By: Campbell S.B. No. 1400
A BILL TO BE ENTITLED
AN ACT
relating to state banks, state bank holding companies, and branches
of foreign banks.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 33.002, Finance Code, is amended by
adding Subsection (a-1) and amending Subsections (d), (e), and (f)
to read as follows:
(a-1) The banking commissioner shall promptly notify the
applicant of the date the banking commissioner determines the
application to be informationally complete and accepted for filing.
(d) The applicant shall publish notice of the application,
the [its] date the application is accepted for [of] filing, and the
identity of the applicant and, if the applicant includes a group,
the identity of each group member. The notice must be published in
the form and frequency specified by the banking commissioner and in
a newspaper of general circulation in the county in which the bank's
home office is located, or in another publication or location as
directed by the banking commissioner.
(e) The applicant may defer publication of the notice until
not later than the 34th day after the date the application is
accepted for filing [filed] if:
(1) the application is filed in contemplation of a
public tender offer subject to 15 U.S.C. Section 78n(d)(1);
(2) the applicant requests confidential treatment and
represents that a public announcement of the tender offer and the
filing of appropriate forms with the Securities and Exchange
Commission or the appropriate federal banking agency, as
applicable, will occur within the period of deferral; and
(3) the banking commissioner determines that the
public interest will not be harmed by the requested confidential
treatment.
(f) The banking commissioner may waive the requirement that
a notice be published or permit delayed publication on a
determination that waiver or delay is in the public interest. If
publication of notice is waived under this subsection, the
information that would be contained in a published notice becomes
public information under Chapter 552, Government Code, on the 35th
day after the date the application is accepted for filing [filed].
SECTION 2. Section 59.109, Finance Code, is amended to read
as follows:
Sec. 59.109. TERMINATION OF [DELINQUENT] RENTAL; LIEN; SALE
OF CONTENTS. (a) A safe deposit company may not terminate an
agreement for the rental of a safe deposit box unless:
(1) the safe deposit company has delivered or sent to
the lessee a notice not later than the 90th day before the date of
the termination and has provided the lessee an opportunity to
retrieve the contents during normal business hours throughout the
duration of the notice period; or
(2) the payment for the rental of a safe deposit box is
delinquent for at least six months, and the lessee fails to pay the
rent due following notice provided under Subsection (a-1).
(a-1) If the payment for the rental of [for] a safe deposit
box is delinquent for at least six months, or if the rental
agreement is otherwise terminated, the safe deposit company shall
[may] send notice to each lessee that the company will remove the
contents of the box if the rent is not paid or, if the rental
agreement is otherwise terminated, the contents are not retrieved
before the date specified in the notice, which may not be earlier
than the 60th day after the date the notice is delivered or sent.
(a-2) If the delinquent rent is not paid or, if the rental
agreement is otherwise terminated, the contents are not retrieved
before the date specified in the notice, the safe deposit company
may open the box in the presence of two employees, at least one of
whom is an officer or manager of the safe deposit company and at
least one of whom is a notary public. The safe deposit company
shall inventory the contents of the box in detail as provided by the
comptroller's reporting instructions and place the contents of the
box in a sealed envelope or container bearing the name of the
lessee.
(b) The safe deposit company has a lien on the contents of
the box for an amount equal to the rental owed for the box and the
cost of opening the box. The safe deposit company may retain
possession of the contents not later than two years from the date of
the opening of the box plus a reasonable period to dispose of the
contents of the box. If the rental and the cost of opening the box
are not paid before the second anniversary of the date the box was
opened, or if the rental agreement is being terminated for a reason
other than delinquent payment, and the lessee has failed to
retrieve the contents in a reasonable period after notice of the
termination has been sent or delivered, the safe deposit company
may sell all or part of the contents at public auction in the manner
and with the notice prescribed by Section 51.002, Property Code,
for the sale of real property under a deed of trust. Any unsold
contents of the box and any excess proceeds from a sale of contents
shall be remitted to the comptroller as provided by Chapters 72-75,
Property Code.
SECTION 3. Section 202.001, Finance Code, is amended by
amending Subsection (a) and adding Subsection (a-1) to read as
follows:
(a) This section applies to a company intending to acquire a
Texas bank holding company or a Texas bank. For purposes of this
section, a Texas bank holding company does not include a bank
holding company of which the only subsidiaries are state savings
banks.
