Bill Text: TX SB1646 | 2023-2024 | 88th Legislature | Enrolled
Bill Title: Relating to the regulation of state trust companies.
Spectrum: Partisan Bill (Republican 3-0)
Status: (Passed) 2023-05-19 - Effective immediately [SB1646 Detail]
Download: Texas-2023-SB1646-Enrolled.html
| S.B. No. 1646 | ||
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| relating to the regulation of state trust companies. | ||
| 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 [ |
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| 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. Section 184.002(c), Finance Code, is amended to | ||
| read as follows: | ||
| (c) A state trust company shall comply with regulatory | ||
| accounting principles in accounting for its investment in and | ||
| depreciation of trust company facilities, furniture, fixtures, and | ||
| equipment [ |
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| SECTION 3. Sections 184.003(a) and (c), Finance Code, are | ||
| amended to read as follows: | ||
| (a) A state trust company may not invest its restricted | ||
| capital in real property except: | ||
| (1) as permitted by this subtitle or rules adopted | ||
| under this subtitle; [ |
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| (2) with the prior written approval of the banking | ||
| commissioner; or | ||
| (3) as necessary to avoid or minimize a loss on a loan | ||
| or investment previously made in good faith. | ||
| (c) A state trust company shall dispose of any real property | ||
| subject to Subsection (a) not later than[ |
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| property: | ||
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| by rules adopted under this subtitle; [ |
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| (2) [ |
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| facility; or | ||
| (3) [ |
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| Section 184.002(b). | ||
| SECTION 4. Section 182.502(b), Finance Code, as amended 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 5. This Act takes effect immediately if it receives | ||
| a vote of two-thirds of all the members elected to each house, as | ||
| provided by Section 39, Article III, Texas Constitution. If this | ||
| Act does not receive the vote necessary for immediate effect, this | ||
| Act takes effect September 1, 2023. | ||
| ______________________________ | ______________________________ | |
| President of the Senate | Speaker of the House | |
| I hereby certify that S.B. No. 1646 passed the Senate on | ||
| April 27, 2023, by the following vote: Yeas 31, Nays 0. | ||
| ______________________________ | ||
| Secretary of the Senate | ||
| I hereby certify that S.B. No. 1646 passed the House on | ||
| May 6, 2023, by the following vote: Yeas 127, Nays 7, two present | ||
| not voting. | ||
| ______________________________ | ||
| Chief Clerk of the House | ||
| Approved: | ||
| ______________________________ | ||
| Date | ||
| ______________________________ | ||
| Governor | ||
