reglab/statecodes huggingface dataset:
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle Z - Miscellaneous Provisions Relating to Financial Institutions and Businesses › Chapter 274 - Substitute or Successor Fiduciary › Subchapter B. Subsidiary Trust Companies as Substitute or Successor Fiduciaries › Section 274.102. Situs of Account Administration

Sec. 274.102.  SITUS OF ACCOUNT ADMINISTRATION.  The situs of administration of a fiduciary account is the county in this state in which the fiduciary maintains the office that is primarily responsible for dealing with the parties involved in the account.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 1999, 76th Leg., ch. 344, Sec. 2.032, eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle Z - Miscellaneous Provisions Relating to Financial Institutions and Businesses › Chapter 274 - Substitute or Successor Fiduciary › Subchapter B. Subsidiary Trust Companies as Substitute or Successor Fiduciaries › Section 274.103. Notice of Substitution

Sec. 274.103.  NOTICE OF SUBSTITUTION.  (a)  Not later than the 91st day before the effective date of a substitution under Section 274.101, the parties to the substitution agreement shall send notice of the substitution to:
(1)  any other fiduciary;
(2)  each surviving settlor of a trust relating to the fiduciary account;
(3)  each issuer of a security for which the affiliated bank administers the fiduciary account;
(4)  the plan sponsor of each employee benefit plan relating to the fiduciary account;
(5)  the principal of each agency account;  and
(6)  the guardian of the person of each ward that has the fiduciary account resulting from a guardianship.
(b)  If the substitution does not cause a change in the situs of administration of a fiduciary account, the parties to the substitution agreement shall also send notice of the substitution to each person who is readily ascertainable as a beneficiary of the account because the person has received account statements or because a parent, conservator, or guardian of a minor beneficiary has received account statements on the minor's behalf.
(c)  If the substitution causes a change in the situs of administration of a fiduciary account, the parties to the substitution agreement shall also send notice of the substitution to:
(1)  each adult beneficiary of a trust relating to the account;
(2)  each parent, conservator, or guardian of a minor beneficiary receiving or entitled to receive current distributions of income or principal from the account;  and
(3)  each person who individually or jointly has the power to remove the fiduciary being substituted.
(d)  The notice must be sent by United States mail to the person's current address as shown on the fiduciary's records.  The fiduciary shall make a reasonable attempt to ascertain the address of a person who does not have an address shown on the fiduciary's records.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle Z - Miscellaneous Provisions Relating to Financial Institutions and Businesses › Chapter 274 - Substitute or Successor Fiduciary › Subchapter B. Subsidiary Trust Companies as Substitute or Successor Fiduciaries › Section 274.104. Form of Notice of Substitution

Sec. 274.104.  FORM OF NOTICE OF SUBSTITUTION.  The notice required under Section 274.103 must be in writing and disclose:
(1)  the effect the substitution of fiduciary will have on the situs of administration of the fiduciary account;
(2)  the person's rights with respect to objecting to the substitution;  and
(3)  the liability of the existing fiduciary and the substitute fiduciary for their actions.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle Z - Miscellaneous Provisions Relating to Financial Institutions and Businesses › Chapter 274 - Substitute or Successor Fiduciary › Subchapter B. Subsidiary Trust Companies as Substitute or Successor Fiduciaries › Section 274.105. Failure to Send Notice of Substitution; Defective Notice

Sec. 274.105.  FAILURE TO SEND NOTICE OF SUBSTITUTION;  DEFECTIVE NOTICE.  (a)  If the parties to a substitution agreement under Section 274.101 intentionally fail to send the required notice under Section 274.103, the substitution of the fiduciary is ineffective.
(b)  If the parties unintentionally fail to send the required notice, the substitution of the fiduciary is not impaired.
(c)  If a substitution of a fiduciary is ineffective because of a defect in the required notice, any action taken by a subsidiary trust company before the substitution is determined to be ineffective is valid if the action would have been valid if performed by the affiliated bank.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle Z - Miscellaneous Provisions Relating to Financial Institutions and Businesses › Chapter 274 - Substitute or Successor Fiduciary › Subchapter B. Subsidiary Trust Companies as Substitute or Successor Fiduciaries › Section 274.106. Effective Date of Substitution of Fiduciaries

