88R50 SRA-F
By: Slawson H.B. No. 1186
A BILL TO BE ENTITLED
AN ACT
relating to the requirements for the conversion of a trust
institution into a state trust company.
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. The change in law made by this Act 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 3. This Act takes effect September 1, 2023.