reglab/statecodes huggingface dataset:
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 186 - Dissolution and Receivership › Subchapter C. Involuntary Dissolution and Liquidation › Section 186.221. Court-Ordered Audit

Sec. 186.221.  COURT-ORDERED AUDIT.  (a)  The court may order an audit of the books and records of the receiver that relate to the receivership.  A report of an audit ordered under this section shall be filed with the court.  The receiver shall make the books and records relating to the receivership available to the auditor as required by the court order.
(b)  The receiver shall pay the expenses of an audit ordered under this section as an administrative expense.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 186 - Dissolution and Receivership › Subchapter C. Involuntary Dissolution and Liquidation › Section 186.222. Safe Deposits and Other Bailments

Sec. 186.222.  SAFE DEPOSITS AND OTHER BAILMENTS.  (a)  A contract between the state trust company and another person for bailment, of deposit for hire, or for the lease of a safe, vault, or box ceases on the date specified for removal of property in the notices that were published and mailed or a later date approved by the receiver or the court.  A person who has paid rental or storage charges for a period extending beyond the date designated for removal of property has a claim against the state trust company estate for a refund of the unearned amount paid.
(b)  If the property is not removed by the date the contract ceases, the receiver shall inventory the property.  In making the inventory, the receiver may open a safe, vault, or box, or any package, parcel, or receptacle, in the custody or possession of the receiver.  The property shall be marked to identify, to the extent possible, its owner or the person who left it with the state trust company.  After all property belonging to others that is in the receiver's custody and control has been inventoried, the receiver shall compile a master list that is divided for each office of the state trust company that received property that remains unclaimed.  The receiver shall publish, in a newspaper of general circulation in each community in which the state trust company had an office that received property that remains unclaimed, the list and the names of the owners of the property as shown in the state trust company's records.  The published notice shall specify a procedure for claiming the property unless the court, on application of the receiver, approves an alternate procedure.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 186 - Dissolution and Receivership › Subchapter C. Involuntary Dissolution and Liquidation › Section 186.223. Fiduciary Activities

Sec. 186.223.  FIDUCIARY ACTIVITIES.  (a)  As soon after beginning the receivership proceeding as is practicable, the receiver shall:
(1)  terminate all fiduciary positions the state trust company holds;
(2)  surrender all property held by the state trust company as a fiduciary;  and
(3)  settle the state trust company's fiduciary accounts.
(b)  The receiver shall release all segregated and identifiable fiduciary property held by the state trust company to successor fiduciaries.
(c)  With the approval of the court, the receiver may sell the administration of all or substantially all remaining fiduciary accounts to one or more successor fiduciaries on terms that appear to be in the best interest of the state trust company's estate and the persons interested in the fiduciary accounts.
(d)  If commingled fiduciary money held by the state trust company as trustee is insufficient to satisfy all fiduciary claims to the commingled money, the receiver shall distribute commingled money pro rata to all fiduciary claimants of commingled money based on their proportionate interests after payment of administrative expenses related solely to the fiduciary claims.  The fictional tracing rule does not apply.
(e)  The receiver may require a fiduciary claimant to file a proof of claim if the records of the state trust company are insufficient to identify the claimant's interest.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 186 - Dissolution and Receivership › Subchapter C. Involuntary Dissolution and Liquidation › Section 186.224. Disposition and Maintenance of Records

Sec. 186.224.  DISPOSITION AND MAINTENANCE OF RECORDS.  (a)  On approval by the court, the receiver may dispose of records of the state trust company in liquidation that are obsolete and unnecessary to the continued administration of the receivership proceeding.
(b)  The receiver may devise a method for the effective, efficient, and economical maintenance of the records of the state trust company and of the receiver's office.  The methods may include maintaining those records on any medium approved by the records management division of the Texas State Library.
(c)  To maintain the records of the liquidated state trust company after the closing of the receivership proceeding, the receiver may reserve assets of an estate, deposit them in an account, and use them for maintenance, storage, and disposal of records in closed receivership estates.
(d)  Records of a liquidated state trust company are not government records for any purpose, including Chapter 552, Government Code, but shall be preserved and disposed of as if they were records of the department under Chapter 441, Government Code.  Those records are confidential as provided by:
(1)  Section 59.006;
(2)  Subchapter D, Chapter 181;  and
(3)  rules adopted under this subtitle.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.  Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 6.103(g), eff. Sept. 1, 2001.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 186 - Dissolution and Receivership › Subchapter C. Involuntary Dissolution and Liquidation › Section 186.225. Records Admitted

