reglab/housing_qa huggingface dataset:
TX Fin Code § 184.002 (2021)
2021 Texas Statutes|Finance Code|Title 3 - Financial Institutions and Businesses|Subtitle F - Trust Companies|Chapter 184 - Investments, Loans, and Deposits|Subchapter A. Acquisition and Ownership of Trust Company Facilities and Other Real Property|Section 184.002. Investment in State Trust Company Facilities

Sec. 184.002.  INVESTMENT IN STATE TRUST COMPANY FACILITIES.  (a)  Without the prior written approval of the banking commissioner, a state trust company may not directly or indirectly invest an amount in excess of the company's restricted capital in state trust company facilities, furniture, fixtures, and equipment.  Except as otherwise provided by rules adopted under this subtitle, in computing the limitation provided by this subsection a state trust company:(1)  shall include:(A)  its direct investment in state trust company facilities;(B)  an investment in equity or investment securities of a company holding title to a facility used by the state trust company for the purposes specified by Section 184.001;(C)  a loan made by the state trust company to or on the security of equity or investment securities issued by a company holding title to a facility used by the state trust company; and(D)  any indebtedness incurred on state trust company facilities by a company:(i)  that holds title to the facility;(ii)  that is an affiliate of the state trust company; and(iii)  in which the state trust company is invested in the manner described by Paragraph (B) or (C); and(2)  may exclude an amount included under Subdivisions (1)(B)-(D) to the extent any lease of a facility from the company holding title to the facility is capitalized on the books of the state trust company.(b)  Real property described by Subsection 184.001(3) and not improved and occupied by the state trust company ceases to be a state trust company facility on the third anniversary of the date of its acquisition unless the banking commissioner on application grants written approval to further delay in the improvement and occupation of the property by the state trust company.(c)  A state trust company shall dispose of any real property subject to Subsection (a) not later than the fifth anniversary of the date the real property:(1)  was acquired, except as otherwise provided by rules adopted under this subtitle;(2)  ceases to be used as a state trust company facility; or(3)  ceases to be a  state trust company facility as provided by Subsection (b).|Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.Amended by: Acts 2013, 83rd Leg., R.S., Ch. 940 (H.B. 1664), Sec. 14, eff. June 14, 2013.|
TX Fin Code § 184.003 (2021)
2021 Texas Statutes|Finance Code|Title 3 - Financial Institutions and Businesses|Subtitle F - Trust Companies|Chapter 184 - Investments, Loans, and Deposits|Subchapter A. Acquisition and Ownership of Trust Company Facilities and Other Real Property|Section 184.003. Other Real Property

Sec. 184.003.  OTHER REAL PROPERTY.  (a)  A state trust company may not invest its restricted capital in real property except:(1)  as permitted by this subtitle or rules adopted under this subtitle;  or(2)  as necessary to avoid or minimize a loss on a loan or investment previously made in good faith.(b)  With the prior written approval of the banking commissioner, a state trust company may:(1)  exchange real property for other real property or personal property;(2)  invest additional money in or improve real property acquired under this subsection or Subsection (a);  or(3)  acquire additional real property to avoid or minimize loss on real property acquired as permitted by Subsection (a).(c)  A state trust company shall dispose of any real property subject to Subsection (a) not later than:(1)  the fifth anniversary of the date the real property:(A)  was acquired, except as otherwise provided by rules adopted under this subtitle;  or(B)  ceases to be used as a state trust company facility;  or(2)  the second anniversary of the date the real property ceases to be a state trust company facility as provided by Section 184.002(b).(d)  The banking commissioner on application may grant one or more extensions of time for disposing of real property under Subsection (c) if the banking commissioner determines that:(1)  the state trust company has made a good faith effort to dispose of the real property;  or(2)  disposal of the real property would be detrimental to the state trust company.(e)  Subject to the exercise of prudent judgment, a state trust company may invest its secondary capital in real property. The factors to be considered by a state trust company in exercise of prudent judgment include the factors contained in Section 184.101(e).|Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.Amended by: Acts 2021, 87th Leg., R.S., Ch. 915 (H.B. 3607), Sec. 8.001, eff. September 1, 2021.|
TX Fin Code § 184.102 (2021)
2021 Texas Statutes|Finance Code|Title 3 - Financial Institutions and Businesses|Subtitle F - Trust Companies|Chapter 184 - Investments, Loans, and Deposits|Subchapter B. Investments|Section 184.102. Transactions in State Trust Company Shares or Participation Shares

