reglab/statecodes huggingface dataset:
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 181 - General Provisions › Subchapter B. Regulation of Trust Companies by Banking Department › Section 181.103. Effect of Interpretive Statement or Opinion

Sec. 181.103.  EFFECT OF INTERPRETIVE STATEMENT OR OPINION.  An interpretive statement or opinion issued under this subchapter does not have the force of law and is not a rule for the purposes of Chapter 2001, Government Code, unless adopted as a rule by the finance commission as provided by Chapter 2001, Government Code.  An interpretive statement or opinion is an administrative construction of this subtitle entitled to great weight if the construction is reasonable and does not conflict with this subtitle.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 181 - General Provisions › Subchapter B. Regulation of Trust Companies by Banking Department › Section 181.105. Cost of Regulation

Sec. 181.105.  COST OF REGULATION.  Each state trust company shall pay, through the imposition and collection of fees established by the finance commission under Section 181.003(a)(4):
(1)  the cost of examination;
(2)  the equitable or proportionate cost of maintenance and operation of the department;  and
(3)  the cost of enforcement of this subtitle.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 181 - General Provisions › Subchapter B. Regulation of Trust Companies by Banking Department › Section 181.106. Regulation and Examination of Related Entities

Sec. 181.106.  REGULATION AND EXAMINATION OF RELATED ENTITIES.  (a)  The banking commissioner may regulate and examine, to the same extent as if the services or activities were performed by a state trust company on its own premises:
(1)  the activities of a state trust company affiliate; and
(2)  the services or activities of a third-party service provider that a state trust company or state trust company affiliate has contracted for or otherwise arranged to be performed on behalf of the state trust company or state trust company affiliate.
(b)  The banking commissioner may collect a fee from an examined third-party service provider or affiliate in connection with each examination to cover the cost of the examination or may collect that fee from the state trust companies that use the examined third-party service provider.
(c)  To promote regulatory efficiency, if, in the preceding 24 months, a third-party service provider or affiliate has been examined by a federal or state financial services regulatory agency or by a member agency of the Federal Financial Institutions Examination Council, or its successor agency, the banking commissioner may accept the results of that examination instead of conducting the banking commissioner's own examination of the third-party service provider or affiliate.  Nothing in this subsection shall be construed as limiting or restricting the banking commissioner from participating in an examination of a third-party service provider or affiliate conducted by a federal or state financial services regulatory agency or by a member agency of the Federal Financial Institutions Examination Council, or its successor agency.
(d)  A third-party service provider that refuses to submit to examination or to pay an assessed fee for examination under this section is subject to an enforcement action under Chapter 185.  With respect to a third-party service provider's refusal to submit to examination, the banking commissioner may notify all state trust companies of the refusal and warn that continued use of the third-party service provider may constitute an unsafe and unsound fiduciary practice.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 599 (S.B. 1401), Sec. 10, eff. September 1, 2017.
Acts 2019, 86th Leg., R.S., Ch. 652 (S.B. 1823), Sec. 9, eff. September 1, 2019.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 181 - General Provisions › Subchapter B. Regulation of Trust Companies by Banking Department › Section 181.107. Statements of Condition and Income; Penalty

Sec. 181.107.  STATEMENTS OF CONDITION AND INCOME;  PENALTY.  (a)  Each state trust company periodically shall file with the banking commissioner a copy of its statement of condition and income.
(b)  The finance commission by rule may:
(1)  require the statement to be filed with the banking commission at the intervals the finance commission determines;
(2)  specify the form of the statement of condition and income, including specified confidential and public information to be in the statement;  and
(3)  require public information in the statement to be published at the times and in the publications and locations the finance commission determines.
(c)  A statement of condition and income is a public record except for:
(1)  portions of the statement designated confidential by the banking commissioner; and
(2)  the statement of condition and income for a state trust company exempt under Section 182.011 or 182.019 with regard to the period during which the exemption is in effect.
(d)  A state trust company that fails to file a statement of condition and income on or before the date it is due is, after notice and hearing, subject to a penalty of not more than $500 a day for each day of noncompliance.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 250 (S.B. 875), Sec. 3, eff. September 1, 2015.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 181 - General Provisions › Subchapter B. Regulation of Trust Companies by Banking Department › Section 181.108. Liability of Commission and Department Officers and Personnel Limited

