reglab/statecodes huggingface dataset:
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 4 - DEPARTMENT OF SAVINGS AND MORTGAGE LENDING › Chapter 75 - SAVINGS BANKS › Subchapter C - OPERATIONS › Division 2 - BOOKS, RECORDS, ACCOUNTING PRACTICES, FINANCIAL STATEMENTS, AND RESOURCES › Section 75.223 - Financial Statements; Annual Reports; Audits

Current through Reg. 49, No. 28; July 12, 2024
For safety and soundness purposes, no later than 90 days
						after its fiscal year end, each savings bank is required to submit to the
						Department the results and findings of an independent audit of its financial
						statements and all correspondence reasonably related to the audit. The audit is
						to be performed in accordance with generally accepted auditing standards and
						the provisions of the FDIC set forth in
						12 C.F.R. §
												363.2 and §
											363.3,
						with the exception of any matters specifically addressed by this section, the
						Texas Savings Bank Act, or the rules (regulations) adopted
						thereunder.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 4 - DEPARTMENT OF SAVINGS AND MORTGAGE LENDING › Chapter 75 - SAVINGS BANKS › Subchapter C - OPERATIONS › Division 2 - BOOKS, RECORDS, ACCOUNTING PRACTICES, FINANCIAL STATEMENTS, AND RESOURCES › Section 75.224 - Misdescription of Transactions

Current through Reg. 49, No. 28; July 12, 2024
No savings bank may, either directly or indirectly,
						knowingly make any entry on its books that is not accurate or otherwise fails
						to appropriately describe the transaction, or withholds information material to
						the transaction.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 4 - DEPARTMENT OF SAVINGS AND MORTGAGE LENDING › Chapter 75 - SAVINGS BANKS › Subchapter C - OPERATIONS › Division 2 - BOOKS, RECORDS, ACCOUNTING PRACTICES, FINANCIAL STATEMENTS, AND RESOURCES › Section 75.225 - Charging Off or Setting Up Reserves Against Bad Debts

Current through Reg. 49, No. 28; July 12, 2024
The Commissioner, after a determination of value, may
						order that assets in the aggregate, to the extent that such assets have
						depreciated in value, or to the extent the value of such assets, including
						loans, are overstated in value for any reason, be charged off, or that a
						special reserve or reserves equal to such depreciation or overstated value be
						established in accordance with GAAP.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 4 - DEPARTMENT OF SAVINGS AND MORTGAGE LENDING › Chapter 75 - SAVINGS BANKS › Subchapter C - OPERATIONS › Division 2 - BOOKS, RECORDS, ACCOUNTING PRACTICES, FINANCIAL STATEMENTS, AND RESOURCES › Section 75.226 - Examinations

Current through Reg. 49, No. 28; July 12, 2024
(a) The
					 Commissioner will examine every state savings bank once in each year, or more
					 frequently if the Commissioner determines that the condition of the savings
					 bank justifies more frequent attention to enforce the Texas Savings Bank Act.
					 The Commissioner may defer an examination for not more than six months if the
					 Commissioner considers the deferment appropriate to the efficient enforcement
					 of the Texas Savings Bank Act and consistent with the safe and sound operation
					 of the institution.
(b) An
					 examination under this section may be performed jointly or in conjunction with
					 an examination by the saving bank's appropriate federal banking agency. The
					 Commissioner may accept an examination made by such federal banking agency in
					 lieu of an examination pursuant to this section.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 4 - DEPARTMENT OF SAVINGS AND MORTGAGE LENDING › Chapter 75 - SAVINGS BANKS › Subchapter C - OPERATIONS › Division 2 - BOOKS, RECORDS, ACCOUNTING PRACTICES, FINANCIAL STATEMENTS, AND RESOURCES › Section 75.227 - Bylaws

Current through Reg. 49, No. 28; July 12, 2024
(a) The bylaws of a
					 savings bank must contain sufficient provisions to govern the institution in
					 accordance with the Texas Savings Bank Act, the Texas Business Organizations
					 Code, and other applicable laws, rules and regulations, or the certificate of
					 formation. Bylaws may contain a provision which permits such bylaws to be
					 adopted, amended, or repealed by either a majority of the shareholders or a
					 majority of the board. Bylaw amendments may not take effect before being filed
					 with and approved by the Commissioner in accordance with §
											75.123 of this
					 title (relating to Certificate of Formation or Bylaws Amendments).
(b) A savings bank is specifically authorized
					 to adopt in its bylaws a provision which limits the liability of directors as
					 contained in the Texas Business Organizations Code to the same extent permitted
					 under state law for banks and savings and loan associations. Such bylaw
					 provision is optional and within the discretion of the savings bank.
(c) Other optional bylaws may be adopted by a
					 state savings bank with the approval of the Commissioner obtained in accordance
					 with §
											75.123 of this
					 title (relating to Certificate of Formation or Bylaws Amendments).
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 4 - DEPARTMENT OF SAVINGS AND MORTGAGE LENDING › Chapter 75 - SAVINGS BANKS › Subchapter C - OPERATIONS › Division 3 - CAPITAL AND CAPITAL OBLIGATIONS › Section 75.231 - Capital Requirements

