85R9461 TSR-F
By: Oliveira H.B. No. 2831
A BILL TO BE ENTITLED
AN ACT
relating to investments by state banks to promote public welfare
and community development.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Section 34.106, Finance Code, is
amended to read as follows:
Sec. 34.106. INVESTMENTS TO PROMOTE [FOR] PUBLIC WELFARE
AND COMMUNITY DEVELOPMENT.
SECTION 2. Section 34.106, Finance Code, is amended by
amending Subsection (d) and adding Subsection (e) to read as
follows:
(d) A bank's aggregate equity investments under this
section[, including loans and commitments for loans,] may not:
(1) exceed an amount equal to 15 [10] percent of the
bank's unimpaired capital and surplus; and
(2) be made unless the bank is at least adequately
capitalized. [The banking commissioner may authorize investments
in excess of this limitation in response to a written application if
the banking commissioner concludes that:
[(1) the excess investment is not precluded by other
applicable law; and
[(2) the safety and soundness of the requesting bank
would not be adversely affected.]
(e) Subject to Subsection (d), a bank's investments
described by Subsection (a), including equity investments and loans
and commitments for loans, in a single entity may not exceed 25
percent of the bank's unimpaired capital and surplus without the
prior authorization of the banking commissioner in response to a
written application.
SECTION 3. This Act takes effect September 1, 2017.