Sec. 186.225.  RECORDS ADMITTED.  (a)  A record of a state trust company in liquidation obtained by the receiver and held in the course of the receivership proceeding or a certified copy of the record under the official seal of the receiver is admissible in evidence in all cases without proof of correctness or other proof, except the certificate of the receiver that the record was received from the custody of the state trust company or found among its effects.
(b)  The receiver may certify the correctness of a record of the receiver's office, including a record described by Subsection (a), and may certify any fact contained in the record.  The record is admissible in evidence in all cases in which the original would be evidence.
(c)  The original record or a certified copy of the record is prima facie evidence of the facts it contains.
(d)  A copy of an original record or another record that is maintained on a medium approved by the records management division of the Texas State Library, within the scope of this section, and produced by the receiver or the receiver's authorized representative under this section:
(1)  has the same effect as the original record;  and
(2)  may be used the same as the original record in a judicial or administrative proceeding in this state.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 186 - Dissolution and Receivership › Subchapter C. Involuntary Dissolution and Liquidation › Section 186.226. Resumption of Business

Sec. 186.226.  RESUMPTION OF BUSINESS.  (a)  A state trust company closed under Section 186.201 may not be reopened without the approval of the banking commissioner unless a contest of liquidation under Section 186.204 is finally resolved adversely to the banking commissioner and the court authorizes its reopening.
(b)  The banking commissioner may place temporary limits on the right of withdrawals by, or payments to, individual clients and creditors of a state trust company reopened under this section, in accordance with applicable law.
(c)  As a depositor or creditor of a reopened state trust company, this state or a political subdivision of this state may agree to temporary limits that the banking commissioner places on payments or withdrawals.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 186 - Dissolution and Receivership › Subchapter C. Involuntary Dissolution and Liquidation › Section 186.227. Assets Discovered After Close of Receivership

Sec. 186.227.  ASSETS DISCOVERED AFTER CLOSE OF RECEIVERSHIP.  (a)  The banking commissioner shall report to the court discovery of an asset having value that:
(1)  the banking commissioner discovers after the receivership was closed by final order of the court;  and
(2)  was abandoned as worthless or unknown during receivership.
(b)  The court may reopen the receivership proceeding for continued liquidation if the value of the after-discovered assets justifies the reopening.
(c)  If the banking commissioner suspects that the information concerning after-disclosed assets may have been intentionally or fraudulently concealed, the banking commissioner shall notify appropriate civil and criminal authorities to determine any applicable penalties.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 186 - Dissolution and Receivership › Subchapter D. Claims Against Receivership Estate › Section 186.301. Filing Claim

Sec. 186.301.  FILING CLAIM.  (a)  This section applies only to a claim by a person, other than a shareholder, participant, or participant-transferee acting in that capacity, who has a claim against a state trust company in liquidation, including a claimant with a secured claim or a claimant under a fiduciary relationship that has been ordered by the receiver to file a claim pursuant to Section 186.223.
(b)  To receive payment of a claim, the person must present proof of the claim to the receiver:
(1)  at a place specified by the receiver;  and
(2)  within the period specified by the receiver under Section 186.205.
(c)  Receipt of the required proof of claim by the receiver is a condition precedent to the payment of the claim.
(d)  A claim that is not filed within the period specified by the receiver may not participate in a distribution of the assets by the receiver, except that, subject to court approval, the receiver may accept a claim filed not later than the 180th day after the date notice of the claimant's right to file a proof of claim is mailed to the claimant.
(e)  A claim accepted under this section and approved is subordinate to an approved claim of a general creditor.
(f)  Interest does not accrue on a claim after the date the state trust company is closed for liquidation.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 186 - Dissolution and Receivership › Subchapter D. Claims Against Receivership Estate › Section 186.302. Proof of Claim

