Texas Senate Bill SB804

Texas 2013 - 83rd Regular

Caption

Relating to revising provisions in certain laws governing certain banks and trust companies in this state to conform to changes in terminology made by the Business Organizations Code.

Impact

The bill results in a more streamlined regulatory framework for banking and trust operations within Texas. By conforming state law terminology to the Business Organizations Code, SB804 seeks to remove outdated language and practices, thus making it easier for financial institutions to comply with both state and federal regulations. This clarity may foster improved operational efficiency for banks and trust companies, potentially leading to enhanced financial service offerings to the public.

Summary

Senate Bill 804 aims to update and revise various provisions in state laws governing banks and trust companies to align with amendments made in the Business Organizations Code. This reflects an ongoing process to modernize legal terminology and practices for financial entities in Texas. One of the significant changes proposed includes the substitution of existing terms related to the organization and governance of state banks and trust companies, which would enhance clarity in legal documentation and operations.

Contention

While the bill appears to enjoy broad support due to its technical nature, some stakeholders may express concern about the implications of changing established terminologies and practices. Critics could argue that such changes may create confusion or inadvertently alter existing rights and responsibilities under current laws. Additionally, there could be resistance from smaller institutions that may struggle with the compliance costs associated with any operational adjustments required by the new provisions.