2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle C - Savings Banks › Chapter 96 - Supervision and Regulation › Subchapter A. General Provisions › Section 96.002. Adoption of Rules

Sec. 96.002.  ADOPTION OF RULES.  (a)  The finance commission may adopt rules necessary to supervise and regulate savings banks and to protect public investment in savings banks, including rules relating to:
(1)  the minimum amounts of capital required to incorporate and operate as a savings bank, which may not be less than the amounts required of corresponding national banks;
(2)  the fees and procedures for processing, hearing, and deciding applications filed with the commissioner or the Department of Savings and Mortgage Lending under this subtitle;
(3)  the books and records that a savings bank is required to keep and the location at which the books and records are required to be maintained;
(4)  the accounting principles and practices that a savings bank is required to observe;
(5)  the conditions under which records may be copied or reproduced for permanent storage before the originals are destroyed;
(6)  the form, content, and time of publication of statements of condition;
(7)  the form and content of any report that a savings bank is required to prepare and publish or file under this chapter;
(8)  the manner in which assets, liabilities, and transactions in general are to be described when entered in the books of a savings bank, so that the entry accurately describes the subject matter of the entry;
(9)  the conditions under which the commissioner may require an asset to be charged off or reserves established by transfer from surplus or paid-in capital because of depreciation of or overstated value of the asset;
(10)  the change of control of a savings bank;
(11)  the conduct, management, and operation of a savings bank;
(12)  the withdrawable accounts, bonuses, plans, and contracts for savings programs;
(13)  the merger, consolidation, reorganization, conversion, and liquidation of a savings bank;
(14)  the establishment of an additional office or the change of office location or name of a savings bank;
(15)  the requirements for a savings bank's holding companies, including those relating to:
(A)  registration and periodic reporting of a holding company with the commissioner; and
(B)  transactions between a holding company, an affiliate of a holding company, or a savings bank; and
(16)  the powers of a savings bank to make loans and investments that contain provisions reasonably necessary to ensure that a loan made by a savings bank is consistent with sound lending practices and that the savings bank's investment will promote the purposes of this subtitle, including provisions governing:
(A)  the type of loans and the conditions under which a savings bank may originate, make, or sell loans;
(B)  the conditions under which a savings bank may purchase or participate in a loan made by another lender;
(C)  the conditions for the servicing of a loan for another lender;
(D)  the conditions under which a savings bank may lend money on the security of a loan made by another person;
(E)  the conditions under which a savings bank may pledge loans held by it as collateral for borrowing by the savings bank;
(F)  the conditions under which a savings bank may invest in securities and debt instruments;
(G)  the documentation that a savings bank must have in its files at the time of funding or purchase of a loan, an investment, or a participation in a loan;
(H)  the form and content of statements of expenses and fees and other charges that are paid by a borrower or that a borrower is obligated to pay;
(I)  the title information that must be maintained;
(J)  the borrower's insurance coverage of property securing a loan;
(K)  an appraisal report;
(L)  the financial statement of a borrower;
(M)  the fees or other compensation that may be paid to a person in connection with obtaining a loan for a savings bank, including an officer, director, employee, affiliated person, consultant, or third party;
(N)  the conditions under which the savings bank may advance money to pay a tax, assessment, insurance premium, or other similar charge for the protection of the savings bank's interest in property securing the savings bank's loans;
(O)  the terms under which a savings bank may acquire and deal in real property;
(P)  the valuation on a savings bank's books of real property held by the savings bank;
(Q)  the terms governing the investment by a savings bank in a subsidiary, the powers that may be exercised by a subsidiary, and the activities that may be engaged in by a subsidiary; and
(R)  any other matter considered necessary to administer each type of transaction.
(b)  A savings bank or its subsidiary may not engage in a transaction in violation of a rule adopted under this subtitle.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 2001, 77th Leg., ch. 867, Sec. 61, eff. Sept. 1, 2001.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 6.040, eff. September 1, 2007.
Acts 2013, 83rd Leg., R.S., Ch. 464 (S.B. 1008), Sec. 11, eff. September 1, 2013.