reglab/statecodes huggingface dataset:
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle A - Banks › Chapter 31 - General Provisions › Subchapter A. General Provisions › Section 31.003. Banking Rules

Sec. 31.003.  BANKING RULES.  (a)  The finance commission may adopt rules to accomplish the purposes of this subtitle and Chapters 11, 12, and 13, including rules necessary or reasonable to:
(1)  implement and clarify this subtitle and Chapters 11, 12, and 13;
(2)  preserve or protect the safety and soundness of state banks;
(3)  grant at least the same rights and privileges to state banks that are or may be granted to national banks domiciled in this state;
(4)  recover the cost of maintaining and operating the department and the cost of enforcing this subtitle and other applicable law by imposing and collecting ratable and equitable fees for notices, applications, and examinations;  and
(5)  facilitate the fair hearing and adjudication of matters before the banking commissioner and the finance commission.
(b)  In adopting rules, the finance commission shall consider the need to:
(1)  promote a stable banking environment;
(2)  provide the public with convenient, safe, and competitive banking services;
(3)  preserve and promote the competitive position of state banks with regard to national banks and other depository institutions in this state consistent with the safety and soundness of state banks and the state bank system;  and
(4)  allow for economic development in this state.
(c)  The presence or absence in this subtitle or Chapter 11, 12, or 13 of a specific reference to rules regarding a particular subject does not enlarge or diminish the rulemaking authority provided by this section.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 2001, 77th Leg., ch. 528, Sec. 2, eff. Sept. 1, 2001.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle A - Banks › Chapter 31 - General Provisions › Subchapter A. General Provisions › Section 31.004. Unauthorized Banking

Sec. 31.004.  UNAUTHORIZED BANKING.  (a)  Except as otherwise provided by law, a person other than a depository institution authorized to conduct business in this state may not conduct the business of banking or represent to the public that it is conducting the business of banking in this state.
(b)  This section does not prohibit the continued operation of a bank, trust company, bank and trust company, or savings bank by:
(1)  a person, partnership, trustee, or trustee operating under a common law declaration of trust who:
(A)  was actively engaged in the operation of the institution on June 13, 1923;  or
(B)  operated the institution for any period of at least 20 years before June 13, 1923, and resumed operations of the institution not later than June 13, 1924;  or
(2)  a legal representative or successor of a person or entity described by Subdivision (1).
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle A - Banks › Chapter 31 - General Provisions › Subchapter A. General Provisions › Section 31.005. Implying That Person Is Bank

Sec. 31.005.  IMPLYING THAT PERSON IS BANK.  (a)  A person may not use the term "bank," "bank and trust," or a similar term or a character, ideogram, phonogram, phrase, or foreign language word in its name, stationery, or advertising in a manner that would imply to the public that the person is engaged in the business of banking in this state.
(b)  Subsection (a) does not apply to a federally insured depository institution organized under the laws of this state, another state, the United States, or a foreign sovereign state to the extent that the depository institution or other entity is:
(1)  authorized under its charter or the laws of this state or the United States to use a term, word, character, ideogram, phonogram, or phrase prohibited by Subsection (a); and
(2)  authorized by the laws of this state or the United States to conduct the activities in which it is engaged in this state.
(c)  A person violating this section is subject to an enforcement action initiated by the banking commissioner under Subchapter C, Chapter 35, except that the maximum administrative penalty under Section 35.211 for violation involving only Subsection (a) is $500 for each day the violation continues.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 1999, 76th Leg., ch. 344, Sec. 2.003, eff. Sept. 1, 1999.
Amended by:
Acts 2023, 88th Leg., R.S., Ch. 989 (H.B. 3574), Sec. 2, eff. June 18, 2023.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle A - Banks › Chapter 31 - General Provisions › Subchapter A. General Provisions › Section 31.006. Liability of Depository Institution Directors and Personnel