Current through Reg. 49, No. 28; July 12, 2024
(a) Unless the
					 context clearly indicates otherwise, when used in this division, "Capital" for
					 a savings bank includes (as applicable) the amount of its issued and
					 outstanding common stock, preferred stock (to the extent such preferred stock
					 may be considered a part of the savings bank's capital under GAAP) plus any
					 retained earnings and additional paid-in capital as well as such other items as
					 the Commissioner may approve in writing for inclusion as capital.
(b) Minimum capital requirement. Each savings
					 bank must maintain capital at levels that are required for institutions whose
					 accounts are insured by the FDIC.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 4 - DEPARTMENT OF SAVINGS AND MORTGAGE LENDING › Chapter 75 - SAVINGS BANKS › Subchapter C - OPERATIONS › Division 3 - CAPITAL AND CAPITAL OBLIGATIONS › Section 75.232 - Increase or Decrease of Minimum Capital Requirements

Current through Reg. 49, No. 28; July 12, 2024
(a) The
					 Commissioner may increase or decrease the minimum capital requirement set forth
					 in this chapter upon written request by a savings bank or by supervisory
					 directive if the Commissioner determines that:
(1) the savings bank's failure to meet the
					 minimum capital requirement, if applicable, is not due to unsafe and unsound
					 practices in the conduct of the affairs of the savings bank, a violation of any
					 provision of the certificate of formation or bylaws of the savings bank, or a
					 violation of any law, rule, or supervisory action applicable to the savings
					 bank or any condition that the Commissioner has imposed on the savings bank by
					 written order or agreement;
(2) the
					 savings bank is well managed. In determining whether the savings bank is well
					 managed, the Commissioner may consider:
(A)
					 management's record of operating the savings bank;
(B) management's record of compliance with
					 laws, regulations, directives, orders, and agreements;
(C) management's timely recognition and
					 correction of regulatory violations, unsafe and unsound practices, or other
					 weaknesses identified through the examination or supervisory process;
(D) management's ability to operate the
					 savings bank in changing economic conditions; and
(E) such other factors as the Commissioner
					 may deem necessary to properly evaluate the quality of the savings bank's
					 management; and
(3) the
					 savings bank has submitted a plan acceptable to the Commissioner for restoring
					 capital within a reasonable period of time. Such plan must describe the means
					 and schedule by which capital will be increased. The plan must also
					 specifically address restrictions on dividend levels; compensation of
					 directors, executive officers, or individuals having a controlling interest;
					 asset and liability growth; and payment for services or products furnished by
					 affiliated persons. The plan must provide for improvement in the savings bank's
					 capital on a continuous or periodic basis from earnings, capital infusions,
					 liability and asset shrinkage, or any combination thereof. A plan that projects
					 no significant improvement in capital until near the end of the waiver or
					 variance period or that does not appear to the Commissioner to be reasonably
					 feasible will not be acceptable. The Commissioner may require modification of
					 the savings bank's plan in order for the institution to receive or to continue
					 to receive such waiver or variance.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 4 - DEPARTMENT OF SAVINGS AND MORTGAGE LENDING › Chapter 75 - SAVINGS BANKS › Subchapter C - OPERATIONS › Division 3 - CAPITAL AND CAPITAL OBLIGATIONS › Section 75.233 - Business Plans

Current through Reg. 49, No. 28; July 12, 2024
(a) All savings
					 banks whose operations are considered by the Commissioner unsafe or unsound or
					 that have total capital less than the amount required under § 75.231 of
					 this title (relating to Capital Requirements) or § 75.232 of this title
					 (relating to Increase or Decrease of Minimum Capital Requirements) must develop
					 a business plan and have such business plan available for review by the
					 examiners. The period covered by the business plan must be at least 1 year, but
					 may be for so long as the Commissioner may require.
(b) The savings bank's business plan will be
					 reviewed to determine its continued viability in accordance with current
					 economic conditions and approved or revised, as determined by its board, at
					 least annually.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 4 - DEPARTMENT OF SAVINGS AND MORTGAGE LENDING › Chapter 75 - SAVINGS BANKS › Subchapter C - OPERATIONS › Division 3 - CAPITAL AND CAPITAL OBLIGATIONS › Section 75.234 - Joint Issuance of Capital Obligations

Current through Reg. 49, No. 28; July 12, 2024
Joint Issuance of Capital Obligations. On the same terms
						and conditions as stated in § 75.171 of this title (relating to Capital
						Notes and Debentures), a savings bank may, by resolution of its board and with
						prior approval of the Commissioner, join other savings banks in the joint
						issuance of capital notes, debentures, bonds, or other secured or unsecured
						capital obligations.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 4 - DEPARTMENT OF SAVINGS AND MORTGAGE LENDING › Chapter 75 - SAVINGS BANKS › Subchapter C - OPERATIONS › Division 4 - HOLDING COMPANIES › Section 75.241 - Reports

Current through Reg. 49, No. 28; July 12, 2024
Each holding company and each subsidiary of a holding
						company, other than a savings bank, must file with the Commissioner reports
						required by the Commissioner. The reports must be made under oath and must be
						in the form and for the periods prescribed by the Commissioner. Each report
						must contain information concerning the operations of the holding company and
						its subsidiaries as the Commissioner may require. A holding company must file
						with the Commissioner copies of any filings, documents, statements, or reports
						required to be filed with the appropriate federal banking agency, unless such
						filing, document, statement, or report is publicly available.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 4 - DEPARTMENT OF SAVINGS AND MORTGAGE LENDING › Chapter 75 - SAVINGS BANKS › Subchapter C - OPERATIONS › Division 4 - HOLDING COMPANIES › Section 75.242 - Books and Records

