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.