87R14632 SRA-F
By: Slawson, Anchia H.B. No. 3850
A BILL TO BE ENTITLED
AN ACT
relating to the regulation of state banks.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 34.103(c), Finance Code, is amended to
read as follows:
(c) A state bank may not establish or acquire a subsidiary
or a controlling interest in a subsidiary that engages in
activities as principal in which the bank is prohibited from
engaging directly unless:
(1) the state bank's investment in the subsidiary has
been allowed [approved] by the Federal Deposit Insurance
Corporation under Section 24, Federal Deposit Insurance Act (12
U.S.C. Section 1831a); or
(2) with respect to a subsidiary engaged in activities
as principal that a national bank may conduct only through a
financial subsidiary, including firm underwriting of equity
securities other than as permitted by Section 34.101, and not
otherwise engaged in activities as principal that are impermissible
for a state bank or a financial subsidiary of a national bank, the
subsidiary's activities and the bank's investment are in compliance
with the restrictions and requirements of Section 46, Federal
Deposit Insurance Act (12 U.S.C. Section 1831w).
SECTION 2. Section 35.002(a), Finance Code, is amended to
read as follows:
(a) The banking commissioner has grounds to issue a cease
and desist order to a current or former [an] officer, employee, or
director of a state bank, or the bank itself acting through an
authorized person, if the banking commissioner determines from
examination or other credible evidence that the bank or person
directly or indirectly has:
(1) violated this subtitle or another applicable law;
(2) engaged in a breach of trust or other fiduciary
duty;
(3) refused to submit to examination or examination
under oath;
(4) conducted business in an unsafe or unsound manner;
or
(5) violated a condition of the bank's charter or an
agreement between the bank or the person and the banking
commissioner or the department.
SECTION 3. Section 35.002(a), Finance Code, as amended by
this Act, applies only to a violation that occurs on or after the
effective date of this Act. A violation that occurs before the
effective date of this Act is governed by the law in effect when the
violation occurred, and the former law is continued in effect for
that purpose.
SECTION 4. This Act takes effect September 1, 2021.