| 1 | 1 | | 86R3113 TSR-F |
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| 2 | 2 | | By: Lambert H.B. No. 1175 |
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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 investments by state banks to promote community |
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| 8 | 8 | | development. |
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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. The heading to Section 34.106, Finance Code, is |
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| 11 | 11 | | amended to read as follows: |
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| 12 | 12 | | Sec. 34.106. INVESTMENTS TO PROMOTE COMMUNITY DEVELOPMENT |
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| 13 | 13 | | [FOR PUBLIC WELFARE]. |
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| 14 | 14 | | SECTION 2. Section 34.106, Finance Code, is amended by |
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| 15 | 15 | | amending Subsection (d) and adding Subsection (e) to read as |
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| 16 | 16 | | follows: |
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| 17 | 17 | | (d) A bank's aggregate investments under this section[, |
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| 18 | 18 | | including loans and commitments for loans,] may not exceed an |
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| 19 | 19 | | amount equal to 15 [10] percent of the bank's unimpaired capital and |
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| 20 | 20 | | surplus. [The banking commissioner may authorize investments in |
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| 21 | 21 | | excess of this limitation in response to a written application if |
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| 22 | 22 | | the banking commissioner concludes that: |
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| 23 | 23 | | [(1) the excess investment is not precluded by other |
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| 24 | 24 | | applicable law; and |
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| 25 | 25 | | [(2) the safety and soundness of the requesting bank |
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| 26 | 26 | | would not be adversely affected.] |
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| 27 | 27 | | (e) Notwithstanding any other law, a bank's exposure to a |
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| 28 | 28 | | single project or entity described by this section, including all |
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| 29 | 29 | | investments, loans, and commitments for loans, may not exceed 25 |
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| 30 | 30 | | percent of the bank's unimpaired capital and surplus without the |
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| 31 | 31 | | prior authorization of the banking commissioner in response to a |
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| 32 | 32 | | written application. |
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| 33 | 33 | | SECTION 3. This Act takes effect September 1, 2019. |
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