Texas Finance Code - Section 32.009. Parity Between State And National Banks
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§ 32.009. PARITY BETWEEN STATE AND NATIONAL BANKS. (a)
Section 16(a), Article XVI, Texas Constitution, empowers the
legislature to authorize the incorporation of state banks and
provide for a system of state regulation and control of state banks
that will adequately protect and secure depositors and creditors.
Section 16(c), Article XVI, Texas Constitution, grants to state
banks created by virtue of the power vested in the legislature by
Section 16(a) of that article the same rights and privileges that
are or may be granted to national banks domiciled in this state.
The legislature finds that Section 16(c) of that article does not
restrict the legislature's power to provide a system of state
regulation under Section 16(a) of that article that differs from
the regulatory scheme imposed on national banks under federal law
or prevent the finance commission, acting under authority granted
by the legislature for the purpose of implementing this subtitle,
from adopting rules that differ from federal statutes and
regulations or that reasonably regulate the method or manner by
which a state bank exercises its rights and privileges if the rules
are adopted after due consideration of the factors listed in
Section 31.003(b). The legislature further finds that Section
16(c), Article XVI, Texas Constitution, does not limit any rights
or powers specifically given to state banks by the laws of this
state.
(b) A state bank that intends to exercise a right or
privilege granted to national banks that is not authorized for
state banks under the statutes and rules of this state shall submit
a letter to the banking commissioner describing in detail the
activity in which the bank intends to engage and the specific
authority of a national bank to engage in that activity. The bank
shall attach copies, if available, of relevant federal law,
regulations, and interpretive letters. The bank may begin to
perform the proposed activity after the 30th day after the date the
banking commissioner receives the bank's letter unless the banking
commissioner specifies an earlier or later date or prohibits the
activity. The banking commissioner may prohibit the bank from
performing the activity only if the banking commissioner finds
that:
(1) a national bank domiciled in this state does not
possess the specific right or privilege to perform the activity the
bank seeks to perform; or
(2) the performance of the activity by the bank would
adversely affect the safety and soundness of the bank.
(c) The banking commissioner may extend the 30-day period
under Subsection (b) if the banking commissioner determines that
the bank's letter raises issues requiring additional information or
additional time for analysis. If the 30-day period is extended, the
bank may perform the proposed activity only on prior written
approval by the banking commissioner, except that the banking
commissioner must approve or prohibit the proposed activity or
convene a hearing under Section 31.201 not later than the 60th day
after the date the banking commissioner receives the bank's letter.
If a hearing is convened, the banking commissioner must approve or
prohibit the proposed activity not later than the 30th day after the
date the hearing is completed.
(d) A state bank that is denied the requested right or
privilege to engage in an activity by the banking commissioner
under this section may appeal as provided by Sections 31.202,
31.203, and 31.204 or may resubmit a letter under this subsection
with additional information or authority relevant to the banking
commissioner's determination. A denial is immediately final for
purposes of appeal.
(e) To effectuate the Texas Constitution, the finance
commission may adopt rules implementing the method or manner in
which a state bank exercises specific rights and privileges granted
under Section 16(c), Article XVI, Texas Constitution, including
rules regarding the exercise of rights and privileges that would be
prohibited to state banks but for Section 16(c) of that article.
The finance commission may not adopt rules under this subsection
unless it considers the factors listed in Section 31.003(b) and
finds that:
(1) national banks domiciled in this state possess the
rights or privileges to perform activities the rule would permit
state banks to perform; and
(2) the rules contain adequate safeguards and
controls, consistent with safety and soundness, to address the
concern of the legislature evidenced by the state law the rules
would impact.
(f) The exercise of rights and privileges by a state bank in
compliance with and in the manner authorized by this section is not
a violation of any statute of this state.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
Section: 32.002 32.003 32.004 32.005 32.006 32.007 32.008 32.009 32.010 32.011 32.101 32.102 32.103 32.104 32.201
Last modified: August 10, 2007
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