reglab/statecodes huggingface dataset:
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle G - Bank Holding Companies; Interstate Bank Operations › Chapter 203 - Interstate Bank Mergers and Branching › Section 203.007. Examinations

Sec. 203.007.  EXAMINATIONS. (a)  With respect to an interstate branch maintained by an out-of-state state bank in this state, the banking commissioner:
(1)  with written notice to the home state regulator and subject to the terms of any applicable cooperative agreement with the home state regulator, may examine the branch for the purpose of determining whether the branch is in compliance with the laws of this state that are applicable under Section 24(j), Federal Deposit Insurance Act (12 U.S.C. Section 1831a(j)), including laws governing community reinvestment, fair lending, and consumer protection; and
(2)  if expressly permitted under and subject to the terms of any cooperative agreement with the home state regulator, or if the bank has been determined to be in a troubled condition by the home state regulator or the bank's appropriate federal banking agency, may participate in the examination of the bank by the home state regulator to ascertain whether the activities of the branch in this state are being conducted in an unsafe or unsound manner.
(b)  For purposes of this section, a bank is considered to be in a troubled condition if the bank:
(1)  has a composite rating, as determined in the bank's  most recent report of examination, of four or five under the Uniform Financial Institutions Ratings System;
(2)  is subject to a proceeding initiated by the Federal Deposit Insurance Corporation for termination or suspension of deposit insurance;  or
(3)  is subject to a proceeding initiated by the home state regulator to:
(A)  vacate, revoke, or terminate the bank's charter;
(B)  liquidate the bank; or
(C)  appoint a receiver for the bank.
Added by Acts 1999, 76th Leg., ch. 344, Sec. 1.001, eff. Sept. 1, 1999.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 940 (H.B. 1664), Sec. 25, eff. June 14, 2013.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle G - Bank Holding Companies; Interstate Bank Operations › Chapter 204 - Foreign Banks › Subchapter A. General Provisions › Section 204.001. Transacting Business

Sec. 204.001.  TRANSACTING BUSINESS.  (a)  A foreign bank may not transact business in this state except to the extent permitted by this chapter.
(b)  Subsection (a) does not prohibit a foreign bank:
(1)  from transacting business at a licensed federal branch or agency in this state in accordance with federal law;
(2)  that does not maintain a branch or agency in this state or conduct business from an office or location in this state from making unsecured loans in this state or loans secured by liens on real or personal property located in this state, enforcing those loans in this state, or transacting trust business in this state, to the extent permitted by other law;  or
(3)  organized under the laws of a territory of the United States, Puerto Rico, Guam, American Samoa, or the Virgin Islands, the deposits of which are insured by the Federal Deposit Insurance Corporation, from establishing and operating an interstate branch in this state in its capacity as a state bank pursuant to Chapter 203.
(c)  For purposes of Subsection (a), a foreign bank is not considered to be transacting business in this state merely because a subsidiary or affiliate transacts business in this state, including business that a depository institution subsidiary or affiliate may lawfully conduct in this state as an agent for the foreign bank to the extent authorized by the laws of this state.
Added by Acts 1999, 76th Leg., ch. 344, Sec. 1.001, eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle G - Bank Holding Companies; Interstate Bank Operations › Chapter 204 - Foreign Banks › Subchapter A. General Provisions › Section 204.002. Books, Accounts, and Records

Sec. 204.002.  BOOKS, ACCOUNTS, AND RECORDS.  Each Texas state branch, agency, or representative office shall maintain and make available appropriate books, accounts, and records reflecting:
(1)  all transactions effected by or on behalf of the office;  and
(2)  all other actions taken in this state by employees of the foreign bank located in this state to effect transactions on behalf of an office of the foreign bank located outside this state.
Added by Acts 1999, 76th Leg., ch. 344, Sec. 1.001, eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle G - Bank Holding Companies; Interstate Bank Operations › Chapter 204 - Foreign Banks › Subchapter A. General Provisions › Section 204.003. Examination; Fees

Sec. 204.003.  EXAMINATION;  FEES.  (a)  The commissioner may make examinations of a Texas state branch, agency, or representative office as the commissioner considers necessary to determine whether the office is being operated in compliance with the laws of this state and in accordance with safe and sound banking practices.  Sections 31.105-31.107 apply to the examinations.
(b)  A foreign bank that maintains a Texas state branch, agency, or representative office shall pay fees to the commissioner in accordance with Section 201.005 or rules adopted under this subtitle.
Added by Acts 1999, 76th Leg., ch. 344, Sec. 1.001, eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle G - Bank Holding Companies; Interstate Bank Operations › Chapter 204 - Foreign Banks › Subchapter A. General Provisions › Section 204.004. Reports