Current through Reg. 49, No. 28; July 12, 2024
Each holding company must maintain books and records as
						may be prescribed by the Commissioner. The records must be created and
						maintained in accordance with the requirements of § 75.221 of this title
						(relating to Books and Records), pertaining to savings banks.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 4 - DEPARTMENT OF SAVINGS AND MORTGAGE LENDING › Chapter 75 - SAVINGS BANKS › Subchapter C - OPERATIONS › Division 4 - HOLDING COMPANIES › Section 75.243 - Examinations

Current through Reg. 49, No. 28; July 12, 2024
Each holding company and each subsidiary of a holding
						company is subject to examinations as the Commissioner may prescribe. The
						holding company must pay the cost of an examination. The confidentiality
						provisions of Finance Code §
											96.356 apply
						to an examination performed in accordance with this section, however, the
						Commissioner may furnish examination and other reports to any appropriate
						governmental department, agency, or instrumentality of this state, another
						state, or the United States. For purposes of this section, the Commissioner, to
						the extent deemed feasible, may use reports filed with or examinations made by
						appropriate federal agencies or regulatory authorities of other
						states.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 4 - DEPARTMENT OF SAVINGS AND MORTGAGE LENDING › Chapter 75 - SAVINGS BANKS › Subchapter C - OPERATIONS › Division 4 - HOLDING COMPANIES › Section 75.244 - Agent for Service of Process

Current through Reg. 49, No. 28; July 12, 2024
The Commissioner may require a holding company or a
						person other than a corporation connected with a holding company to execute and
						file a prescribed form of irrevocable appointment of agent for service of
						process.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 4 - DEPARTMENT OF SAVINGS AND MORTGAGE LENDING › Chapter 75 - SAVINGS BANKS › Subchapter C - OPERATIONS › Division 4 - HOLDING COMPANIES › Section 75.245 - Release from Registration

Current through Reg. 49, No. 28; July 12, 2024
The Commissioner at any time, on the Commissioner's own
						motion or on written request, may release a registered holding company from a
						registration made by the company if the Commissioner determines that the
						company no longer controls a savings bank. If released, the savings bank
						associated with the holding company must maintain the books and records of such
						holding company.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 4 - DEPARTMENT OF SAVINGS AND MORTGAGE LENDING › Chapter 75 - SAVINGS BANKS › Subchapter C - OPERATIONS › Division 5 - ASSESSMENTS AND FEES › Section 75.251 - Annual Assessments

Current through Reg. 49, No. 28; July 12, 2024
(a) Annual
					 assessment. All savings banks chartered under the laws of the state and all
					 foreign savings banks (as defined by the Texas Savings Bank Act) holding a
					 certificate of authority to do business in this state must pay to the
					 department an annual assessment fee in an amount determined by the Commissioner
					 as provided by subsection (c) of this section in accordance with the rate
					 requirements set by the Finance Commission of Texas, and subject to the maximum
					 assessment rates established by subsection (d) of this section. The Department
					 will maintain on its website information concerning current rate
					 requirements.
(b) Payment of
					 Assessment. The annual assessment must be paid in quarterly installments. Upon
					 receipt of a written invoice from the department, the savings bank must pay the
					 assessment fee by electronic/ACH payment, or by another method, if directed to
					 do so by the Department.
(c)
					 Determination of assessment. The assessment will be determined based on either
					 the total assets, or total risk-weighted assets of the savings bank, whichever
					 results in the lowest fee being assessed. The valuation of assets will be
					 determined as of the close of the calendar quarter immediately preceding the
					 effective date of the assessment. A savings bank's total assets or total
					 risk-weighted assets will be derived from the savings bank's Federal Financial
					 Institutions Examination Council consolidated report of condition and income
					 (call report), filed in accordance with federal law. If a savings bank is not
					 required by applicable federal law to disclose its total risk-weighted assets
					 in the call report, the savings bank may voluntarily report to the Commissioner
					 information concerning its total risk-weighted assets for purposes of
					 calculating its assessment, which must be provided to the Commissioner in the
					 manner and within the time prescribed by the Commissioner; otherwise, the
					 assessment will be based on the savings bank's total assets.
(d) Maximum Assessment Rates. The assessment
					 rates set by the Finance Commission of Texas may not exceed the maximum rates
					 established in the following rate schedule:
Attached Graphic
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 4 - DEPARTMENT OF SAVINGS AND MORTGAGE LENDING › Chapter 75 - SAVINGS BANKS › Subchapter C - OPERATIONS › Division 5 - ASSESSMENTS AND FEES › Section 75.252 - Fee for Special Examination