Sec. 274.106.  EFFECTIVE DATE OF SUBSTITUTION OF FIDUCIARIES.  (a)  The substitution takes effect on the effective date stated in the substitution agreement unless, not later than the 16th day before the effective date:
(1)  each party entitled to receive notice of the substitution under Sections 274.103(a) and (c) provides the affiliated bank with a written objection to the substitution;  or
(2)  a party entitled to receive notice of the substitution under Section 274.103 files a written petition in a court seeking to have the substitution denied under Section 274.107 and provides the affiliated bank with a copy of the petition.
(b)  A substitution that is objected to under Subsection (a)(1) takes effect when:
(1)  one of the parties objecting to the substitution removes the party's objection in writing;  or
(2)  the bank obtains a final court order approving the substitution.
(c)  A substitution that is objected to under Subsection (a)(2) takes effect when:
(1)  the petition is withdrawn or dismissed;  or
(2)  the court enters a final order denying the relief sought.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle Z - Miscellaneous Provisions Relating to Financial Institutions and Businesses › Chapter 274 - Substitute or Successor Fiduciary › Subchapter B. Subsidiary Trust Companies as Substitute or Successor Fiduciaries › Section 274.107. Hearing on Agreement to Substitute Fiduciaries

Sec. 274.107.  HEARING ON AGREEMENT TO SUBSTITUTE FIDUCIARIES.  (a)  A court may deny the substitution if the court, after notice and hearing, determines:
(1)  if the substitution will not cause a change in the situs of administration of a fiduciary account, that the substitution is materially detrimental to the account or to its beneficiaries;  or
(2)  if the substitution will cause a change in the situs of administration of a fiduciary account, that the substitution is not in the best interests of the account or its beneficiaries.
(b)  The court shall allow a substitution that will cause the situs of administration of a fiduciary account to change if the court, after notice and hearing, determines that the substitution is in the best interests of the account and its beneficiaries.
(c)  In a proceeding under this section, the court may award costs and reasonable and necessary attorney's fees as the court considers equitable and just.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle Z - Miscellaneous Provisions Relating to Financial Institutions and Businesses › Chapter 274 - Substitute or Successor Fiduciary › Subchapter B. Subsidiary Trust Companies as Substitute or Successor Fiduciaries › Section 274.108. Subsidiary Trust Company as Substitute Fiduciary

Sec. 274.108.  SUBSIDIARY TRUST COMPANY AS SUBSTITUTE FIDUCIARY.  On the effective date of the substitution as prescribed by Section 274.106, the subsidiary trust company:
(1)  without the necessity of an instrument of transfer or conveyance, succeeds to all interest in property the affiliated bank holds for the fiduciary account being substituted;  and
(2)  without the necessity of judicial action or action by the creator of the fiduciary account, becomes fiduciary of the account and shall perform the duties and exercise the powers of a fiduciary in the same manner as if the company had originally been designated fiduciary.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle Z - Miscellaneous Provisions Relating to Financial Institutions and Businesses › Chapter 274 - Substitute or Successor Fiduciary › Subchapter B. Subsidiary Trust Companies as Substitute or Successor Fiduciaries › Section 274.109. Notice of Change in Situs of Administration of Fiduciary Account Following Substitution

Sec. 274.109.  NOTICE OF CHANGE IN SITUS OF ADMINISTRATION OF FIDUCIARY ACCOUNT FOLLOWING SUBSTITUTION.  (a)  If the fiduciary of a fiduciary account has changed as a result of a substitution agreement under Section 274.101, the substitute fiduciary shall send notice of a change in the situs of administration of the account after the substitution to each person entitled to notice under Sections 274.103(a) and (c) not later than the 91st day before the effective date of the change.
(b)  The notice must be sent by United States mail to the person's current address as shown on the fiduciary's records.  The fiduciary shall make a reasonable attempt to ascertain the address of a person who does not have an address shown on the fiduciary's records.
(c)  The notice must disclose:
(1)  the effect that the change will have on the situs of administration of the account;
(2)  the effective date of the change;  and
(3)  the person's rights with respect to objecting to the change.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle Z - Miscellaneous Provisions Relating to Financial Institutions and Businesses › Chapter 274 - Substitute or Successor Fiduciary › Subchapter B. Subsidiary Trust Companies as Substitute or Successor Fiduciaries › Section 274.110. Failure to Send Notice of Change in Situs of Administration

Sec. 274.110.  FAILURE TO SEND NOTICE OF CHANGE IN SITUS OF ADMINISTRATION.  (a)  If the substitute fiduciary of a fiduciary account intentionally fails to send the required notice under Section 274.109, the change in the situs of administration is ineffective.
(b)  If the substitute fiduciary unintentionally fails to send the required notice, the change in the situs of administration is not impaired.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle Z - Miscellaneous Provisions Relating to Financial Institutions and Businesses › Chapter 274 - Substitute or Successor Fiduciary › Subchapter B. Subsidiary Trust Companies as Substitute or Successor Fiduciaries › Section 274.111. Effective Date of Change in Situs of Administration of Fiduciary Account

