By Raymond H.B. No. 2857
74R8024 CLG-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to certain lending services provided by banks and
1-3 branches; providing a penalty.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter V, The Texas Banking Code (Article
1-6 342-501 et seq., Vernon's Texas Civil Statutes), is amended by
1-7 adding Article 15 to read as follows:
1-8 Art. 15. LENDING SERVICES OF CERTAIN BANKS AND BRANCHES.
1-9 (a) In this article:
1-10 (1) "Branch" means a place of business of a bank or of
1-11 an out-of-state bank that receives applications for loans other
1-12 than the bank's or out-of-state bank's main office.
1-13 (2) "Out-of-state bank" means a bank that is:
1-14 (A) a national bank having its main office in a
1-15 state other than this state; or
1-16 (B) a state-chartered bank chartered by a state
1-17 other than this state.
1-18 (3) "Rural community" means a municipality in or the
1-19 unincorporated area of a nonmetropolitan county as defined by the
1-20 United States Census Bureau in its most recent federal census.
1-21 (b) At least two percent of the total outstanding amount of
1-22 loans made to borrowers in this state by or through each bank and
1-23 out-of-state bank and each branch of a bank or out-of-state bank
1-24 shall be in loans to:
2-1 (1) individuals residing in a rural community of this
2-2 state;
2-3 (2) businesses having their principal places of
2-4 business in a rural community of this state; or
2-5 (3) businesses or other entities for purposes of
2-6 investing in a rural community of this state.
2-7 (c) Not later than the 30th day after the last day of each
2-8 calendar quarter each bank and out-of-state bank shall file with
2-9 the Banking Commissioner a report in the form the Banking
2-10 Commissioner by rule prescribes that includes for each bank or
2-11 out-of-state bank and each branch of the bank or out-of-state bank
2-12 located in this state:
2-13 (1) the total outstanding amount of loans made to
2-14 borrowers in this state by or through the bank, out-of-state bank,
2-15 or branch;
2-16 (2) the total outstanding amount of those loans made
2-17 by or through the bank, out-of-state bank, or branch to each
2-18 category of borrowers described by Subsection (b); and
2-19 (3) the name of each borrower, by category, described
2-20 by Subsection (b).
2-21 (d) The Banking Commissioner may perform investigations
2-22 necessary to determine whether this article is being violated.
2-23 (e) A bank or out-of-state bank that violates this article
2-24 is liable to the state for a civil penalty in an amount not to
2-25 exceed $1,000 for each day of the violation. The attorney general
2-26 may sue to collect the penalty and on request of the Banking
2-27 Commissioner shall sue to collect the penalty.
3-1 (f) If federal law prohibits a national bank that has its
3-2 main office in a state other than this state from having to comply
3-3 with the requirements of this section, this section has no effect.
3-4 SECTION 2. This Act takes effect only if a branch of an
3-5 out-of-state bank is authorized to operate in this state.
3-6 SECTION 3. This Act takes effect September 1, 1995, and
3-7 applies only to a loan made on or after the effective date of this
3-8 Act. A loan made before the effective date of this Act is governed
3-9 by the law in effect when the loan was made, and that law is
3-10 continued in effect for that purpose.
3-11 SECTION 4. The importance of this legislation and the
3-12 crowded condition of the calendars in both houses create an
3-13 emergency and an imperative public necessity that the
3-14 constitutional rule requiring bills to be read on three several
3-15 days in each house be suspended, and this rule is hereby suspended.