Current through Reg. 49, No. 28; July 12, 2024
(a) A special
					 examination is one that is conducted outside the context of a savings bank's
					 annual examination and includes, but is not limited to, examinations of a
					 savings bank holding company, interstate branches of savings banks in Texas as
					 the host state, and a savings bank's affiliates and third-party service
					 providers. The savings bank or other regulated entity that is the subject of
					 the special examination is subject to a fee and liable for the Department's
					 costs as provided by this section in order to recoup the salary expense of the
					 examiner(s) plus a proportionate share of Department overhead allocable to the
					 special examination, and the actual costs by the examiner in conducting the
					 special examination.
(b) The fee
					 for a special examination under this section will be calculated at a rate not
					 to exceed $75 per examiner per hour. The entity that is the subject of the
					 examination must also pay to the Department an amount for actual travel
					 expenses and costs incurred by the Department's examiner(s), including mileage,
					 public transportation, food, and lodging. The Commissioner, in his or her sole
					 discretion, may lower the applicable rate for the examination fee or waive, in
					 whole or in part, any fees or costs chargeable in accordance with this
					 section.
(c) In connection with an
					 examination under this section, the regulated entity or other legally
					 responsible party (including the savings bank, with respect to affiliates and
					 third-party service providers) must pay the examination fee and costs incurred
					 as provided by this section.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 4 - DEPARTMENT OF SAVINGS AND MORTGAGE LENDING › Chapter 75 - SAVINGS BANKS › Subchapter C - OPERATIONS › Division 6 - COMPLAINT PROCEDURES › Section 75.261 - Savings Bank Complaint Notes

Current through Reg. 49, No. 28; July 12, 2024
(a) Definitions.
(1) Privacy notice means any notice which a
					 state savings bank gives regarding a consumer's right to privacy, regardless of
					 whether it is required by a specific state or federal law or given
					 voluntarily.
(2) Required notice
					 means a notice in a form set forth or provided for in subsection (b)(1) of this
					 section.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 4 - DEPARTMENT OF SAVINGS AND MORTGAGE LENDING › Chapter 75 - SAVINGS BANKS › Subchapter D - LOANS, INVESTMENTS, SAVINGS, AND DEPOSITS › Division 1 - AUTHORIZED LOANS AND INVESTMENTS › Section 75.302 - Loans Authorized

Current through Reg. 49, No. 28; July 12, 2024
(a) A savings bank
					 may originate, invest in, sell, purchase, service, participate, or otherwise
					 deal in (including brokerage or warehousing) loans or participations subject to
					 the requirements of the Texas Savings Bank Act, and this subchapter, including:
(1) residential real estate loans, including
					 loans on the security of leasehold interests in residential real
					 estate;
(2) home improvement
					 loans;
(3) manufactured home
					 loans,;
(4) interim construction
					 loans;
(5) other real estate loans,
					 including loans on the security of leasehold interest in real estate;
(6) personal property loans;
(7) commercial real estate loans, including
					 loans on the security of leasehold interest in real estate;
(8) non-real estate commercial
					 loans;
(9) loans fully secured by
					 savings accounts owned or otherwise pledged for or by the borrower;
(10) unsecured loans; and
(11) loans which are insured or guaranteed by
					 the United States or any instrumentality thereof.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 4 - DEPARTMENT OF SAVINGS AND MORTGAGE LENDING › Chapter 75 - SAVINGS BANKS › Subchapter D - LOANS, INVESTMENTS, SAVINGS, AND DEPOSITS › Division 1 - AUTHORIZED LOANS AND INVESTMENTS › Section 75.303 - Non-Real Estate Commercial Loans

Current through Reg. 49, No. 28; July 12, 2024
A savings bank may lend and invest not more than 40% of
						its total assets in non-real estate commercial loans for business, corporate,
						or agricultural purposes. The amount of each letter of credit or other unfunded
						commitment to make a non-real estate commercial loan must be included in
						computing this limitation.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 4 - DEPARTMENT OF SAVINGS AND MORTGAGE LENDING › Chapter 75 - SAVINGS BANKS › Subchapter D - LOANS, INVESTMENTS, SAVINGS, AND DEPOSITS › Division 1 - AUTHORIZED LOANS AND INVESTMENTS › Section 75.304 - Unsecured Loans

Current through Reg. 49, No. 28; July 12, 2024
(a) A savings bank
					 may make unsecured loans or purchase participations in unsecured loans, on the
					 terms and in amounts consistent with the savings bank's lending policies,
					 subject to the limitations of this section.
(b) Real estate, personal property, or
					 interests in oil and gas leases may be provided as security for such loans
					 without meeting the requirements of this chapter for real estate or personal
					 property loans, so long as all requirements of this section are met.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 4 - DEPARTMENT OF SAVINGS AND MORTGAGE LENDING › Chapter 75 - SAVINGS BANKS › Subchapter D - LOANS, INVESTMENTS, SAVINGS, AND DEPOSITS › Division 1 - AUTHORIZED LOANS AND INVESTMENTS › Section 75.306 - Loans to and Transactions with Officers, Directors, Affiliated Persons, and Employees

Current through Reg. 49, No. 28; July 12, 2024
All transactions, including loans, involving officers,
						directors, affiliated persons, controlling persons or employees are subject to
						the requirements of Federal Reserve Board Regulations O and W, which sections
						are hereby incorporated by reference. The Department will monitor and enforce
						compliance with such provisions.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 4 - DEPARTMENT OF SAVINGS AND MORTGAGE LENDING › Chapter 75 - SAVINGS BANKS › Subchapter D - LOANS, INVESTMENTS, SAVINGS, AND DEPOSITS › Division 1 - AUTHORIZED LOANS AND INVESTMENTS › Section 75.307 - Letters of Credit