Sec. 31.006.  LIABILITY OF DEPOSITORY INSTITUTION DIRECTORS AND PERSONNEL.  (a)  The provisions of the Business Organizations Code regarding liability, defenses, and indemnification of a director, officer, agent, or employee of a corporation apply to a director, officer, agent, or employee of a depository institution in this state.  Except as limited by those provisions, a disinterested director, officer, or employee of a depository institution may not be held personally liable in an action seeking monetary damages arising from the conduct of the depository institution's affairs unless the damages resulted from the gross negligence or wilful or intentional misconduct of the person during the person's term of office or service with the depository institution.
(b)  A director, officer, or employee of a depository institution is disinterested with respect to a decision or transaction if:
(1)  the person fully discloses any interest in the decision or transaction and does not participate in the decision or transaction; or
(2)  the decision or transaction does not involve any of the following:
(A)  personal profit for the person through dealing with the depository institution or usurping an opportunity of the depository institution;
(B)  buying or selling an asset of the depository institution in a transaction in which the person has a direct or indirect pecuniary interest;
(C)  dealing with another depository institution or other person in which the person is a director, officer, or employee or otherwise has a significant direct or indirect financial interest; or
(D)  dealing with a family member of the person.
(c)  A director or officer who, in performing the person's duties and functions, acts in good faith and reasonably believes that reliance is warranted is entitled to rely on information, including an opinion, report, financial statement or other type of statement or financial data, decision, judgment, or performance, prepared, presented, made, or rendered by:
(1)  one or more directors, officers, or employees of the depository institution, or of an entity under joint or common control with the depository institution, who the director or officer reasonably believes merit confidence;
(2)  legal counsel, a public accountant, or another person who the director or officer reasonably believes merits confidence; or
(3)  a committee of the board of which the director is not a member.
(d)  In this section, "family member" means a person's:
(1)  spouse;
(2)  minor child;  or
(3)  adult child who resides in the person's home.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 237 (H.B. 1962), Sec. 3, eff. September 1, 2007.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle A - Banks › Chapter 31 - General Provisions › Subchapter A. General Provisions › Section 31.007. Exemption of Bank Directors and Personnel From Securities Law

Sec. 31.007.  EXEMPTION OF BANK DIRECTORS AND PERSONNEL FROM SECURITIES LAW.  (a)  An officer, director, or employee of a bank that has its main office or a branch located in this state with fewer than 500 shareholders or of a bank holding company with fewer than 500 shareholders that controls a bank that has its main office or a branch located in this state is exempt from the registration and licensing provisions of The Securities Act (Title 12, Government Code) with respect to that person's participation in a transaction, including a sale, involving securities issued by:
(1)  the bank or bank holding company of which that person is an officer, director, or employee;
(2)  a bank holding company that controls the bank of which that person is an officer, director, or employee; or
(3)  a bank controlled by the bank holding company of which that person is an officer, director, or employee.
(b)  A person may not be compensated for services performed under the exemption provided by this section.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 1999, 76th Leg., ch. 344, Sec. 2.004, eff. Sept. 1, 1999.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 237 (H.B. 1962), Sec. 4, eff. September 1, 2007.
Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 2.11, eff. January 1, 2022.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle A - Banks › Chapter 31 - General Provisions › Subchapter B. Regulation of Banking by Banking Commissioner › Section 31.101. General Duties of Banking Commissioner

Sec. 31.101.  GENERAL DUTIES OF BANKING COMMISSIONER.  The banking commissioner shall:
(1)  supervise and regulate, as provided by this subtitle, Subtitles F and G, and Chapter 12, state banks, trust companies, and state-licensed foreign bank branches, agencies, and representative offices;
(2)  administer and enforce this subtitle, Subtitles F and G, and Chapter 12 in person, through a deputy banking commissioner or another officer or employee of the department, or through a supervisor, conservator, or other agent;  and
(3)  administer and enforce laws other than this subtitle, Subtitles F and G, and Chapter 12 as directed by those other laws.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.50, eff. Sept. 1, 1999;  Acts 2001, 77th Leg., ch. 412, Sec. 2.01, eff. Sept. 1, 2001.
Sec. 31.102.  ISSUANCE OF INTERPRETIVE STATEMENTS.  (a)  The banking commissioner may issue interpretive statements containing matters of general policy to guide the public and state banks, and may amend or repeal a published interpretive statement by issuing an amended statement or notice of repeal of a statement.
(b)  An interpretive statement may be disseminated by newsletter, via an electronic medium such as the internet, in a volume of statutes or related materials published by the banking commissioner or others, or by other means reasonably calculated to notify persons affected by the interpretive statement.  Notice of an amended or withdrawn statement must be disseminated in a substantially similar manner as the affected statement was originally disseminated.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 1999, 76th Leg., ch. 344, Sec. 2.005, eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle A - Banks › Chapter 31 - General Provisions › Subchapter B. Regulation of Banking by Banking Commissioner › Section 31.103. Issuance of Opinion