Sec. 181.108.  LIABILITY OF COMMISSION AND DEPARTMENT OFFICERS AND PERSONNEL LIMITED.  (a)  The banking commissioner, a member of the finance commission, a deputy banking commissioner, an examiner, assistant examiner, supervisor, conservator, agent, or other officer or employee of the department, or an agent of the banking commissioner is not personally liable for damages arising from the person's official act or omission unless the act or omission is corrupt or malicious.
(b)  The attorney general shall defend an action brought against a person because of an official act or omission under Subsection (a), regardless of whether the defendant has terminated service with the department before the action commences.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.  Amended by Acts 2001, 77th Leg., ch. 412, Sec. 3.03, eff. Sept. 1, 2001.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 181 - General Provisions › Subchapter C. Administrative Procedure › Section 181.201. Banking Commissioner Hearing; Informal Disposition

Sec. 181.201.  BANKING COMMISSIONER HEARING; INFORMAL DISPOSITION.  (a)  The banking commissioner may convene a hearing to receive evidence and argument regarding any matter within the jurisdiction of and before the banking commissioner for decision or review. The hearing must be conducted under Chapter 2001, Government Code.  A matter made confidential by law must be considered by the banking commissioner in a closed hearing.
(b)  A hearing before the banking commissioner that is required or authorized by law may be conducted by a hearings officer on behalf of the banking commissioner.
(c)  This section does not grant a right to hearing to a person that is not otherwise granted by governing law.
(d)  The banking commissioner may informally dispose of a matter within the jurisdiction of and before the banking commissioner by consent order, agreed settlement, or default.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.  Amended by Acts 2001, 77th Leg., ch. 412, Sec. 3.04, eff. Sept. 1, 2001.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 422 (H.B. 3555), Sec. 7, eff. September 1, 2015.
Acts 2015, 84th Leg., R.S., Ch. 422 (H.B. 3555), Sec. 8, eff. September 1, 2015.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 181 - General Provisions › Subchapter C. Administrative Procedure › Section 181.202. Appeal of Banking Commissioner Decision or Order

Sec. 181.202.  APPEAL OF BANKING COMMISSIONER DECISION OR ORDER.  Except as expressly provided otherwise by this subtitle, a person affected by a decision or order of the banking commissioner made under this subtitle after a hearing may appeal the decision or order to a district court in Travis County as provided by Section 181.204.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 20 (S.B. 614), Sec. 22, eff. September 1, 2019.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 181 - General Provisions › Subchapter C. Administrative Procedure › Section 181.204. Appeal to District Court

Sec. 181.204.  APPEAL TO DISTRICT COURT.  A person affected by a final order of the banking commissioner may appeal the final order by filing a petition for judicial review as provided by Chapter 2001, Government Code.  A petition for judicial review filed in the district court does not stay or vacate the appealed order unless the court, after notice and hearing, expressly stays or vacates the order.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 20 (S.B. 614), Sec. 22, eff. September 1, 2019.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 181 - General Provisions › Subchapter D. Confidentiality of Information › Section 181.301. Disclosure by Department Prohibited

Sec. 181.301.  DISCLOSURE BY DEPARTMENT PROHIBITED.  (a)  Except as expressly provided otherwise by this subtitle or a rule adopted under this subtitle, the following are confidential and may not be disclosed by the banking commissioner or an employee of the department:
(1)  information directly or indirectly obtained by the department in any manner, including through an application or examination, concerning the financial condition or business affairs of a state trust company, a present, former, or prospective shareholder, participant, officer, director, manager, or affiliate of the state trust company, or a third-party service provider of the state trust company or its affiliate, other than the public portions of a report of condition or income statement; and
(2)  each related file or record of the department.
(b)  Information obtained by the department from a federal or state regulatory agency that is confidential under federal or state law may not be disclosed except as provided by federal or state law.
(c)  The banking commissioner or an officer or employee of the department commits an offense if the person:
(1)  discloses information or permits access to a file or record of the department;  and
(2)  knows at the time of disclosure or permission that the disclosure or permission violates this subchapter.
(d)  An offense under this section is a Class A misdemeanor.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.  Amended by Acts 2001, 77th Leg., ch. 412, Sec. 3.05, eff. Sept. 1, 2001.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 599 (S.B. 1401), Sec. 11, eff. September 1, 2017.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 181 - General Provisions › Subchapter D. Confidentiality of Information › Section 181.3015. Disclosure to State Trust Companies