Sec. 274.111.  EFFECTIVE DATE OF CHANGE IN SITUS OF ADMINISTRATION OF FIDUCIARY ACCOUNT.  (a)  A change in the situs of administration takes effect on the effective date stated in the notice under Section 274.109 unless, not later than the 16th day before the effective date:
(1)  each party entitled to receive notice for the fiduciary account provides the subsidiary trust company with a written objection to the change;  or
(2)  a party entitled to receive notice files a written petition in a court seeking to have the change denied under Section 274.112 and provides the subsidiary trust company with a copy of the petition.
(b)  A change that is objected to under Subsection (a)(1) takes effect when:
(1)  one of the parties objecting to the change removes the party's objection in writing;  or
(2)  the subsidiary trust company obtains a final court order approving the change.
(c)  A change that is objected to under Subsection (a)(2) takes effect when:
(1)  the petition is withdrawn or dismissed;  or
(2)  the court enters a final order denying the relief sought.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle Z - Miscellaneous Provisions Relating to Financial Institutions and Businesses › Chapter 274 - Substitute or Successor Fiduciary › Subchapter B. Subsidiary Trust Companies as Substitute or Successor Fiduciaries › Section 274.112. Hearing on Change in Situs of Administration of Fiduciary Account

Sec. 274.112.  HEARING ON CHANGE IN SITUS OF ADMINISTRATION OF FIDUCIARY ACCOUNT.  (a)  A court may allow the change in the situs of administration if the court, after notice and hearing, determines that the change is in the best interests of the fiduciary account and its beneficiaries.  The court may deny the change if the court, after notice and hearing, determines that the change is not in the best interests of the account or its beneficiaries.
(b)  In a proceeding under this section, the court may award costs and reasonable and necessary attorney's fees as the court considers equitable and just.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle Z - Miscellaneous Provisions Relating to Financial Institutions and Businesses › Chapter 274 - Substitute or Successor Fiduciary › Subchapter B. Subsidiary Trust Companies as Substitute or Successor Fiduciaries › Section 274.113. Venue

Sec. 274.113.  VENUE.  (a)  An action under this subchapter for a fiduciary account resulting from a decedent's estate or guardianship must be brought in the county provided for by the Estates Code with respect to the probate of a will, issuance of letters testamentary or of administration, administration of a decedent's estate, appointment of a guardian, and administration of a guardianship.
(b)  Except as provided by Subsection (c), an action under this subchapter regarding any other fiduciary account must be brought in the county of the situs of administration of the account, notwithstanding a statute that would set venue in the location of the fiduciary's principal office.
(c)  A beneficiary of a fiduciary account described by Subsection (b) may elect to bring the action in the county in which the principal office of the first affiliated bank that transferred the account under this subchapter is located.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 1236 (S.B. 1296), Sec. 20.019, eff. September 1, 2015.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle Z - Miscellaneous Provisions Relating to Financial Institutions and Businesses › Chapter 274 - Substitute or Successor Fiduciary › Subchapter B. Subsidiary Trust Companies as Substitute or Successor Fiduciaries › Section 274.114. Subsidiary Trust Company as Successor Fiduciary

Sec. 274.114.  SUBSIDIARY TRUST COMPANY AS SUCCESSOR FIDUCIARY.  For purposes of qualifying as successor fiduciary under a document creating a fiduciary account or a statute of this state relating to fiduciary accounts, a subsidiary trust company:
(1)  is considered to have capital and surplus in an amount equal to the total of its capital and surplus and the capital and surplus of the bank holding company that owns the company;  and
(2)  is treated as a national bank unless it:
(A)  is not a national bank under federal law;  and
(B)  has not entered into a substitution agreement with an affiliated bank of the company that is a national bank under federal law.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle Z - Miscellaneous Provisions Relating to Financial Institutions and Businesses › Chapter 274 - Substitute or Successor Fiduciary › Subchapter B. Subsidiary Trust Companies as Substitute or Successor Fiduciaries › Section 274.115. Bond of Successor Fiduciary

Sec. 274.115.  BOND OF SUCCESSOR FIDUCIARY.  If an affiliated bank of a subsidiary trust company has given bond to secure performance of its duties and the company qualifies as successor fiduciary, the company shall give bond to secure performance of its duties in the same manner as the bank.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle Z - Miscellaneous Provisions Relating to Financial Institutions and Businesses › Chapter 274 - Substitute or Successor Fiduciary › Subchapter B. Subsidiary Trust Companies as Substitute or Successor Fiduciaries › Section 274.116. Responsibility for Subsidiary Trust Company

Sec. 274.116.  RESPONSIBILITY FOR SUBSIDIARY TRUST COMPANY.  The bank holding company that owns a subsidiary trust company shall file with the commissioner an irrevocable undertaking to be fully responsible for the fiduciary acts and omissions of the subsidiary trust company.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle Z - Miscellaneous Provisions Relating to Financial Institutions and Businesses › Chapter 274 - Substitute or Successor Fiduciary › Subchapter C. Banks Affiliated With Subsidiary Trust Companies › Section 274.201. Designation of Affiliated Bank as Fiduciary in Will