Sec. 204.004.  REPORTS.  (a)  A foreign bank doing business in this state through a Texas state branch, agency, or representative office shall make written reports to the commissioner that:
(1)  are in English;
(2)  are submitted at the times and in the form specified by the commissioner or by rules adopted under this subtitle;
(3)  are under oath of one of the foreign bank's officers, managers, or agents transacting business in this state;
(4)  show the amount of the foreign bank's assets and liabilities, expressed in United States currency;
(5)  with respect to a Texas state branch or agency, show the amount of the branch or agency's assets and liabilities, expressed in United States currency;  and
(6)  contain other information that the commissioner requires.
(b)  A license or registration of a foreign bank under this chapter may be revoked or the foreign bank may be subject to an enforcement action under Chapter 35 if the foreign bank fails to make a report required under Subsection (a) or makes a material false or misleading statement in the report.
Added by Acts 1999, 76th Leg., ch. 344, Sec. 1.001, eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle G - Bank Holding Companies; Interstate Bank Operations › Chapter 204 - Foreign Banks › Subchapter A. General Provisions › Section 204.005. Change of Control of Foreign Bank

Sec. 204.005.  CHANGE OF CONTROL OF FOREIGN BANK.  A foreign bank licensed to establish and maintain a Texas state branch or agency pursuant to Subchapter B, or which has registered a Texas representative office pursuant to Subchapter C, shall file with the commissioner a notice of change of control, in the form and containing the information the commissioner requires, not later than the 14th day after the date of a merger or other transaction that results or will result in a change of control.
Added by Acts 1999, 76th Leg., ch. 344, Sec. 1.001, eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle G - Bank Holding Companies; Interstate Bank Operations › Chapter 204 - Foreign Banks › Subchapter A. General Provisions › Section 204.006. Operations in This State of Banks Owned or Controlled by Foreign Banks and Other Foreign Persons

Sec. 204.006.  OPERATIONS IN THIS STATE OF BANKS OWNED OR CONTROLLED BY FOREIGN BANKS AND OTHER FOREIGN PERSONS.  (a)  Except as provided in Subsection (b):
(1)  the laws of this state governing the acquisition or ownership of interests in Texas banks or out-of-state banks seeking to establish and maintain interstate branches in this state do not prohibit ownership of those institutions by, or otherwise discriminate against, foreign banks or other foreign persons;  and
(2)  the laws of this state governing the powers and activities of Texas banks and out-of-state banks maintaining interstate branches in this state do not discriminate among those banks on the basis of their ownership or control by foreign banks or other foreign persons.
(b)  Notwithstanding Subsection (a), the commissioner may apply the laws of this state governing the ownership, control, or operations of Texas banks, even if applicable specifically or exclusively to foreign banks or other foreign persons, to the extent those laws are determined by the commissioner to be:
(1)  substantially equivalent to or consistent with the standards or requirements governing the ownership, control, or operations of Texas banks by foreign banks or other foreign persons under applicable federal law;  or
(2)  otherwise consistent with the laws and policies of the United States, including its international agreements governing financial services.
Added by Acts 1999, 76th Leg., ch. 344, Sec. 1.001, eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle G - Bank Holding Companies; Interstate Bank Operations › Chapter 204 - Foreign Banks › Subchapter A. General Provisions › Section 204.007. Establishment of Interstate Branch in This State by an Out-of-State Foreign Bank

Sec. 204.007.  ESTABLISHMENT OF INTERSTATE BRANCH IN THIS STATE BY AN OUT-OF-STATE FOREIGN BANK.  (a)  An out-of-state foreign bank may establish an interstate Texas state branch in the same manner as, and subject to the same criteria, standards, conditions, requirements, and procedures applicable to, the establishment of an interstate branch in this state by an out-of-state bank having the same home state in the United States, including by acquisition of or merger with a Texas bank, or establishment of a de novo branch in the manner provided by Section 203.002, notwithstanding another law of this state to the contrary other than Subsection (b).
(b)  With respect to establishment of an initial interstate Texas state branch and subsequent intrastate branches of an out-of-state foreign bank, the commissioner:
(1)  shall apply the same criteria, standards, conditions, requirements, and procedures applicable under Subchapter B to the establishment of an initial Texas state branch and subsequent intrastate branches in this state;
(2)  may apply other criteria, standards, conditions, requirements, or provisions of the laws of this state that are determined by the commissioner to be substantially equivalent to or consistent with federal law generally applicable to the establishment of a branch in the United States by a foreign bank or specifically applicable to the establishment of a branch in the United States by the applicant foreign bank;  and
(3)  may allow an out-of-state foreign bank to:
(A)  acquire or merge with another foreign bank maintaining a Texas branch or agency and after the acquisition or merger continue the operations as its own;
(B)  acquire or establish an interstate Texas branch through another means not inconsistent with Section 5, International Banking Act (12 U.S.C. Section 3103);  or
(C)  convert a state agency to a state branch as provided by Section 204.008.
Added by Acts 1999, 76th Leg., ch. 344, Sec. 1.001, eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle G - Bank Holding Companies; Interstate Bank Operations › Chapter 204 - Foreign Banks › Subchapter A. General Provisions › Section 204.008. Conversion of Existing Office

