Texas 2017 - 85th Regular

Texas Senate Bill SB1400 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Campbell S.B. No. 1400
2		-	(Holland)
	1	+	S.B. No. 1400
3	2
4	3
5		-	A BILL TO BE ENTITLED
6	4		AN ACT
7	5		relating to state banks, state bank holding companies, and branches
8	6		of foreign banks.
9	7		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	8		SECTION 1. Section 33.002, Finance Code, is amended by
11	9		adding Subsection (a-1) and amending Subsections (d), (e), and (f)
12	10		to read as follows:
13	11		(a-1) The banking commissioner shall promptly notify the
14	12		applicant of the date the banking commissioner determines the
15	13		application to be informationally complete and accepted for filing.
16	14		(d) The applicant shall publish notice of the application,
17	15		the [its] date the application is accepted for [of] filing, and the
18	16		identity of the applicant and, if the applicant includes a group,
19	17		the identity of each group member. The notice must be published in
20	18		the form and frequency specified by the banking commissioner and in
21	19		a newspaper of general circulation in the county in which the bank's
22	20		home office is located, or in another publication or location as
23	21		directed by the banking commissioner.
24	22		(e) The applicant may defer publication of the notice until
25	23		not later than the 34th day after the date the application is
26	24		accepted for filing [filed] if:
27	25		(1) the application is filed in contemplation of a
28	26		public tender offer subject to 15 U.S.C. Section 78n(d)(1);
29	27		(2) the applicant requests confidential treatment and
30	28		represents that a public announcement of the tender offer and the
31	29		filing of appropriate forms with the Securities and Exchange
32	30		Commission or the appropriate federal banking agency, as
33	31		applicable, will occur within the period of deferral; and
34	32		(3) the banking commissioner determines that the
35	33		public interest will not be harmed by the requested confidential
36	34		treatment.
37	35		(f) The banking commissioner may waive the requirement that
38	36		a notice be published or permit delayed publication on a
39	37		determination that waiver or delay is in the public interest. If
40	38		publication of notice is waived under this subsection, the
41	39		information that would be contained in a published notice becomes
42	40		public information under Chapter 552, Government Code, on the 35th
43	41		day after the date the application is accepted for filing [filed].
44	42		SECTION 2. Section 59.109, Finance Code, is amended to read
45	43		as follows:
46	44		Sec. 59.109. TERMINATION OF [DELINQUENT] RENTAL; LIEN; SALE
47	45		OF CONTENTS. (a) A safe deposit company may not terminate an
48	46		agreement for the rental of a safe deposit box unless:
49	47		(1) the safe deposit company has delivered or sent to
50	48		the lessee a notice not later than the 90th day before the date of
51	49		the termination and has provided the lessee an opportunity to
52	50		retrieve the contents during normal business hours throughout the
53	51		duration of the notice period; or
54	52		(2) the payment for the rental of a safe deposit box is
55	53		delinquent for at least six months, and the lessee fails to pay the
56	54		rent due following notice provided under Subsection (a-1).
57	55		(a-1) If the payment for the rental of [for] a safe deposit
58	56		box is delinquent for at least six months, or if the rental
59	57		agreement is otherwise terminated, the safe deposit company shall
60	58		[may] send notice to each lessee that the company will remove the
61	59		contents of the box if the rent is not paid or, if the rental
62	60		agreement is otherwise terminated, the contents are not retrieved
63	61		before the date specified in the notice, which may not be earlier
64	62		than the 60th day after the date the notice is delivered or sent.
65	63		(a-2) If the delinquent rent is not paid or, if the rental
66	64		agreement is otherwise terminated, the contents are not retrieved
67	65		before the date specified in the notice, the safe deposit company
68	66		may open the box in the presence of two employees, at least one of
69	67		whom is an officer or manager of the safe deposit company and at
70	68		least one of whom is a notary public. The safe deposit company
71	69		shall inventory the contents of the box in detail as provided by the
72	70		comptroller's reporting instructions and place the contents of the
73	71		box in a sealed envelope or container bearing the name of the
74	72		lessee.
75	73		(b) The safe deposit company has a lien on the contents of
76	74		the box for an amount equal to the rental owed for the box and the
77	75		cost of opening the box. The safe deposit company may retain
78	76		possession of the contents not later than two years from the date of
79	77		the opening of the box plus a reasonable period to dispose of the
80	78		contents of the box. If the rental and the cost of opening the box
81	79		are not paid before the second anniversary of the date the box was
82	80		opened, or if the rental agreement is being terminated for a reason
83	81		other than delinquent payment, and the lessee has failed to
84	82		retrieve the contents in a reasonable period after notice of the
85	83		termination has been sent or delivered, the safe deposit company
86	84		may sell all or part of the contents at public auction in the manner
87	85		and with the notice prescribed by Section 51.002, Property Code,
88	86		for the sale of real property under a deed of trust. Any unsold
89	87		contents of the box and any excess proceeds from a sale of contents
90	88		shall be remitted to the comptroller as provided by Chapters 72-75,
91	89		Property Code.
92	90		SECTION 3. Section 202.001, Finance Code, is amended by
93	91		amending Subsection (a) and adding Subsection (a-1) to read as
94	92		follows:
95	93		(a) This section applies to a company intending to acquire a
96	94		Texas bank holding company or a Texas bank. For purposes of this
97	95		section, a Texas bank holding company does not include a bank
98	96		holding company of which the only subsidiaries are state savings
99	97		banks.
