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A BILL TO BE ENTITLED
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AN ACT
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relating to prohibited activities of a state trust company under |
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supervision. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 185.106, Finance Code, is amended to |
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read as follows: |
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Sec. 185.106. DUTIES OF STATE TRUST COMPANY UNDER |
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SUPERVISION. During a period of supervision, a state trust |
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company, without the prior approval of the banking commissioner or |
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the supervisor or as otherwise permitted or restricted by the order |
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of supervision, may not: |
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(1) dispose of, sell, transfer, convey, or encumber |
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the state trust company's assets; |
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(2) lend or invest the state trust company's funds; |
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(3) incur a debt, obligation, or liability; |
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(4) pay a [cash] dividend to the state trust company's |
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shareholders or participants; |
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(5) solicit or accept any new client accounts; [or] |
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(6) remove an executive officer or director, change |
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the number of executive officers or directors, or have any other |
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change in the position of executive officer or director; or |
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(7) engage in any other activity determined by the |
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banking commissioner to threaten the safety and soundness of the |
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state trust company. |
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SECTION 2. This Act takes effect September 1, 2025. |