Sec. 31.103.  ISSUANCE OF OPINION.  (a)  In response to a specific request from a member of the public or the banking industry, the banking commissioner may issue an opinion directly or through a deputy banking commissioner or department attorney.
(b)  If the banking commissioner determines that the opinion is useful for the general guidance of the public, state banks, or trust companies, the commissioner may disseminate the opinion by newsletter, via an electronic medium such as the internet, in a volume of statutes or related materials published by the banking commissioner or others, or by other means reasonably calculated to notify persons affected by the opinion. A published opinion must be redacted to preserve the confidentiality of the requesting party unless the requesting party consents to be identified in the published opinion.
(c)  The banking commissioner may amend or repeal a published opinion by issuing an amended opinion or notice of repeal of an opinion and disseminating the opinion or notice in a substantially similar manner as the affected statement or opinion was originally disseminated. The requesting party, however, may rely on the original opinion if:
(1)  all material facts were originally disclosed to the banking commissioner;
(2)  the safety and soundness of the affected bank will not be affected by further reliance on the original opinion;  and
(3)  the text and interpretation of relevant, governing provisions of this subtitle or Chapter 12 have not been changed by legislative or judicial action.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 1999, 76th Leg., ch. 344, Sec. 2.005, eff. Sept. 1, 1999;  Acts 2001, 77th Leg., ch. 412, Sec. 2.02, eff. Sept. 1, 2001.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle A - Banks › Chapter 31 - General Provisions › Subchapter B. Regulation of Banking by Banking Commissioner › Section 31.104. Effect of Interpretive Statement or Opinion

Sec. 31.104.  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 by the finance commission as provided by Chapter 2001, Government Code.  An interpretive statement or opinion is an administrative construction of this subtitle or Chapter 12 entitled to great weight if the construction is reasonable and does not conflict with this subtitle or Chapter 12.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle A - Banks › Chapter 31 - General Provisions › Subchapter B. Regulation of Banking by Banking Commissioner › Section 31.106. Cost of Regulation

Sec. 31.106.  COST OF REGULATION.  Each state bank shall pay, through the imposition and collection of fees established by the finance commission under Section 31.003(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 and Chapter 12.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle A - Banks › Chapter 31 - General Provisions › Subchapter B. Regulation of Banking by Banking Commissioner › Section 31.107. Regulation and Examination of Related Entities

Sec. 31.107.  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 bank on its own premises:
(1)  the activities of a state bank affiliate; and
(2)  the services or activities of a third-party service provider that a state bank or state bank affiliate has contracted for or otherwise arranged to be performed on behalf of the state bank or state bank 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 banks that use the examined third-party service provider.
(c)  For purposes of this section, a state bank affiliate does not include a company in which ownership or membership is limited to individuals and conditioned by law on the existence and maintenance of professional licensing.
(d)  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.
(e)  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 35.  With respect to a third-party service provider's refusal to submit to examination, the banking commissioner may notify all state banks of the refusal and warn that continued use of the third-party service provider may constitute an unsafe and unsound banking practice.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 599 (S.B. 1401), Sec. 2, eff. September 1, 2017.
Acts 2019, 86th Leg., R.S., Ch. 652 (S.B. 1823), Sec. 3, eff. September 1, 2019.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle A - Banks › Chapter 31 - General Provisions › Subchapter B. Regulation of Banking by Banking Commissioner › Section 31.108. Call Report; Penalty

Sec. 31.108.  CALL REPORT;  PENALTY.  (a)  A state bank shall file with the banking commissioner a copy of its call report stating the bank's financial condition and results of operation.
(b)  The finance commission by rule may:
(1)  require call reports to be filed with the banking commissioner at the intervals the commission determines;
(2)  specify the form of a call report, including the confidential and public information to be in the call report;  and
(3)  require public information in call reports of state banks to be published at the times and in the publications and locations the commission determines.
(c)  A state bank that fails to timely file its call report as required by this section is subject to a penalty not exceeding $500 a day to be collected by suit by the attorney general on behalf of the banking commissioner.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle A - Banks › Chapter 31 - General Provisions › Subchapter C. Administrative Procedure › Section 31.201. Banking Commissioner Hearing; Informal Disposition