Sec. 204.008.  CONVERSION OF EXISTING OFFICE.  (a)  For purposes of this section, foreign bank offices in this state are divided into classes and ranked in ascending order as:
(1)  representative office;
(2)  Texas state agency;  and
(3)  Texas state branch.
(b)  A foreign bank may change a lower class office into a higher class office by applying for the higher class office pursuant to Section 204.101.  On approval of the application to establish the higher class office and after all conditions to the approval have been fulfilled, the foreign bank may change the lower class office into the higher class office and the commissioner shall issue a license authorizing the bank to maintain the higher class office.  The foreign bank shall promptly surrender any license or registration previously issued by the commissioner in connection with the lower class office.
(c)  A foreign bank may change a higher class office into a lower class office by applying for approval to close the higher class office pursuant to Section 204.115.  On approval of the application to close the higher class office and after conditions precedent to the closing have been fulfilled, the foreign bank may change the higher class office into the lower class office, and the commissioner shall issue a license or registration authorizing the bank to maintain the lower class office.
Added by Acts 1999, 76th Leg., ch. 344, Sec. 1.001, eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle G - Bank Holding Companies; Interstate Bank Operations › Chapter 204 - Foreign Banks › Subchapter B. Direct Branch and Agency Offices of Foreign Banks › Section 204.101. Application to Establish Branch or Agency

Sec. 204.101.  APPLICATION TO ESTABLISH BRANCH OR AGENCY.  (a)  A foreign bank that desires to establish and maintain a Texas state branch or agency shall submit an application to the commissioner.  The application must:
(1)  be accompanied by all application fees and deposits required by applicable rules;
(2)  be in the form specified by the commissioner;
(3)  be subscribed and acknowledged by an officer of the foreign bank;
(4)  have attached:
(A)  a complete copy of the foreign bank's application to the Board of Governors of the Federal Reserve System under Section 7(d), International Banking Act (12 U.S.C. Section 3105(d));
(B)  an authenticated copy of the foreign bank's certificate of formation and bylaws or other constitutive documents and, if the copy is in a language other than English, an English translation of the document, under the oath of the translator; and
(C)  evidence of compliance with Section 201.102;
(5)  be submitted when the federal application is submitted to the board of governors; and
(6)  include on its face or in accompanying documents:
(A)  the name of the foreign bank;
(B)  the street address where the principal office of the Texas state branch or agency is to be located and, if different, the Texas state branch or agency's mailing address;
(C)  the name and qualifications of each officer and director of the foreign bank who will have control of all or part of the business and affairs of the Texas state branch or agency;
(D)  a detailed statement of the foreign bank's financial condition as of a date not more than 360 days before the date of the application; and
(E)  other information that:
(i)  is necessary to enable the commissioner to make the findings listed in Section 204.103;
(ii)  is required by rules adopted under this subtitle; or
(iii)  the commissioner reasonably requests.
(b)  The finance commission may adopt rules prescribing abbreviated application procedures and standards applicable to applications by foreign banks that have already established an initial Texas state branch or agency to establish additional intrastate branches or agencies.
Added by Acts 1999, 76th Leg., ch. 344, Sec. 1.001, eff. Sept. 1, 1999.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 575 (S.B. 804), Sec. 36, eff. June 14, 2013.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle G - Bank Holding Companies; Interstate Bank Operations › Chapter 204 - Foreign Banks › Subchapter B. Direct Branch and Agency Offices of Foreign Banks › Section 204.102. Hearing and Decision on Application

Sec. 204.102.  HEARING AND DECISION ON APPLICATION.  (a)  After the application is complete and accepted for filing and all required fees and deposits have been paid, the commissioner shall determine from the application and the initial investigation whether the conditions set forth by Section 204.103 have been established.  The commissioner shall approve the application or set the application for hearing.
(b)  If the commissioner sets the application for hearing:
(1)  the commissioner shall notify the Board of Governors of the Federal Reserve System that the application has been set for hearing as provided by federal regulations;
(2)  the department shall participate as the opposing party;  and
(3)  the commissioner shall conduct the hearing and one or more prehearing conferences and opportunities for discovery as the commissioner considers advisable and consistent with applicable law.
(c)  Information relating to the financial condition and business affairs of the foreign bank and financial information relating to its management and shareholders, except for previously published statements and information, is confidential and may not be considered in the public portion of the hearing or disclosed by the commissioner or an employee of the department except as provided by Subchapter D, Chapter 31.
(d)  The commissioner shall make a finding from the record of the hearing on each condition listed in Section 204.103 and enter an order granting or denying the license.  If the license is denied, the commissioner shall inform the Board of Governors of the Federal Reserve System of the order and the reasons the federal application should be denied.
(e)  The commissioner may make approval of an application conditional.  The commissioner shall include any conditions in the order granting the license but may not issue the license until the Texas state branch or agency has received the approval of the Board of Governors of the Federal Reserve System.  If the approval is conditioned on a written commitment from the applicant offered to and accepted by the commissioner, the commitment is enforceable against the applicant.
Added by Acts 1999, 76th Leg., ch. 344, Sec. 1.001, eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle G - Bank Holding Companies; Interstate Bank Operations › Chapter 204 - Foreign Banks › Subchapter B. Direct Branch and Agency Offices of Foreign Banks › Section 204.103. Issuance of License