Sec. 186.302.  PROOF OF CLAIM.  (a)  A proof of claim must be in writing, be signed by the claimant, and include:
(1)  a statement of the claim;
(2)  a description of the consideration for the claim;
(3)  a statement of whether collateral is held or a security interest is asserted against the claim and, if so, a description of the collateral or security interest;
(4)  a statement of any right of priority of payment for the claim or other specific right asserted by the claimant;
(5)  a statement of whether a payment has been made on the claim and, if so, the amount and source of the payment, to the extent known by the claimant;
(6)  a statement that the amount claimed is justly owed by the state trust company in liquidation to the claimant;  and
(7)  any other matter that is required by the court.
(b)  The receiver may designate the form of the proof of claim.  A proof of claim must be filed under oath unless the oath is waived by the receiver.  A proof of claim filed with the receiver is considered filed in an official proceeding for purposes of Chapter 37, Penal Code.
(c)  If a claim is founded on a written instrument, the original instrument, unless lost or destroyed, must be filed with the proof of claim.  After the instrument is filed, the receiver may permit the claimant to substitute a copy of the instrument until the final disposition of the claim.  If the instrument is lost or destroyed, a statement of that fact and of the circumstances of the loss or destruction must be filed under oath with the claim.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 186 - Dissolution and Receivership › Subchapter D. Claims Against Receivership Estate › Section 186.303. Judgment as Proof of Claim

Sec. 186.303.  JUDGMENT AS PROOF OF CLAIM.  (a)  A judgment entered against a state trust company in liquidation before the date the state trust company was closed for liquidation may not be given higher priority than a claim of an unsecured creditor unless the judgment creditor in a proof of claim proves the allegations supporting the judgment to the receiver's satisfaction.
(b)  A judgment against the state trust company taken by default or by collusion before the date the state trust company was closed for liquidation may not be considered as conclusive evidence of the liability of the state trust company to the judgment creditor or of the amount of damages to which the judgment creditor is entitled.
(c)  A judgment against the state trust company entered after the date the state trust company was closed for liquidation may not be considered as evidence of liability or of the amount of damages.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 186 - Dissolution and Receivership › Subchapter D. Claims Against Receivership Estate › Section 186.304. Secured Claim

Sec. 186.304.  SECURED CLAIM.  (a)  The owner of a secured deposit may file a claim as a creditor against a state trust company in liquidation.  The value of security shall be determined under supervision of the court by converting the security into money.
(b)  The owner of a secured claim against a state trust company in liquidation may:
(1)  surrender the security and file a claim as a general creditor;  or
(2)  apply the security to the claim and discharge the claim.
(c)  If the owner applies the security and discharges the claim under Subsection (b), any deficiency shall be treated as a claim against the general assets of the state trust company on the same basis as a claim of an unsecured creditor.  The amount of the deficiency shall be determined as provided by Section 186.305, except that if the amount of the deficiency has been adjudicated by a court in a proceeding in which the receiver has had notice and an opportunity to be heard, the court's decision is conclusive as to the amount.
(d)  The value of security held by a secured creditor shall be determined under supervision of the court by:
(1)  converting the security into money according to the terms of the agreement under which the security was delivered to the creditor;  or
(2)  agreement, arbitration, compromise, or litigation between the creditor and the receiver.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 186 - Dissolution and Receivership › Subchapter D. Claims Against Receivership Estate › Section 186.305. Unliquidated or Undetermined Claim

Sec. 186.305.  UNLIQUIDATED OR UNDETERMINED CLAIM.  (a)  A claim based on an unliquidated or undetermined demand shall be filed within the period provided by Subchapter C for the filing of a claim.  The claim may not share in any distribution to claimants until the claim is definitely liquidated, determined, and allowed.  After the claim is liquidated, determined, and allowed, the claim shares ratably with the claims of the same class in all subsequent distributions.
(b)  For the purposes of this section, a demand is considered unliquidated or undetermined if the right of action on the demand accrued while a state trust company was closed for liquidation and the liability on the demand has not been determined or the amount of the demand has not been liquidated.
(c)  If the receiver in all other respects is in a position to close the receivership proceeding, the proposed closing is sufficient grounds for the rejection of any remaining claim based on an unliquidated or undetermined demand.  The receiver shall notify the claimant of the intention to close the proceeding.  If the demand is not liquidated or determined before the 61st day after the date of the notice, the receiver may reject the claim.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 186 - Dissolution and Receivership › Subchapter D. Claims Against Receivership Estate › Section 186.306. Set-Off

