2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle G - Bank Holding Companies; Interstate Bank Operations › Chapter 204 - Foreign Banks › Subchapter B. Direct Branch and Agency Offices of Foreign Banks › Section 204.106. Application to Act as Fiduciary

Sec. 204.106.  APPLICATION TO ACT AS FIDUCIARY.  (a)  Except as provided by Section 204.105(c)(10), a foreign bank may not act as a fiduciary at a Texas state branch or agency except by obtaining a fiduciary license as provided by this section.  A foreign bank that intends to act as a fiduciary at a Texas state branch or agency shall submit an application to the commissioner.  The application must:
(1)  be accompanied by all application fees and deposits required by applicable rules;
(2)  be in the form specified by the commissioner;
(3)  be subscribed and acknowledged by an officer of the foreign bank;
(4)  describe in detail:
(A)  the proposed fiduciary activities;
(B)  the names and relevant expertise of its officers and employees that will conduct the fiduciary activities;  and
(C)  the manner in which the fiduciary activities will be captured in the books and records of the Texas state branch or agency with due regard for separation of beneficial and legal interests;  and
(5)  contain other information that:
(A)  is necessary to enable the commissioner to make the findings required by Subsection (c);
(B)  is required by rules adopted under this subtitle;  or
(C)  the commissioner reasonably requests.
(b)  On or before the 60th day after the date the application is complete and accepted for filing and all required fees and deposits have been paid, the commissioner shall approve the application or set the application for hearing.  If the commissioner sets the application for hearing, the department shall participate as the opposing party and the commissioner shall conduct the hearing and one or more prehearing conferences and opportunities for discovery as the commissioner considers advisable and consistent with applicable law.
(c)  The commissioner may issue a license permitting the foreign bank to engage in fiduciary activities if the commissioner finds that the foreign bank will exercise its fiduciary powers in accordance with the laws of this state and has sufficient fiduciary and accounting expertise and controls to protect beneficial interests under its control.  The commissioner may make approval of an application conditional by including conditions and limitations in the order granting the license.  If the approval is conditioned on a written commitment from the applicant offered to and accepted by the commissioner, the commitment is enforceable against the applicant.
(d)  A foreign bank that obtains the approval of the commissioner under this section may engage in fiduciary activities at its Texas state branch or agency to the same extent and in the same manner as a Texas state bank could do so at the same location, subject to any conditions or limitations applicable to the license.
(e)  The commissioner may initiate an enforcement action under Chapter 35 or may suspend or revoke the authority of a foreign bank to engage in fiduciary activities in this state in the same manner as a revocation of license under Section 204.118 if the commissioner finds in writing that:
(1)  conditions exist related to the fiduciary activities of the foreign bank in this state which would authorize the commissioner to revoke or suspend its license pursuant to Section 204.117;  or
(2)  a fact or condition exists which, if it had existed at the time of the foreign bank's original notice to engage in fiduciary activities, would have resulted in the commissioner denying authority to engage in fiduciary activities.
Added by Acts 1999, 76th Leg., ch. 344, Sec. 1.001, eff. Sept. 1, 1999.
Sec. 204.107.  FILING OF AMENDMENTS TO CERTIFICATE OF FORMATION.  If the certificate of formation of a foreign bank licensed to maintain a Texas state branch or agency is amended, the foreign bank shall promptly file with the commissioner a copy of the amendment, duly authenticated by the proper officer of the country of the foreign bank's organization.  The filing does not enlarge or alter the business the foreign bank is authorized to pursue in this state, authorize the foreign bank to transact business in this state under a name other than the name set forth in its license, or extend the duration of its corporate existence.
Added by Acts 1999, 76th Leg., ch. 344, Sec. 1.001, eff. Sept. 1, 1999.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 575 (S.B. 804), Sec. 37, eff. June 14, 2013.
Sec. 204.108.  AMENDED LICENSE FOR BRANCH OR AGENCY.  (a)  A foreign bank licensed to establish and maintain a Texas state branch or agency shall apply to the commissioner for an amended license if it changes its corporate name, changes the duration of its corporate existence, or desires to pursue in this state other or additional purposes than those set forth in its prior application for the foreign bank's license or amended license then in effect.
(b)  The requirements with respect to the form and contents of an application under Subsection (a), the manner of its execution, the issuance of an amended license, and the effect of the amended license are the same as in the case of an initial application for a license to establish and maintain a Texas state branch or agency.
Added by Acts 1999, 76th Leg., ch. 344, Sec. 1.001, eff. Sept. 1, 1999.