Texas Finance Code - Section 32.001. Organization And General Powers Of State Bank
Legal Research Home >
Texas Lawyer > Finance Code > Texas Finance Code - Section 32.001. Organization And General Powers Of State Bank
§ 32.001. ORGANIZATION AND GENERAL POWERS OF STATE
BANK. (a) One or more persons, a majority of whom are residents of
this state, may organize a state bank as a banking association or a
limited banking association.
(b) A state bank may:
(1) receive and pay deposits with or without interest,
discount and negotiate promissory notes, borrow or lend money with
or without security or interest, invest and deal in securities, buy
and sell exchange, coin, and bullion, and exercise incidental
powers as necessary to carry on the business of banking as provided
by this subtitle;
(2) act as agent, or in a substantially similar
capacity, with respect to a financial activity or an activity
incidental or complementary to a financial activity;
(3) act in a fiduciary capacity, without giving bond,
as guardian, receiver, executor, administrator, or trustee,
including a mortgage or indenture trustee;
(4) provide financial, investment, or economic
advisory services;
(5) issue or sell instruments representing pools of
assets in which a bank may invest directly;
(6) with prior written approval of the banking
commissioner, engage in a financial activity or an activity that is
incidental or complementary to a financial activity; and
(7) engage in any other activity, directly or through
a subsidiary, authorized by this subtitle or rules adopted under
this subtitle.
(c) For purposes of other state law, a banking association
is considered a corporation and a limited banking association is
considered a limited liability company. To the extent consistent
with this subtitle, a banking association may exercise the powers
of a Texas business corporation and a limited banking association
may exercise the powers of a Texas limited liability company as
reasonably necessary to enable exercise of specific powers under
this subtitle.
(d) A state bank may contribute to a community fund or to
another charitable, philanthropic, or benevolent instrumentality
conducive to public welfare an amount that the bank's board
considers expedient and in the interests of the bank.
(e) A state bank may be organized or reorganized as a
community development financial institution or may serve as a
community development partner, as those terms are defined by the
Riegle Community Development and Regulatory Improvement Act of 1994
(Pub. L. No. 103-325).
(f) In the exercise of discretion consistent with the
purposes of this subtitle, the banking commissioner may require a
state bank to conduct an otherwise authorized activity through a
subsidiary.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended
by Acts 2001, 77th Leg., ch. 528, § 4, eff. Sept. 1, 2001.
Section: 31.302 31.303 31.304 31.305 31.306 31.307 31.308 32.001 32.002 32.003 32.004 32.005 32.006 32.007 32.008
Last modified: August 10, 2007
|
