By: Carona S.B. No. 1008
(In the Senate - Filed March 1, 2013; March 12, 2013, read
first time and referred to Committee on Business and Commerce;
March 27, 2013, reported favorably by the following vote: Yeas 9,
Nays 0; March 27, 2013, sent to printer.)
A BILL TO BE ENTITLED
AN ACT
relating to the business, supervision, and regulation of state
savings and loan associations and state savings banks; providing a
criminal penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subsection (b), Section 13.002, Finance Code, is
amended to read as follows:
(b) The savings and mortgage lending commissioner must have
not less than five [seven] years' experience in the executive
management of a savings association or savings bank or in savings
association or savings bank supervision during the 10 years
preceding the commissioner's appointment.
SECTION 2. Section 61.002, Finance Code, is amended by
amending Subdivision (1) and adding Subdivision (1-a) to read as
follows:
(1) "Appropriate banking agency":
(A) means:
(i) with respect to a savings bank
chartered by this state, the Department of Savings and Mortgage
Lending;
(ii) with respect to a federal savings
bank, the Office of the Comptroller of the Currency;
(iii) with respect to a savings and loan
association chartered by this state, the Department of Savings and
Mortgage Lending;
(iv) with respect to a federal savings and
loan association, the Office of the Comptroller of the Currency;
(v) with respect to a bank chartered by this
state, the Texas Department of Banking;
(vi) with respect to a national bank, the
Office of the Comptroller of the Currency; and
(vii) with respect to a bank, savings bank,
or savings and loan association chartered by another state, the
chartering agency; and
(B) includes:
(i) in each case in which a state bank is a
member of the Federal Reserve System, the board of governors of the
Federal Reserve System;
(ii) in each case where required by the
Federal Deposit Insurance Act (12 U.S.C. Section 1811 et seq.), the
Federal Deposit Insurance Corporation; and
(iii) any successor of a state or federal
agency specified by this subdivision.
(1-a) "Association" means a savings and loan
association subject to this subtitle.
SECTION 3. Subsection (a), Section 62.105, Finance Code, is
amended to read as follows:
(a) An association shall maintain [on file with the
commissioner] a blanket indemnity bond with an adequate corporate
surety protecting the association from loss by or through dishonest
or criminal action or omission, including fraud, theft, robbery, or
burglary, by an officer or employee of the association or a director
of the association when the director performs the duties of an
officer or employee.
SECTION 4. Subsection (a), Section 62.206, Finance Code, is
amended to read as follows:
(a) The converted association shall file with the
commissioner:
(1) a copy of the charter issued to the federal
association by the Office of the Comptroller of the Currency
[Office of Thrift Supervision]; or
(2) a certificate showing the organization of the
association as a federal association, certified by the secretary or
assistant secretary of the Office of the Comptroller of the
Currency [Office of Thrift Supervision].
SECTION 5. Section 62.207, Finance Code, is amended to read
as follows:
Sec. 62.207. EFFECT OF ISSUANCE OF CHARTER. On the issuance
of a charter by the Office of the Comptroller of the Currency
[Office of Thrift Supervision], the association:
(1) ceases to be an association incorporated under
this subtitle; and
(2) is no longer subject to the supervision and
control of the commissioner.
SECTION 6. Subsection (b), Section 62.251, Finance Code, is
amended to read as follows:
(b) The application to convert must:
(1) be filed in the office of the commissioner and with
the appropriate banking agency [Office of Thrift Supervision or its
successor] not later than the 10th day after the date of the
meeting; and
(2) include a copy of the minutes of the meeting, sworn
to by the secretary or an assistant secretary.
SECTION 7. Subsection (c), Section 89.052, Finance Code, is
amended to read as follows:
(c) When a supervisory order is issued under Chapter 66, the
commissioner shall report the existence of the order promptly to
the finance commission but shall maintain the confidentiality of
the content of the order [and in a closed meeting shall furnish any
information about the association or the person that is the subject
of the order that the commission members may require. Any
information discussed in the closed meeting is confidential].