(a-1) A company described by Subsection (a) [intending to
acquire a Texas bank holding company or a Texas bank] shall submit
to the commissioner a copy of the application for approval or notice
submitted to the Board of Governors of the Federal Reserve System
under Section 3, Bank Holding Company Act (12 U.S.C. Section 1842).
The copy must be:
(1) submitted to the commissioner when the application
is submitted to the board of governors;
(2) accompanied by any additional information
required under Subsection (b); and
(3) accompanied by any filing fee required by law.
SECTION 4. Sections 204.105(b) and (e), Finance Code, are
amended to read as follows:
(b) Among other exceptions to Subsection (a) that may be
required or authorized by the commissioner provided by this
subchapter or by rules adopted under this subtitle:
(1) a Texas state branch may not accept deposits of
less than an amount equal to the standard maximum deposit insurance
amount [$100,000] from citizens or residents of the United States,
other than credit balances that are incidental to or arise out of
its exercise of other lawful banking powers, unless the Federal
Deposit Insurance Corporation determines that specific deposit
taking activities in lesser amounts do not constitute domestic
retail deposit activities requiring deposit insurance protection
within the meaning of Section 6, International Banking Act (12
U.S.C. Section 3104);
(2) a Texas state agency may not accept deposits from
citizens or residents of the United States, other than credit
balances that are incidental to or arise out of its exercise of
other lawful banking powers, but may accept deposits from persons
who are neither citizens nor residents of the United States; and
(3) a limitation or restriction based on the capital
and surplus of a Texas state bank is considered to refer, as applied
to a Texas state branch or agency, to the dollar equivalent of the
capital and surplus of the foreign bank, and if the foreign bank has
more than one Texas state branch or agency in this state, the
business transacted by all the branches and agencies must be
aggregated in determining compliance with the limitation.
(e) For purposes of this section:
(1) "Resident of the United States"[, the term
"resident of the United States"] means:
(A) [(1)] an individual residing in the United
States;
(B) [(2)] a corporation, partnership,
association, or other entity organized in the United States; or
(C) [(3)] a branch or office located in the
United States of an entity that is not organized in the United
States.
(2) "Standard maximum deposit insurance amount" means
the amount of the maximum amount of deposit insurance as determined
under the Federal Deposit Insurance Act (12 U.S.C. Section 1821).
SECTION 5. Section 204.203(a), Finance Code, is amended to
read as follows:
(a) A registered Texas representative office of a foreign
bank may engage in:
(1) representational and administrative functions in
connection with the banking activities of the foreign bank that:
(A) may include soliciting new business for the
foreign bank, conducting research, acting as liaison between the
foreign bank's head office and customers in the United States,
performing preliminary and servicing steps in connection with
lending, or performing back-office functions; and
(B) do not include contracting for any deposit or
deposit-like liability, lending money, or engaging in any other
banking activity for the foreign bank [solicit loans and in
connection with a loan:
[(A) assemble credit information about the
borrower;
[(B) inspect and appraise property;
[(C) obtain property title information; and
[(D) prepare a loan application];
(2) making credit decisions if:
(A) the foreign bank also operates one or more
branches or agencies in the United States;
(B) the loans approved at the representative
office are made by a United States office of the bank; and
(C) the loan proceeds are not disbursed in the
representative office [solicit purchasers for loans from the
foreign bank]; and
(3) other functions for or on behalf of the foreign
bank or its affiliates, including operating as a regional
administrative office of the foreign bank, but only to the extent
that the functions are not banking activities and are not
prohibited by applicable federal or state law [solicit persons to
contract for servicing the foreign bank loans;
[(4) conduct research;
[(5) perform services as liaison for customers and
correspondents of the foreign bank;
[(6) execute loan documents relating to permitted
loans with the written approval of the foreign bank;
[(7) perform back office administrative functions as
may be more specifically defined by rule; and
[(8) engage in other activities approved by the
commissioner or permitted by rule].
SECTION 6. Sections 204.203(b), (c), and (d), Finance Code,
are repealed.
SECTION 7. This Act takes effect September 1, 2017.