By:  Montford                                         S.B. No. 1215
       73R2477 LJD-F
                                 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.