By: Slawson H.B. No. 3849
A BILL TO BE ENTITLED
AN ACT
relating to regulation of state trust companies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 182.502(b), Finance Code, is amended to
read as follows:
Sec. 182.502. CONVERSION OF TRUST INSTITUTION INTO STATE
TRUST COMPANY.
(b) A trust institution applying to convert into a state
trust company may receive a certificate of authority to do business
as a state trust company if the banking commissioner finds that:
(1) the trust institution is not engaging in a pattern
or practice of unsafe and unsound fiduciary or banking practices;
(2) the trust institution has adequate capitalization
for a state trust company to act as a fiduciary at the same
locations as the trust institution is acting as a fiduciary before
the conversion;
(3) the trust institution can be expected to operate
profitably after the conversion;
(4) the officers and directors of the trust
institution as a group have sufficient fiduciary [banking]
experience, ability, standing, competence, trustworthiness, and
integrity to justify a belief that the trust institution will
operate as a state trust company in compliance with law; and
(5) Each principal shareholder has sufficient
experience, ability, standing, competence, trustworthiness, and
integrity to justify a belief that the trust institution will be
free from improper or unlawful influence or interference with
respect to the trust institution's operation as a state trust
company in compliance with law.
SECTION 2. Section 184.003(e), Finance Code, is amended to
read as follows:
Sec. 184.003. OTHER REAL PROPERTY.
(e) Subject to the exercise of good judgment, a state trust
company may invest its secondary capital in real property. The
factors to be considered by a state trust company in exercise of
prudent judgment include the factors contained in Section
184.101(e) [184.101(f)].
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2021.