Sec. 186.306.  SET-OFF.  (a)  Mutual credits and mutual debts shall be set off and only the balance allowed or paid, except that a set-off may not be allowed in favor of a person if:
(1)  the obligation of a state trust company to the person on the date the state trust company was closed for liquidation did not entitle the person to share as a claimant in the assets of the state trust company;
(2)  the obligation of the state trust company to the person was purchased by or transferred to the person after the date the state trust company was closed for liquidation or for the purpose of increasing set-off rights;  or
(3)  the obligation of the person or the state trust company is as a trustee or fiduciary.
(b)  On request, the receiver shall provide a person with an accounting statement identifying each debt that is due and payable.  A person who owes a state trust company an amount that is due and payable against which the person asserts set-off of mutual credits that may become due and payable from the state trust company in the future shall promptly pay to the receiver the amount due and payable.  The receiver shall promptly refund, to the extent of the person's prior payment, mutual credits that become due and payable to the person by the state trust company in liquidation.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 186 - Dissolution and Receivership › Subchapter D. Claims Against Receivership Estate › Section 186.307. Action on Claim

Sec. 186.307.  ACTION ON CLAIM.  (a)  Not later than six months after the last day permitted for the filing of claims or a later date allowed by the court, the receiver shall accept or reject in whole or in part each claim filed against the state trust company in liquidation, except for an unliquidated or undetermined claim governed by Section 186.305.  The receiver shall reject a claim if the receiver doubts its validity.
(b)  The receiver shall mail written notice to each claimant, specifying the disposition of the person's claim.  If a claim is rejected in whole or in part, the receiver in the notice shall specify the basis for rejection and advise the claimant of the procedures and deadline for appeal.
(c)  The receiver shall send each claimant a summary schedule of approved and rejected claims by priority class and notify the claimant:
(1)  that a copy of a schedule of claims disposition including only the name of the claimant, the amount of the claim allowed, and the amount of the claim rejected is available on request;  and
(2)  of the procedure and deadline for filing an objection to an approved claim.
(d)  The receiver or an agent or employee of the receiver, including an employee of the department, is not liable, and a cause of action may not be brought against the person, for an act or omission of the person relating to the adjustment, negotiation, or settlement of a claim.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 186 - Dissolution and Receivership › Subchapter D. Claims Against Receivership Estate › Section 186.308. Objection to Approved Claim

Sec. 186.308.  OBJECTION TO APPROVED CLAIM.  The receiver with court approval shall set a deadline for an objection to an approved claim.  On or before that date a depositor, creditor, other claimant, shareholder, participant, or participant-transferee of the state trust company may file an objection to an approved claim.  The objection shall be heard and determined by the court.  If the objection is sustained, the court shall direct an appropriate modification of the schedule of claims.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 186 - Dissolution and Receivership › Subchapter D. Claims Against Receivership Estate › Section 186.309. Appeal of Rejected Claim

Sec. 186.309.  APPEAL OF REJECTED CLAIM.  (a)  The receiver's rejection of a claim may be appealed in the court in which the receivership proceeding is pending.  The appeal must be brought within three months after the date of service of notice of the rejection.
(b)  If the appeal is timely brought, review is de novo as if it were an action originally filed in the court, and is subject to the rules of procedure and appeal applicable to civil cases.  An action to appeal rejection of a claim by the receiver is separate from the receivership proceeding, and may not be initiated by a claimant intervening in the receivership proceeding.
(c)  If the action is not timely brought, the action of the receiver is final and not subject to review.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 186 - Dissolution and Receivership › Subchapter D. Claims Against Receivership Estate › Section 186.310. Payment of Claim

Sec. 186.310.  PAYMENT OF CLAIM.  (a)  Except as expressly provided otherwise by this subchapter or Subchapter C, without the approval of the court the receiver may not make a payment on a claim, other than a claim for an obligation incurred by the receiver for administrative expenses.
(b)  The banking commissioner shall deposit in one or more banks located in this state all money available for the benefit of nonclaiming depositors and creditors.  The banking commissioner shall pay the depositors or creditors on demand any amount held for their benefit.
(c)  The receiver may periodically make partial distribution to the holders of approved claims if:
(1)  all objections have been heard and decided as provided by Section 186.308;
(2)  the time for filing appeals has expired as provided by Section 186.309;
(3)  money has been made available to provide for the payment of all nonclaiming depositors and creditors in accordance with Subsection (b);  and
(4)  a proper reserve is established for the pro rata payment of:
(A)  rejected claims that have been appealed;  and
(B)  any claims based on unliquidated or undetermined demands governed by Section 186.305.
(d)  As soon as practicable after the determination of all objections, appeals, and claims based on previously unliquidated or undetermined demands governed by Section 186.305 and money has been made available to provide for the payment of all nonclaiming depositors and creditors in accordance with Subsection (b), the receiver shall distribute the assets of the state trust company in satisfaction of approved claims other than claims asserted in a person's capacity as a shareholder, participant, or participant-transferee.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 186 - Dissolution and Receivership › Subchapter D. Claims Against Receivership Estate › Section 186.311. Priority of Claims Against Insured State Trust Company

