2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 185 - Enforcement Actions › Subchapter A. Enforcement Orders › Section 185.0035. Removal or Prohibition Orders in Response to Certain Criminal Offenses

Sec. 185.0035.  REMOVAL OR PROHIBITION ORDERS IN RESPONSE TO CERTAIN CRIMINAL OFFENSES.  (a)  For purposes of this section, a person is considered to have been finally convicted of an offense if the person's case is not subject to further appellate review and:
(1)  a sentence was imposed on the person;
(2)  the person received probation or community supervision, including deferred adjudication community supervision; or
(3)  the court deferred final disposition of the person's case.
(b)  The banking commissioner has grounds to remove or prohibit a present or former officer, director, manager, managing participant, or employee of a state trust company from office or employment in, or prohibit a controlling shareholder or participant or other person participating in the affairs of a state trust company from further participation in the affairs of, the state trust company or any other entity chartered, registered, permitted, or licensed by the banking commissioner if the person has been finally convicted of a felony offense involving:
(1)  a financial institution, as defined by Section 201.101;
(2)  dishonesty; or
(3)  breach of trust.
(c)  If the banking commissioner has grounds for action under Subsection (b), the banking commissioner may serve a removal or prohibition order, as appropriate, on the person who has been finally convicted of a felony offense.  The banking commissioner shall also serve a copy of the order on any state trust company that the person is affiliated with at the time of service of the order.
(d)  An order issued under this section becomes effective immediately on service and continues in effect unless the order is:
(1)  stayed or terminated by the banking commissioner;
(2)  set aside by the banking commissioner after a hearing; or
(3)  stayed or vacated on appeal.
(e)  Not later than the 30th day after the date an order is served under this section, the person against whom the order is issued may request in writing a hearing before the banking commissioner to show that the person's continued service to a state trust company or participation in the affairs of a state trust company does not, or is unlikely to, threaten the interests of the clients, depositors, creditors, or shareholders of the state trust company or the public confidence in the state trust company.
(f)  Not later than the 30th day after the date a request for a hearing is received under this section, the banking commissioner shall hold the hearing, unless the party requesting the hearing requests a later date.  At the hearing, the party requesting the hearing has the burden of proof.
(g)  After the hearing, the banking commissioner may affirm, modify, or set aside, in whole or in part, the order.  An order affirming or modifying the order is immediately final for purposes of enforcement and appeal.  The order may be appealed as provided by Sections 181.202 and 181.204.
Added by Acts 2015, 84th Leg., R.S., Ch. 422 (H.B. 3555), Sec. 12, eff. September 1, 2015.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 20 (S.B. 614), Sec. 24, eff. September 1, 2019.