88R50 SRA-F
 
  By: Slawson H.B. No. 1186
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the requirements for the conversion of a trust
  institution into a state trust company.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 182.502(b), Finance Code, is amended to
  read as follows:
         (b)  A trust institution applying to convert into a state
  trust company may receive a certificate of authority to do business
  as a state trust company if the banking commissioner finds that:
               (1)  the trust institution is not engaging in a pattern
  or practice of unsafe and unsound fiduciary or banking practices;
               (2)  the trust institution has adequate capitalization
  for a state trust company to act as a fiduciary at the same
  locations as the trust institution is acting as a fiduciary before
  the conversion;
               (3)  the trust institution can be expected to operate
  profitably after the conversion;
               (4)  the officers and directors of the trust
  institution as a group have sufficient fiduciary [banking]
  experience, ability, standing, competence, trustworthiness, and
  integrity to justify a belief that the trust institution will
  operate as a state trust company in compliance with law; and
               (5)  each principal shareholder has sufficient
  experience, ability, standing, competence, trustworthiness, and
  integrity to justify a belief that the trust institution will be
  free from improper or unlawful influence or interference with
  respect to the trust institution's operation as a state trust
  company in compliance with law.
         SECTION 2.  The change in law made by this Act applies only
  to an application for conversion filed on or after the effective
  date of this Act. An application for conversion filed before the
  effective date of this Act is governed by the law in effect on the
  date the application was filed, and the former law is continued in
  effect for that purpose.
         SECTION 3.  This Act takes effect September 1, 2023.