Sec. 186.311.  PRIORITY OF CLAIMS AGAINST INSURED STATE TRUST COMPANY.  The distribution of assets from the estate of a state trust company the trust deposits of which are insured by the Federal Deposit Insurance Corporation or its successor shall be made in the same order of priority as assets would be distributed on liquidation or purchase of assets and assumption of liabilities of a national bank under federal law.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 186 - Dissolution and Receivership › Subchapter D. Claims Against Receivership Estate › Section 186.312. Priority of Claims Against Uninsured State Trust Company

Sec. 186.312.  PRIORITY OF CLAIMS AGAINST UNINSURED STATE TRUST COMPANY.  (a)  The priority of distribution of assets from the estate of a state trust company the trust deposits of which are not insured by the Federal Deposit Insurance Corporation or its successor shall be in accordance with the order of each class as provided by this section.  Every claim in each class shall be paid in full, or adequate money shall be retained for that payment, before a member of the next class may receive any payment.  A subclass may not be established within a class, except for a preference or subordination within a class expressly created by contract or other instrument or in the certificate of formation.
(b)  Assets shall be distributed in the following order of priority:
(1)  administrative expenses;
(2)  approved claims of secured trust deposits to the extent of the value of the security as provided by Section 186.304(a);
(3)  approved claims of secured creditors to the extent of the value of the security as provided by Section 186.304(b);
(4)  approved claims by beneficiaries of insufficient commingled fiduciary money or missing fiduciary property and approved claims of clients of the state trust company;
(5)  other approved claims of general creditors not falling within a higher priority under this section, including unsecured claims for taxes and debts due the federal government or a state or local government;
(6)  approved claims of a type described by Subdivisions (1)-(5) that were not filed within the period prescribed by this subchapter;  and
(7)  claims of capital note or debenture holders or holders of similar obligations and proprietary claims of shareholders, participants, participant-transferees, or other owners according to the terms established by issue, class, or series.
(c)  Subject to Sections 186.310 and 186.313, the banking commissioner may make a ratable distribution to approved claimants within a particular class or priority if:
(1)  all timely filed and approved claims of a higher priority have been satisfied;  and
(2)  there is insufficient money to fully satisfy all of those claims, after reserving money for administrative expenses as necessary.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 575 (S.B. 804), Sec. 34, eff. June 14, 2013.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 186 - Dissolution and Receivership › Subchapter D. Claims Against Receivership Estate › Section 186.313. Excess Assets

Sec. 186.313.  EXCESS ASSETS.  (a)  If state trust company assets remain after the receiver has provided for unclaimed distributions and all of the liabilities of the state trust company in liquidation, the receiver shall distribute the remaining assets to the shareholders or participants of the state trust company.
(b)  If the remaining assets are not liquid or if they otherwise require continuing administration, the receiver may call a meeting of the shareholders or participants and participant-transferees of the state trust company.  The receiver shall give notice of the meeting:
(1)  in a newspaper of general circulation in the county where the home office of the state trust company was located;  and
(2)  by written notice to the shareholders or participants and participant-transferees of record at their last known addresses.
(c)  At the meeting, the shareholders or participants shall appoint one or more agents to take over the affairs to continue the liquidation for the benefit of the shareholders or participants and participant-transferees.  Voting privileges are governed by the state trust company's bylaws and certificate of formation.  If a quorum cannot be obtained at the meeting, the banking commissioner shall appoint an agent.  An agent appointed under this subsection shall execute and file with the court a bond approved by the court, conditioned on the faithful performance of all the duties of the trust.
(d)  Under order of the court the receiver shall transfer and deliver to one or more agents for continued liquidation under the court's supervision all assets of the state trust company remaining in the receiver's hands.  The court shall discharge the receiver from further liability to the state trust company and its clients, creditors, shareholders, participants, and participant-transferees.
(e)  The state trust company may not resume business and the charter of the state trust company is void on the date the court issues the order directing the receiver to transfer and deliver the remaining assets of the state trust company to one or more agents.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 575 (S.B. 804), Sec. 35, eff. June 14, 2013.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 186 - Dissolution and Receivership › Subchapter D. Claims Against Receivership Estate › Section 186.314. Unclaimed Property

