Bill Text: TX SB1646 | 2023-2024 | 88th Legislature | Comm Sub
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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-Comm_Sub.html
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-Comm_Sub.html
By: Parker | S.B. No. 1646 | |
(Lambert, Ashby) | ||
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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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[ |
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property: | ||
(1) [ |
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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. |