Sec. 184.102.  TRANSACTIONS IN STATE TRUST COMPANY SHARES OR PARTICIPATION SHARES.  Except with the prior written approval of the banking commissioner:(1)  a state trust company may not acquire its own shares or participation shares unless the amount of its undivided profits is sufficient to fully absorb the acquisition of the shares or participation shares under regulatory accounting principles;  and(2)  a state trust company may not acquire a lien on its own shares or participation shares unless the amount of indebtedness secured is less than the amount of the state trust company's undivided profits.|Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.|
TX Fin Code § 184.103 (2021)
2021 Texas Statutes|Finance Code|Title 3 - Financial Institutions and Businesses|Subtitle F - Trust Companies|Chapter 184 - Investments, Loans, and Deposits|Subchapter B. Investments|Section 184.103. State Trust Company Subsidiaries

Sec. 184.103.  STATE TRUST COMPANY SUBSIDIARIES.  (a)  Except as otherwise provided by this subtitle or rules adopted under this subtitle, and subject to the exercise of prudent judgment, a state trust company may invest its secondary capital to acquire or establish one or more subsidiaries to conduct any activity that may lawfully be conducted through the form of organization chosen for the subsidiary.  The factors to be considered by a state trust company in exercise of prudent judgment include the factors contained in Section 184.101(e).(b)  A state trust company that intends to acquire, establish, or perform new activities through a subsidiary shall submit a letter to the banking commissioner describing in detail the proposed activities of the subsidiary.(c)  The state trust company may acquire or establish a subsidiary or begin performing new activities in an existing subsidiary on the 31st day after the date the banking commissioner receives the state trust company's letter, unless the banking commissioner specifies an earlier or later date.  The banking commissioner may extend the 30-day period on a determination that the state trust company's letter raises issues that require additional information or additional time for analysis.  If the period is extended, the state trust company may acquire or establish the subsidiary, or perform new activities in an existing subsidiary, only on prior written approval of the banking commissioner.(d)  A subsidiary of a state trust company is subject to regulation by the banking commissioner to the extent provided by this subtitle or rules adopted under this section.  In the absence of limiting rules, the banking commissioner may regulate a subsidiary as if it were a state trust company.|Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.  Amended by Acts 2001, 77th Leg., ch. 528, Sec. 24, eff. Sept. 1, 2001.|
TX Fin Code § 184.104 (2021)
2021 Texas Statutes|Finance Code|Title 3 - Financial Institutions and Businesses|Subtitle F - Trust Companies|Chapter 184 - Investments, Loans, and Deposits|Subchapter B. Investments|Section 184.104. Other Investment Provisions

Sec. 184.104.  OTHER INVESTMENT PROVISIONS.  (a)  Without the prior written approval of the banking commissioner, a state trust company may not make any investment of its secondary capital in any investment that incurs or may incur, under regulatory accounting principles, a liability or contingent liability for the state trust company.(b)  The banking commissioner may, on a case-by-case basis, require a state trust company to dispose of any investment of its secondary capital, if the banking commissioner finds that the divestiture of the asset is necessary to protect the safety and soundness of the state trust company.  The banking commissioner in the exercise of discretion under this subsection shall consider safety and soundness factors, including those contained in Section 182.008(b).  The proposed effective date of an order requiring a state trust company to dispose of an asset must be stated in the order and must be on or after the 21st day after the date the proposed order is mailed or delivered.  Unless the state trust company requests a hearing before the banking commissioner in writing before the effective date of the proposed order, the order becomes effective and is final and nonappealable.(c)  Subject to Subsections (a) and (b), to Section 184.105, and to the exercise of prudent judgment, a state trust company may invest its secondary capital in any type or character of investment for the purpose of generating income or profit.  The factors to be considered by a state trust company in exercise of prudent judgment include the factors contained in Section 184.101(e).|Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.  Amended by Acts 2001, 77th Leg., ch. 528, Sec. 25, eff. Sept. 1, 2001.|
TX Fin Code § 184.105 (2021)
2021 Texas Statutes|Finance Code|Title 3 - Financial Institutions and Businesses|Subtitle F - Trust Companies|Chapter 184 - Investments, Loans, and Deposits|Subchapter B. Investments|Section 184.105. Engaging in Commerce Prohibited

Sec. 184.105.  ENGAGING IN COMMERCE PROHIBITED.  (a)  Except as otherwise provided by this subtitle or rules adopted under this subtitle, a state trust company may not invest its funds in trade or commerce by buying, selling, or otherwise dealing goods or by owning or operating a business not part of the state trust business, except as necessary to fulfill a fiduciary obligation to a client.(b)  Under this section, engaging in an approved financial activity or an activity incidental or complementary to a financial activity, whether as principal or agent, is not considered to be engaging in commerce.|Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.  Amended by Acts 2001, 77th Leg., ch. 528, Sec. 26, eff. Sept. 1, 2001.|
TX Fin Code § 184.201 (2021)
2021 Texas Statutes|Finance Code|Title 3 - Financial Institutions and Businesses|Subtitle F - Trust Companies|Chapter 184 - Investments, Loans, and Deposits|Subchapter C. Loans|Section 184.201. Lending Limits