SECTION 8. Section 89.101, Finance Code, is amended to read
as follows:
Sec. 89.101. CRIMINAL SLANDER. (a) A person commits an
offense if the person[, with intent to injure an association or a
federal association in this state]:
(1) knowingly makes, utters, circulates, or transmits
to another person a statement that is untrue and derogatory to the
financial condition of an [the] association [or federal
association]; or
(2) with intent to injure an association counsels,
aids, procures, or induces another person to originate, make,
utter, transmit, or circulate a statement or rumor that is untrue
and derogatory to the financial condition of the association [or
federal association].
(b) An offense under Subsection (a) is a state jail felony
[punishable by:
[(1) a fine not to exceed $2,500;
[(2) imprisonment in the Texas Department of Criminal
Justice for not more than two years; or
[(3) both the fine and imprisonment].
SECTION 9. Subdivision (1), Section 91.002, Finance Code,
is amended to read as follows:
(1) "Appropriate banking agency":
(A) means:
(i) with respect to a savings bank
chartered by this state, the Department of Savings and Mortgage
Lending;
(ii) with respect to a federal savings
bank, the Office of the Comptroller of the Currency [Office of
Thrift Supervision];
(iii) with respect to a savings and loan
association chartered by this state, the Department of Savings and
Mortgage Lending;
(iv) with respect to a federal savings and
loan association, the Office of the Comptroller of the Currency
[Office of Thrift Supervision];
(v) with respect to a bank chartered by this
state, the Texas Department of Banking; [and]
(vi) with respect to a national bank, the
Office of the Comptroller of the Currency; and
(vii) with respect to a bank, savings bank,
or savings and loan association chartered by another state, the
chartering agency; and
(B) includes:
(i) in each case in which a state bank is a
member of the Federal Reserve System, the board of governors of the
Federal Reserve System;
(ii) in each case where required by the
Federal Deposit Insurance Act (12 U.S.C. Section 1811 et seq.), the
Federal Deposit Insurance Corporation; and
(iii) any successor of a state or federal
agency specified by this subdivision.
SECTION 10. Subsection (b), Section 94.002, Finance Code,
is amended to read as follows:
(b) In this section, "commercial loan" means a loan that:
(1) is for business, commercial, corporate, or
agricultural purposes; [and]
(2) is not a real property loan; and
(3) is not a qualified thrift asset under Section
92.204.
SECTION 11. Subsection (a), Section 96.002, Finance Code,
is amended to read as follows:
(a) The finance commission may adopt rules necessary to
supervise and regulate savings banks and to protect public
investment in savings banks, including rules relating to:
(1) the minimum amounts of capital required to
incorporate and operate as a savings bank, which may not be less
than the amounts required of corresponding national banks;
(2) the fees and procedures for processing, hearing,
and deciding applications filed with the commissioner or the
Department of Savings and Mortgage Lending under this subtitle;
(3) the books and records that a savings bank is
required to keep and the location at which the books and records are
required to be maintained;
(4) the accounting principles and practices that a
savings bank is required to observe;
(5) the conditions under which records may be copied
or reproduced for permanent storage before the originals are
destroyed;
(6) the form, content, and time of publication of
statements of condition;
(7) the form and content of any report [annual reports
and other reports] that a savings bank is required to prepare and
publish or file under this chapter;
(8) the manner in which assets, liabilities, and
transactions in general are to be described when entered in the
books of a savings bank, so that the entry accurately describes the
subject matter of the entry;
(9) the conditions under which the commissioner may
require an asset to be charged off or reserves established by
transfer from surplus or paid-in capital because of depreciation of
or overstated value of the asset;
(10) the change of control of a savings bank;
(11) the conduct, management, and operation of a
savings bank;
(12) the withdrawable accounts, bonuses, plans, and
contracts for savings programs;
(13) the merger, consolidation, reorganization,
conversion, and liquidation of a savings bank;
(14) the establishment of an additional office or the
change of office location or name of a savings bank;
(15) the requirements for a savings bank's holding
companies, including those relating to:
(A) registration and periodic reporting of a
holding company with the commissioner; and
(B) transactions between a holding company, an