Sec. 181.3015.  DISCLOSURE TO STATE TRUST COMPANIES.  The banking commissioner may disclose to a state trust company information about an affiliate or third-party service provider of the state trust company.
Added by Acts 2017, 85th Leg., R.S., Ch. 599 (S.B. 1401), Sec. 12, eff. September 1, 2017.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 181 - General Provisions › Subchapter D. Confidentiality of Information › Section 181.302. Disclosure to Finance Commission

Sec. 181.302.  DISCLOSURE TO FINANCE COMMISSION.  Confidential information may not be disclosed to a member of the finance commission.  A member of the finance commission may not be given access to the files and records of the department except that the banking commissioner may disclose to the finance commission information, files, and records pertinent to a hearing or matter pending before the finance commission.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 181 - General Provisions › Subchapter D. Confidentiality of Information › Section 181.303. Disclosure to Other Agencies

Sec. 181.303.  DISCLOSURE TO OTHER AGENCIES.  (a)  For purposes of this section, "affiliated group," "agency," "functional regulatory agency," and "privilege" have the meanings assigned by Section 31.303.
(b)  The banking commissioner may, as the banking commissioner considers necessary or proper to the enforcement of the laws of this state, another state, the United States, or a foreign sovereign state with whom the United States currently maintains diplomatic relations, or in the best interest of the public, disclose information in the possession of the department to another agency. The banking commissioner may not disclose information under this section that is confidential under applicable state or federal law unless:
(1)  the recipient agency agrees to maintain the confidentiality and take all reasonable steps to oppose an effort to secure disclosure of the information from the agency;  or
(2)  the banking commissioner determines in the exercise of discretion that the interest of law enforcement outweighs and justifies the potential for disclosure of the information by the recipient agency.
(c)  The banking commissioner by agreement may establish an information sharing and exchange program with a functional regulatory agency that has overlapping regulatory jurisdiction with the department, with respect to all or part of an affiliated group, including a financial institution, to reduce the potential for duplicative and burdensome filings, examinations, and other regulatory activities.  Each agency party to the agreement must agree to maintain confidentiality of information that is confidential under applicable state or federal law and take all reasonable steps to oppose any effort to secure disclosure of the information from the agency.  An agreement may also specify procedures regarding use and handling of confidential information and identify types of information to be shared and procedures for sharing on a recurring basis.
(d)  Disclosure of information by or to the banking commissioner under this section does not constitute a waiver of or otherwise affect or diminish an evidentiary privilege to which the information is otherwise subject, whether or not the disclosure is governed by a confidentiality agreement.
(e)  Notwithstanding other law, an agency of this state:
(1)  may execute, honor, and comply with an agreement to maintain confidentiality and oppose disclosure of information obtained from the banking commissioner as provided in this section;  and
(2)  shall treat as confidential any information obtained from the banking commissioner that is entitled to confidential treatment under applicable state or federal law and take all reasonable steps to oppose an effort to secure disclosure of the information from the agency.
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. 19, eff. Sept. 1, 2001.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 181 - General Provisions › Subchapter D. Confidentiality of Information › Section 181.304. Other Disclosure Prohibited; Penalty

Sec. 181.304.  OTHER DISCLOSURE PROHIBITED;  PENALTY.  (a)  Confidential information that is provided to a state trust company, affiliate, or service provider of the state trust company, whether in the form of a report of examination or otherwise, is the confidential property of the department.  The information may not be made public or disclosed by the recipient or by an officer, director, manager, employee, or agent of the recipient to a person not officially connected to the recipient as officer, director, employee, attorney, auditor, independent auditor, or bonding company, except as authorized by rules adopted under this subtitle.
(b)  A person commits an offense if the person discloses or uses the confidential information in violation of this section.  An offense under this subsection is punishable as if it were an offense under Section 37.10, Penal Code.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 181 - General Provisions › Subchapter D. Confidentiality of Information › Section 181.305. Civil Discovery

