Bill Text: TX HB2726 | 2017-2018 | 85th Legislature | Comm Sub


Bill Title: Relating to state banks, state bank holding companies, and branches of foreign banks.

Spectrum: Bipartisan Bill

Status: (Engrossed - Dead) 2017-05-01 - Received from the House [HB2726 Detail]

Download: Texas-2017-HB2726-Comm_Sub.html
  85R6064 GRM-F
 
  By: Holland, Longoria H.B. No. 2726
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to state banks, state bank holding companies, and branches
  of foreign banks.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 33.002, Finance Code, is amended by
  adding Subsection (a-1) and amending Subsections (d), (e), and (f)
  to read as follows:
         (a-1)  The banking commissioner shall promptly notify the
  applicant of the date the banking commissioner determines the
  application to be informationally complete and accepted for filing.
         (d)  The applicant shall publish notice of the application,
  the [its] date the application is accepted for [of] filing, and the
  identity of the applicant and, if the applicant includes a group,
  the identity of each group member. The notice must be published in
  the form and frequency specified by the banking commissioner and in
  a newspaper of general circulation in the county in which the bank's
  home office is located, or in another publication or location as
  directed by the banking commissioner.
         (e)  The applicant may defer publication of the notice until
  not later than the 34th day after the date the application is
  accepted for filing [filed] if:
               (1)  the application is filed in contemplation of a
  public tender offer subject to 15 U.S.C. Section 78n(d)(1);
               (2)  the applicant requests confidential treatment and
  represents that a public announcement of the tender offer and the
  filing of appropriate forms with the Securities and Exchange
  Commission or the appropriate federal banking agency, as
  applicable, will occur within the period of deferral; and
               (3)  the banking commissioner determines that the
  public interest will not be harmed by the requested confidential
  treatment.
         (f)  The banking commissioner may waive the requirement that
  a notice be published or permit delayed publication on a
  determination that waiver or delay is in the public interest. If
  publication of notice is waived under this subsection, the
  information that would be contained in a published notice becomes
  public information under Chapter 552, Government Code, on the 35th
  day after the date the application is accepted for filing [filed].
         SECTION 2.  Section 59.109, Finance Code, is amended to read
  as follows:
         Sec. 59.109.  TERMINATION OF [DELINQUENT] RENTAL; LIEN; SALE
  OF CONTENTS. (a) A safe deposit company may not terminate an
  agreement for the rental of a safe deposit box unless:
               (1)  the safe deposit company has delivered or sent to
  the lessee a notice not later than the 90th day before the date of
  the termination and has provided the lessee an opportunity to
  retrieve the contents during normal business hours throughout the
  duration of the notice period; or
               (2)  the payment for the rental of a safe deposit box is
  delinquent for at least six months, and the lessee fails to pay the
  rent due following notice provided under Subsection (a-1).
         (a-1)  If the payment for the rental of [for] a safe deposit
  box is delinquent for at least six months, or if the rental
  agreement is otherwise terminated, the safe deposit company shall 
  [may] send notice to each lessee that the company will remove the
  contents of the box if the rent is not paid or, if the rental
  agreement is otherwise terminated, the contents are not retrieved
  before the date specified in the notice, which may not be earlier
  than the 60th day after the date the notice is delivered or sent.
         (a-2)  If the delinquent rent is not paid or, if the rental
  agreement is otherwise terminated, the contents are not retrieved
  before the date specified in the notice, the safe deposit company
  may open the box in the presence of two employees, at least one of
  whom is an officer or manager of the safe deposit company and at
  least one of whom is a notary public. The safe deposit company
  shall inventory the contents of the box in detail as provided by the
  comptroller's reporting instructions and place the contents of the
  box in a sealed envelope or container bearing the name of the
  lessee.
         (b)  The safe deposit company has a lien on the contents of
  the box for an amount equal to the rental owed for the box and the
  cost of opening the box. The safe deposit company may retain
  possession of the contents not later than two years from the date of
  the opening of the box plus a reasonable period to dispose of the
  contents of the box. If the rental and the cost of opening the box
  are not paid before the second anniversary of the date the box was
  opened, or if the rental agreement is being terminated for a reason
  other than delinquent payment, and the lessee has failed to
  retrieve the contents in a reasonable period after notice of the
  termination has been sent or delivered, the safe deposit company
  may sell all or part of the contents at public auction in the manner
  and with the notice prescribed by Section 51.002, Property Code,
  for the sale of real property under a deed of trust. Any unsold
  contents of the box and any excess proceeds from a sale of contents
  shall be remitted to the comptroller as provided by Chapters 72-75,
  Property Code.
         SECTION 3.  Section 202.001, Finance Code, is amended by
  amending Subsection (a) and adding Subsection (a-1) to read as
  follows:
         (a)  This section applies to a company intending to acquire a
