Texas 2017 - 85th Regular

Texas House Bill HB2726 Compare Versions

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1	1	85R6064 GRM-F
2	2	By: Holland, Longoria H.B. No. 2726
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to state banks, state bank holding companies, and branches
8	8	of foreign banks.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 33.002, Finance Code, is amended by
11	11	adding Subsection (a-1) and amending Subsections (d), (e), and (f)
12	12	to read as follows:
13	13	(a-1) The banking commissioner shall promptly notify the
14	14	applicant of the date the banking commissioner determines the
15	15	application to be informationally complete and accepted for filing.
16	16	(d) The applicant shall publish notice of the application,
17	17	the [its] date the application is accepted for [of] filing, and the
18	18	identity of the applicant and, if the applicant includes a group,
19	19	the identity of each group member. The notice must be published in
20	20	the form and frequency specified by the banking commissioner and in
21	21	a newspaper of general circulation in the county in which the bank's
22	22	home office is located, or in another publication or location as
23	23	directed by the banking commissioner.
24	24	(e) The applicant may defer publication of the notice until
25	25	not later than the 34th day after the date the application is
26	26	accepted for filing [filed] if:
27	27	(1) the application is filed in contemplation of a
28	28	public tender offer subject to 15 U.S.C. Section 78n(d)(1);
29	29	(2) the applicant requests confidential treatment and
30	30	represents that a public announcement of the tender offer and the
31	31	filing of appropriate forms with the Securities and Exchange
32	32	Commission or the appropriate federal banking agency, as
33	33	applicable, will occur within the period of deferral; and
34	34	(3) the banking commissioner determines that the
35	35	public interest will not be harmed by the requested confidential
36	36	treatment.
37	37	(f) The banking commissioner may waive the requirement that
38	38	a notice be published or permit delayed publication on a
39	39	determination that waiver or delay is in the public interest. If
40	40	publication of notice is waived under this subsection, the
41	41	information that would be contained in a published notice becomes
42	42	public information under Chapter 552, Government Code, on the 35th
43	43	day after the date the application is accepted for filing [filed].
44	44	SECTION 2. Section 59.109, Finance Code, is amended to read
45	45	as follows:
46	46	Sec. 59.109. TERMINATION OF [DELINQUENT] RENTAL; LIEN; SALE
47	47	OF CONTENTS. (a) A safe deposit company may not terminate an
48	48	agreement for the rental of a safe deposit box unless:
49	49	(1) the safe deposit company has delivered or sent to
50	50	the lessee a notice not later than the 90th day before the date of
51	51	the termination and has provided the lessee an opportunity to
52	52	retrieve the contents during normal business hours throughout the
53	53	duration of the notice period; or
54	54	(2) the payment for the rental of a safe deposit box is
55	55	delinquent for at least six months, and the lessee fails to pay the
56	56	rent due following notice provided under Subsection (a-1).
57	57	(a-1) If the payment for the rental of [for] a safe deposit
58	58	box is delinquent for at least six months, or if the rental
59	59	agreement is otherwise terminated, the safe deposit company shall
60	60	[may] send notice to each lessee that the company will remove the
61	61	contents of the box if the rent is not paid or, if the rental
62	62	agreement is otherwise terminated, the contents are not retrieved
63	63	before the date specified in the notice, which may not be earlier
64	64	than the 60th day after the date the notice is delivered or sent.
65	65	(a-2) If the delinquent rent is not paid or, if the rental
66	66	agreement is otherwise terminated, the contents are not retrieved
67	67	before the date specified in the notice, the safe deposit company
68	68	may open the box in the presence of two employees, at least one of
69	69	whom is an officer or manager of the safe deposit company and at
70	70	least one of whom is a notary public. The safe deposit company
71	71	shall inventory the contents of the box in detail as provided by the
72	72	comptroller's reporting instructions and place the contents of the
73	73	box in a sealed envelope or container bearing the name of the
74	74	lessee.
75	75	(b) The safe deposit company has a lien on the contents of
76	76	the box for an amount equal to the rental owed for the box and the
77	77	cost of opening the box. The safe deposit company may retain
78	78	possession of the contents not later than two years from the date of
79	79	the opening of the box plus a reasonable period to dispose of the
80	80	contents of the box. If the rental and the cost of opening the box
81	81	are not paid before the second anniversary of the date the box was
82	82	opened, or if the rental agreement is being terminated for a reason
83	83	other than delinquent payment, and the lessee has failed to
84	84	retrieve the contents in a reasonable period after notice of the
85	85	termination has been sent or delivered, the safe deposit company
86	86	may sell all or part of the contents at public auction in the manner
87	87	and with the notice prescribed by Section 51.002, Property Code,
88	88	for the sale of real property under a deed of trust. Any unsold
89	89	contents of the box and any excess proceeds from a sale of contents
90	90	shall be remitted to the comptroller as provided by Chapters 72-75,
91	91	Property Code.
92	92	SECTION 3. Section 202.001, Finance Code, is amended by
93	93	amending Subsection (a) and adding Subsection (a-1) to read as
94	94	follows:
95	95	(a) This section applies to a company intending to acquire a
96	96	Texas bank holding company or a Texas bank. For purposes of this
97	97	section, a Texas bank holding company does not include a bank
98	98	holding company of which the only subsidiaries are state savings
99	99	banks.
