| 1 | 1 | | 85R5938 EES-F |
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| 2 | 2 | | By: Buckingham S.B. No. 1919 |
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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 the bond and other coverages required to be maintained |
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| 8 | 8 | | by or for the benefit of a savings bank. |
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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 92.156, Finance Code, is amended to read |
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| 11 | 11 | | as follows: |
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| 12 | 12 | | Sec. 92.156. FINANCIAL INSTITUTION BOND [INDEMNITY BONDS OF |
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| 13 | 13 | | DIRECTORS, OFFICERS, AND EMPLOYEES]. (a) A savings bank shall |
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| 14 | 14 | | maintain a financial institution [blanket indemnity] bond that |
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| 15 | 15 | | provides [with an] adequate coverage to protect [corporate surety |
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| 16 | 16 | | protecting] the savings bank from loss: |
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| 17 | 17 | | (1) by or through dishonest or criminal action or |
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| 18 | 18 | | omission, including fraud, theft, or misplacement [robbery, or |
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| 19 | 19 | | burglary], by any of the following persons: |
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| 20 | 20 | | (A) an officer or employee of the savings bank; |
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| 21 | 21 | | (B) an attorney retained by the savings bank; |
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| 22 | 22 | | (C) a nonemployee performing data processing |
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| 23 | 23 | | services for the savings bank; or |
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| 24 | 24 | | (D) a director of the savings bank performing a |
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| 25 | 25 | | [when the director performs the] duty of an officer or employee; or |
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| 26 | 26 | | (2) by other perils such as robbery, burglary, |
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| 27 | 27 | | forgery, or alteration. |
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| 28 | 28 | | (b) A savings bank that employs a collection agent who is |
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| 29 | 29 | | not covered by the bond required by Subsection (a) shall: |
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| 30 | 30 | | (1) ensure that the savings bank is included as a loss |
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| 31 | 31 | | payee in the collection agent's crime coverage; and |
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| 32 | 32 | | (2) obtain a certificate of insurance evidencing the |
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| 33 | 33 | | sufficiency of the collection agent's crime coverage [provide for |
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| 34 | 34 | | the bonding of the agent in an amount equal to at least twice the |
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| 35 | 35 | | average monthly collection of the agent unless the agent is a |
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| 36 | 36 | | financial institution insured by the Federal Deposit Insurance |
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| 37 | 37 | | Corporation. An agent shall settle with the savings bank at least |
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| 38 | 38 | | monthly]. |
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| 39 | 39 | | (c) Subject to rules adopted under Subsection (e), the board |
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| 40 | 40 | | shall, at least annually, review and approve: |
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| 41 | 41 | | (1) the coverage, including the amount of the |
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| 42 | 42 | | coverage, provided by the bond and the form of the bond; and |
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| 43 | 43 | | (2) the sustainability [sufficiency] of the corporate |
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| 44 | 44 | | surety or insurer that issued the bond. |
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| 45 | 45 | | (d) The bond must provide that a cancellation or other |
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| 46 | 46 | | termination by the corporate surety or insurer or by the insured is |
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| 47 | 47 | | not effective until the earlier of: |
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| 48 | 48 | | (1) the date the commissioner approves; or |
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| 49 | 49 | | (2) the 30th day after the date written notice of the |
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| 50 | 50 | | cancellation is given to the commissioner. |
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| 51 | 51 | | (e) The finance commission may adopt rules establishing: |
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| 52 | 52 | | (1) the coverage, including the amount of the |
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| 53 | 53 | | coverage, that must be provided by the bond and the form of the |
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| 54 | 54 | | bond; and |
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| 55 | 55 | | (2) the sustainability [sufficiency] of the corporate |
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| 56 | 56 | | surety or insurer that issues the bond. |
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| 57 | 57 | | SECTION 2. Not later than January 1, 2018: |
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| 58 | 58 | | (1) a savings bank that maintains a bond under Section |
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| 59 | 59 | | 92.156, Finance Code, on the effective date of this Act shall obtain |
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| 60 | 60 | | a bond that satisfies the requirements of Section 92.156, Finance |
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| 61 | 61 | | Code, as amended by this Act; and |
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| 62 | 62 | | (2) a collection agent employed by a savings bank |
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| 63 | 63 | | shall maintain crime coverage in compliance with Section 92.156(b), |
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| 64 | 64 | | Finance Code, as amended by this Act. |
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| 65 | 65 | | SECTION 3. This Act takes effect September 1, 2017. |
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