Texas Finance Code - Section 32.102. Establishing Series Of Shares Or Participation Shares
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§ 32.102. ESTABLISHING SERIES OF SHARES OR PARTICIPATION
SHARES. (a) If the articles of association expressly give the
board of a state bank authority to establish shares or
participation shares in series and determine the preferences,
limitations, and relative rights of each series, the board may do so
only in compliance with this section and any rules adopted under
this subtitle.
(b) A series of shares or participation shares may be
established in the manner provided by the Texas Business
Corporation Act as if the state bank were a domestic corporation,
but the shares or participation shares of the series may not be
issued and sold without the prior written approval of the banking
commissioner under Section 32.103. The bank shall file the
original and one copy of the statement of action required by the
Texas Business Corporation Act with the banking commissioner.
(c) Unless the submission presents novel or unusual
questions, the banking commissioner shall approve or reject the
series not later than the 31st day after the date the banking
commissioner considers the submission informationally complete and
accepted for filing. The banking commissioner may require the
submission of additional information as considered necessary to an
informed decision to approve or reject a proposed series under this
section.
(d) If the banking commissioner finds that the interests of
depositors and creditors will not be adversely affected by the
series, that the series conforms to law and any conditions imposed
by the banking commissioner, and that any required filing fee has
been paid, the banking commissioner shall:
(1) endorse the face of the original and copy of the
statement with the date of approval and the word "Approved";
(2) file the original of the statement in the
department's records; and
(3) deliver a certified copy of the statement to the
state bank.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
Section: 32.006 32.007 32.008 32.009 32.010 32.011 32.101 32.102 32.103 32.104 32.201 32.202 32.203 32.204 32.301
Last modified: August 10, 2007
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