Sec. 184.201.  LENDING LIMITS.  (a)  A state trust company's total outstanding loans and extensions of credit to a person other than an insider may not exceed an amount equal to 15 percent of the state trust company's restricted capital.(b)  The aggregate loans and extensions of credit outstanding at any time to insiders of the state trust company may not exceed an amount equal to 15 percent of the state trust company's restricted capital.  All covered transactions between an insider and a state trust company must be engaged in only on terms and under circumstances, including credit standards, that are substantially the same as those for comparable transactions with a person other than an insider.(c)  The finance commission may adopt rules to administer this section, including rules to:(1)  establish limits, requirements, or exemptions other than those specified by this section for particular classes or categories of loans or extensions of credit;  and(2)  establish collective lending and investment limits.(d)  The banking commissioner may determine whether a loan or extension of credit putatively made to a person will be attributed to another person for purposes of this section.(e)  A state trust company may not lend trust deposits, except that a trustee may make a loan to a beneficiary of the trust if the loan is expressly authorized or directed by the instrument or transaction establishing the trust.|Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.|
TX Fin Code § 184.202 (2021)
2021 Texas Statutes|Finance Code|Title 3 - Financial Institutions and Businesses|Subtitle F - Trust Companies|Chapter 184 - Investments, Loans, and Deposits|Subchapter C. Loans|Section 184.202. Violation of Lending Limit

Sec. 184.202.  VIOLATION OF LENDING LIMIT.  (a)  An officer, director, manager, managing participant, or employee of a state trust company who approves or participates in the approval of a loan with actual knowledge that the loan violates Section 184.201 is jointly and severally liable to the state trust company for the lesser of the amount by which the loan exceeded applicable lending limits or the state trust company's actual loss.  The person remains liable for that amount until the loan and all prior indebtedness of the borrower to the state trust company have been fully repaid.(b)  The state trust company may initiate a proceeding to collect an amount due under this section at any time before the date the borrower defaults on the subject loan or any prior indebtedness or before the fourth anniversary of that date.(c)  A person who is liable for and pays amounts to the state trust company under this section is entitled to an assignment of the state trust company's claim against the borrower to the extent of the payments.(d)  For purposes of this section, an officer, director, manager, managing participant, or employee of a state trust company is presumed to know the amount of the state trust company's lending limit under Section 184.201 and the amount of the borrower's aggregate outstanding indebtedness to the state trust company immediately before a new loan or extension of credit to that borrower.|Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.|
TX Fin Code § 184.203 (2021)
2021 Texas Statutes|Finance Code|Title 3 - Financial Institutions and Businesses|Subtitle F - Trust Companies|Chapter 184 - Investments, Loans, and Deposits|Subchapter C. Loans|Section 184.203. Lease Financing Transaction

Sec. 184.203.  LEASE FINANCING TRANSACTION.  (a)  Subject to rules adopted under this subtitle, a state trust company may become the owner and lessor of tangible personal property for lease financing transactions on a net lease basis on the specific request and for the use of a client.  Without the written approval of the banking commissioner to continue holding property acquired for leasing purposes under this subsection, the state trust company may not hold the property more than six months after the date of expiration of the original or any extended or renewed lease period agreed to by the client for whom the property was acquired or by a subsequent lessee.(b)  A rental payment received by the state trust company in a lease financing transaction under this section is considered to be rent and not interest or compensation for the use, forbearance, or detention of money.  However, a lease financing transaction is considered to be a loan or extension of credit for purposes of Sections 184.201 and 184.202.|Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.|
TX Fin Code § 184.204 (2021)
2021 Texas Statutes|Finance Code|Title 3 - Financial Institutions and Businesses|Subtitle F - Trust Companies|Chapter 184 - Investments, Loans, and Deposits|Subchapter C. Loans|Section 184.204. General Banking Privileges Not Conferred

Sec. 184.204.  GENERAL BANKING PRIVILEGES NOT CONFERRED.  This subchapter does not confer general banking privileges on a state trust company.|Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.|
TX Fin Code § 184.301 (2021)
2021 Texas Statutes|Finance Code|Title 3 - Financial Institutions and Businesses|Subtitle F - Trust Companies|Chapter 184 - Investments, Loans, and Deposits|Subchapter D. Trust Deposits|Section 184.301. Trust Deposits

