H.B. No. 1173
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. Venue for an action instituted to effect, contest,
1-17 or otherwise intervene in the liquidation of a trust company as
1-18 provided in this chapter and Chapter VIII of this code (Article
1-19 342-801 et seq., Vernon's Texas Civil Statutes) is in Travis
1-20 County, except that on motion filed and served concurrently with or
1-21 before the filing of the answer, the court may, upon a finding of
1-22 good cause, transfer the action to the county of the trust
1-23 company's principal place of business.
1-24 SECTION 2. Section 6, Article 3, Chapter XI, The Texas
2-1 Banking Code (Article 342-1103, Vernon's Texas Civil Statutes), is
2-2 amended to read as follows:
2-3 Sec. 6. Exemptions. Trust companies by written application
2-4 may request an exemption from certain <the> provisions of this code
2-5 <chapter>. The Banking Commissioner may grant an exemption if the
2-6 Banking Commissioner finds that a trust company does not transact
2-7 business with the general public. A trust company granted an
2-8 exemption is not subject to the provisions of this code other than
2-9 Articles 5 and 14, Chapter III of this code (Articles 342-305 and
2-10 342-314, Vernon's Texas Civil Statutes), and Articles 1 and 1a,
2-11 Chapter IV of this code (Articles 342-401 and 342-401a, Vernon's
2-12 Texas Civil Statutes). A trust company that has been granted an
2-13 exemption shall annually certify to the Banking Department that it
2-14 is maintaining its exempt status. The Banking Commissioner may
2-15 examine or cause to be examined such trust companies to verify the
2-16 certification.
2-17 SECTION 3. The change in law made by this Act applies only
2-18 to venue for trust company liquidation action filed or a trust
2-19 company exemption granted on or after the effective date of this
2-20 Act. An action filed or exemption granted before the effective
2-21 date of this Act is governed by the law in effect at the time the
2-22 action was filed or the exemption granted, and that law is
2-23 continued in effect for that purpose.
2-24 SECTION 4. The importance of this legislation and the
2-25 crowded condition of the calendars in both houses create an
2-26 emergency and an imperative public necessity that the
2-27 constitutional rule requiring bills to be read on three several
3-1 days in each house be suspended, and this rule is hereby suspended,
3-2 and that this Act take effect and be in force from and after its
3-3 passage, and it is so enacted.