Sec. 274.201.  DESIGNATION OF AFFILIATED BANK AS FIDUCIARY IN WILL.  The prospective designation in a will or other instrument of an affiliated bank of a subsidiary trust company as fiduciary is also considered a designation of the company as fiduciary and confers on the company any discretionary power granted in the instrument unless:
(1)  the bank and company agree in writing to have the designation of the bank as fiduciary be binding;  or
(2)  the creator of the fiduciary account, by appropriate language in the document creating the account, provides that the account is not eligible for substitution under this chapter.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle Z - Miscellaneous Provisions Relating to Financial Institutions and Businesses › Chapter 274 - Substitute or Successor Fiduciary › Subchapter C. Banks Affiliated With Subsidiary Trust Companies › Section 274.202. Liability of Affiliated Bank Acting as Fiduciary

Sec. 274.202.  LIABILITY OF AFFILIATED BANK ACTING AS FIDUCIARY.  After a substitution of a subsidiary trust company as fiduciary for an affiliated bank of the company, the bank remains liable for any action taken by the bank as a fiduciary.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle Z - Miscellaneous Provisions Relating to Financial Institutions and Businesses › Chapter 274 - Substitute or Successor Fiduciary › Subchapter C. Banks Affiliated With Subsidiary Trust Companies › Section 274.203. Deposit of Money With Affiliated Bank

Sec. 274.203.  DEPOSIT OF MONEY WITH AFFILIATED BANK.  (a)  A subsidiary trust company may deposit with an affiliated bank of the company fiduciary money that is being held pending an investment, distribution, or payment of a debt if:
(1)  the company maintains under its control as security for the deposit a separate fund of securities legal for trust investments pledged by the bank;
(2)  the total market value of the securities is at all times at least equal to the amount of the deposit;  and
(3)  the fund of securities is designated as a separate fund.
(b)  The bank may make periodic withdrawals from or additions to the fund of securities required by this section only if the required value is maintained.
(c)  Income from securities in the fund belongs to the bank.
(d)  Security for a deposit under this section is not required to the extent the deposit is insured or otherwise secured under law.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle Z - Miscellaneous Provisions Relating to Financial Institutions and Businesses › Chapter 275 - Texas Mutual Trust Investment Company Act › Subchapter A. General Provisions › Section 275.001. Short Title

Sec. 275.001.  SHORT TITLE.  This chapter may be cited as the Texas Mutual Trust Investment Company Act.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.26(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle Z - Miscellaneous Provisions Relating to Financial Institutions and Businesses › Chapter 275 - Texas Mutual Trust Investment Company Act › Subchapter A. General Provisions › Section 275.002. Definitions

Sec. 275.002.  DEFINITIONS.  In this chapter:
(1)  "Fiduciary institution" means a:
(A)  state bank with trust powers;
(B)  national bank with trust powers;  or
(C)  trust company.
(2)  "Stock" means a unit of participation in the net asset value of one or more of the investment funds of a mutual trust investment company.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.26(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle Z - Miscellaneous Provisions Relating to Financial Institutions and Businesses › Chapter 275 - Texas Mutual Trust Investment Company Act › Subchapter A. General Provisions › Section 275.003. Application of General Corporation Law

Sec. 275.003.  APPLICATION OF GENERAL CORPORATION LAW.  Except as provided by this chapter, a mutual trust investment company must be incorporated under and is subject to the general corporation laws of this state.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.26(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle Z - Miscellaneous Provisions Relating to Financial Institutions and Businesses › Chapter 275 - Texas Mutual Trust Investment Company Act › Subchapter A. General Provisions › Section 275.004. Investment of Corporation Assets

Sec. 275.004.  INVESTMENT OF CORPORATION ASSETS.  A mutual trust investment company may invest its assets only in investments in which a trustee may invest under the laws of this state.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.26(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle Z - Miscellaneous Provisions Relating to Financial Institutions and Businesses › Chapter 275 - Texas Mutual Trust Investment Company Act › Subchapter B. Creation of Mutual Trust Investment Company › Section 275.051. Creation of Mutual Trust Investment Company

Sec. 275.051.  CREATION OF MUTUAL TRUST INVESTMENT COMPANY.  (a)  One or more fiduciary institutions may incorporate a mutual trust investment company as provided by this chapter to be a medium for the common investment of trust funds held in a fiduciary capacity for fiduciary purposes, by those entities alone or with one or more cofiduciaries.
(b)  A mutual trust investment company must be an open-end investment company as defined by, and must be subject to, the Investment Company Act of 1940 (15 U.S.C. Section 80a-1 et seq.).
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.26(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle Z - Miscellaneous Provisions Relating to Financial Institutions and Businesses › Chapter 275 - Texas Mutual Trust Investment Company Act › Subchapter B. Creation of Mutual Trust Investment Company › Section 275.052. Incorporators

