not | ||
| otherwise engaged in activities as principal that are impermissible | ||
| for a state bank or a financial subsidiary of a national bank, the | ||
| subsidiary's activities and the bank's investment are in compliance | ||
| with the restrictions and requirements of Section 46, Federal | ||
| Deposit Insurance Act (12 U.S.C. Section 1831w). | ||
| SECTION 2. Section 35.002(a), Finance Code, is amended to | ||
| read as follows: | ||
| (a) The banking commissioner has grounds to issue a cease | ||
| and desist order to a current or former [ |
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| director of a state bank, or the bank itself acting through an | ||
| authorized person, if the banking commissioner determines from | ||
| examination or other credible evidence that the bank or person | ||
| directly or indirectly has: | ||
| (1) violated this subtitle or another applicable law; | ||
| (2) engaged in a breach of trust or other fiduciary | ||
| duty; | ||
| (3) refused to submit to examination or examination | ||
| under oath; | ||
| (4) conducted business in an unsafe or unsound manner; | ||
| or | ||
| (5) violated a condition of the bank's charter or an | ||
| agreement between the bank or the person and the banking | ||
| commissioner or the department. | ||
| SECTION 3. Section 35.002(a), Finance Code, as amended by | ||
| this Act, applies only to a violation that occurs on or after the | ||
| effective date of this Act. A violation that occurs before the | ||
| effective date of this Act is governed by the law in effect when the | ||
| violation occurred, and the former law is continued in effect for | ||
| that purpose. | ||
| SECTION 4. This Act takes effect September 1, 2023. | ||