Sec. 184.301.  TRUST DEPOSITS.  (a)  A state trust company may deposit trust funds with itself as an investment if:(1)  the deposit is authorized by the settlor or beneficiary;(2)  the state trust company maintains as security for the deposit a separate fund of securities, legal for trust investments, under control of a federal reserve bank or a clearing corporation, as defined by Section 8.102, Business & Commerce Code, within or outside this state;(3)  the total market value of the security is at all times at least equal to the amount of the deposit;  and(4)  the separate fund is designated as a separate fund.(b)  A state trust company may make periodic withdrawals from or additions to a securities fund required by Subsection (a) as long as the required value is maintained.  Income from the securities in the fund belongs to the state trust company.(c)  Security for a deposit under this section is not required for a deposit under Subsection (a) to the extent the deposit is insured by the Federal Deposit Insurance Corporation or its successor.|Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.|
TX Fin Code § 184.302 (2021)
2021 Texas Statutes|Finance Code|Title 3 - Financial Institutions and Businesses|Subtitle F - Trust Companies|Chapter 184 - Investments, Loans, and Deposits|Subchapter D. Trust Deposits|Section 184.302. General Banking Privileges Not Conferred

Sec. 184.302.  GENERAL BANKING PRIVILEGES NOT CONFERRED.  This subchapter does not confer general banking privileges on a state trust company.|Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.|
TX Fin Code § 184.401 (2021)
2021 Texas Statutes|Finance Code|Title 3 - Financial Institutions and Businesses|Subtitle F - Trust Companies|Chapter 184 - Investments, Loans, and Deposits|Subchapter E. Liabilities and Pledge of Assets|Section 184.401. Borrowing Limit

Sec. 184.401.  BORROWING LIMIT.  Except with the prior written approval of the banking commissioner, a state trust company may not have outstanding liabilities, excluding trust deposit liabilities arising under Section 184.301, that exceed an amount equal to five times its restricted capital.|Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.|
TX Fin Code § 184.402 (2021)
2021 Texas Statutes|Finance Code|Title 3 - Financial Institutions and Businesses|Subtitle F - Trust Companies|Chapter 184 - Investments, Loans, and Deposits|Subchapter E. Liabilities and Pledge of Assets|Section 184.402. Pledge of Assets

Sec. 184.402.  PLEDGE OF ASSETS.  (a)  A state trust company may not pledge or create a lien on any of its assets except to secure:(1)  the repayment of money borrowed;(2)  trust deposits as specifically authorized or required by:(A)  Section 184.301;(B)  Title 9, Property Code;  or(C)  rules adopted under this chapter;  or(3)  deposits made by:(A)  the United States;(B)  a state, county, or municipality;  or(C)  an agency of the United States or a state, county, or municipality.(b)  An act, deed, conveyance, pledge, or contract in violation of this section is void.|Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.|
TX Fin Code § 185.0001 (2021)
2021 Texas Statutes|Finance Code|Title 3 - Financial Institutions and Businesses|Subtitle F - Trust Companies|Chapter 185 - Enforcement Actions|Subchapter A. Enforcement Orders|Section 185.0001. Applicability to State Trust Company Subsidiaries

Sec. 185.0001.  APPLICABILITY TO STATE TRUST COMPANY SUBSIDIARIES.  This subchapter applies to a subsidiary of a state trust company, a present or former officer, director, manager, managing participant, or employee of a subsidiary, or a controlling shareholder or other person participating in the affairs of a subsidiary in the same manner as the subchapter applies to a state trust company, a present or former officer, director, manager, managing participant, or employee of a state trust company, or a controlling shareholder or other person participating in the affairs of a state trust company.|Added by Acts 2015, 84th Leg., R.S., Ch. 422 (H.B. 3555), Sec. 9, eff. September 1, 2015.|
TX Fin Code § 185.001 (2021)
2021 Texas Statutes|Finance Code|Title 3 - Financial Institutions and Businesses|Subtitle F - Trust Companies|Chapter 185 - Enforcement Actions|Subchapter A. Enforcement Orders|Section 185.001. Determination Letter

Sec. 185.001.  DETERMINATION LETTER.  (a)  If the banking commissioner determines from examination or other credible evidence that a state trust company is in a condition that may warrant the issuance of an enforcement order under this chapter, the banking commissioner may notify the state trust company in writing of the determination, the requirements the state trust company must satisfy to abate the determination, and the time in which the requirements must be satisfied to avert further administrative action.  The determination letter must be delivered by personal delivery or by registered or certified mail, return receipt requested.(b)  The determination letter may be issued in connection with the issuance of a cease and desist, removal, or prohibition order under this subchapter or an order of supervision or conservatorship under Subchapter B.|Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.|