Sec. 275.052.  INCORPORATORS.  (a)  To incorporate, a mutual trust investment company must have five or more persons subscribe and acknowledge the company's articles of incorporation.
(b)  A person subscribing and acknowledging the articles of incorporation of a mutual trust investment company must be an officer or director of a fiduciary institution causing the mutual trust investment company to be incorporated.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.26(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle Z - Miscellaneous Provisions Relating to Financial Institutions and Businesses › Chapter 275 - Texas Mutual Trust Investment Company Act › Subchapter B. Creation of Mutual Trust Investment Company › Section 275.053. Contents of Articles of Incorporation

Sec. 275.053.  CONTENTS OF ARTICLES OF INCORPORATION.  In addition to the information required by the general corporation laws, the articles of incorporation shall state:
(1)  the name of each fiduciary institution causing the corporation to be incorporated;  and
(2)  the amount of stock originally subscribed for by each fiduciary institution.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.26(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle Z - Miscellaneous Provisions Relating to Financial Institutions and Businesses › Chapter 275 - Texas Mutual Trust Investment Company Act › Subchapter C. Administrative Provisions › Section 275.101. Directors

Sec. 275.101.  DIRECTORS.  (a)  Except as provided by Subsection (b), a mutual trust investment company must have at least five directors, each of whom is not required to be a stockholder but must be an officer or director of a bank or trust company that is located in this state.
(b)  An officer or director of a bank or trust company not located in this state may serve as a director of a mutual trust investment company only if that officer's or director's bank or trust company owns stock in a fiduciary capacity in the mutual trust investment company.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.26(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle Z - Miscellaneous Provisions Relating to Financial Institutions and Businesses › Chapter 275 - Texas Mutual Trust Investment Company Act › Subchapter C. Administrative Provisions › Section 275.102. Audits and Reports

Sec. 275.102.  AUDITS AND REPORTS.  (a)  At least once each year, a mutual trust investment company shall cause an adequate audit to be made of the company by auditors responsible only to the board of directors of the company.
(b)  A mutual trust investment company shall furnish annually a copy of the company's audited financial statement to each corporate fiduciary owning stock in the company.
(c)  The mutual trust investment company shall pay the:
(1)  reasonable expenses of an audit required by this section made by an independent public accountant or certified public accountant;  and
(2)  costs of preparing and distributing a report required by this section.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.26(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle Z - Miscellaneous Provisions Relating to Financial Institutions and Businesses › Chapter 275 - Texas Mutual Trust Investment Company Act › Subchapter D. Mutual Trust Investment Company Stock › Section 275.151. Ownership

Sec. 275.151.  OWNERSHIP.  The stock of a mutual trust investment company may be owned only by fiduciary institutions acting as fiduciaries and any of their cofiduciaries.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.26(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle Z - Miscellaneous Provisions Relating to Financial Institutions and Businesses › Chapter 275 - Texas Mutual Trust Investment Company Act › Subchapter D. Mutual Trust Investment Company Stock › Section 275.152. Registration

Sec. 275.152.  REGISTRATION.  The stock of a mutual trust investment company may be registered in the name of one or more nominees of the owner of the stock.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.26(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle Z - Miscellaneous Provisions Relating to Financial Institutions and Businesses › Chapter 275 - Texas Mutual Trust Investment Company Act › Subchapter D. Mutual Trust Investment Company Stock › Section 275.153. Transfer and Assignment

Sec. 275.153.  TRANSFER AND ASSIGNMENT.  The stock of a mutual trust investment company may not be transferred except to:
(1)  the mutual trust investment company;  or
(2)  a fiduciary or cofiduciary that becomes successor to a stockholder and that is a bank or trust company qualified to hold the stock under this chapter.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.26(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle Z - Miscellaneous Provisions Relating to Financial Institutions and Businesses › Chapter 275 - Texas Mutual Trust Investment Company Act › Subchapter D. Mutual Trust Investment Company Stock › Section 275.154. Ownership by Mutual Trust Investment Company

Sec. 275.154.  OWNERSHIP BY MUTUAL TRUST INVESTMENT COMPANY.  A mutual trust investment company may acquire its own stock and shall bind itself, by contract or its bylaws, to acquire its own stock, but may not vote on shares of its own stock.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.26(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle Z - Miscellaneous Provisions Relating to Financial Institutions and Businesses › Chapter 275 - Texas Mutual Trust Investment Company Act › Subchapter E. Investment in Mutual Trust Investment Company › Section 275.201. Purchase by Fiduciary; Authority and Restrictions