Current through Reg. 49, No. 28; July 12, 2024
A savings bank may issue letters of credit in accordance
						with the terms and conditions of the Uniform Commercial Code of the State of
						Texas and the Uniform Customs and Practice for Documentary Credits, subject to
						the following requirements.
(1) The
					 savings bank must maintain a letter of credit register containing name of
					 customer, address, amount of credit extended, and identifying number.
(2) Each letter of credit must conspicuously
					 state that it is a letter of credit or must be conspicuously entitled as
					 such.
(3) The savings bank's
					 undertaking must contain a specified expiration date or be for a definite term
					 and must be limited in amount.
(4)
					 The savings bank's obligation to pay arises only upon presentation of a draft
					 and other documents as specified in the letter of credit and there is no
					 obligation on the part of the savings bank to determine questions of fact or
					 law at issue between the account party and the beneficiary.
(5) The savings bank must obtain an
					 unqualified obligation from its customer to reimburse it for payments made
					 under the letter of credit.
(6) The
					 amount of each letter of credit must be included in the aggregation of loans
					 subject to the limitations of this chapter relating to the loans to one
					 borrower for purposes of Finance Code §
											94.001.
(7) Each letter of credit's terms is subject
					 to the limitations and documentation requirements to the same extent as if it
					 were a loan made under this chapter.
(8) An appropriate fee may be collected for
					 each letter of credit issued.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 4 - DEPARTMENT OF SAVINGS AND MORTGAGE LENDING › Chapter 75 - SAVINGS BANKS › Subchapter D - LOANS, INVESTMENTS, SAVINGS, AND DEPOSITS › Division 2 - SUBSIDIARIES › Section 75.321 - Investment in and Divestiture of Subsidiaries

Current through Reg. 49, No. 28; July 12, 2024
(a) A savings bank
					 may, only after prior written approval of the Commissioner, invest in a
					 subsidiary.
(b) Subsequent to
					 obtaining approval for its initial investment and activity, a subsidiary may
					 not engage in additional or substitute activities without the prior written
					 approval of the Commissioner.
(c) A
					 savings bank may, with prior written approval of the Commissioner, divest
					 itself of a subsidiary or merge or consolidate the subsidiary with another
					 company if the Commissioner finds that the terms and conditions of the
					 transaction are in the best interests of the savings bank.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 4 - DEPARTMENT OF SAVINGS AND MORTGAGE LENDING › Chapter 75 - SAVINGS BANKS › Subchapter D - LOANS, INVESTMENTS, SAVINGS, AND DEPOSITS › Division 2 - SUBSIDIARIES › Section 75.323 - Authorized Subsidiary Investments

Current through Reg. 49, No. 28; July 12, 2024
(a) Activities of a
					 subsidiary must consist of one or more of the following:
(1) loan origination, purchasing, selling,
					 and servicing;
(2) acquisition of
					 unimproved real estate lots and other unimproved real estate for the purpose of
					 prompt development and subdividing;
(3) purchasing, selling, owning, renting,
					 leasing, managing, subdividing, improving, operating for income, or otherwise
					 dealing in and with real property, whether improved or unimproved (excluding
					 any investment of any nature in an oil and gas drilling venture, whether such
					 investment be in the stock of a corporate entity or in the partnership or joint
					 venture interest of any entity making purchases or investments in oil and gas
					 drilling ventures);
(4) acquisition
					 of improved residential real estate and mobile home lots to be held for sale or
					 rental;
(5) acquisition of improved
					 residential real estate for remodeling, rehabilitation, modernization,
					 renovation, or demolition and rebuilding for sale or for rental;
(6) maintenance and management of rental real
					 estate;
(7) serving as real estate
					 brokers;
(8) serving as insurance
					 broker or agent;
(9) engaging in or
					 owning an interest in insurance companies engaged in the property, casualty,
					 fire and marine, life, health and accident, title, fidelity, guaranty, and
					 surety insurance business;
(10)
					 serving in the capacity of trustee under deeds of trust or escrow
					 agent;
(11) preparation of state
					 and federal tax returns for the savings bank's accountholders and/or
					 borrowers;
(12) acquisition,
					 maintenance, and management of real estate to be used for savings bank offices
					 and related facilities;
(13)
					 investing in obligations of, or guaranteed as to principal and interest by, the
					 United States or this state, and in bonds, notes, or other evidences of
					 indebtedness which are a general obligation of any city, town, village, county,
					 school district, or other municipal corporation or political subdivision of
					 this state;
(14) investing in
					 venture capital through small business investment corporations; and
(15) other activities which may be approved
					 by the Commissioner.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 4 - DEPARTMENT OF SAVINGS AND MORTGAGE LENDING › Chapter 75 - SAVINGS BANKS › Subchapter D - LOANS, INVESTMENTS, SAVINGS, AND DEPOSITS › Division 2 - SUBSIDIARIES › Section 75.324 - Subsidiary Operations