affiliate of a holding company, or a savings bank; and
(16) the powers of a savings bank to make loans and
investments that contain provisions reasonably necessary to ensure
that a loan made by a savings bank is consistent with sound lending
practices and that the savings bank's investment will promote the
purposes of this subtitle, including provisions governing:
(A) the type of loans and the conditions under
which a savings bank may originate, make, or sell loans;
(B) the conditions under which a savings bank may
purchase or participate in a loan made by another lender;
(C) the conditions for the servicing of a loan
for another lender;
(D) the conditions under which a savings bank may
lend money on the security of a loan made by another person;
(E) the conditions under which a savings bank may
pledge loans held by it as collateral for borrowing by the savings
bank;
(F) the conditions under which a savings bank may
invest in securities and debt instruments;
(G) the documentation that a savings bank must
have in its files at the time of funding or purchase of a loan, an
investment, or a participation in a loan;
(H) the form and content of statements of
expenses and fees and other charges that are paid by a borrower or
that a borrower is obligated to pay;
(I) the title information that must be
maintained;
(J) the borrower's insurance coverage of
property securing a loan;
(K) an appraisal report;
(L) the financial statement of a borrower;
(M) the fees or other compensation that may be
paid to a person in connection with obtaining a loan for a savings
bank, including an officer, director, employee, affiliated person,
consultant, or third party;
(N) the conditions under which the savings bank
may advance money to pay a tax, assessment, insurance premium, or
other similar charge for the protection of the savings bank's
interest in property securing the savings bank's loans;
(O) the terms under which a savings bank may
acquire and deal in real property;
(P) the valuation on a savings bank's books of
real property held by the savings bank;
(Q) the terms governing the investment by a
savings bank in a subsidiary, the powers that may be exercised by a
subsidiary, and the activities that may be engaged in by a
subsidiary; and
(R) any other matter considered necessary to
administer each type of transaction.
SECTION 12. Subsection (b), Section 96.053, Finance Code,
is amended to read as follows:
(b) A savings bank shall make any [other] report the
commissioner may require to administer and enforce this chapter. A
[An additional] report under this section must be:
(1) [signed in the same manner as the annual report;
[(2)] in the form and manner the commissioner
prescribes; and
(2) [(3)] filed on the date the commissioner
prescribes.
SECTION 13. Subsection (a), Section 96.111, Finance Code,
is amended to read as follows:
(a) When a supervisory order is issued under this chapter,
the [The] commissioner shall report the existence of the order
promptly to the finance commission but shall maintain the
confidentiality of the content of the order [when a supervisory
order is issued under this chapter]. [The commissioner shall
furnish information about a savings bank or person as the finance
commission may require in a closed meeting. All information
discussed in the closed meeting is confidential.]
SECTION 14. Subchapter C, Chapter 119, Finance Code, is
amended by adding Section 119.202 to read as follows:
Sec. 119.202. CRIMINAL SLANDER OR LIBEL. (a) A person
commits an offense if the person:
(1) knowingly makes, utters, circulates, or transmits
to another person a statement that is untrue and derogatory to the
financial condition of a savings bank; or
(2) with intent to injure a savings bank counsels,
aids, procures, or induces another person to originate, make,
utter, transmit, or circulate a statement or rumor that is untrue
and derogatory to the financial condition of the savings bank.
(b) An offense under Subsection (a) is a state jail felony.
SECTION 15. The following provisions of the Finance Code
are repealed:
(1) Section 62.103;
(2) Section 92.202;
(3) Subchapter E, Chapter 94;
(4) Subsection (d), Section 96.051; and
(5) Subsection (a), Section 96.053.
SECTION 16. The change in law made by this Act applies only
to an offense committed on or after the effective date of this Act.
An offense committed before the effective date of this Act is
governed by the law in effect on the date the offense was committed,
and the former law is continued in effect for that purpose. For
purposes of this section, an offense was committed before the
effective date of this Act if any element of the offense occurred
before that date.
SECTION 17. This Act takes effect September 1, 2013.
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