  Texas bank holding company or a Texas bank. For purposes of this
  section, a Texas bank holding company does not include a bank
  holding company of which the only subsidiaries are state savings
  banks.
         (a-1)  A company described by Subsection (a) [intending to
  acquire a Texas bank holding company or a Texas bank] shall submit
  to the commissioner a copy of the application for approval or notice
  submitted to the Board of Governors of the Federal Reserve System
  under Section 3, Bank Holding Company Act (12 U.S.C. Section 1842).
  The copy must be:
               (1)  submitted to the commissioner when the application
  is submitted to the board of governors;
               (2)  accompanied by any additional information
  required under Subsection (b); and
               (3)  accompanied by any filing fee required by law.
         SECTION 4.  Sections 204.105(b) and (e), Finance Code, are
  amended to read as follows:
         (b)  Among other exceptions to Subsection (a) that may be
  required or authorized by the commissioner provided by this
  subchapter or by rules adopted under this subtitle:
               (1)  a Texas state branch may not accept deposits of
  less than an amount equal to the standard maximum deposit insurance
  amount [$100,000] from citizens or residents of the United States,
  other than credit balances that are incidental to or arise out of
  its exercise of other lawful banking powers, unless the Federal
  Deposit Insurance Corporation determines that specific deposit
  taking activities in lesser amounts do not constitute domestic
  retail deposit activities requiring deposit insurance protection
  within the meaning of Section 6, International Banking Act (12
  U.S.C. Section 3104);
               (2)  a Texas state agency may not accept deposits from
  citizens or residents of the United States, other than credit
  balances that are incidental to or arise out of its exercise of
  other lawful banking powers, but may accept deposits from persons
  who are neither citizens nor residents of the United States; and
               (3)  a limitation or restriction based on the capital
  and surplus of a Texas state bank is considered to refer, as applied
  to a Texas state branch or agency, to the dollar equivalent of the
  capital and surplus of the foreign bank, and if the foreign bank has
  more than one Texas state branch or agency in this state, the
  business transacted by all the branches and agencies must be
  aggregated in determining compliance with the limitation.
         (e)  For purposes of this section:
               (1)  "Resident of the United States"[, the term
  "resident of the United States"] means:
                     (A) [(1)]  an individual residing in the United
  States;
                     (B) [(2)]  a corporation, partnership,
  association, or other entity organized in the United States; or
                     (C) [(3)]  a branch or office located in the
  United States of an entity that is not organized in the United
  States.
               (2)  "Standard maximum deposit insurance amount" means
  the amount of the maximum amount of deposit insurance as determined
  under the Federal Deposit Insurance Act (12 U.S.C. Section 1821).
         SECTION 5.  Section 204.203(a), Finance Code, is amended to
  read as follows:
         (a)  A registered Texas representative office of a foreign
  bank may engage in:
               (1)  representational and administrative functions in
  connection with the banking activities of the foreign bank that:
                     (A)  may include soliciting new business for the
  foreign bank, conducting research, acting as liaison between the
  foreign bank's head office and customers in the United States,
  performing preliminary and servicing steps in connection with
  lending, or performing back-office functions; and
                     (B)  do not include contracting for any deposit or
  deposit-like liability, lending money, or engaging in any other
  banking activity for the foreign bank [solicit loans and in
  connection with a loan:
                     [(A)     assemble credit information about the
  borrower;
                     [(B)  inspect and appraise property;
                     [(C)  obtain property title information; and
                     [(D)  prepare a loan application];
               (2)  making credit decisions if:
                     (A)  the foreign bank also operates one or more
  branches or agencies in the United States;
                     (B)  the loans approved at the representative
  office are made by a United States office of the bank; and
                     (C)  the loan proceeds are not disbursed in the
  representative office [solicit purchasers for loans from the
  foreign bank]; and
               (3)  other functions for or on behalf of the foreign
  bank or its affiliates, including operating as a regional
  administrative office of the foreign bank, but only to the extent
  that the functions are not banking activities and are not
  prohibited by applicable federal or state law [solicit persons to
  contract for servicing the foreign bank loans;
               [(4)  conduct research;
               [(5)     perform services as liaison for customers and
  correspondents of the foreign bank;
               [(6)     execute loan documents relating to permitted
  loans with the written approval of the foreign bank;
               [(7)     perform back office administrative functions as
  may be more specifically defined by rule; and
               [(8)     engage in other activities approved by the
  commissioner or permitted by rule].
         SECTION 6.  Sections 204.203(b), (c), and (d), Finance Code,
  are repealed.
         SECTION 7.  This Act takes effect September 1, 2017.
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