Sec. 186.314.  UNCLAIMED PROPERTY.  After completion of the liquidation, any unclaimed property remaining with the receiver shall be delivered to the comptroller as provided by Chapter 74, Property Code.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 187 - Multistate Trust Business › Subchapter A. General Provisions › Section 187.002. Companies Authorized to Conduct a Trust Business

Sec. 187.002.  COMPANIES AUTHORIZED TO CONDUCT A TRUST BUSINESS.  (a)  A company may not conduct a trust business in this state unless the company is a trust institution and is:
(1)  a state trust company chartered pursuant to this subtitle;
(2)  a bank, savings association, savings bank, or credit union that maintains its principal office or a branch in this state in accordance with governing law, or another office in this state with the power to conduct a trust business to the extent permitted by rule;
(3)  a trust company chartered under the laws of another state or a foreign country that has a trust office in this state licensed by the banking commissioner pursuant to this chapter;  or
(4)  a foreign bank with an office in this state that is authorized to act as a fiduciary pursuant to Section 204.106.
(b)  Notwithstanding Subsection (a), a trust institution that does not maintain a principal office, branch, or trust office in this state may act as a fiduciary in this state to the extent permitted by Subchapter A, Chapter 505, Estates Code.
(c)  A company does not engage in the trust business in this state in a manner requiring a charter or license under this subtitle by engaging in an activity identified in Section 182.021, except that the registration requirements of Section 187.202 may apply to a trust representative office engaging in the activity.
Added by Acts 2001, 77th Leg., ch. 1420, Sec. 6.001(a), eff. Sept. 1, 2001.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 1236 (S.B. 1296), Sec. 20.017, eff. September 1, 2015.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 187 - Multistate Trust Business › Subchapter A. General Provisions › Section 187.003. Interstate Trust Business of State Trust Company

Sec. 187.003.  INTERSTATE TRUST BUSINESS OF STATE TRUST COMPANY.  Subject to the approval of the banking commissioner pursuant to Section 182.203, a state trust company may engage in the trust business in another state or a foreign country at a trust office or a trust representative office to the extent permitted by and subject to applicable laws of the state or foreign country.
Added by Acts 2001, 77th Leg., ch. 1420, Sec. 6.001(a), eff. Sept. 1, 2001.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 187 - Multistate Trust Business › Subchapter A. General Provisions › Section 187.004. Trust Business of Out-of-State Trust Company

Sec. 187.004.  TRUST BUSINESS OF OUT-OF-STATE TRUST COMPANY.  (a)  An out-of-state trust company that establishes or maintains an office in this state under this chapter may conduct any activity at the office that would be authorized under the laws of this state for a state trust company to conduct at the office.
(b)  Before establishing an office in this state, an out-of-state trust company must comply with Section 201.102.
Added by Acts 2001, 77th Leg., ch. 1420, Sec. 6.001(a), eff. Sept. 1, 2001.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 187 - Multistate Trust Business › Subchapter A. General Provisions › Section 187.005. Designation of Trustee and Governing Law

Sec. 187.005.  DESIGNATION OF TRUSTEE AND GOVERNING LAW.  (a)  Unless another law restricts the designation of trustee, a person residing in this state may designate a trust institution to act as a fiduciary on behalf of the person.
(b)  Unless another law specifies governing law, if a trust or its subject matter bears a reasonable relation to this state and also to another state or a foreign country, a trust institution and its affected client may agree that the law of this state or of the other state or country governs their rights and duties, including the law of a state or a foreign country where the affected client resides or where the trust institution has its principal office.
(c)  Repealed by Acts 2007, 80th Leg., R.S., Ch. 451, Sec. 21, eff. September 1, 2007.
Added by Acts 2001, 77th Leg., ch. 1420, Sec. 6.001(a), eff. Sept. 1, 2001.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 451 (H.B. 564), Sec. 1, eff. September 1, 2007.
Acts 2007, 80th Leg., R.S., Ch. 451 (H.B. 564), Sec. 21, eff. September 1, 2007.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 187 - Multistate Trust Business › Subchapter A. General Provisions › Section 187.006. Taxation

