By: Slawson, Anchia (Senate Sponsor - Paxton) H.B. No. 3849
(In the Senate - Received from the House April 26, 2021;
May 4, 2021, read first time and referred to Committee on Business &
Commerce; May 20, 2021, reported favorably by the following vote:
Yeas 9, Nays 0; May 20, 2021, sent to printer.)
Click here to see the committee vote
A BILL TO BE ENTITLED
AN ACT
relating to the requirements for the 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:
(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:
(e) Subject to the exercise of prudent 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. The change in law made by this Act to Section
182.502(b), Finance Code, applies only to an application for
conversion filed on or after the effective date of this Act. An
application for conversion filed before the effective date of this
Act is governed by the law in effect on the date the application was
filed, and the former law is continued in effect for that purpose.
SECTION 4. This Act takes effect September 1, 2021.
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