Bill Text: TX HB1552 | 2023-2024 | 88th Legislature | Engrossed
Bill Title: Relating to the limitation of liability of a financial institution acquiring a trustee financial institution.
Sponsorship: Partisan Bill (Republican 2)
Status: (Engrossed - Dead) 2023-05-04 - Referred to State Affairs [HB1552 Detail]
Download: Texas-2023-HB1552-Engrossed.html
| 88R20901 ATP-F | ||
| By: Guillen, Lopez of Cameron | H.B. No. 1552 | |
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| relating to the limitation of liability of a financial institution | ||
| acquiring a trustee financial institution. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subchapter A, Chapter 114, Property Code, is | ||
| amended by adding Section 114.009 to read as follows: | ||
| Sec. 114.009. LIABILITY OF ACQUIRING FINANCIAL | ||
| INSTITUTION. (a) In this section, "financial institution" has the | ||
| meaning assigned by Section 201.101, Finance Code. | ||
| (b) The aggregate liability of an acquiring financial | ||
| institution that accepts the trusts for which a financial | ||
| institution merged with or acquired by the financial institution | ||
| serves as trustee is limited to the lesser of: | ||
| (1) $10 million; or | ||
| (2) the aggregate value of all distributions of trust | ||
| property made by any predecessor trustee, including the financial | ||
| institution merged into or acquired by the acquiring financial | ||
| institution, in all trusts before the acquiring financial | ||
| institution's acceptance of the trusts. | ||
| (c) Subsection (b) applies only to liability for conduct of | ||
| a predecessor trustee. | ||
| SECTION 2. Section 114.009, Property Code, as added by this | ||
| Act, applies only to an action filed against a financial | ||
| institution on or after the effective date of this Act. | ||
| SECTION 3. This Act takes effect September 1, 2023. | ||