Sec. 181.305.  CIVIL DISCOVERY.  Civil discovery of confidential information from a person subject to Section 181.304 under subpoena or other legal process in a civil proceeding must comply with rules adopted under this subtitle and other applicable law.  The rules may:
(1)  restrict release of confidential information to the portion directly relevant to the legal dispute at issue;  and
(2)  require that a protective order, in the form and under circumstances specified by the rules, be issued by a court before release of the confidential information.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.  Amended by Acts 2001, 77th Leg., ch. 412, Sec. 3.06, eff. Sept. 1, 2001.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 181 - General Provisions › Subchapter D. Confidentiality of Information › Section 181.306. Investigative Information

Sec. 181.306.  INVESTIGATIVE INFORMATION.  Notwithstanding any other law, the banking commissioner may refuse to release information or records concerning a state trust company in the custody of the department if, in the opinion of the banking commissioner, release of the information or records might jeopardize an ongoing investigation of potentially unlawful activity.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 181 - General Provisions › Subchapter D. Confidentiality of Information › Section 181.307. Employment Information

Sec. 181.307.  EMPLOYMENT INFORMATION.  (a)  A person may provide employment information concerning the known or suspected involvement of a present or former employee, officer, or director of a state trust company in a violation of any state or federal law, rule, or regulation that has been reported to appropriate state or federal authorities to:
(1)  a state trust company;  or
(2)  a person providing employment information to a state trust company.
(b)  A person may not be held liable for providing information under Subsection (a) unless the information provided is false and the person provided the information with disregard for the truth.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 181 - General Provisions › Subchapter D. Confidentiality of Information › Section 181.308. Shareholder Inspection Rights

Sec. 181.308.  SHAREHOLDER INSPECTION RIGHTS.  (a)  Notwithstanding Section 21.218 or 101.502, Business Organizations Code, a shareholder or participant of a state trust company may not examine:
(1)  a report of examination or other confidential property of the department that is in the possession of the state trust company; or
(2)  a book or record of the state trust company that directly or indirectly pertains to financial or other information maintained by the state trust company on behalf of its clients, including a specific item in the minutes of the board or a committee of the board regarding client account review and approval or any report that would tend to identify the state trust company's client.
(b)  This section does not affect the rights of a shareholder or participant of a state trust company acting in another capacity.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 237 (H.B. 1962), Sec. 67, eff. September 1, 2007.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 182 - Powers, Organization, and Financial Requirements › Subchapter A. Organization and Powers in General › Section 182.003. Application for State Trust Company Charter; Standards for Approval

Sec. 182.003.  APPLICATION FOR STATE TRUST COMPANY CHARTER;  STANDARDS FOR APPROVAL.  (a)  An application for a state trust company charter must be made under oath and in the form required by the banking commissioner.  The application must be supported by information, records, and opinions of counsel that the banking commissioner requires.  The application must be accompanied by all charter fees and deposits required by statute or rule.
(b)  The banking commissioner shall grant a state trust company charter only on proof satisfactory to the banking commissioner that public convenience and advantage will be promoted by the establishment of the state trust company.  In determining whether public convenience and advantage will be promoted, the banking commissioner shall consider the convenience of the public to be served and whether:
(1)  the organizational and capital structure and amount of initial capitalization is adequate for the business and location;
(2)  the anticipated volume and nature of business indicates a reasonable probability of success and profitability based on the market sought to be served;
(3)  the proposed officers, directors, and managers, or managing participants, as a group have sufficient fiduciary experience, ability, standing, competence, trustworthiness, and integrity to justify a belief that the state trust company will operate in compliance with law and that success of the state trust company is probable;
(4)  each principal shareholder or participant has sufficient experience, ability, standing, competence, trustworthiness, and integrity to justify a belief that the state trust company will be free from improper or unlawful influence or interference with respect to the state trust company's operation in compliance with law;  and
(5)  the organizers are acting in good faith.
(c)  The organizers bear the burden of proof to establish that public convenience and advantage will be promoted by the establishment of the state trust company.  The failure of an applicant to furnish required information, opinions of counsel, and other material, or the required fee, is considered an abandonment of the application.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 182 - Powers, Organization, and Financial Requirements › Subchapter A. Organization and Powers in General › Section 182.004. Notice and Investigation of Charter Application