Sec. 187.006.  TAXATION.  An out-of-state trust institution doing business in this state is subject to the franchise tax to the extent provided by Chapter 171, Tax Code.
Added by Acts 2001, 77th Leg., ch. 1420, Sec. 6.001(a), eff. Sept. 1, 2001.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 187 - Multistate Trust Business › Subchapter A. General Provisions › Section 187.007. Severability

Sec. 187.007.  SEVERABILITY.  The provisions of this chapter or applications of those provisions are severable as provided by Section 312.013, Government Code.
Added by Acts 2001, 77th Leg., ch. 1420, Sec. 6.001(a), eff. Sept. 1, 2001.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 187 - Multistate Trust Business › Subchapter B. Out-of-State Trust Company Trust Office › Section 187.101. Trust Offices in This State

Sec. 187.101.  TRUST OFFICES IN THIS STATE.  An out-of-state trust company may engage in a trust business at an office in this state only if it establishes and maintains a trust office in this state as permitted by this subchapter.
Added by Acts 2001, 77th Leg., ch. 1420, Sec. 6.001(a), eff. Sept. 1, 2001.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 187 - Multistate Trust Business › Subchapter B. Out-of-State Trust Company Trust Office › Section 187.102. Establishing an Interstate Trust Office

Sec. 187.102.  ESTABLISHING AN INTERSTATE TRUST OFFICE.  (a)  An out-of-state trust company that does not operate a trust office in this state may not establish and maintain a de novo trust office in this state unless:
(1)  a state trust company would be permitted to establish a de novo trust office in the home state or foreign country of the out-of-state trust company;  and
(2)  a bank whose home state is this state would be permitted to establish a de novo branch in the home state or foreign country of the out-of-state trust company.
(b)  Subject to Subsection (a), a de novo trust office may be established in this state under this section through the acquisition of a trust office in this state of an existing trust institution.
Added by Acts 2001, 77th Leg., ch. 1420, Sec. 6.001(a), eff. Sept. 1, 2001.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 187 - Multistate Trust Business › Subchapter B. Out-of-State Trust Company Trust Office › Section 187.103. Acquiring an Interstate Trust Office

Sec. 187.103.  ACQUIRING AN INTERSTATE TRUST OFFICE.  (a)  An out-of-state trust company that does not operate a trust office in this state and that meets the requirements of this subchapter may acquire an existing trust institution in this state and after the acquisition operate and maintain the acquired institution as a trust office in this state, subject to Subchapter A, Chapter 183, or Subchapter A, Chapter 33, if applicable.
(b)  An out-of-state trust institution that does not operate a trust office in this state may not establish and maintain a trust office in this state through the acquisition of a trust office of an existing trust institution except as provided by Section 187.102.  This section does not affect or prohibit a trust institution or other person from chartering a state trust company pursuant to Section 182.001.
Added by Acts 2001, 77th Leg., ch. 1420, Sec. 6.001(a), eff. Sept. 1, 2001.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 940 (H.B. 1664), Sec. 17, eff. June 14, 2013.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 187 - Multistate Trust Business › Subchapter B. Out-of-State Trust Company Trust Office › Section 187.104. Requirement of Notice

Sec. 187.104.  REQUIREMENT OF NOTICE.  An out-of-state trust company desiring to establish and maintain a de novo trust office or acquire an existing trust institution in this state and to operate and maintain the acquired institution as a trust office pursuant to this subchapter shall provide written notice of the proposed transaction to the banking commissioner on or after the date on which the out-of-state trust company applies to the home state regulator for approval to establish and maintain or acquire the trust office.  The filing of the notice shall be preceded or accompanied by a copy of the resolution adopted by the board authorizing the additional office and the filing fee, if any, prescribed by law.  The written notice must contain sufficient information to enable an informed decision under Section 187.105.
Added by Acts 2001, 77th Leg., ch. 1420, Sec. 6.001(a), eff. Sept. 1, 2001.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 187 - Multistate Trust Business › Subchapter B. Out-of-State Trust Company Trust Office › Section 187.105. Conditions for Approval

