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A BILL TO BE ENTITLED
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AN ACT
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relating to the limitation of liability of a financial institution |
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acquiring a trustee financial institution. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 114, Property Code, is |
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amended by adding Section 114.009 to read as follows: |
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Sec. 114.009. LIABILITY OF ACQUIRING FINANCIAL |
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INSTITUTION. (a) In this section, "financial institution" has the |
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meaning assigned by Section 201.101, Finance Code. |
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(b) The aggregate liability of an acquiring financial |
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institution that accepts the trusts for which a financial |
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institution merged with or acquired by the financial institution |
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serves as trustee is limited to the lesser of: |
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(1) $10 million; or |
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(2) the aggregate value of all distributions of trust |
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property made by any predecessor trustee, including the financial |
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institution merged into or acquired by the acquiring financial |
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institution, in all trusts before the acquiring financial |
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institution's acceptance of the trusts. |
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(c) Subsection (b) applies only to liability for conduct of |
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a predecessor trustee. |
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SECTION 2. Section 114.009, Property Code, as added by this |
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Act, applies only to an action filed against a financial |
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institution on or after the effective date of this Act. |
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SECTION 3. This Act takes effect September 1, 2023. |