Sec. 182.004.  NOTICE AND INVESTIGATION OF CHARTER APPLICATION.  (a)  The organizers shall solicit comments and protests by publishing notice of the application, its date of filing, and the identity of the organizers, in the form and frequency specified by the banking commissioner, in a newspaper of general circulation in the county where the initial home office of the proposed state trust company is to be located, or in another publication or location as directed by the banking commissioner.  The banking commissioner may require the organizers to publish the notice at other locations reasonably necessary to solicit the views of potentially affected persons.
(b)  At the expense of the organizers, the banking commissioner shall thoroughly investigate the application and inquire fully into the identity and character of each proposed director, manager, officer, managing participant, and principal shareholder or participant.  The banking commissioner shall prepare a written report of the investigation.
(c)  Rules adopted under this subtitle may specify the confidential or nonconfidential character of information obtained or prepared by the department under this section.  Except as provided by Subchapter D, Chapter 181, or in rules regarding confidential information, the business plan of the applicant and the financial statement of a proposed officer, director, manager, or managing participant are confidential and not subject to public disclosure.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.  Amended by Acts 2001, 77th Leg., ch. 412, Sec. 3.07, eff. Sept. 1, 2001.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 735 (H.B. 2754), Sec. 11, eff. September 1, 2007.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 182 - Powers, Organization, and Financial Requirements › Subchapter A. Organization and Powers in General › Section 182.006. Issuance of Charter

Sec. 182.006.  ISSUANCE OF CHARTER.  A state trust company may not engage in the trust business until it receives its charter from the banking commissioner.  The banking commissioner may not deliver the charter until the state trust company has:
(1)  received cash in at least the full amount of restricted capital from subscriptions for the issuance of shares or participation shares;
(2)  elected or qualified the initial officers and directors or managers, as appropriate, named in the application for charter or other officers and directors or managers approved by the banking commissioner;  and
(3)  complied with all other requirements of this subtitle relating to the organization of the state trust company.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 182 - Powers, Organization, and Financial Requirements › Subchapter A. Organization and Powers in General › Section 182.007. Deadline to Begin Business

Sec. 182.007.  DEADLINE TO BEGIN BUSINESS.  If a state trust company does not open and engage in the trust business within six months after the date it receives its charter or conditional approval of application for charter, the banking commissioner may revoke the charter or cancel the conditional approval of application for charter without judicial action.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 182 - Powers, Organization, and Financial Requirements › Subchapter A. Organization and Powers in General › Section 182.009. Application of General Corporate Law

Sec. 182.009.  APPLICATION OF GENERAL CORPORATE LAW.  (a)  The Business Organizations Code applies to a trust association as if it were a for-profit corporation, and to a limited trust association as if it were a limited liability company, to the extent not inconsistent with this subtitle or the proper business of a state trust company, except that:
(1)  a reference to the secretary of state means the banking commissioner unless the context requires otherwise; and
(2)  the right of shareholders or participants to cumulative voting in the election of directors or managers exists only if granted by the state trust company's certificate of formation.
(b)  Unless expressly authorized by this subtitle or a rule of the finance commission, a state trust company may not take an action authorized by a law listed under Subsection (a) regarding its corporate status, capital structure, or a matter of corporate governance, of the type for which a law listed under Subsection (a) would require a filing with the secretary of state if the state trust company were a filing entity, without submitting the filing to the banking commissioner for prior written approval of the action.
(c)  The finance commission may adopt rules to alter or supplement the procedures and requirements of the laws listed by Subsection (a) applicable to an action taken under this chapter by a state trust company.
(d)  In this subtitle, a reference to a term or phrase listed in a subdivision of Section 1.006, Business Organizations Code, includes a synonymous term or phrase referenced by the same subdivision in Section 1.006 of that code.
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. 21, eff. Sept. 1, 2001.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 237 (H.B. 1962), Sec. 68, eff. September 1, 2007.
Acts 2013, 83rd Leg., R.S., Ch. 575 (S.B. 804), Sec. 18, eff. June 14, 2013.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 182 - Powers, Organization, and Financial Requirements › Subchapter A. Organization and Powers in General › Section 182.0105. Financial Activities

