By:  Shelley                                           S.B. No. 687
       73R4306 CAE-F
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the board of directors of a bank owned or controlled by
    1-3  an out-of-state bank holding company.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 2,  Article 4, Chapter IV, The Texas
    1-6  Banking Code (Article 342-404, Vernon's Texas Civil Statutes), is
    1-7  amended to read as follows:
    1-8        Sec. 2.  If the bank is owned or controlled, directly or
    1-9  indirectly, by an out-of-state bank holding company, directors who
   1-10  are employees or officers or spouses of employees or officers of
   1-11  the <bank or> out-of-state bank holding company, or an affiliate of
   1-12  the <bank or> out-of-state bank holding company, other than the
   1-13  bank, shall not be counted as residents of the State of Texas for
   1-14  the purpose of Section 1 of this article.  For the purposes of this
   1-15  section, "affiliate" means a person or entity, other than the bank,
   1-16  that directly, or indirectly through one or more intermediaries,
   1-17  controls, is controlled by, or is under common control with the
   1-18  <bank or> out-of-state bank holding company.
   1-19        SECTION 2.  This Act takes effect September 1, 1993.
   1-20        SECTION 3.  The importance of this legislation and the
   1-21  crowded condition of the calendars in both houses create an
   1-22  emergency and an imperative public necessity that the
   1-23  constitutional rule requiring bills to be read on three several
   1-24  days in each house be suspended, and this rule is hereby suspended.