Sec. 204.103.  ISSUANCE OF LICENSE.  (a)  The commissioner shall issue a license to a foreign bank to establish and maintain a Texas state branch or agency if the commissioner finds after reasonable inquiry that:
(1)  all members of the management of the Texas state branch or agency have sufficient banking experience, ability, standing, competence, trustworthiness, and integrity to justify a belief that the agency will operate in compliance with state law;
(2)  the foreign bank has sufficient standing to justify a belief that the Texas state branch or agency will be free from improper or unlawful influence or interference with respect to the office's operation in compliance with state law;  and
(3)  the foreign bank is acting in good faith and the application does not contain a material misrepresentation.
(b)  Each Texas state branch or agency shall post its license in a conspicuous place at its office.  A license issued under this subchapter is not transferable or assignable.
Added by Acts 1999, 76th Leg., ch. 344, Sec. 1.001, eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle G - Bank Holding Companies; Interstate Bank Operations › Chapter 204 - Foreign Banks › Subchapter B. Direct Branch and Agency Offices of Foreign Banks › Section 204.104. No Concurrent Federal Branch or Agency

Sec. 204.104.  NO CONCURRENT FEDERAL BRANCH OR AGENCY.  (a)  A foreign bank licensed under this subchapter to establish and maintain a Texas state branch or agency may not concurrently maintain a federal branch or federal agency in this state.
(b)  A foreign bank which maintains a federal branch or federal agency in this state may not concurrently be licensed under this subchapter to maintain a Texas state branch or agency.
Added by Acts 1999, 76th Leg., ch. 344, Sec. 1.001, eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle G - Bank Holding Companies; Interstate Bank Operations › Chapter 204 - Foreign Banks › Subchapter B. Direct Branch and Agency Offices of Foreign Banks › Section 204.109. Relocation of Office

Sec. 204.109.  RELOCATION OF OFFICE.  (a)  With the prior written approval of the commissioner, a foreign bank licensed to establish and maintain a Texas state branch or agency may relocate the branch or agency office.  A foreign bank that intends to relocate a Texas state branch or agency office shall submit a letter to the commissioner describing the address of the proposed location, the reasons for relocation, and the manner of notifying its customers of the relocation.
(b)  On or before the 30th day after the date the foreign bank's letter has been accepted for filing and any required fee has been paid, the commissioner shall approve or deny the relocation.  The commissioner may not permit the foreign bank to relocate its Texas state branch or agency office if the commissioner finds that the proposed location and the manner of relocation and notification will be deceptive or that the relocation will impede or tend to impede the foreign bank's depositors and creditors in this state.
Added by Acts 1999, 76th Leg., ch. 344, Sec. 1.001, eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle G - Bank Holding Companies; Interstate Bank Operations › Chapter 204 - Foreign Banks › Subchapter B. Direct Branch and Agency Offices of Foreign Banks › Section 204.110. Separate Assets

Sec. 204.110.  SEPARATE ASSETS.  (a)  Each foreign bank licensed to establish and maintain a Texas state branch or agency in this state shall keep the assets of its business in this state separate and apart from the assets of its business outside this state.
(b)  The depositors and creditors of a foreign bank arising out of transactions with, and recorded on the books of, its Texas state branch or agency are entitled to absolute preference and priority over the depositors and creditors of the foreign bank's offices located outside this state with respect to the assets of the foreign bank in this state.
Added by Acts 1999, 76th Leg., ch. 344, Sec. 1.001, eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle G - Bank Holding Companies; Interstate Bank Operations › Chapter 204 - Foreign Banks › Subchapter B. Direct Branch and Agency Offices of Foreign Banks › Section 204.111. Disclosure of Lack of Deposit Insurance

Sec. 204.111.  DISCLOSURE OF LACK OF DEPOSIT INSURANCE.  Each foreign bank licensed to establish and maintain a Texas state branch or agency shall give notice that deposits and credit balances in the office are not insured by the Federal Deposit Insurance Corporation.
Added by Acts 1999, 76th Leg., ch. 344, Sec. 1.001, eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle G - Bank Holding Companies; Interstate Bank Operations › Chapter 204 - Foreign Banks › Subchapter B. Direct Branch and Agency Offices of Foreign Banks › Section 204.112. Limitations on Payment of Interest on Deposits