Sec. 182.0105.  FINANCIAL ACTIVITIES.  (a)  The finance commission by rule may determine that an activity not otherwise approved or authorized for state trust companies is:
(1)  a financial activity;
(2)  incidental to a financial activity;  or
(3)  complementary to a financial activity.
(b)  In adopting a rule under Subsection (a), the finance commission shall consider:
(1)  the purposes of this subtitle and the Gramm-Leach-Bliley Act (Pub.  L. No. 106-102);
(2)  changes or reasonably expected changes in the marketplace in which state trust companies compete;
(3)  changes or reasonably expected changes in the technology for delivering fiduciary and financial services;
(4)  whether the activity is necessary or appropriate to allow a state trust company to:
(A)  compete effectively with another company seeking to provide fiduciary and financial services;
(B)  efficiently deliver information and services that are financial in nature through the use of technological means, including an application necessary to protect the security or efficacy of systems for the transmission of data or financial transactions;  or
(C)  offer customers available or emerging technological means for using fiduciary and financial services or for the document imaging of data;
(5)  whether the activity would violate applicable fiduciary duties or otherwise pose a substantial risk to the safety and soundness of a state trust company or the fiduciary and financial system generally;  and
(6)  if otherwise determined to be permissible, whether the conduct of the activity by a state trust company should be qualified through the imposition of reasonable and necessary conditions to protect the public and require appropriate regard for safety and soundness of the trust company and the fiduciary and financial system generally.
(c)  A rule adopted by the finance commission under this section does not alter or negate applicable licensing and regulatory requirements administered by a functional regulatory agency of this state, as defined by Section 31.303, including licensing and regulatory requirements pertaining to:
(1)  insurance activities;
(2)  securities activities;  and
(3)  real estate development, marketing, and sales activities.
Added by Acts 2001, 77th Leg., ch. 528, Sec. 22, eff. Sept. 1, 2001.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 182 - Powers, Organization, and Financial Requirements › Subchapter A. Organization and Powers in General › Section 182.012. Application for Exemption

Sec. 182.012.  APPLICATION FOR EXEMPTION.  (a)  A state trust company requesting an exemption under Section 182.011 shall file an application with the banking commissioner that includes:
(1)  a nonrefundable application fee set by the finance commission;
(2)  a detailed sworn statement showing the state trust company's assets and liabilities as of the end of the calendar month preceding the filing of the application;
(3)  a sworn statement of the reason for requesting the exemption;
(4)  a sworn statement that the state trust company:
(A)  has or will have only family clients and transacts or will transact business solely on behalf of family clients and their related interests;
(B)  is or will be wholly owned, directly or indirectly, legally or beneficially, by one or more family members;
(C)  does not or will not hold itself out to the general public as a corporate fiduciary for hire; and
(D)  will not transact business with the general public without the prior written permission of the banking commissioner;
(5)  the current street mailing address and telephone number of the physical location in this state at which the state trust company will maintain its books and records, with a sworn statement that the address given is true and correct and is not a United States Postal Service post office box or a private mail box, postal box, or mail drop; and
(6)  a list of the specific provisions of this subtitle for which the request for an exemption is made.
(b)  The banking commissioner may not approve an exemption unless the application is completed as required by Subsection (a).
(c)  In this section, "family client" and "family member" have the meanings assigned by Section 182.011.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 250 (S.B. 875), Sec. 6, eff. September 1, 2015.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 182 - Powers, Organization, and Financial Requirements › Subchapter A. Organization and Powers in General › Section 182.013. Annual Certification for Exempt State Trust Company

Sec. 182.013.  ANNUAL CERTIFICATION FOR EXEMPT STATE TRUST COMPANY.  (a)  An exempt state trust company shall file a certification annually with its statement of condition and income, on a form provided by the banking commissioner, that it is maintaining the conditions and limitations of its exemption.  The certification must be accompanied by a fee set by the finance commission.
(b)  Repealed by Acts 2015, 84th Leg., R.S., Ch. 250 , Sec. 11(2), eff. September 1, 2015.
(c)  The state trust company shall maintain records necessary to verify the certification.  The records are subject to examination under Section 181.104.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 250 (S.B. 875), Sec. 7, eff. September 1, 2015.
Acts 2015, 84th Leg., R.S., Ch. 250 (S.B. 875), Sec. 11(2), eff. September 1, 2015.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 182 - Powers, Organization, and Financial Requirements › Subchapter A. Organization and Powers in General › Section 182.014. Limitation on Effect of Exemption

