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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 community |
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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 COMMUNITY DEVELOPMENT |
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[FOR PUBLIC WELFARE]. |
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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 investments under this section[,
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including loans and commitments for loans,] may not exceed an |
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amount equal to 15 [10] percent of the bank's unimpaired capital and |
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surplus. [The banking commissioner may authorize investments in
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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) Notwithstanding any other law, a bank's exposure to a |
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single project or entity described by this section, including all |
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investments, loans, and commitments for loans, 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, 2019. |