Sec. 31.201.  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 hearing 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.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 2001, 77th Leg., ch. 412, Sec. 2.04, eff. Sept. 1, 2001.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 422 (H.B. 3555), Sec. 1, eff. September 1, 2015.
Acts 2015, 84th Leg., R.S., Ch. 422 (H.B. 3555), Sec. 2, eff. September 1, 2015.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle A - Banks › Chapter 31 - General Provisions › Subchapter C. Administrative Procedure › Section 31.202. Appeal of Banking Commissioner Decision or Order

Sec. 31.202.  APPEAL OF BANKING COMMISSIONER DECISION OR ORDER.  Except as expressly provided otherwise by this subtitle, an appellant may appeal a decision or order of the banking commissioner made under this subtitle or Chapter 12 after a hearing to a district court in Travis County as provided by Section 31.204.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 20 (S.B. 614), Sec. 11, eff. September 1, 2019.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle A - Banks › Chapter 31 - General Provisions › Subchapter C. Administrative Procedure › Section 31.204. Appeal to District Court

Sec. 31.204.  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 in a district court in Travis County 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.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 20 (S.B. 614), Sec. 11, eff. September 1, 2019.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle A - Banks › Chapter 31 - General Provisions › Subchapter D. Confidentiality of Information › Section 31.301. Disclosure by Department Prohibited

Sec. 31.301.  DISCLOSURE BY DEPARTMENT PROHIBITED.  (a)  Except as expressly provided otherwise by this subtitle, Chapter 11 or 12, 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 an application or examination, concerning the financial condition or business affairs of a financial institution, a present, former, or prospective shareholder, officer, director, or affiliate of a financial institution, or a third-party service provider of a financial institution or its affiliate, other than information in a published statement or in the public portion of a call report or profit and loss statement; and
(2)  all related files and records 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.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 2001, 77th Leg., ch. 412, Sec. 2.05, eff. Sept. 1, 2001.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 237 (H.B. 1962), Sec. 6, eff. September 1, 2007.
Acts 2017, 85th Leg., R.S., Ch. 599 (S.B. 1401), Sec. 3, eff. September 1, 2017.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle A - Banks › Chapter 31 - General Provisions › Subchapter D. Confidentiality of Information › Section 31.3015. Disclosure to State Banks

Sec. 31.3015.  DISCLOSURE TO STATE BANKS.  The banking commissioner may disclose to a state bank information about an affiliate or third-party service provider of the state bank.
Added by Acts 2017, 85th Leg., R.S., Ch. 599 (S.B. 1401), Sec. 4, eff. September 1, 2017.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle A - Banks › Chapter 31 - General Provisions › Subchapter D. Confidentiality of Information › Section 31.302. Disclosure to Finance Commission

Sec. 31.302.  DISCLOSURE TO FINANCE COMMISSION.  Confidential information may not be disclosed to a member of the finance commission, and a member of the commission may not be given access to the files and records of the department except that the banking commissioner may disclose to the commission information, files, and records pertinent to a hearing or matter pending before the commission.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle A - Banks › Chapter 31 - General Provisions › Subchapter D. Confidentiality of Information › Section 31.304. Other Disclosure Prohibited; Penalty

Sec. 31.304.  OTHER DISCLOSURE PROHIBITED;  PENALTY.  (a)  Confidential information that is provided to a financial institution, affiliate, or service provider of a financial institution, 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, or independent auditor except as authorized by rules adopted under this subtitle.
(b)  A person commits an offense if the person discloses or uses information in violation of this section.  An offense under this section is punishable as if it were an offense under Section 37.10, Penal Code.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle A - Banks › Chapter 31 - General Provisions › Subchapter D. Confidentiality of Information › Section 31.305. Civil Discovery

Sec. 31.305.  CIVIL DISCOVERY.  Civil discovery of confidential information from a person subject to Section 31.304 under subpoena or other legal process 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 form and under circumstances specified by the rules, be issued by a court before release of the confidential information.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 2001, 77th Leg., ch. 412, Sec. 2.06, eff. Sept. 1, 2001.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle A - Banks › Chapter 31 - General Provisions › Subchapter D. Confidentiality of Information › Section 31.306. Investigative Information

Sec. 31.306.  INVESTIGATIVE INFORMATION.  Notwithstanding any other law, the banking commissioner may refuse to release information or records in the custody of the department if, in the opinion of the commissioner, release of the information or records might jeopardize an ongoing investigation of potentially unlawful activities.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle A - Banks › Chapter 31 - General Provisions › Subchapter D. Confidentiality of Information › Section 31.307. Employment Information