Sec. 204.112.  LIMITATIONS ON PAYMENT OF INTEREST ON DEPOSITS.  A foreign bank licensed to establish and maintain a Texas state branch or agency is subject to the same limitations with respect to the payment of interest on deposits as a state bank that is a member of the Federal Reserve System.
Added by Acts 1999, 76th Leg., ch. 344, Sec. 1.001, eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle G - Bank Holding Companies; Interstate Bank Operations › Chapter 204 - Foreign Banks › Subchapter B. Direct Branch and Agency Offices of Foreign Banks › Section 204.113. Pledge of Assets

Sec. 204.113.  PLEDGE OF ASSETS.  (a)  In accordance with rules adopted under this subtitle, a foreign bank licensed to establish and maintain a Texas state branch or agency may be required to keep on deposit, with unaffiliated banks in this state that the foreign bank designates and the commissioner approves, money and securities pledged to the commissioner in an aggregate amount to be determined by the commissioner, valued at the lower of principal amount or market value, consisting of:
(1)  dollar deposits;
(2)  bonds, notes, debentures, or other legally created, general obligations of a state, an agency or political subdivision of a state, the United States, or an instrumentality of the United States;
(3)  securities that this state, an agency or political subdivision of this state, the United States, or an instrumentality of the United States has unconditionally agreed to purchase, insure, or guarantee;
(4)  securities issued or guaranteed by the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, the Government National Mortgage Association, the Federal Agricultural Mortgage Corporation, or the Federal Farm Credit Banks Funding Corporation;
(5)  obligations of or issued or guaranteed by the International Bank for Reconstruction and Development, the African Development Bank, the Asian Development Bank, the InterAmerican Development Bank, or the North American Development Bank;  or
(6)  other assets as may be permitted by rule.
(b)  The assets deposited and the amount of the assets to be maintained under Subsection (a) are subject to the conditions and limitations the commissioner considers necessary or desirable for the maintenance of a sound financial condition, the protection of depositors, creditors, and the public interest in this state, and the support of public confidence in the business of the Texas state branch or agency.  The commissioner may give credit to reserves required to be maintained with a federal reserve bank in or outside this state pursuant to federal law, in accordance with rules adopted under this subtitle.
(c)  While a foreign bank continues business in the ordinary course, the foreign bank may collect interest on the money and securities deposited under this section and from time to time exchange, examine, and verify the securities.
Added by Acts 1999, 76th Leg., ch. 344, Sec. 1.001, eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle G - Bank Holding Companies; Interstate Bank Operations › Chapter 204 - Foreign Banks › Subchapter B. Direct Branch and Agency Offices of Foreign Banks › Section 204.115. Voluntary Closure of Branch or Agency

Sec. 204.115.  VOLUNTARY CLOSURE OF BRANCH OR AGENCY.  (a)  A foreign bank licensed to establish and maintain a Texas state branch or agency may not close the office without filing an application with, and obtaining the prior approval of, the commissioner.  An application by a foreign bank under this section must be in the form and include the information the commissioner requires.
(b)  The commissioner shall approve the application if the commissioner finds that the closing of the office will not be substantially detrimental to the foreign bank's depositors and creditors in this state.  An application may be approved subject to conditions imposed by the commissioner for the continued protection of the foreign bank's depositors and creditors in this state, including a condition that the foreign bank pledge assets in the manner specified by Section 204.113 for a specified period of time.
(c)  When an application by a foreign bank under this section has been approved and all conditions precedent to the closing have been fulfilled, the foreign bank may close the office and an officer, manager, or agent of the foreign bank shall deliver to the commissioner:
(1)  all copies of examination reports or other property of the department;
(2)  a statement under oath by an authorized officer, manager, or agent of the foreign bank that all deposit and other liabilities of the Texas state branch or agency to depositors and creditors in this state have been properly discharged by payment or pledge or otherwise assumed or retained by a financial institution;
(3)  the license issued by the commissioner;
(4)  an appropriate board resolution closing the Texas state branch or agency;  and
(5)  a statement of the location where the records of the Texas state branch or agency will be kept after the closing.
Added by Acts 1999, 76th Leg., ch. 344, Sec. 1.001, eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle G - Bank Holding Companies; Interstate Bank Operations › Chapter 204 - Foreign Banks › Subchapter B. Direct Branch and Agency Offices of Foreign Banks › Section 204.116. Enforcement

