1-1 By: Carriker S.B. No. 238
1-2 (In the Senate - Filed February 2, 1993; February 2, 1993,
1-3 read first time and referred to Committee on Economic Development;
1-4 February 23, 1993, reported favorably by the following vote: Yeas
1-5 11, Nays 0; February 23, 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 the priority of claims on liquidation of a state or
1-22 private bank or on a purchase of assets and assumption of
1-23 liabilities of a state bank.
1-24 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-25 SECTION 1. Article 4a, Chapter VIII, The Texas Banking Code
1-26 (Article 342-804a, Vernon's Texas Civil Statutes), is amended to
1-27 read as follows:
1-28 Art. 4a. Priority of Claims--Payment. On liquidation of a
1-29 state or private bank or on execution of a purchase of certain
1-30 assets and assumption of certain liabilities of a state bank under
1-31 Article 3a of this chapter, claims for payment against that state
1-32 bank have the same <following> priority that similar claims would
1-33 have on the liquidation or purchase of assets and assumption of
1-34 liabilities of a national bank under federal law<:>
1-35 <(1) obligations incurred by the Banking Commissioner,
1-36 fees and assessments due to the Banking Department, and expenses of
1-37 liquidation, including any taxes due, all of which may be covered
1-38 by a proper reserve of funds;>
1-39 <(2) claims of depositors having an approved claim
1-40 against the general liquidating account of the bank;>
1-41 <(3) claims of salaried employees of the bank for
1-42 salaries that are earned but unpaid at the time the bank is closed
1-43 or purchased under Article 3a of this chapter;>
1-44 <(4) claims of general creditors having an approved
1-45 claim against the general liquidating account of the bank;>
1-46 <(5) claims otherwise proper that were not filed
1-47 within the time prescribed by this Code;>
1-48 <(6) approved claims of subordinated creditors; and>
1-49 <(7) claims of stockholders of the bank>.
1-50 SECTION 2. The change in law made by this Act applies to
1-51 unpaid claims in a liquidation initiated or a purchase of assets
1-52 and assumption of liabilities that occurs before, on, or after the
1-53 effective date of this Act.
1-54 SECTION 3. The importance of this legislation and the
1-55 crowded condition of the calendars in both houses create an
1-56 emergency and an imperative public necessity that the
1-57 constitutional rule requiring bills to be read on three several
1-58 days in each house be suspended, and this rule is hereby suspended,
1-59 and that this Act take effect and be in force from and after its
1-60 passage, and it is so enacted.
1-61 * * * * *
1-62 Austin,
1-63 Texas
1-64 February 23,
1-65 1993
1-66 Hon. Bob Bullock
1-67 President of the Senate
1-68 Sir:
2-1 We, your Committee on Economic Development to which was referred
2-2 S.B. No. 238, have had the same under consideration, and I am
2-3 instructed to report it back to the Senate with the recommendation
2-4 that it do pass and be printed.
2-5 Parker,
2-6 Chairman
2-7 * * * * *
2-8 WITNESSES
2-9 FOR AGAINST ON
2-10 ___________________________________________________________________
2-11 Name: Rob Norcross x
2-12 Representing: Texas Bankers Assoc.
2-13 City: Austin
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2-15 Name: Catherine Ghiglieri x
2-16 Representing: Department of Banking
2-17 City: Austin
2-18 -------------------------------------------------------------------
2-19 Name: Gayle Earls x
2-20 Representing: Texas Independent Bank
2-21 City: Dallas
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2-23 Name: Chistopher Williston x
2-24 Representing: Independent Bankers Assoc.
2-25 City: Austin
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2-27 Name: Ann Graham x
2-28 Representing: Texas Department of Banking
2-29 City: Austin
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2-31 Name: Randall James x
2-32 Representing: Texas Department of Banking
2-33 City: Austin
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