Sec. 31.307.  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 financial institution in a violation of a state or federal law, rule, or regulation that has been reported to appropriate state or federal authorities to:
(1)  the financial institution;  or
(2)  a person providing employment information to the financial institution.
(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.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle A - Banks › Chapter 31 - General Provisions › Subchapter D. Confidentiality of Information › Section 31.308. Shareholder Inspection Rights

Sec. 31.308.  SHAREHOLDER INSPECTION RIGHTS.  (a)  Notwithstanding Section 21.218 or 101.502, Business Organizations Code, a shareholder of a state bank may not examine:
(1)  a report of examination or other confidential property of the department that is in the possession of the state bank; or
(2)  a book or record of the state bank that directly or indirectly pertains to financial or other information maintained by the bank on behalf of its customers, including a specific item in the minutes of the board or a committee of the board regarding loan review and approval or a loan delinquency report that would tend to identify the bank's customer.
(b)  This section does not affect a right of a shareholder of a state bank acting in another capacity.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 237 (H.B. 1962), Sec. 7, eff. September 1, 2007.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle A - Banks › Chapter 32 - Powers, Organization, and Financial Requirements › Subchapter A. Organization and Powers in General › Section 32.001. Organization and General Powers of State Bank

Sec. 32.001.  ORGANIZATION AND GENERAL POWERS OF STATE BANK.  (a)  One or more persons, a majority of whom are residents of this state, may organize a state bank as a banking association or a limited banking association.
(b)  A state bank may:
(1)  receive and pay deposits with or without interest, discount and negotiate promissory notes, borrow or lend money with or without security or interest, invest and deal in securities, buy and sell exchange, coin, and bullion, and exercise incidental powers as necessary to carry on the business of banking as provided by this subtitle;
(2)  act as agent, or in a substantially similar capacity, with respect to a financial activity or an activity incidental or complementary to a financial activity;
(3)  act in a fiduciary capacity, without giving bond, as guardian, receiver, executor, administrator, or trustee, including a mortgage or indenture trustee;
(4)  provide financial, investment, or economic advisory services;
(5)  issue or sell instruments representing pools of assets in which a bank may invest directly;
(6)  with prior written approval of the banking commissioner, engage in a financial activity or an activity that is incidental or complementary to a financial activity;  and
(7)  engage in any other activity, directly or through a subsidiary, authorized by this subtitle or rules adopted under this subtitle.
(c)  For purposes of other state law, a banking association is considered a corporation and a limited banking association is considered a limited liability company.  To the extent consistent with this subtitle, a banking association may exercise the powers of a Texas business corporation and a limited banking association may exercise the powers of a Texas limited liability company as reasonably necessary to enable exercise of specific powers under this subtitle.
(d)  A state bank may contribute to a community fund or to another charitable, philanthropic, or benevolent instrumentality conducive to public welfare an amount that the bank's board considers expedient and in the interests of the bank.
(e)  A state bank may be organized or reorganized as a community development financial institution or may serve as a community development partner, as those terms are defined by the Riegle Community Development and Regulatory Improvement Act of 1994 (Pub.  L. No. 103-325).
(f)  In the exercise of discretion consistent with the purposes of this subtitle, the banking commissioner may require a state bank to conduct an otherwise authorized activity through a subsidiary.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 2001, 77th Leg., ch. 528, Sec. 4, eff. Sept. 1, 2001.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle A - Banks › Chapter 32 - Powers, Organization, and Financial Requirements › Subchapter A. Organization and Powers in General › Section 32.003. Application for State Bank Charter; Standards for Approval

Sec. 32.003.  APPLICATION FOR STATE BANK CHARTER;  STANDARDS FOR APPROVAL.  (a)  An application for a state bank charter must be made under oath and in the form required by the banking commissioner, who shall inquire fully into the identity and character of each proposed director, officer, and principal shareholder.  The application must be accompanied by all charter fees and deposits required by law.
(b)  The banking commissioner shall grant a state bank charter only if the commissioner determines that the organizers have established that public convenience and advantage will be promoted by the establishment of the state bank.  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 plan;
(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 officers and directors as a group have sufficient banking experience, ability, standing, competence, trustworthiness, and integrity to justify a belief that the bank will operate in compliance with law and that success of the bank is probable;
(4)  each principal shareholder has sufficient experience, ability, standing, competence, trustworthiness, and integrity to justify a belief that the bank will be free from improper or unlawful influence or interference with respect to the bank's operation in compliance with law; and
(5)  the organizers are acting in good faith.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 2001, 77th Leg., ch. 528, Sec. 5, eff. Sept. 1, 2001.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 237 (H.B. 1962), Sec. 9, eff. September 1, 2007.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle A - Banks › Chapter 32 - Powers, Organization, and Financial Requirements › Subchapter A. Organization and Powers in General › Section 32.004. Notice and Investigation of Charter Application