Sec. 204.116.  ENFORCEMENT.  The commissioner may initiate an enforcement action under Chapter 35 or a proceeding to revoke the license of a Texas state branch or agency if the commissioner by examination or other credible evidence finds that the foreign bank:
(1)  does not currently meet the criteria established by this chapter for the original issuance of a license;
(2)  has refused to permit the commissioner to examine its books, papers, accounts, records, or affairs in accordance with Sections 204.002 and 204.003;
(3)  has failed to make a report required under this chapter or made a material false or misleading statement in the report;
(4)  has violated this subtitle, another law or rule applicable to a foreign bank or a Texas state branch or agency, or a final and enforceable order of the commissioner or the finance commission;
(5)  has misrepresented or concealed a material fact in the original application for license;
(6)  has violated a condition of its license or an agreement between the foreign bank and the commissioner or the department;  or
(7)  conducts business in an unsafe and unsound manner.
Added by Acts 1999, 76th Leg., ch. 344, Sec. 1.001, eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle G - Bank Holding Companies; Interstate Bank Operations › Chapter 204 - Foreign Banks › Subchapter B. Direct Branch and Agency Offices of Foreign Banks › Section 204.117. Procedure for Revocation

Sec. 204.117.  PROCEDURE FOR REVOCATION.  (a)  Notice of a revocation proceeding must:
(1)  be in the form of a proposed order;
(2)  be served on the foreign bank by personal delivery or registered or certified mail, return receipt requested, to a director, officer, manager, or employee of the foreign bank at a Texas state branch or agency location, or to the registered agent of the foreign bank;
(3)  state the effective date of the proposed order, which may not be before the 21st day after the date the proposed order is mailed or delivered except as otherwise provided in Section 204.118;  and
(4)  state the grounds for the proposed revocation with reasonable certainty.
(b)  Unless the foreign bank requests a hearing in writing on or before the effective date of the proposed order, the order takes effect as proposed and is final and nonappealable.
(c)  A hearing requested on a proposed order shall be held not later than the 30th day after the date the written request for hearing is received by the department unless the parties agree to a later hearing date.  The department shall participate as the opposing party, and the commissioner shall conduct the hearing and one or more prehearing conferences and opportunities for discovery as the commissioner considers advisable and consistent with applicable statutes and rules.  The foreign bank may not accept new business during the pendency of the hearing unless the commissioner gives prior written approval, except that it shall comply with any stricter requirements imposed by Section 7(e), International Banking Act (12 U.S.C. Section 3105(e)).
(d)  Information relating to the financial condition and business affairs of the foreign bank, except previously published statements and information, is confidential and may not be considered in the public portion of the hearing or disclosed by the commissioner or an employee of the department except as provided by Subchapter D, Chapter 31.
(e)  Based on the record, the commissioner shall issue or refuse to issue the proposed order.  An issued order may contain modifications indicated by the record to be necessary or desirable, including modifications to impose penalties available under Chapter 35 in lieu of license revocation.
Added by Acts 1999, 76th Leg., ch. 344, Sec. 1.001, eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle G - Bank Holding Companies; Interstate Bank Operations › Chapter 204 - Foreign Banks › Subchapter B. Direct Branch and Agency Offices of Foreign Banks › Section 204.118. Immediate Suspension or Revocation

Sec. 204.118.  IMMEDIATE SUSPENSION OR REVOCATION.  (a)  If the commissioner finds that any of the factors set forth in Section 204.116 are true with respect to a foreign bank licensed to maintain a Texas state branch or agency and that it is necessary for the protection of the interests of creditors of the foreign bank's business in this state or for the protection of the public interest that the commissioner immediately suspend or revoke the license of the foreign bank, the commissioner may issue, without notice and hearing, an order suspending or revoking the license of the foreign bank for a period of up to 90 days, pending investigation or hearing under Section 204.117.
(b)  An order issued under this section shall be served on the foreign bank in the manner required by Section 204.117(a)(2).
Added by Acts 1999, 76th Leg., ch. 344, Sec. 1.001, eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle G - Bank Holding Companies; Interstate Bank Operations › Chapter 204 - Foreign Banks › Subchapter B. Direct Branch and Agency Offices of Foreign Banks › Section 204.119. Status of Revoked License

Sec. 204.119.  STATUS OF REVOKED LICENSE.  Unless stayed by the district court that has jurisdiction over an appeal, a final order of the commissioner revoking a license is effective immediately and the foreign bank shall immediately cease all activity in this state requiring a license.  Subject to Section 204.120, all functions requiring a license must be immediately transferred to a branch, affiliate, or agency of the foreign bank that is located outside of this state and that has the power to perform those functions under governing law.  Continued activity in this state of an unlicensed foreign bank is subject to Subchapter C, Chapter 35.
Added by Acts 1999, 76th Leg., ch. 344, Sec. 1.001, eff. Sept. 1, 1999.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 20 (S.B. 614), Sec. 31, eff. September 1, 2019.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle G - Bank Holding Companies; Interstate Bank Operations › Chapter 204 - Foreign Banks › Subchapter B. Direct Branch and Agency Offices of Foreign Banks › Section 204.121. Dissolution

