| 1 | 1 | | 88R20901 ATP-F |
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| 2 | 2 | | By: Guillen, Lopez of Cameron H.B. No. 1552 |
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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 the limitation of liability of a financial institution |
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| 8 | 8 | | acquiring a trustee financial institution. |
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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. Subchapter A, Chapter 114, Property Code, is |
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| 11 | 11 | | amended by adding Section 114.009 to read as follows: |
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| 12 | 12 | | Sec. 114.009. LIABILITY OF ACQUIRING FINANCIAL |
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| 13 | 13 | | INSTITUTION. (a) In this section, "financial institution" has the |
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| 14 | 14 | | meaning assigned by Section 201.101, Finance Code. |
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| 15 | 15 | | (b) The aggregate liability of an acquiring financial |
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| 16 | 16 | | institution that accepts the trusts for which a financial |
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| 17 | 17 | | institution merged with or acquired by the financial institution |
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| 18 | 18 | | serves as trustee is limited to the lesser of: |
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| 19 | 19 | | (1) $10 million; or |
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| 20 | 20 | | (2) the aggregate value of all distributions of trust |
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| 21 | 21 | | property made by any predecessor trustee, including the financial |
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| 22 | 22 | | institution merged into or acquired by the acquiring financial |
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| 23 | 23 | | institution, in all trusts before the acquiring financial |
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| 24 | 24 | | institution's acceptance of the trusts. |
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| 25 | 25 | | (c) Subsection (b) applies only to liability for conduct of |
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| 26 | 26 | | a predecessor trustee. |
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| 27 | 27 | | SECTION 2. Section 114.009, Property Code, as added by this |
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| 28 | 28 | | Act, applies only to an action filed against a financial |
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| 29 | 29 | | institution on or after the effective date of this Act. |
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| 30 | 30 | | SECTION 3. This Act takes effect September 1, 2023. |
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