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A BILL TO BE ENTITLED
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AN ACT
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relating to the requirements for the conversion of a trust |
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institution into a state trust company. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 182.502(b), Finance Code, is amended to |
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read as follows: |
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(b) A trust institution applying to convert into a state |
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trust company may receive a certificate of authority to do business |
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as a state trust company if the banking commissioner finds that: |
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(1) the trust institution is not engaging in a pattern |
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or practice of unsafe and unsound fiduciary or banking practices; |
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(2) the trust institution has adequate capitalization |
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for a state trust company to act as a fiduciary at the same |
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locations as the trust institution is acting as a fiduciary before |
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the conversion; |
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(3) the trust institution can be expected to operate |
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profitably after the conversion; |
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(4) the officers and directors of the trust |
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institution as a group have sufficient fiduciary [banking] |
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experience, ability, standing, competence, trustworthiness, and |
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integrity to justify a belief that the trust institution will |
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operate as a state trust company in compliance with law; and |
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(5) each principal shareholder has sufficient |
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experience, ability, standing, competence, trustworthiness, and |
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integrity to justify a belief that the trust institution will be |
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free from improper or unlawful influence or interference with |
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respect to the trust institution's operation as a state trust |
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company in compliance with law. |
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SECTION 2. The change in law made by this Act applies only |
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to an application for conversion filed on or after the effective |
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date of this Act. An application for conversion filed before the |
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effective date of this Act is governed by the law in effect on the |
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date the application was filed, and the former law is continued in |
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effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2023. |