Sec. 204.121.  DISSOLUTION.  (a)  If a foreign bank licensed to maintain a Texas state branch or agency in this state is dissolved, has its authority or existence terminated or canceled in the jurisdiction of its incorporation, or has its authority to maintain a branch or agency in this state terminated by the Board of Governors of the Federal Reserve System under Section 7(e), International Banking Act (12 U.S.C. Section 3105(e)), an officer, manager, or agent of the foreign bank shall deliver to the commissioner:
(1)  a certified copy of:
(A)  a certificate of the official responsible for records of banking corporations of the foreign bank's jurisdiction of incorporation attesting to the occurrence of dissolution or of termination or cancellation of authority or existence;
(B)  an order or decree of a court directing the dissolution of the foreign bank or the termination or cancellation of its authority or existence;  or
(C)  an order of the Board of Governors of the Federal Reserve System terminating its authority under Section 7(e), International Banking Act (12 U.S.C. Section 3105(e));  and
(2)  the documents and information required by Section 204.115(c).
(b)  The filing of the certificate, order, or decree has the same effect provided by Section 204.119 as if the license issued under this subchapter were revoked by the commissioner as of the effective date of termination or cancellation specified in the certificate, order, or decree unless the commissioner orders an earlier effective date, subject to the procedural protections of Section 204.117 or 204.118.
Added by Acts 1999, 76th Leg., ch. 344, Sec. 1.001, eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle G - Bank Holding Companies; Interstate Bank Operations › Chapter 204 - Foreign Banks › Subchapter C. Representative Offices of Foreign Bank › Section 204.201. Registration of Representative Office

Sec. 204.201.  REGISTRATION OF REPRESENTATIVE OFFICE.  (a)  A foreign bank may establish a Texas representative office if the foreign bank files with the commissioner a verified statement of registration.  A statement of registration must:
(1)  be accompanied by all registration fees and deposits required by rule;
(2)  be in the form specified by the commissioner;
(3)  be subscribed and acknowledged by an officer of the foreign bank;
(4)  contain as an exhibit or attachment:
(A)  a copy of the foreign bank's notice or application submitted to the Board of Governors of the Federal Reserve System under Section 10, International Banking Act (12 U.S.C. Section 3107), and, when issued, the order or notification from the board of governors indicating that the representative office has been approved;
(B)  an authenticated copy of the foreign bank's certificate of formation and bylaws or other constitutive documents and, if the copy is in a language other than English, an English translation of the document, under the oath of the translator; and
(C)  evidence of compliance with Section 201.102;
(5)  be submitted when the federal notice or application is submitted to the board of governors; and
(6)  directly or in exhibits or attachments contain:
(A)  the name of the foreign bank;
(B)  the street address and post office address where each Texas representative office is to be located in this state;
(C)  the name and qualifications of each officer and director of the foreign bank who will have charge of any aspect of the business and affairs of the Texas representative office;
(D)  a complete and detailed statement of the financial condition of the foreign bank as of a date not more than 360 days before the date of the filing; and
(E)  other information the commissioner requires.
(b)  The finance commission may adopt rules prescribing abbreviated registration procedures and standards for foreign banks that have already established an initial Texas representative office to establish additional Texas representative offices.
(c)  A foreign bank that maintains a Texas state or federal branch or agency in this state is not prohibited from establishing or maintaining one or more Texas representative offices.
Added by Acts 1999, 76th Leg., ch. 344, Sec. 1.001, eff. Sept. 1, 1999.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 575 (S.B. 804), Sec. 38, eff. June 14, 2013.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle G - Bank Holding Companies; Interstate Bank Operations › Chapter 204 - Foreign Banks › Subchapter C. Representative Offices of Foreign Bank › Section 204.202. Place of Business

Sec. 204.202.  PLACE OF BUSINESS.  A Texas representative office may engage in the business authorized by this subchapter at each place of business registered with the commissioner.  A Texas representative office may change its location in this state by filing a notice with the commissioner containing the street address and post office address of the new location.
Added by Acts 1999, 76th Leg., ch. 344, Sec. 1.001, eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle G - Bank Holding Companies; Interstate Bank Operations › Chapter 204 - Foreign Banks › Subchapter C. Representative Offices of Foreign Bank › Section 204.203. Permissible Activities of Representative Office