Sec. 182.014.  LIMITATION ON EFFECT OF EXEMPTION.  (a)  An exempt state trust company shall comply with the home office provisions of Section 182.202.
(b)  The grant of an exemption to a state trust company does not affect the state trust company's obligation to pay any corporate franchise tax required by state law.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 182 - Powers, Organization, and Financial Requirements › Subchapter A. Organization and Powers in General › Section 182.015. Change of Control of Exempt State Trust Company

Sec. 182.015.  CHANGE OF CONTROL OF EXEMPT STATE TRUST COMPANY.   If control of an exempt state trust company is sold or otherwise transferred, the acquiring person must comply with Sections 182.003, 182.004, 182.005, 183.001, and 183.002.  For the exempt status of the state trust company to continue, the acquiring person must file a certification with the banking commissioner that the state trust company will comply, or continue to comply, with the requirements of Section 182.011 after control is transferred.  The banking commissioner may examine or investigate the acquiring person and the state trust company as necessary to verify the certification.  If the commissioner determines that the state trust company will not comply, or continue to comply, with the requirements of Section 182.011 after control is transferred, the commissioner shall terminate the exemption on the effective date of the transfer.  After the termination, the acquiring person must file a separate application to obtain a new exemption for the state trust company under Section 182.011.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 250 (S.B. 875), Sec. 8, eff. September 1, 2015.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 182 - Powers, Organization, and Financial Requirements › Subchapter A. Organization and Powers in General › Section 182.016. Grounds for Revocation of Exemption

Sec. 182.016.  GROUNDS FOR REVOCATION OF EXEMPTION.  The banking commissioner may revoke an exemption of a state trust company if the trust company:
(1)  makes a false statement under oath on any document required to be filed by this subtitle or finance commission rule;
(2)  fails to submit to an examination as required by Section 181.104;
(3)  withholds requested information from the banking commissioner;  or
(4)  violates any provision of this subtitle applicable to an exempt state trust company.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 182 - Powers, Organization, and Financial Requirements › Subchapter A. Organization and Powers in General › Section 182.017. Notice and Effect of Revocation of Exemption

Sec. 182.017.  NOTICE AND EFFECT OF REVOCATION OF EXEMPTION.  (a)  If the banking commissioner determines from examination or other credible evidence that an exempt state trust company has violated any of the requirements of this subchapter relating to an exempt state trust company, the banking commissioner may by personal delivery or registered or certified mail, return receipt requested, notify the state trust company in writing that the state trust company's exemption has been revoked.  The notice must state grounds for the revocation with reasonable certainty.  The notice must state its effective date, which may not be earlier than the fifth day after the date the notification is mailed or delivered.
(b)  The revocation takes effect for the state trust company if the state trust company does not request a hearing in writing before the effective date.  After taking effect the revocation is final and nonappealable as to that state trust company, and the state trust company is subject to all of the requirements and provisions of this subtitle applicable to nonexempt state trust companies.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 182 - Powers, Organization, and Financial Requirements › Subchapter A. Organization and Powers in General › Section 182.018. Action After Revocation of Exemption

Sec. 182.018.  ACTION AFTER REVOCATION OF EXEMPTION.  (a)  A state trust company must comply with all of the provisions of Sections 182.003(b) and (c) not later than the fifth day after the date the revocation of the exemption takes effect.  If, however, the banking commissioner determines at the time of revocation that the state trust company has been engaging in or attempting to engage in acts intended or designed to deceive or defraud the public, the banking commissioner, in the banking commissioner's sole discretion, may waive the compliance period provided by this subsection.
(b)  If within the period prescribed by Subsection (a) the state trust company does not comply with all of the provisions of this subtitle, including capitalization requirements determined by the banking commissioner as necessary to assure the safety and soundness of the state trust company, the banking commissioner may:
(1)  institute any action or remedy prescribed by this subtitle or any applicable rule;  or
(2)  refer the state trust company to the attorney general for institution of a quo warranto proceeding to revoke the state trust company's charter.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 182 - Powers, Organization, and Financial Requirements › Subchapter A. Organization and Powers in General › Section 182.019. Prior Exemption

Sec. 182.019.  PRIOR EXEMPTION.  (a)  Subject to Subsection (b), a state trust company that was exempt before September 1, 1997, may no longer operate with that prior exempt status after the earlier of:
(1)  September 1, 2020; or
(2)  the date control is sold or otherwise transferred.
(b)  A state trust company may apply for a new exemption under Section 182.011 before loss of its exempt status under Subsection (a).
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 250 (S.B. 875), Sec. 9, eff. September 1, 2015.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 182 - Powers, Organization, and Financial Requirements › Subchapter A. Organization and Powers in General › Section 182.020. Foreign Corporation Exercising Trust Powers