Current through Reg. 49, No. 28; July 12, 2024
(a) The savings
					 bank must obtain prior written approval of the Commissioner for the
					 establishment and location of the home office, and any branch office, agency
					 office, or any other office or facility of the subsidiary, and for any change
					 of name of the subsidiary.
(b) A
					 verified copy of all contracts, instruments, joint ventures, and partnership
					 agreements and financing arrangements of the subsidiary investments must be
					 furnished to the savings bank within 30 days from date of execution.
(c) The subsidiary must furnish, at the
					 expense of the subsidiary or parent savings bank or its holding company, an
					 independent appraiser's report or other expert opinion as determined to be
					 necessary by the Commissioner for the purpose of establishing the value of any
					 investments made by the subsidiary.
(d) Each subsidiary must maintain fidelity
					 bond coverage with an acceptable bonding company in an amount that adequately
					 protects the subsidiary from such loss. Coverage as an additional insured
					 entity under a fidelity bond of the parent savings bank or its holding company
					 may satisfy this requirement.
(e)
					 All directors of the savings bank and subsidiary must furnish affidavits fully
					 disclosing any direct or indirect interest they may have in each investment
					 made by the corporation.
(f) Each
					 subsidiary must maintain books and records as may be prescribed by the
					 Commissioner. The records must be created and maintained in accordance with the
					 requirements of § 75.221 of this title (relating to Books and Records),
					 pertaining to savings banks.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 4 - DEPARTMENT OF SAVINGS AND MORTGAGE LENDING › Chapter 75 - SAVINGS BANKS › Subchapter D - LOANS, INVESTMENTS, SAVINGS, AND DEPOSITS › Division 2 - SUBSIDIARIES › Section 75.325 - Subsidiary Investment and Debt Limitation

Current through Reg. 49, No. 28; July 12, 2024
Investment in subsidiaries is deemed to include
						investment in the subsidiary's capital stock, paid-in capital, subordinated
						debentures, unsecured loans, advances, contingencies, and other obligations
						(excluding secured conforming loans), and may not, in the aggregate, exceed 10%
						of the savings bank's total assets without prior approval.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 4 - DEPARTMENT OF SAVINGS AND MORTGAGE LENDING › Chapter 75 - SAVINGS BANKS › Subchapter D - LOANS, INVESTMENTS, SAVINGS, AND DEPOSITS › Division 2 - SUBSIDIARIES › Section 75.326 - Operating Subsidiaries

Current through Reg. 49, No. 28; July 12, 2024
A savings bank is authorized to invest in operating
						subsidiaries, the activities of which are exclusively limited to activities
						which could be conducted directly by the parent savings bank. Because an
						operating subsidiary is limited to activities that could otherwise be conducted
						directly by the savings bank, operating subsidiary investment is not limited by
						the percentage of assets or dollar amount restrictions applicable to subsidiary
						corporations as set forth in § 75.325 of this title (relating to
						Subsidiary Investment and Debt Limitation). Notwithstanding this exclusion, all
						other provisions of this chapter applicable to a subsidiary apply equally to an
						operating subsidiary.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 4 - DEPARTMENT OF SAVINGS AND MORTGAGE LENDING › Chapter 75 - SAVINGS BANKS › Subchapter D - LOANS, INVESTMENTS, SAVINGS, AND DEPOSITS › Division 3 - SAVINGS AND DEPOSITS › Section 75.331 - User Safety at Unmanned Teller Machines

Current through Reg. 49, No. 28; July 12, 2024
(a) Definitions.
					 Words and terms used in this subchapter that are defined in the Finance Code
					 §
											59.301, have the same
					 meanings assigned by such section.
(b) Measurement of candle foot power. For
					 purposes of measuring compliance with the Finance Code §
											59.307,
					 candle foot power should be determined under normal, dry weather conditions,
					 without complicating factors such as fog, rain, snow, sand or dust storm, or
					 other similar condition.
(c) Leased
					 premises.
(1) Noncompliance by Landlord.
					 Pursuant to the Finance Code, §
												59.306,
					 the landlord or owner of property is required to comply with the safety
					 procedures of the Finance Code, Chapter 59, Subchapter D, if an access area or
					 defined parking area for an unmanned teller machine is not controlled by the
					 owner or operator of the unmanned teller machine. If an owner or operator of an
					 unmanned teller machine on leased premises is unable to obtain compliance with
					 safety procedures from the landlord or owner of the property, the owner or
					 operator must notify the landlord in writing of the requirements of the Finance
					 Code Chapter 59, Subchapter D, and of those provisions for which the landlord
					 is in noncompliance.
(2)
					 Enforcement. Noncompliance with safety procedures required by the Finance Code
					 Chapter 59, Subchapter D, by a landlord or owner of property after receipt of
					 written notification from the owner or operator constitutes a violation of the
					 Finance Code Chapter 59, Subchapter D, which may be enforced by the Texas
					 Attorney General.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 4 - DEPARTMENT OF SAVINGS AND MORTGAGE LENDING › Chapter 75 - SAVINGS BANKS › Subchapter D - LOANS, INVESTMENTS, SAVINGS, AND DEPOSITS › Division 3 - SAVINGS AND DEPOSITS › Section 75.332 - Pledging of Assets to Secure Deposits of Certain Public Purpose Entities