Sec. 204.203.  PERMISSIBLE ACTIVITIES OF REPRESENTATIVE OFFICE.
(a)  A registered Texas representative office of a foreign bank may engage in:
(1)  representational and administrative functions in connection with the banking activities of the foreign bank that:
(A)  may include soliciting new business for the foreign bank, conducting research, acting as liaison between the foreign bank's head office and customers in the United States, performing preliminary and servicing steps in connection with lending, or performing back-office functions; and
(B)  do not include contracting for any deposit or deposit-like liability, lending money, or engaging in any other banking activity for the foreign bank;
(2)  making credit decisions if:
(A)  the foreign bank also operates one or more branches or agencies in the United States;
(B)  the loans approved at the representative office are made by a United States office of the bank; and
(C)  the loan proceeds are not disbursed in the representative office; and
(3)  other functions for or on behalf of the foreign bank or its affiliates, including operating as a regional administrative office of the foreign bank, but only to the extent that the functions are not banking activities and are not prohibited by applicable federal or state law.
(b)  Repealed by Acts 2017, 85th Leg., R.S., Ch. 915 (S.B. 1400), Sec. 6, eff. September 1, 2017.
(c)  Repealed by Acts 2017, 85th Leg., R.S., Ch. 915 (S.B. 1400), Sec. 6, eff. September 1, 2017.
(d)  Repealed by Acts 2017, 85th Leg., R.S., Ch. 915 (S.B. 1400), Sec. 6, eff. September 1, 2017.
Added by Acts 1999, 76th Leg., ch. 344, Sec. 1.001, eff. Sept. 1, 1999.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 915 (S.B. 1400), Sec. 5, eff. September 1, 2017.
Acts 2017, 85th Leg., R.S., Ch. 915 (S.B. 1400), Sec. 6, eff. September 1, 2017.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle G - Bank Holding Companies; Interstate Bank Operations › Chapter 204 - Foreign Banks › Subchapter C. Representative Offices of Foreign Bank › Section 204.204. Enforcement

Sec. 204.204.  ENFORCEMENT.  The commissioner may initiate an enforcement action under Chapter 35 or a proceeding to revoke the registration of a representative office if the commissioner by examination or other credible evidence finds that the foreign bank:
(1)  has refused to permit the commissioner to examine the books, papers, accounts, records, or affairs of a Texas representative office in accordance with Sections 204.002 and 204.003;
(2)  has violated this subtitle, another law or rule applicable to a foreign bank or a Texas representative office, or a final and enforceable order of the commissioner or the finance commission;
(3)  has misrepresented or concealed a material fact in the original registration;
(4)  has violated a condition of an agreement between the foreign bank and the commissioner, a bank supervisory agency, or another state regulatory agency;  or
(5)  conducts business in an unsafe and unsound manner.
Added by Acts 1999, 76th Leg., ch. 344, Sec. 1.001, eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle G - Bank Holding Companies; Interstate Bank Operations › Chapter 204 - Foreign Banks › Subchapter C. Representative Offices of Foreign Bank › Section 204.205. Procedure for Revocation

Sec. 204.205.  PROCEDURE FOR REVOCATION.  (a)  Notice of a revocation proceeding must:
(1)  be in the form of a proposed order;
(2)  be served on the foreign bank by personal delivery or registered or certified mail, return receipt requested, to a director, officer, or employee of the foreign bank at a Texas representative office location, or to the registered agent of the foreign bank;
(3)  state the effective date of the proposed order, which may not be before the 21st day after the date the proposed order is mailed or delivered;  and
(4)  state the grounds for the proposed revocation with reasonable certainty.
(b)  Unless the foreign bank requests a hearing in writing on or before the effective date of the proposed order, the order takes effect as proposed and is final and nonappealable.
(c)  A hearing requested on a proposed order shall be held not later than the 30th day after the date the written request for hearing is received by the commissioner unless the parties agree to a later hearing date.  The department shall participate as the opposing party, and the commissioner shall conduct the hearing and one or more prehearing conferences and opportunities for discovery as the commissioner considers advisable and consistent with applicable statutes and rules.  During the pendency of the hearing and unless the commissioner gives prior written approval, the foreign bank may not accept new business from this state.
(d)  Information relating to the financial condition and business affairs of the foreign bank, except previously published statements and information, is confidential and may not be considered in the public portion of the hearing or disclosed by the commissioner or an employee of the department except as provided by Subchapter D, Chapter 31.
(e)  Based on the record, the commissioner shall issue or refuse to issue the proposed order.  An issued order may contain modifications indicated by the record to be necessary or desirable, including modifications to impose penalties available under Chapter 35 in lieu of revocation of registration.
Added by Acts 1999, 76th Leg., ch. 344, Sec. 1.001, eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle G - Bank Holding Companies; Interstate Bank Operations › Chapter 204 - Foreign Banks › Subchapter C. Representative Offices of Foreign Bank › Section 204.206. Effect of Revoked Registration

Sec. 204.206.  EFFECT OF REVOKED REGISTRATION.  A foreign bank that has had its registration under this subchapter revoked shall cease all activities in this state.  Continued activity in this state of an unregistered foreign bank is subject to Subchapter C, Chapter 35.
Added by Acts 1999, 76th Leg., ch. 344, Sec. 1.001, eff. Sept. 1, 1999.