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A BILL TO BE ENTITLED
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AN ACT
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relating to regulation of state banks. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 34.103(c), Finance Code, is amended to |
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read as follows: |
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Sec. 34. INVESTMENTS, LOANS, AND DEPOSITS. |
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(c) A state bank may not establish or acquire a subsidiary |
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or a controlling interest in a subsidiary that engages in |
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activities as principal in which the bank is prohibited from |
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engaging directly unless: |
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(1) the state bank's investment in the subsidiary has |
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been allowed [approved]by the Federal Deposit Insurance |
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Corporation under Section 24, Federal Deposit Insurance Act (12 |
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U.S.C. Section 1831a); or |
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(2) with respect to a subsidiary engaged in activities |
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as principal that a national bank may conduct only through a |
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financial subsidiary, including firm underwriting of equity |
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securities other than as permitted by Section 34.101, and not |
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otherwise engaged in activities as principal that are impermissible |
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for a state bank or a financial subsidiary of a national bank, the |
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subsidiary's activities and the bank's investment are in compliance |
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with the restrictions and requirements of Section 46, Federal |
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Deposit Insurance Act (12 U.S.C. Section 1831w). |
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SECTION 2. Section 35.002(a), Finance Code, is amended to |
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read as follows: |
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Sec. 35.002. CEASE AND DESIST ORDER. (a) The banking |
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commissioner has grounds to issue a cease and desist order to a |
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current or former [an] officer, employee, or director of a state |
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bank, or the bank itself acting through an authorized person, if the |
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banking commissioner determines from examination or other credible |
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evidence that the bank or person directly or indirectly has: |
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(1) violated this subtitle or another applicable law; |
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(2) engaged in a breach of trust or other fiduciary |
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duty; |
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(3) refused to submit to examination or examination |
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under oath; |
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(4) conducted business in an unsafe or unsound manner; |
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or |
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(5) violated a condition of the bank's charter or an |
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agreement between the bank or the person and the banking |
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commissioner or the department. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2021. |