Current through Reg. 49, No. 28; July 12, 2024
A savings bank may pledge its assets to secure the
						deposits of:
(1) the United States
					 government or any instrumentality thereof;
(2) any State or political subdivision,
					 agency, or instrumentally thereof;
(3) any local municipality, agency, or
					 instrumentally thereof;
(4) any
					 federally-recognized Indian tribe; or
(5) any other entity, as required by state or
					 federal law, or court order.
Filed with the Office of the Secretary of State on August
						22, 2022.
TRD-202203176
Iain A. Berry
Deputy General Counsel
Department of Savings and Mortgage Lending
Earliest possible date of adoption: October 2,
						2022
For further information, please call: (512)
						475-1535
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 4 - DEPARTMENT OF SAVINGS AND MORTGAGE LENDING › Chapter 78 - WRAP MORTGAGE LOANS › Subchapter A - GENERAL PROVISIONS › Section 78.1 - Purpose and Applicability

Current through Reg. 49, No. 28; July 12, 2024
This chapter governs the Commissioner's administration and
					 enforcement of Finance Code Chapter 159, governing wrap mortgage loans
					 concerning residential real estate located in Texas. This chapter applies to
					 wrap mortgage lenders, borrowers, and any person who collects or receives a
					 payment from a wrap borrower under the terms of a wrap mortgage loan, including
					 servicers of a wrap mortgage loan.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 4 - DEPARTMENT OF SAVINGS AND MORTGAGE LENDING › Chapter 78 - WRAP MORTGAGE LOANS › Subchapter A - GENERAL PROVISIONS › Section 78.3 - Computation of Time

Current through Reg. 49, No. 28; July 12, 2024
The calculation of any time period measured in days by
					 Finance Code Chapter 159 is to be made using calendar days. In computing a
					 period of days, the first day is excluded and the last day is included. Except
					 with respect to the disclosure required by Finance Code § 159.101 and
					 § 78.101 of this title (relating to Required Disclosure), if the last day
					 of any period is a Saturday, Sunday, or legal holiday, the period is extended
					 to include the next day that is not a Saturday, Sunday, or legal
					 holiday.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 4 - DEPARTMENT OF SAVINGS AND MORTGAGE LENDING › Chapter 78 - WRAP MORTGAGE LOANS › Subchapter B - LENDER REQUIREMENTS AND RESPONSIBILITIES › Section 78.100 - Purpose and Applicability

Current through Reg. 49, No. 28; July 12, 2024
The purpose of this subchapter is to clarify and establish
					 requirements related to a wrap lender's requirements and responsibilities under
					 a wrap mortgage loan, as provided by Finance Code Chapter 159, Subchapter C,
					 and §159.105.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 4 - DEPARTMENT OF SAVINGS AND MORTGAGE LENDING › Chapter 78 - WRAP MORTGAGE LOANS › Subchapter B - LENDER REQUIREMENTS AND RESPONSIBILITIES › Section 78.101 - Required Disclosure

Current through Reg. 49, No. 28; July 12, 2024
(a) Purpose.
				  The purpose of this section is to clarify and establish requirements related to
				  the written disclosure a wrap lender is required to provide the wrap borrower
				  in accordance with Finance Code § 159.101(disclosure).
(b) Model Disclosure Form. In accordance with
				  Finance Code § 159.101(c), the following form (Figure: 7 TAC §
				  78.101(b)(3); model disclosure form) is deemed to satisfy the substantive
				  requirements of Finance Code § 159.101(a). Interested persons should visit
				  the Department's website (sml.texas.gov) for a form-fillable version of the
				  model disclosure form and an editable version in Word format (including for
				  purposes of attaching additional sheets to supplement the form with additional
				  information, as necessary). A wrap lender may modify and customize the model
				  disclosure form; provided, the form:
(1)
				  contains all substantive information contained in the model disclosure form
				  that is applicable to the person issuing the disclosure;
(2) conforms to the formatting requirements
				  of subsection (c) of this section; and
(3) otherwise fulfills the requirements of
				  Finance Code § 159.101(a).
Attached
					 Graphic
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 4 - DEPARTMENT OF SAVINGS AND MORTGAGE LENDING › Chapter 78 - WRAP MORTGAGE LOANS › Subchapter B - LENDER REQUIREMENTS AND RESPONSIBILITIES › Section 78.102 - Closing Requirements

Current through Reg. 49, No. 28; July 12, 2024
(a) Purpose.
				  The purpose of this section is to clarify and establish requirements related to
				  the requirement that a wrap mortgage loan be closed by an attorney or title
				  company, as provided by Finance Code § 159.105.
(b) Closing by Title Company. For purposes of
				  Finance Code § 159.105, a wrap mortgage loan may only be closed by a title
				  company issuing an owner's title insurance policy to the wrap borrower for the
				  residential real estate secured or designed to be secured by the wrap mortgage
				  loan.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 4 - DEPARTMENT OF SAVINGS AND MORTGAGE LENDING › Chapter 78 - WRAP MORTGAGE LOANS › Subchapter C - BORROWER'S RIGHTS AND RESPONSIBILITIES › Section 78.200 - Purpose and Applicability