100	98		(a-1) A company described by Subsection (a) [intending to
101	99		acquire a Texas bank holding company or a Texas bank] shall submit
102	100		to the commissioner a copy of the application for approval or notice
103	101		submitted to the Board of Governors of the Federal Reserve System
104	102		under Section 3, Bank Holding Company Act (12 U.S.C. Section 1842).
105	103		The copy must be:
106	104		(1) submitted to the commissioner when the application
107	105		is submitted to the board of governors;
108	106		(2) accompanied by any additional information
109	107		required under Subsection (b); and
110	108		(3) accompanied by any filing fee required by law.
111	109		SECTION 4. Sections 204.105(b) and (e), Finance Code, are
112	110		amended to read as follows:
113	111		(b) Among other exceptions to Subsection (a) that may be
114	112		required or authorized by the commissioner provided by this
115	113		subchapter or by rules adopted under this subtitle:
116	114		(1) a Texas state branch may not accept deposits of
117	115		less than an amount equal to the standard maximum deposit insurance
118	116		amount [$100,000] from citizens or residents of the United States,
119	117		other than credit balances that are incidental to or arise out of
120	118		its exercise of other lawful banking powers, unless the Federal
121	119		Deposit Insurance Corporation determines that specific deposit
122	120		taking activities in lesser amounts do not constitute domestic
123	121		retail deposit activities requiring deposit insurance protection
124	122		within the meaning of Section 6, International Banking Act (12
125	123		U.S.C. Section 3104);
126	124		(2) a Texas state agency may not accept deposits from
127	125		citizens or residents of the United States, other than credit
128	126		balances that are incidental to or arise out of its exercise of
129	127		other lawful banking powers, but may accept deposits from persons
130	128		who are neither citizens nor residents of the United States; and
131	129		(3) a limitation or restriction based on the capital
132	130		and surplus of a Texas state bank is considered to refer, as applied
133	131		to a Texas state branch or agency, to the dollar equivalent of the
134	132		capital and surplus of the foreign bank, and if the foreign bank has
135	133		more than one Texas state branch or agency in this state, the
136	134		business transacted by all the branches and agencies must be
137	135		aggregated in determining compliance with the limitation.
138	136		(e) For purposes of this section:
139	137		(1) "Resident of the United States"[, the term
140	138		"resident of the United States"] means:
141	139		(A) [(1)] an individual residing in the United
142	140		States;
143	141		(B) [(2)] a corporation, partnership,
144	142		association, or other entity organized in the United States; or
145	143		(C) [(3)] a branch or office located in the
146	144		United States of an entity that is not organized in the United
147	145		States.
148	146		(2) "Standard maximum deposit insurance amount" means
149	147		the amount of the maximum amount of deposit insurance as determined
150	148		under the Federal Deposit Insurance Act (12 U.S.C. Section 1821).
151	149		SECTION 5. Section 204.203(a), Finance Code, is amended to
152	150		read as follows:
153	151		(a) A registered Texas representative office of a foreign
154	152		bank may engage in:
155	153		(1) representational and administrative functions in
156	154		connection with the banking activities of the foreign bank that:
157	155		(A) may include soliciting new business for the
158	156		foreign bank, conducting research, acting as liaison between the
159	157		foreign bank's head office and customers in the United States,
160	158		performing preliminary and servicing steps in connection with
161	159		lending, or performing back-office functions; and
162	160		(B) do not include contracting for any deposit or
163	161		deposit-like liability, lending money, or engaging in any other
164	162		banking activity for the foreign bank [solicit loans and in
165	163		connection with a loan:
166	164		[(A) assemble credit information about the
167	165		borrower;
168	166		[(B) inspect and appraise property;
169	167		[(C) obtain property title information; and
170	168		[(D) prepare a loan application];
171	169		(2) making credit decisions if:
172	170		(A) the foreign bank also operates one or more
173	171		branches or agencies in the United States;
174	172		(B) the loans approved at the representative
175	173		office are made by a United States office of the bank; and
176	174		(C) the loan proceeds are not disbursed in the
177	175		representative office [solicit purchasers for loans from the
178	176		foreign bank]; and
179	177		(3) other functions for or on behalf of the foreign
180	178		bank or its affiliates, including operating as a regional
181	179		administrative office of the foreign bank, but only to the extent
182	180		that the functions are not banking activities and are not
183	181		prohibited by applicable federal or state law [solicit persons to
184	182		contract for servicing the foreign bank loans;
185	183		[(4) conduct research;
186	184		[(5) perform services as liaison for customers and
187	185		correspondents of the foreign bank;
188	186		[(6) execute loan documents relating to permitted
189	187		loans with the written approval of the foreign bank;
190	188		[(7) perform back office administrative functions as
191	189		may be more specifically defined by rule; and
192	190		[(8) engage in other activities approved by the
193	191		commissioner or permitted by rule].
194	192		SECTION 6. Sections 204.203(b), (c), and (d), Finance Code,
195	193		are repealed.
196	194		SECTION 7. This Act takes effect September 1, 2017.
	195	+	______________________________ ______________________________
	196	+	President of the Senate Speaker of the House
	197	+	I hereby certify that S.B. No. 1400 passed the Senate on
	198	+	April 19, 2017, by the following vote: Yeas 29, Nays 0, two
	199	+	present not voting.
	200	+	______________________________
	201	+	Secretary of the Senate
	202	+	I hereby certify that S.B. No. 1400 passed the House on
	203	+	May 24, 2017, by the following vote: Yeas 146, Nays 0, two
	204	+	present not voting.
	205	+	______________________________
	206	+	Chief Clerk of the House
	207	+	Approved:
	208	+	______________________________
	209	+	Date
	210	+	______________________________
	211	+	Governor