Sec. 182.020.  FOREIGN CORPORATION EXERCISING TRUST POWERS.  (a)  A foreign corporation may not conduct a trust business in this state.  A foreign corporation may control a state trust company in this state if the state trust company is formed or acquired and operated as provided by this subtitle and applicable rules.
(b)  A foreign corporation or other entity chartered or domiciled in another jurisdiction as a trust company or depository institution with trust powers may act as a trustee in this state only as provided by Subchapter A, Chapter 505, Estates Code.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 1236 (S.B. 1296), Sec. 20.016, eff. September 1, 2015.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 182 - Powers, Organization, and Financial Requirements › Subchapter A. Organization and Powers in General › Section 182.0211. Conformance With Securities Act

Sec. 182.0211.  CONFORMANCE WITH SECURITIES ACT.  For the purposes of Section 182.021(7), "salesman" includes "agent" and "advisor" includes "investment adviser" or "investment adviser representative."
Added by Acts 2001, 77th Leg., ch. 1091, Sec. 4.03, eff. Sept. 1, 2001.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 182 - Powers, Organization, and Financial Requirements › Subchapter B. Amendment of Certificate; Changes in Capital and Surplus › Section 182.102. Establishing Series of Shares or Participation Shares

Sec. 182.102.  ESTABLISHING SERIES OF SHARES OR PARTICIPATION SHARES.  (a)  If the certificate of formation expressly gives the board authority to establish series and determine the preferences, limitations, and relative rights of each series, the board may do so only on compliance with this section and any rules adopted under this chapter.
(b)  A series of shares or participation shares may be established in the manner provided by the Business Organizations Code, but the shares or participation shares of the series may not be issued and sold except on compliance with Section 182.103.  The state trust company shall file the original and one copy of the statement of action required by the Business Organizations Code with the banking commissioner.
(c)  Unless the submission presents novel or unusual questions, the banking commissioner shall approve or reject the series not later than the 31st day after the date the banking commissioner considers the submission informationally complete and accepted for filing.  The banking commissioner may require the submission of additional information as considered necessary to an informed decision.
(d)  If the banking commissioner finds that the interests of the clients and creditors of the state trust company will not be adversely affected by the series, that the series otherwise conforms to law and any conditions imposed by the banking commissioner, and that any required filing fee has been paid, the banking commissioner shall:
(1)  endorse the face of the original and copy of the statement with the date of approval and the word "Approved";
(2)  file the original in the department's records;  and
(3)  deliver a certified copy of the statement to the state trust company.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 237 (H.B. 1962), Sec. 71, eff. September 1, 2007.
Acts 2013, 83rd Leg., R.S., Ch. 575 (S.B. 804), Sec. 22, eff. June 14, 2013.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 182 - Powers, Organization, and Financial Requirements › Subchapter B. Amendment of Certificate; Changes in Capital and Surplus › Section 182.103. Change in Restricted Capital

Sec. 182.103.  CHANGE IN RESTRICTED CAPITAL.  (a)  A state trust company may not reduce or increase its restricted capital through dividend, redemption, issuance of shares or participation shares, or otherwise without the prior approval of the banking commissioner, except as permitted by this section or rules adopted under this chapter.
(b)  Unless otherwise restricted by rules, prior approval is not required for an increase in restricted capital accomplished through:
(1)  issuance of shares of common stock or their equivalent in participation shares for cash, or a cash contribution to surplus by shareholders or participants that does not result in issuance of additional common stock or other securities;
(2)  declaration and payment of pro rata share dividends as defined by the Business Organizations Code; or
(3)  adoption by the board of a resolution directing that all or part of undivided profits be transferred to restricted capital.
(c)  Prior approval is not required for:
(1)  a decrease in restricted capital caused by losses in excess of undivided profits; or
(2)  a change in restricted capital resulting from accounting adjustments required by a transaction approved by the banking commissioner if the accounting adjustments are reasonably disclosed in the submitted application.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 735 (H.B. 2754), Sec. 13, eff. September 1, 2007.