1-1 By: Gutierrez (Senate Sponsor - Montford) H.B. No. 1173
1-2 (In the Senate - Received from the House April 5, 1993;
1-3 April 5, 1993, read first time and referred to Committee on
1-4 Economic Development; May 4, 1993, reported favorably by the
1-5 following vote: Yeas 9, Nays 0; May 4, 1993, sent to printer.)
1-6 COMMITTEE VOTE
1-7 Yea Nay PNV Absent
1-8 Parker x
1-9 Lucio x
1-10 Ellis x
1-11 Haley x
1-12 Harris of Dallas x
1-13 Harris of Tarrant x
1-14 Leedom x
1-15 Madla x
1-16 Rosson x
1-17 Shapiro x
1-18 Wentworth x
1-19 A BILL TO BE ENTITLED
1-20 AN ACT
1-21 relating to venue for trust company liquidations and exemptions for
1-22 trust companies from certain provisions of the state banking code.
1-23 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-24 SECTION 1. Article 2, Chapter XI, The Texas Banking Code
1-25 (Article 342-1102, Vernon's Texas Civil Statutes), is amended to
1-26 read as follows:
1-27 Art. 2. Applicability of State Banking Code; VENUE
1-28 Sec. 1. Unless otherwise provided in this chapter, a trust
1-29 company is subject to the provisions of Chapters I, II, III, IV, V,
1-30 VIII, and IX of this code as if the trust company were a state
1-31 bank; provided, however, that Article 1, Chapter III, relating to
1-32 banking powers, Article 11a, Chapter IV, relating to securities law
1-33 exemption, and Article 3, Chapter IX, relating to limited branch
1-34 banking shall not apply.
1-35 Sec. 2. Exclusive venue for an action instituted to effect,
1-36 contest, or otherwise intervene in the liquidation of a trust
1-37 company as provided in this chapter and Chapter VIII of this code
1-38 (Article 342-801 et seq., Vernon's Texas Civil Statutes) is in
1-39 Travis County.
1-40 SECTION 2. Section 6, Article 3, Chapter XI, The Texas
1-41 Banking Code (Article 342-1103, Vernon's Texas Civil Statutes), is
1-42 amended to read as follows:
1-43 Sec. 6. Exemptions. Trust companies by written application
1-44 may request an exemption from certain <the> provisions of this code
1-45 <chapter>. The Banking Commissioner may grant an exemption if the
1-46 Banking Commissioner finds that a trust company does not transact
1-47 business with the general public. A trust company granted an
1-48 exemption is not subject to the provisions of this code other than
1-49 Articles 5 and 14, Chapter III of this code (Articles 342-305 and
1-50 342-314, Vernon's Texas Civil Statutes), and Articles 1 and 1a,
1-51 Chapter IV of this code (Articles 342-401 and 342-401a, Vernon's
1-52 Texas Civil Statutes). A trust company that has been granted an
1-53 exemption shall annually certify to the Banking Department that it
1-54 is maintaining its exempt status. The Banking Commissioner may
1-55 examine or cause to be examined such trust companies to verify the
1-56 certification.
1-57 SECTION 3. The change in law made by this Act applies only
1-58 to venue for trust company liquidation action filed or a trust
1-59 company exemption granted on or after the effective date of this
1-60 Act. An action filed or exemption granted before the effective
1-61 date of this Act is governed by the law in effect at the time the
1-62 action was filed or the exemption granted, and that law is
1-63 continued in effect for that purpose.
1-64 SECTION 4. The importance of this legislation and the
1-65 crowded condition of the calendars in both houses create an
1-66 emergency and an imperative public necessity that the
1-67 constitutional rule requiring bills to be read on three several
1-68 days in each house be suspended, and this rule is hereby suspended,
2-1 and that this Act take effect and be in force from and after its
2-2 passage, and it is so enacted.
2-3 * * * * *
2-4 Austin,
2-5 Texas
2-6 May 4, 1993
2-7 Hon. Bob Bullock
2-8 President of the Senate
2-9 Sir:
2-10 We, your Committee on Economic Development to which was referred
2-11 H.B. No. 1173, have had the same under consideration, and I am
2-12 instructed to report it back to the Senate with the recommendation
2-13 that it do pass and be printed.
2-14 Parker,
2-15 Chairman
2-16 * * * * *
2-17 WITNESSES
2-18 FOR AGAINST ON
2-19 ___________________________________________________________________
2-20 Name: Catherine A. Ghiglieri x
2-21 Representing: Texas Dept. of Banking
2-22 City: Austin
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