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A BILL TO BE ENTITLED
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AN ACT
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relating to investments by state banks to promote public welfare |
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and community development. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Section 34.106, Finance Code, is |
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amended to read as follows: |
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Sec. 34.106. INVESTMENTS TO PROMOTE [FOR] PUBLIC WELFARE |
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AND COMMUNITY DEVELOPMENT. |
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SECTION 2. Section 34.106, Finance Code, is amended by |
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amending Subsection (d) and adding Subsection (e) to read as |
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follows: |
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(d) A bank's aggregate equity investments under this |
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section[, including loans and commitments for loans,] may not: |
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(1) exceed an amount equal to 15 [10] percent of the |
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bank's unimpaired capital and surplus; and |
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(2) be made unless the bank is at least adequately |
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capitalized. [The banking commissioner may authorize investments
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in excess of this limitation in response to a written application if
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the banking commissioner concludes that:
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[(1)
the excess investment is not precluded by other
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applicable law; and
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[(2)
the safety and soundness of the requesting bank
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would not be adversely affected.] |
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(e) Subject to Subsection (d), a bank's investments |
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described by Subsection (a), including equity investments and loans |
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and commitments for loans, in a single entity may not exceed 25 |
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percent of the bank's unimpaired capital and surplus without the |
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prior authorization of the banking commissioner in response to a |
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written application. |
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SECTION 3. This Act takes effect September 1, 2017. |