| 1 | 1 | | 84R1020 MTB-F |
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| 2 | 2 | | By: Farrar H.B. No. 704 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to disclosures on selection or modification of an account |
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| 8 | 8 | | by a customer of a financial institution. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 113.053, Estates Code, is amended to |
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| 11 | 11 | | read as follows: |
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| 12 | 12 | | Sec. 113.053. REQUIRED DISCLOSURE; USE OF FORM[; |
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| 13 | 13 | | DISCLOSURE]. (a) A financial institution shall disclose the |
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| 14 | 14 | | information provided in this subchapter to a customer at the time |
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| 15 | 15 | | the customer selects or modifies an account. A financial |
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| 16 | 16 | | institution is considered to have [adequately] disclosed the |
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| 17 | 17 | | information provided in this subchapter if: |
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| 18 | 18 | | (1) the financial institution uses the form provided |
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| 19 | 19 | | by Section 113.052; and |
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| 20 | 20 | | (2) the customer places the customer's initials to the |
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| 21 | 21 | | right of each paragraph of the form. |
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| 22 | 22 | | (b) If a financial institution varies the format of the form |
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| 23 | 23 | | provided by Section 113.052, the financial institution may make |
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| 24 | 24 | | disclosures in the account agreement or in any other form that |
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| 25 | 25 | | [adequately] discloses the information provided by this |
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| 26 | 26 | | subchapter. Disclosures under this subsection must: |
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| 27 | 27 | | (1) be given separately from other account |
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| 28 | 28 | | information; |
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| 29 | 29 | | (2) be provided before account selection or |
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| 30 | 30 | | modification; |
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| 31 | 31 | | (3) be printed in 14-point boldfaced type; and |
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| 32 | 32 | | (4) if the discussions that precede the account |
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| 33 | 33 | | opening or modification are conducted primarily in a language other |
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| 34 | 34 | | than English, be in that language. |
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| 35 | 35 | | (c) The financial institution shall notify the customer of |
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| 36 | 36 | | the type of account the customer selected [If the customer receives |
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| 37 | 37 | | adequate disclosure of the ownership rights to an account and the |
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| 38 | 38 | | names of the parties are appropriately indicated, a financial |
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| 39 | 39 | | institution may combine any of the provisions in, and vary the |
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| 40 | 40 | | format of, the form and notices described in Section 113.052 in: |
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| 41 | 41 | | [(1) a universal account form with options listed for |
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| 42 | 42 | | selection and additional disclosures provided in the account |
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| 43 | 43 | | agreement; or |
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| 44 | 44 | | [(2) any other manner that adequately discloses the |
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| 45 | 45 | | information provided by this subchapter]. |
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| 46 | 46 | | SECTION 2. This Act applies only to an account created or |
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| 47 | 47 | | modified on or after the effective date of this Act. An account |
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| 48 | 48 | | created or modified before the effective date of this Act is |
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| 49 | 49 | | governed by the law in effect when the account was created or |
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| 50 | 50 | | modified, and the former law is continued in effect for that |
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| 51 | 51 | | purpose. |
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| 52 | 52 | | SECTION 3. This Act takes effect September 1, 2015. |
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