85R5938 EES-F
  By: Holland H.B. No. 2579
  relating to the bond and other coverages required to be maintained
  by or for the benefit of a savings bank.
         SECTION 1.  Section 92.156, Finance Code, is amended to read
  as follows:
  DIRECTORS, OFFICERS, AND EMPLOYEES]. (a) A savings bank shall
  maintain a financial institution [blanket indemnity] bond that
  provides [with an] adequate coverage to protect [corporate surety
  protecting] the savings bank from loss:
               (1)  by or through dishonest or criminal action or
  omission, including fraud, theft, or misplacement [robbery, or
  burglary], by any of the following persons:
                     (A)  an officer or employee of the savings bank;
                     (B)  an attorney retained by the savings bank;
                     (C)  a nonemployee performing data processing
  services for the savings bank; or
                     (D)  a director of the savings bank performing a 
  [when the director performs the] duty of an officer or employee; or
               (2)  by other perils such as robbery, burglary,
  forgery, or alteration.
         (b)  A savings bank that employs a collection agent who is
  not covered by the bond required by Subsection (a) shall:
               (1)  ensure that the savings bank is included as a loss
  payee in the collection agent's crime coverage; and
               (2)  obtain a certificate of insurance evidencing the
  sufficiency of the collection agent's crime coverage [provide for
  the bonding of the agent in an amount equal to at least twice the
  average monthly collection of the agent unless the agent is a
  financial institution insured by the Federal Deposit Insurance
  Corporation. An agent shall settle with the savings bank at least
         (c)  Subject to rules adopted under Subsection (e), the board
  shall, at least annually, review and approve:
               (1)  the coverage, including the amount of the
  coverage, provided by the bond and the form of the bond; and
               (2)  the sustainability [sufficiency] of the corporate 
  surety or insurer that issued the bond.
         (d)  The bond must provide that a cancellation or other
  termination by the corporate surety or insurer or by the insured is
  not effective until the earlier of:
               (1)  the date the commissioner approves; or
               (2)  the 30th day after the date written notice of the
  cancellation is given to the commissioner.
         (e)  The finance commission may adopt rules establishing:
               (1)  the coverage, including the amount of the
  coverage, that must be provided by the bond and the form of the
  bond; and
               (2)  the sustainability [sufficiency] of the corporate
  surety or insurer that issues the bond.
         SECTION 2.  Not later than January 1, 2018:
               (1)  a savings bank that maintains a bond under Section
  92.156, Finance Code, on the effective date of this Act shall obtain
  a bond that satisfies the requirements of Section 92.156, Finance
  Code, as amended by this Act; and
               (2)  a collection agent employed by a savings bank
  shall maintain crime coverage in compliance with Section 92.156(b),
  Finance Code, as amended by this Act.
         SECTION 3.  This Act takes effect September 1, 2017.