Texas Finance Code - Section 32.405. Sale Of Assets
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§ 32.405. SALE OF ASSETS. (a) The board of a state bank,
with the prior written approval of the banking commissioner, may
cause the bank to sell all or substantially all of its assets
without shareholder or participant approval if:
(1) the banking commissioner finds the interests of
depositors and creditors are jeopardized because of insolvency or
imminent insolvency and that the sale is in their best interest;
and
(2) the Federal Deposit Insurance Corporation or its
successor approves the transaction and agrees to provide assistance
to the prospective buyer under 12 U.S.C. Section 1823(c) or a
comparable law unless the deposits of the bank are not insured.
(b) A sale under this section must include an assumption and
promise by the buyer to pay or otherwise discharge:
(1) all of the bank's liabilities to depositors;
(2) all of the bank's liabilities for salaries of the
bank's employees incurred before the date of the sale;
(3) obligations incurred by the banking commissioner
arising out of the supervision or sale of the bank; and
(4) fees and assessments due the department.
(c) This section does not affect the banking commissioner's
right to take action under another law. The sale by a state bank of
all or substantially all of its assets with shareholder or
participant approval is considered a voluntary dissolution and
liquidation and is governed by Subchapter B, Chapter 36.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
Section: 32.302 32.303 32.304 32.401 32.402 32.403 32.404 32.405 32.406 32.501 32.502 33.001 33.002 33.003 33.004
Last modified: August 10, 2007
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