Sec. 187.105.  CONDITIONS FOR APPROVAL.  (a)  A trust office of an out-of-state trust company may be acquired or established in this state under this subchapter if:
(1)  the out-of-state trust company confirms in writing to the banking commissioner that while it maintains a trust office in this state, it will comply with all applicable laws of this state;
(2)  the out-of-state trust company provides satisfactory evidence to the banking commissioner of compliance with Section 201.102 and the applicable requirements of its home state regulator for acquiring or establishing and maintaining the office;
(3)  all filing fees have been paid as required by law; and
(4)  the banking commissioner finds that:
(A)  applicable conditions of Section 187.102 or 187.103 have been met;
(B)  if a state bank is being acquired, the applicable requirements of Subchapter A, Chapter 33 have been met, or if a state trust company is being acquired, the applicable requirements of Subchapter A, Chapter 183 have been met; and
(C)  any conditions imposed by the banking commissioner pursuant to Subsection (b) have been satisfied.
(b)  The banking commissioner may condition approval of a trust office on compliance by the out-of-state trust company with any requirement applicable to formation of a state trust company pursuant to Sections 182.003(b) and 182.007.
(c)  If all requirements of Subsection (a) have been met, the out-of-state trust company may commence business at the trust office on the 61st day after the date the banking commissioner notifies the company that the notice required by Section 187.104 has been accepted for filing, unless the banking commissioner specifies an earlier or later date.
(d)  The 60-day period of review may be extended by the banking commissioner on a determination that the written notice raises issues that require additional information or additional time for analysis.  If the period of review is extended, the out-of-state trust company may establish the office only on prior written approval by the banking commissioner.
(e)  If all requirements of Subsection (a) have been met, the banking commissioner may otherwise deny approval of the office if the banking commissioner finds that the out-of-state trust company lacks sufficient financial resources to undertake the proposed expansion without adversely affecting its safety or soundness or that the proposed office is contrary to the public interest.  In acting on the notice, the banking commissioner shall consider the views of the appropriate supervisory agencies.
Added by Acts 2001, 77th Leg., ch. 1420, Sec. 6.001(a), eff. Sept. 1, 2001.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 940 (H.B. 1664), Sec. 18, eff. June 14, 2013.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 187 - Multistate Trust Business › Subchapter B. Out-of-State Trust Company Trust Office › Section 187.106. Additional Trust Offices

Sec. 187.106.  ADDITIONAL TRUST OFFICES.  An out-of-state trust company that maintains a trust office in this state under this subchapter may establish or acquire additional trust offices or representative trust offices in this state to the same extent that a state trust company may establish or acquire additional offices in this state pursuant to the procedures for establishing or acquiring the offices set forth in Section 182.203.
Added by Acts 2001, 77th Leg., ch. 1420, Sec. 6.001(a), eff. Sept. 1, 2001.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle F - Trust Companies › Chapter 187 - Multistate Trust Business › Subchapter C. Out-of-State Trust Institution Representative Trust Office › Section 187.201. Representative Trust Office Business

Sec. 187.201.  REPRESENTATIVE TRUST OFFICE BUSINESS.  (a)  An out-of-state trust institution may establish a representative trust office as permitted by this subchapter to:
(1)  solicit, but not accept, fiduciary appointments;
(2)  act as a fiduciary in this state to the extent permitted for a foreign corporate fiduciary by Subchapter A, Chapter 505, Estates Code;
(3)  perform ministerial duties with respect to existing clients and accounts of the trust institution;
(4)  engage in an activity permitted by Section 182.021; and
(5)  to the extent the office is not acting as a fiduciary:
(A)  receive for safekeeping personal property of every description;
(B)  act as assignee, bailee, conservator, custodian, escrow agent, registrar, receiver, or transfer agent; and
(C)  act as financial advisor, investment advisor or manager, agent, or attorney-in-fact in any agreed capacity.
(b)  Except as provided by Subsection (a), a trust representative office may not act as a fiduciary or otherwise engage in the trust business in this state.
(c)  Subject to the requirements of this subchapter, an out-of-state trust institution may establish and maintain representative trust offices anywhere in this state.
Added by Acts 2001, 77th Leg., ch. 1420, Sec. 6.001(a), eff. Sept. 1, 2001.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 1236 (S.B. 1296), Sec. 20.018, eff. September 1, 2015.