Bill Text: TX SB1919 | 2017-2018 | 85th Legislature | Introduced


Bill Title: Relating to the bond and other coverages required to be maintained by or for the benefit of a savings bank.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2017-03-23 - Referred to Business & Commerce [SB1919 Detail]

Download: Texas-2017-SB1919-Introduced.html
  85R5938 EES-F
 
  By: Buckingham S.B. No. 1919
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the bond and other coverages required to be maintained
  by or for the benefit of a savings bank.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 92.156, Finance Code, is amended to read
  as follows:
         Sec. 92.156.  FINANCIAL INSTITUTION BOND [INDEMNITY BONDS OF
  DIRECTORS, OFFICERS, AND EMPLOYEES]. (a) A savings bank shall
  maintain a financial institution [blanket indemnity] bond that
  provides [with an] adequate coverage to protect [corporate surety
  protecting] the savings bank from loss:
               (1)  by or through dishonest or criminal action or
  omission, including fraud, theft, or misplacement [robbery, or
  burglary], by any of the following persons:
                     (A)  an officer or employee of the savings bank;
                     (B)  an attorney retained by the savings bank;
                     (C)  a nonemployee performing data processing
  services for the savings bank; or
                     (D)  a director of the savings bank performing a 
  [when the director performs the] duty of an officer or employee; or
               (2)  by other perils such as robbery, burglary,
  forgery, or alteration.
         (b)  A savings bank that employs a collection agent who is
  not covered by the bond required by Subsection (a) shall:
               (1)  ensure that the savings bank is included as a loss
  payee in the collection agent's crime coverage; and
               (2)  obtain a certificate of insurance evidencing the
  sufficiency of the collection agent's crime coverage [provide for
  the bonding of the agent in an amount equal to at least twice the
  average monthly collection of the agent unless the agent is a
  financial institution insured by the Federal Deposit Insurance
  Corporation. An agent shall settle with the savings bank at least
  monthly].
         (c)  Subject to rules adopted under Subsection (e), the board
  shall, at least annually, review and approve:
               (1)  the coverage, including the amount of the
  coverage, provided by the bond and the form of the bond; and
               (2)  the sustainability [sufficiency] of the corporate 
  surety or insurer that issued the bond.
         (d)  The bond must provide that a cancellation or other
  termination by the corporate surety or insurer or by the insured is
  not effective until the earlier of:
               (1)  the date the commissioner approves; or
               (2)  the 30th day after the date written notice of the
  cancellation is given to the commissioner.
         (e)  The finance commission may adopt rules establishing:
               (1)  the coverage, including the amount of the
  coverage, that must be provided by the bond and the form of the
  bond; and
               (2)  the sustainability [sufficiency] of the corporate
  surety or insurer that issues the bond.
         SECTION 2.  Not later than January 1, 2018:
               (1)  a savings bank that maintains a bond under Section
  92.156, Finance Code, on the effective date of this Act shall obtain
  a bond that satisfies the requirements of Section 92.156, Finance
  Code, as amended by this Act; and
               (2)  a collection agent employed by a savings bank
  shall maintain crime coverage in compliance with Section 92.156(b),
  Finance Code, as amended by this Act.
         SECTION 3.  This Act takes effect September 1, 2017.
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