Sec. 32.004.  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 in which the bank is to be located, or in another publication or location as directed by the banking commissioner.
(b)  At the expense of the organizers, the banking commissioner shall thoroughly investigate the application.  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 chapter.  Except as provided by Subchapter D, Chapter 31, or in rules regarding confidential information, the business plan of the applicant and the financial statement of a proposed officer or director are confidential and not subject to public disclosure.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 2001, 77th Leg., ch. 412, Sec. 2.07, eff. Sept. 1, 2001.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 237 (H.B. 1962), Sec. 10, eff. September 1, 2007.
Acts 2007, 80th Leg., R.S., Ch. 735 (H.B. 2754), Sec. 2, eff. September 1, 2007.
Acts 2009, 81st Leg., R.S., Ch. 87 (S.B. 1969), Sec. 10.003, eff. September 1, 2009.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle A - Banks › Chapter 32 - Powers, Organization, and Financial Requirements › Subchapter A. Organization and Powers in General › Section 32.006. Issuance of Certificate of Authority

Sec. 32.006.  ISSUANCE OF CERTIFICATE OF AUTHORITY.  A state bank may not engage in the business of banking until it receives a certificate of authority from the banking commissioner.  The banking commissioner may not deliver the certificate of authority until the bank has:
(1)  received cash for the issuance of all authorized shares in the full amount subscribed;
(2)  elected or qualified the initial officers and directors named in the application for charter or other officers and directors approved by the banking commissioner; and
(3)  complied with all the other requirements of this subtitle relating to the organization of state banks.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 237 (H.B. 1962), Sec. 11, eff. September 1, 2007.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle A - Banks › Chapter 32 - Powers, Organization, and Financial Requirements › Subchapter A. Organization and Powers in General › Section 32.007. Deadline to Begin Business

Sec. 32.007.  DEADLINE TO BEGIN BUSINESS.  If the state bank does not open and engage in the business of banking within six months after the date of the granting of its charter, the banking commissioner may forfeit the charter or cancel the conditional approval of application for charter without judicial action.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle A - Banks › Chapter 32 - Powers, Organization, and Financial Requirements › Subchapter A. Organization and Powers in General › Section 32.008. Application of General Corporate Law

Sec. 32.008.  APPLICATION OF GENERAL CORPORATE LAW.  (a)  The Business Organizations Code applies to a banking association as if it were a for-profit corporation, and to a limited banking association as if it were a limited liability company, to the extent not inconsistent with this subtitle or the proper business of a state bank, except that:
(1)  a reference in the Business Organizations Code to the secretary of state means the banking commissioner unless the context requires otherwise; and
(2)  the right of shareholders to cumulative voting in the election of directors exists only if granted by the bank's certificate of formation.
(b)  The finance commission may adopt rules to limit or refine the applicability of the laws listed by Subsection (a) to a state bank or to alter or supplement the procedures and requirements of those laws applicable to an action taken under this chapter.
(c)  Unless expressly authorized by this subtitle or a rule adopted under this subtitle, a state bank may not take an action authorized by a law listed by Subsection (a) regarding its corporate status, its capital structure, or a matter of corporate governance, of the type for which those laws would require a filing with the secretary of state if the bank were a filing entity, without submitting the filing to the banking commissioner and obtaining the banking commissioner's prior written approval of the action.
(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.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 2001, 77th Leg., ch. 528, Sec. 6, eff. Sept. 1, 2001.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 237 (H.B. 1962), Sec. 12, eff. September 1, 2007.
Acts 2013, 83rd Leg., R.S., Ch. 575 (S.B. 804), Sec. 3, eff. June 14, 2013.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle A - Banks › Chapter 32 - Powers, Organization, and Financial Requirements › Subchapter A. Organization and Powers in General › Section 32.011. Financial Activities

