Texas Finance Code - Section 32.010. Additional Powers
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Texas Lawyer > Finance Code > Texas Finance Code - Section 32.010. Additional Powers
§ 32.010. ADDITIONAL POWERS. (a) Notwithstanding
another law, a Texas state bank may perform an act, own property, or
offer a product or service that is at the time permissible within
the United States for a depository institution organized under
federal law or the law of this state or another state, if the
banking commissioner approves the exercise of the power as provided
by this section, subject to the same limitations and restrictions
applicable to the other depository institution by pertinent law,
except to the extent the limitations and restrictions are modified
by rules adopted under Subsection (e). This section may not be used
by a Texas state bank to alter or negate the application of the laws
of this state with respect to:
(1) establishment and maintenance of a branch in this
state or another state or country;
(2) permissible interest rates and loan fees
chargeable in this state;
(3) fiduciary duties owed to a client or customer by
the bank in its capacity as fiduciary in this state;
(4) consumer protection laws applicable to
transactions in this state; or
(5) licensing and regulatory requirements
administered by a functional regulatory agency in this state, as
defined by Section 31.303, including licensing and regulatory
requirements pertaining to:
(A) insurance activities;
(B) securities activities; and
(C) real estate development, marketing, and
sales activities.
(b) A state bank that intends to exercise a power, directly
or through a subsidiary, granted by Subsection (a) that is not
otherwise authorized for state banks under the statutes of this
state shall submit a letter to the banking commissioner describing
in detail the power that the bank proposes to exercise and the
specific authority of another depository institution to exercise
the power. The bank shall attach copies, if available, of relevant
law, regulations, and interpretive letters. The bank may begin to
exercise the proposed power 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
exercising the power only if the banking commissioner finds that:
(1) specific authority does not exist for another
depository institution to exercise the proposed power;
(2) if the state bank is insured by the Federal Deposit
Insurance Corporation, the state bank is prohibited from exercising
the power pursuant to Section 24, Federal Deposit Insurance Act (12
U.S.C. Section 1831a), and related regulations; or
(3) the exercise of the power 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 exercise the proposed power only on prior written approval
by the banking commissioner, except that the banking commissioner
must approve or prohibit the proposed power 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 power not later than the 30th day after the date the
hearing is completed.
(d) A state bank that is denied the requested power 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 section with additional information or authority relevant to
the banking commissioner's determination. A denial is immediately
final for purposes of appeal.
(e) To effectuate this section, the finance commission may
adopt rules implementing the method or manner in which a state bank
exercises specific powers granted under this section, including
rules regarding the exercise of a power that would be prohibited to
state banks under state law but for this section. 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) the conditions for prohibition by the banking
commissioner under Subsection (b) do not exist; and
(2) if the rights and privileges would be prohibited
to state banks under other state law, 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 affect.
(f) The exercise of a power 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.
Added by Acts 1999, 76th Leg., ch. 344, § 2.006, eff. Sept. 1,
1999. Amended by Acts 2001, 77th Leg., ch. 528, § 7, eff. Sept.
1, 2001.
Section: 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 32.202
Last modified: August 10, 2007
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