73R2477 LJD-F
By Gutierrez H.B. No. 1173
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to venue for trust company liquidations and exemptions for
1-3 trust companies from certain provisions of the state banking code.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Article 2, Chapter XI, The Texas Banking Code
1-6 (Article 342-1102, Vernon's Texas Civil Statutes), is amended to
1-7 read as follows:
1-8 Art. 2. Applicability of State Banking Code; VENUE
1-9 Sec. 1. Unless otherwise provided in this chapter, a trust
1-10 company is subject to the provisions of Chapters I, II, III, IV, V,
1-11 VIII, and IX of this code as if the trust company were a state
1-12 bank; provided, however, that Article 1, Chapter III, relating to
1-13 banking powers, Article 11a, Chapter IV, relating to securities law
1-14 exemption, and Article 3, Chapter IX, relating to limited branch
1-15 banking shall not apply.
1-16 Sec. 2. Exclusive venue for an action instituted to effect,
1-17 contest, or otherwise intervene in the liquidation of a trust
1-18 company as provided in this chapter and Chapter VIII of this code
1-19 (Article 342-801 et seq., Vernon's Texas Civil Statutes) is in
1-20 Travis County.
1-21 SECTION 2. Section 6, Article 3, Chapter XI, The Texas
1-22 Banking Code (Article 342-1103, Vernon's Texas Civil Statutes), is
1-23 amended to read as follows:
1-24 Sec. 6. Exemptions. Trust companies by written application
2-1 may request an exemption from certain <the> provisions of this code
2-2 <chapter>. The Banking Commissioner may grant an exemption if the
2-3 Banking Commissioner finds that a trust company does not transact
2-4 business with the general public. A trust company granted an
2-5 exemption is not subject to the provisions of this code other than
2-6 Articles 5 and 14, Chapter III of this code (Articles 342-305 and
2-7 342-314, Vernon's Texas Civil Statutes), and Articles 1 and 1a,
2-8 Chapter IV of this code (Articles 342-401 and 342-401a, Vernon's
2-9 Texas Civil Statutes). A trust company that has been granted an
2-10 exemption shall annually certify to the Banking Department that it
2-11 is maintaining its exempt status. The Banking Commissioner may
2-12 examine or cause to be examined such trust companies to verify the
2-13 certification.
2-14 SECTION 3. The change in law made by this Act applies only
2-15 to venue for trust company liquidation action filed or a trust
2-16 company exemption granted on or after the effective date of this
2-17 Act. An action filed or exemption granted before the effective
2-18 date of this Act is governed by the law in effect at the time the
2-19 action was filed or the exemption granted, and that law is
2-20 continued in effect for that purpose.
2-21 SECTION 4. The importance of this legislation and the
2-22 crowded condition of the calendars in both houses create an
2-23 emergency and an imperative public necessity that the
2-24 constitutional rule requiring bills to be read on three several
2-25 days in each house be suspended, and this rule is hereby suspended,
2-26 and that this Act take effect and be in force from and after its
2-27 passage, and it is so enacted.