Sec. 275.201.  PURCHASE BY FIDUCIARY;  AUTHORITY AND RESTRICTIONS.  A fiduciary institution, alone or with one or more cofiduciaries, acting as a fiduciary for fiduciary purposes with the consent of any cofiduciaries, may invest and reinvest funds held in a fiduciary capacity, exercising the care of a prudent investor, in the shares of stock of a mutual trust investment company unless a will, trust indenture, or other instrument under which the fiduciary is acting prohibits that investment.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.26(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle Z - Miscellaneous Provisions Relating to Financial Institutions and Businesses › Chapter 275 - Texas Mutual Trust Investment Company Act › Subchapter E. Investment in Mutual Trust Investment Company › Section 275.202. Responsibility of Mutual Trust Investment Company

Sec. 275.202.  RESPONSIBILITY OF MUTUAL TRUST INVESTMENT COMPANY.  (a)  A mutual trust investment company is not:
(1)  required to determine the investment powers of a fiduciary that purchases its stock;  or
(2)  liable for accepting funds from a fiduciary in violation of the restrictions of a will, trust indenture, or other instrument under which the fiduciary is acting in the absence of actual knowledge of the violation.
(b)  A mutual trust investment company is:
(1)  accountable only to a fiduciary who is an owner of its stock;  and
(2)  permitted to rely on the written statement of any bank or trust company purchasing its stock that the purchase complies with Section 275.201.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.26(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle Z - Miscellaneous Provisions Relating to Financial Institutions and Businesses › Chapter 276 - Financial Institution Accounts › Section 276.001. Accounts for Candidates for Public Office

Sec. 276.001.  ACCOUNTS FOR CANDIDATES FOR PUBLIC OFFICE.  (a)  A financial institution may not open an account in the name of a candidate without obtaining that candidate's consent and signature.  This subsection does not require that the candidate be a signatory to the account.
(b)  In this section:
(1)  "Candidate" has the meaning assigned by Section 251.001, Election Code.
(2)  "Financial institution" means a bank, savings and loan association, savings bank, or credit union.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.27(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle Z - Miscellaneous Provisions Relating to Financial Institutions and Businesses › Chapter 276 - Financial Institution Accounts › Section 276.002. Garnishment of Financial Institution Account

Sec. 276.002.  GARNISHMENT OF FINANCIAL INSTITUTION ACCOUNT.  (a)  Notwithstanding the Texas Rules of Civil Procedure, if a financial institution fails to timely file an answer to a writ of garnishment issued before or after a judgment is rendered in the case, a court may enter a default judgment against the financial institution solely as to the existence of liability and not as to the amount of damages.
(b)  A financial institution against which a default judgment is entered under Subsection (a) is not deemed to have in the financial institution's possession or to have knowledge of sufficient debts, assets, or personal effects of the debtor to satisfy the debtor's obligations to the garnishor.
(c)  After a default judgment is entered against a financial institution as to the existence of liability as provided by Subsection (a), the garnishor has the burden to establish the amount of actual damages proximately caused to the garnishor by the financial institution's default.
(d)  The court may award to the garnishor:
(1)  damages in the amount determined under Subsection (c); and
(2)  for good cause shown, reasonable attorney's fees incurred by the garnishor in establishing damages under Subsection (c).
(e)  Notwithstanding Section 22.004, Government Code, the supreme court may not amend or adopt rules in conflict with this section.
Added by Acts 2005, 79th Leg., Ch. 1319 (H.B. 3428), Sec. 1, eff. September 1, 2005.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle Z - Miscellaneous Provisions Relating to Financial Institutions and Businesses › Chapter 276 - Financial Institution Accounts › Section 276.003. Use of Proceeds of Extension of Credit for Financial Institution Account

Sec. 276.003.  USE OF PROCEEDS OF EXTENSION OF CREDIT FOR FINANCIAL INSTITUTION ACCOUNT.  (a)  An obligor may use proceeds of an extension of credit made by a financial institution for business, commercial, investment, or similar purposes to establish collateral for the extension of credit by:
(1)  making deposits;
(2)  purchasing certificates of deposit; or
(3)  establishing other accounts at the financial institution.
(b)  The amount of the proceeds used as provided by Subsection (a) is not considered a reduction in the amount of the proceeds of the extension of credit for purposes of Title 4 or for any other purpose.
(c)  A determination by the obligor that it is beneficial to use proceeds of an extension of credit in the manner described by Subsection (a) is conclusive.
(d)  This section may not be construed to imply a contrary rule for transactions not covered by this section.
Added by Acts 2005, 79th Leg., Ch. 1319 (H.B. 3428), Sec. 1, eff. September 1, 2005.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle Z - Miscellaneous Provisions Relating to Financial Institutions and Businesses › Chapter 277 - Business Checking Accounts › Section 277.001. Definitions