Current through Reg. 49, No. 28; July 12, 2024
The purpose of this subchapter is to clarify and establish
					 requirements related to a wrap borrower's rights under a wrap mortgage loan, as
					 provided by Finance Code Chapter 159, Subchapter E.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 4 - DEPARTMENT OF SAVINGS AND MORTGAGE LENDING › Chapter 78 - WRAP MORTGAGE LOANS › Subchapter C - BORROWER'S RIGHTS AND RESPONSIBILITIES › Section 78.201 - Right to Deduct; Notice of Deduction

Current through Reg. 49, No. 28; July 12, 2024
(a) Purpose. The purpose of this section is
				  to clarify and establish requirements related to a wrap borrower's right to
				  make deductions from the amounts the wrap borrower owes to the wrap lender
				  under the terms of a wrap mortgage loan, as provided by Finance Code §
				  159.202.
(b) Notice of Deduction.
				  To the extent the wrap borrower seeks to exercise its right to deduct amounts
				  owed to the wrap lender pursuant to Finance Code § 159.202, the wrap
				  borrower must, at the time the wrap borrower makes the deduction, provide the
				  wrap lender or its third-party servicer notice of the amounts deducted
				  including:
(1) an itemized list of the
				  deductions made, describing in detail the amounts paid by the wrap borrower on
				  behalf of the wrap lender;
(2) the
				  dates on which such payments were made; and
(3) supporting documentation evidencing
				  paragraphs (1) and (2) of this subsection.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 4 - DEPARTMENT OF SAVINGS AND MORTGAGE LENDING › Chapter 78 - WRAP MORTGAGE LOANS › Subchapter D - WRAP LENDER AND SERVICER REQUIREMENTS › Section 78.300 - Purpose and Applicability

Current through Reg. 49, No. 28; July 12, 2024
The purpose of this subchapter is to clarify and establish
					 requirements applicable to persons who collect or receive a payment from a wrap
					 borrower under the terms of a wrap mortgage loan, as provided by Finance Code
					 Chapter 159, Subchapter D. The rules in this subchapter apply to a wrap lender
					 or any other person who collects or receives a payment from a wrap borrower
					 under the terms of a wrap mortgage loan, including a third-party servicer
					 servicing a wrap mortgage loan.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 4 - DEPARTMENT OF SAVINGS AND MORTGAGE LENDING › Chapter 78 - WRAP MORTGAGE LOANS › Subchapter D - WRAP LENDER AND SERVICER REQUIREMENTS › Section 78.302 - Trust Account; Maintenance of Funds Held in Trust

Current through Reg. 49, No. 28; July 12, 2024
(a) Purpose. The purpose of this section is
				  to clarify and establish requirements related to the requirement of a person
				  who collects or receives a payment from a wrap borrower under the terms of a
				  wrap mortgage loan to hold such funds in trust, as provided by Finance Code
				  § 159.151.
(b) Definitions.
				  The following terms in this section have the following meanings, unless the
				  context clearly indicates otherwise:
(1)
				  "Financial institution" has the meaning assigned by Finance Code §
											RSA
				  201.101(1).
(2) "Trust account" means a custodial, trust,
				  or escrow account managed by one person for the benefit of another
				  person.
(3) "Trust funds" means the
				  funds collected or received from a wrap borrower under the terms of a wrap
				  mortgage loan.
(4) "Receiver" means
				  a wrap lender or other person collecting or receiving trust funds.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 4 - DEPARTMENT OF SAVINGS AND MORTGAGE LENDING › Chapter 78 - WRAP MORTGAGE LOANS › Subchapter D - WRAP LENDER AND SERVICER REQUIREMENTS › Section 78.303 - Use of a Third-Party Servicer

Current through Reg. 49, No. 28; July 12, 2024
(a) Purpose. The purpose of this section is
				  to clarify and establish requirements concerning a wrap lender's use of a third
				  party to act as a residential mortgage loan servicer of wrap mortgage
				  loan.
(b) Use of a Third-Party
				  Servicer. A wrap lender is authorized to use the services of a third party to
				  act as the residential mortgage loan servicer of a wrap mortgage loan (also
				  known as a "subservicer").
(c)
				  Handling of Payments and Disbursements. To the extent a wrap lender uses the
				  services of a third-party servicer, the handling of payments and disbursement
				  of funds received by the third-party servicer is governed by the agreement
				  between the wrap lender and third-party servicer, including:
(1) whether or not and on what terms the
				  third-party servicer makes disbursements to the superior lienholder;
(2) disbursements made to the wrap lender;
				  and
(3) how payments by the wrap
				  borrower in excess of the current amount due under the terms of the wrap
				  mortgage loan are handled, applied, or disbursed.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 4 - DEPARTMENT OF SAVINGS AND MORTGAGE LENDING › Chapter 78 - WRAP MORTGAGE LOANS › Subchapter E - COMPLIANCE AND ENFORCEMENT › Section 78.400 - Purpose and Applicability

Current through Reg. 49, No. 28; July 12, 2024
The purpose of this subchapter is to clarify and establish
					 requirements related to the Commissioner's authority to conduct inspections of,
					 and investigations on, a wrap lender who is required to register as a
					 residential mortgage loan servicer under Finance Code Chapter 158 (wrap
					 mortgage registrant), as provided by Finance Code Chapter 159, Subchapter F.
					 This subchapter further clarifies and establishes requirements concerning the
					 Commissioner's authority to seek enforcement action against a wrap mortgage
					 registrant under Finance Code Chapter 159, Subchapter G.