100	100	(a-1) A company described by Subsection (a) [intending to
101	101	acquire a Texas bank holding company or a Texas bank] shall submit
102	102	to the commissioner a copy of the application for approval or notice
103	103	submitted to the Board of Governors of the Federal Reserve System
104	104	under Section 3, Bank Holding Company Act (12 U.S.C. Section 1842).
105	105	The copy must be:
106	106	(1) submitted to the commissioner when the application
107	107	is submitted to the board of governors;
108	108	(2) accompanied by any additional information
109	109	required under Subsection (b); and
110	110	(3) accompanied by any filing fee required by law.
111	111	SECTION 4. Sections 204.105(b) and (e), Finance Code, are
112	112	amended to read as follows:
113	113	(b) Among other exceptions to Subsection (a) that may be
114	114	required or authorized by the commissioner provided by this
115	115	subchapter or by rules adopted under this subtitle:
116	116	(1) a Texas state branch may not accept deposits of
117	117	less than an amount equal to the standard maximum deposit insurance
118	118	amount [$100,000] from citizens or residents of the United States,
119	119	other than credit balances that are incidental to or arise out of
120	120	its exercise of other lawful banking powers, unless the Federal
121	121	Deposit Insurance Corporation determines that specific deposit
122	122	taking activities in lesser amounts do not constitute domestic
123	123	retail deposit activities requiring deposit insurance protection
124	124	within the meaning of Section 6, International Banking Act (12
125	125	U.S.C. Section 3104);
126	126	(2) a Texas state agency may not accept deposits from
127	127	citizens or residents of the United States, other than credit
128	128	balances that are incidental to or arise out of its exercise of
129	129	other lawful banking powers, but may accept deposits from persons
130	130	who are neither citizens nor residents of the United States; and
131	131	(3) a limitation or restriction based on the capital
132	132	and surplus of a Texas state bank is considered to refer, as applied
133	133	to a Texas state branch or agency, to the dollar equivalent of the
134	134	capital and surplus of the foreign bank, and if the foreign bank has
135	135	more than one Texas state branch or agency in this state, the
136	136	business transacted by all the branches and agencies must be
137	137	aggregated in determining compliance with the limitation.
138	138	(e) For purposes of this section:
139	139	(1) "Resident of the United States"[, the term
140	140	"resident of the United States"] means:
141	141	(A) [(1)] an individual residing in the United
142	142	States;
143	143	(B) [(2)] a corporation, partnership,
144	144	association, or other entity organized in the United States; or
145	145	(C) [(3)] a branch or office located in the
146	146	United States of an entity that is not organized in the United
147	147	States.
148	148	(2) "Standard maximum deposit insurance amount" means
149	149	the amount of the maximum amount of deposit insurance as determined
150	150	under the Federal Deposit Insurance Act (12 U.S.C. Section 1821).
151	151	SECTION 5. Section 204.203(a), Finance Code, is amended to
152	152	read as follows:
153	153	(a) A registered Texas representative office of a foreign
154	154	bank may engage in:
155	155	(1) representational and administrative functions in
156	156	connection with the banking activities of the foreign bank that:
157	157	(A) may include soliciting new business for the
158	158	foreign bank, conducting research, acting as liaison between the
159	159	foreign bank's head office and customers in the United States,
160	160	performing preliminary and servicing steps in connection with
161	161	lending, or performing back-office functions; and
162	162	(B) do not include contracting for any deposit or
163	163	deposit-like liability, lending money, or engaging in any other
164	164	banking activity for the foreign bank [solicit loans and in
165	165	connection with a loan:
166	166	[(A) assemble credit information about the
167	167	borrower;
168	168	[(B) inspect and appraise property;
169	169	[(C) obtain property title information; and
170	170	[(D) prepare a loan application];
171	171	(2) making credit decisions if:
172	172	(A) the foreign bank also operates one or more
173	173	branches or agencies in the United States;
174	174	(B) the loans approved at the representative
175	175	office are made by a United States office of the bank; and
176	176	(C) the loan proceeds are not disbursed in the
177	177	representative office [solicit purchasers for loans from the
178	178	foreign bank]; and
179	179	(3) other functions for or on behalf of the foreign
180	180	bank or its affiliates, including operating as a regional
181	181	administrative office of the foreign bank, but only to the extent
182	182	that the functions are not banking activities and are not
183	183	prohibited by applicable federal or state law [solicit persons to
184	184	contract for servicing the foreign bank loans;
185	185	[(4) conduct research;
186	186	[(5) perform services as liaison for customers and
187	187	correspondents of the foreign bank;
188	188	[(6) execute loan documents relating to permitted
189	189	loans with the written approval of the foreign bank;
190	190	[(7) perform back office administrative functions as
191	191	may be more specifically defined by rule; and
192	192	[(8) engage in other activities approved by the
193	193	commissioner or permitted by rule].
194	194	SECTION 6. Sections 204.203(b), (c), and (d), Finance Code,
195	195	are repealed.
196	196	SECTION 7. This Act takes effect September 1, 2017.