Sec. 277.001.  DEFINITIONS.  In this chapter:
(1)  "Business" means a legal entity, including a corporation, partnership, or sole proprietorship, that is formed for the purpose of making a profit.
(2)  "Business checking account" means an account at a financial institution from which withdrawals may be made by a business by check or draft.  The term includes a money market account, a negotiable order of withdrawal account, or other account at a financial institution in which the account holder has check writing privileges.
(3)  "Financial institution" means a state or national bank, state or federal savings and loan association, state or federal savings bank, or state or federal credit union doing business in this state.
Added by Acts 1999, 76th Leg., ch. 998, Sec. 1, eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle Z - Miscellaneous Provisions Relating to Financial Institutions and Businesses › Chapter 277 - Business Checking Accounts › Section 277.002. Account Information Required

Sec. 277.002.  ACCOUNT INFORMATION REQUIRED.  (a)  A financial institution shall require, as a condition of opening or maintaining a business checking account, that the applicant or account holder provide:
(1)  if the business is a sole proprietorship:
(A)  the name of the business owner;
(B)  the physical address of the business;
(C)  the home address of the business owner;  and
(D)  the driver's license number of the business owner or the personal identification card number issued to the business owner by the Department of Public Safety;  or
(2)  if the business is a corporation or other legal entity, a copy of the business's certificate of incorporation or a comparable document and an assumed name certificate, if any.
(b)  The financial institution shall request that the account holder inform the institution at least annually of any changes in the information the institution is required to obtain under Subsection (a).
Added by Acts 1999, 76th Leg., ch. 998, Sec. 1, eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle Z - Miscellaneous Provisions Relating to Financial Institutions and Businesses › Chapter 277 - Business Checking Accounts › Section 277.003. Disclosure of Information

Sec. 277.003.  DISCLOSURE OF INFORMATION.  (a)  A financial institution may not unreasonably withhold the information described by Section 277.002 in response to a written request for the information that:
(1)  is made by a person to whom the financial institution has returned a dishonored check or draft that was issued to the person by a business that maintains a business checking account;  and
(2)  includes a photocopy of the dishonored check or draft.
(b)  A financial institution that assesses a reasonable research fee in the regular course of business may assess the fee on a person who requests information under this section.
(c)  A financial institution is not liable to an account holder or other person for the disclosure of information under this section.
Added by Acts 1999, 76th Leg., ch. 998, Sec. 1, eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle Z - Miscellaneous Provisions Relating to Financial Institutions and Businesses › Chapter 278 - Regulation of Currency Transmissions › Subchapter A. General Provisions › Section 278.001. Definitions

Sec. 278.001.  DEFINITIONS.  In this chapter:
(1)  "Currency" has the meaning assigned by Section 152.003.
(2)  "Currency transmission business" means engaging in or offering currency transmission as a service or for profit.  The term does not include:
(A)  a federally insured financial institution, as defined by Section 201.101, that is organized under the laws of this state, another state, or the United States; or
(B)  a title insurance company or title insurance agent, as defined by Section 2501.003, Insurance Code.
(3)  "Currency transmission" means receiving currency or an instrument payable in currency in order to transmit the currency or its equivalent by wire, computer modem, facsimile, physical transport, or any other means or through the use of a financial intermediary, the Federal Reserve System, or another funds transfer network.
(4)  "Fee" does not include revenue that a currency transmission business generates in connection with a currency transmission in the conversion of a currency of one government into the currency of another government.
Added by Acts 2003, 78th Leg., ch. 1001, Sec. 7, eff. Sept. 1, 2003.
Amended by:
Acts 2005, 79th Leg., Ch. 728 (H.B. 2018), Sec. 11.112, eff. September 1, 2005.
Acts 2013, 83rd Leg., R.S., Ch. 988 (H.B. 2134), Sec. 17, eff. September 1, 2013.
Acts 2023, 88th Leg., R.S., Ch. 277 (S.B. 895), Sec. 2.04, eff. September 1, 2023.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle Z - Miscellaneous Provisions Relating to Financial Institutions and Businesses › Chapter 278 - Regulation of Currency Transmissions › Subchapter B. Currency Transmission Disclosures › Section 278.051. Disclosures With Transaction