Sec. 32.011.  FINANCIAL ACTIVITIES.  (a)  The finance commission by rule may determine that an activity not otherwise approved or authorized for a state bank under this subtitle or other law 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 banks compete;
(3)  changes or reasonably expected changes in the technology for delivering financial services;
(4)  whether the activity is necessary or appropriate to allow a state bank to:
(A)  compete effectively with another company seeking to provide 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 financial services or for the document imaging of data;
(5)  whether the activity would pose a substantial risk to the safety or soundness of a state bank or the financial system generally;
(6)  if otherwise determined to be permissible, whether the conduct of the activity by a state bank 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 bank and the financial system generally;  and
(7)  whether a state bank would be permitted to engage in the activity under applicable federal law, including 12 U.S.C. Section 1831a, and related regulations.
(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. 8, eff. Sept. 1, 2001.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle A - Banks › Chapter 32 - Powers, Organization, and Financial Requirements › Subchapter B. Amendment of Certificate; Changes in Capital and Surplus › Section 32.101. Amendment or Restatement of State Bank Certificate of Formation

Sec. 32.101.  AMENDMENT OR RESTATEMENT OF STATE BANK CERTIFICATE OF FORMATION.  (a)  A state bank that has been granted a certificate of authority may amend or restate its certificate of formation for any lawful purpose, including the creation of authorized but unissued shares or participation shares in one or more classes or series.
(b)  An amendment authorizing the issuance of shares or participation shares in series must contain:
(1)  the designation of each series and a statement of any variations in the preferences, limitations, and relative rights among series to the extent that the preferences, limitations, and relative rights are to be established in the certificate of formation; and
(2)  a statement of any authority to be vested in the bank's board to establish series and determine the preferences, limitations, and relative rights of each series.
(c)  Amendment or restatement of the certificate of formation of a state bank and approval of the bank's board and shareholders must be made or obtained as provided by the Business Organizations Code except as otherwise provided by this subtitle or rules adopted under this subtitle.  The original and one copy of the certificate of amendment or restated certificate of formation must be filed with the banking commissioner for approval.  Unless the submission presents novel or unusual questions, the banking commissioner shall approve or reject the amendment or restatement 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 to approve or reject any amendment or restatement of a certificate of formation under this section.  If the banking commissioner finds that the amendment or restatement conforms to law and any conditions imposed by the banking commissioner, and any required filing fee has been paid, the banking commissioner shall:
(1)  endorse the face of the original and copy of the amendment or restatement with the date of approval and the word "Approved";
(2)  file the original of the amendment or restatement in the department's records; and
(3)  deliver a certified copy of the amendment or restatement to the bank.
(e)  An amendment or restatement, if approved, takes effect on the date of approval unless the amendment or restatement provides for a different effective date.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 237 (H.B. 1962), Sec. 13, eff. September 1, 2007.
Acts 2013, 83rd Leg., R.S., Ch. 575 (S.B. 804), Sec. 5, eff. June 14, 2013.
Acts 2013, 83rd Leg., R.S., Ch. 575 (S.B. 804), Sec. 6, eff. June 14, 2013.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle A - Banks › Chapter 32 - Powers, Organization, and Financial Requirements › Subchapter B. Amendment of Certificate; Changes in Capital and Surplus › Section 32.102. Establishing Series of Shares

Sec. 32.102.  ESTABLISHING SERIES OF SHARES.  (a)  If the certificate of formation expressly gives the board of a state bank authority to establish shares in series and determine the preferences, limitations, and relative rights of each series, the board may do so only in compliance with this section and any rules adopted under this subtitle.
(b)  A series of shares may be established in the manner provided by the Business Organizations Code, but the shares of the series may not be issued and sold without the prior written approval of the banking commissioner under Section 32.103.  The bank 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 to approve or reject a proposed series under this section.
(d)  If the banking commissioner finds that the interests of depositors and creditors will not be adversely affected by the series, that the series 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 of the statement in the department's records;  and
(3)  deliver a certified copy of the statement to the state bank.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 237 (H.B. 1962), Sec. 14, eff. September 1, 2007.
Acts 2007, 80th Leg., R.S., Ch. 237 (H.B. 1962), Sec. 15, eff. September 1, 2007.
Acts 2013, 83rd Leg., R.S., Ch. 575 (S.B. 804), Sec. 7, eff. June 14, 2013.