Sec. 278.051.  DISCLOSURES WITH TRANSACTION.  (a)  Other than in a telephonic transaction conducted on a telephone that is not designated for use in currency transmission transactions by a currency transmission business, at the time of a currency transmission transaction to another country the currency transmission business shall provide a receipt to the customer.  The receipt must:
(1)  clearly state the amount of currency presented for transmission and any fees charged by the currency transmission business;  and
(2)  provide a toll-free telephone number or a local number that a customer can access at no charge to receive information about a currency transmission.
(b)  If the rate of exchange for a currency transmission to be paid in the currency of another country is fixed by the currency transmission business for a transaction at the time the currency transmission is initiated, the receipt must also disclose:
(1)  the rate of exchange for that transaction;
(2)  the amount to be paid in the foreign currency;  and
(3)  the period, if any, in which the payment must be made in order to qualify for the fixed rate of exchange.
(c)  If the rate of exchange for a currency transmission to be paid in the currency of another country is not fixed at the time the currency transmission is initiated, the receipt must also disclose that the rate of exchange for the transaction will be set at the time the recipient of the currency transmission receives the funds in the foreign country.
(d)  If the customer requests, the currency transmission business must provide the required disclosures before completing the transaction.
Added by Acts 2003, 78th Leg., ch. 1001, Sec. 7, eff. Sept. 1, 2003.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle Z - Miscellaneous Provisions Relating to Financial Institutions and Businesses › Chapter 278 - Regulation of Currency Transmissions › Subchapter B. Currency Transmission Disclosures › Section 278.052. Cancellation and Refund of Transaction

Sec. 278.052.  CANCELLATION AND REFUND OF TRANSACTION.  (a)  Except as provided by Subsection (c), on receiving the transaction receipt required under Section 278.051, a customer may cancel the currency transaction:
(1)  before leaving the premises of the currency transmission business;  and
(2)  not later than 30 minutes after the time at which the currency transmission was initiated.
(b)  If the customer cancels the transaction, the currency transmission business shall immediately refund to the customer the fees paid and currency to be transmitted.
(c)  A customer may not cancel a transaction after the recipient of the currency transmission has received the currency or its equivalent.
Added by Acts 2003, 78th Leg., ch. 1001, Sec. 7, eff. Sept. 1, 2003.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle Z - Miscellaneous Provisions Relating to Financial Institutions and Businesses › Chapter 278 - Regulation of Currency Transmissions › Subchapter C. Enforcement › Section 278.101. Civil Penalty

Sec. 278.101.  CIVIL PENALTY.  (a)  A person who knowingly violates this chapter is liable to the state for a civil penalty in an amount not to exceed $1,000 for each violation.  The attorney general or the prosecuting attorney in the county in which the violation occurs may bring:
(1)  a suit to recover the civil penalty imposed under this section;  and
(2)  an action in the name of the state to restrain or enjoin a person from violating this chapter.
(b)  The attorney general or the prosecuting attorney in the county in which the violation occurs, as appropriate, is entitled to recover reasonable expenses incurred in obtaining injunctive relief, civil penalties, or both, under this section, including reasonable attorney's fees, court costs, and investigatory costs.
Added by Acts 2003, 78th Leg., ch. 1001, Sec. 7, eff. Sept. 1, 2003.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle Z - Miscellaneous Provisions Relating to Financial Institutions and Businesses › Chapter 279 - Banking and Credit Union Development Districts › Subchapter A. General Provisions › Section 279.001. Definitions

Sec. 279.001.  DEFINITIONS.  In this chapter:
(1)  "Credit union" means a state or federal credit union.
(2)  "Finance commission" means the Finance Commission of Texas.
(3)  "Financial institution" means a state or national bank, a state or federal savings bank, or a state or federal savings and loan association.
(4)  "Local government" means a municipality or county.
Added by Acts 2015, 84th Leg., R.S., Ch. 967 (H.B. 1626), Sec. 1, eff. September 1, 2015.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle Z - Miscellaneous Provisions Relating to Financial Institutions and Businesses › Chapter 279 - Banking and Credit Union Development Districts › Subchapter B. Banking Development Districts › Section 279.051. Administration of Program

Sec. 279.051.  ADMINISTRATION OF PROGRAM.  The finance commission shall administer and monitor a banking development district program under this chapter to encourage the establishment of branches of a financial institution in geographic areas where there is a demonstrated need for banking services.
Added by Acts 2015, 84th Leg., R.S., Ch. 967 (H.B. 1626), Sec. 1, eff. September 1, 2015.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle Z - Miscellaneous Provisions Relating to Financial Institutions and Businesses › Chapter 279 - Banking and Credit Union Development Districts › Subchapter B. Banking Development Districts › Section 279.052. Rules

Sec. 279.052.  RULES.  (a)  Subject to Subsection (b), the finance commission shall adopt rules to implement this subchapter and Subchapter D with respect to financial institutions in banking development districts.
(b)  The finance commission, in consultation with the Texas Economic Development and Tourism Office, shall adopt rules regarding the criteria for the designation of banking development districts under this subchapter.  The rules must require the finance commission to consider:
(1)  the location, number, and proximity of sites where banking services are available in the proposed banking development district;
(2)  consumer needs for banking services in the proposed district;
(3)  the economic viability and local credit needs of the community in the proposed district;
(4)  the existing commercial development in the proposed district;  and
(5)  the impact additional banking services would have on potential economic development in the proposed district.
Added by Acts 2015, 84th Leg., R.S., Ch. 967 (H.B. 1626), Sec. 1, eff. September 1, 2015.