Texas Finance Code - Section 34.002. Investment In Bank Facilities
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§ 34.002. INVESTMENT IN BANK FACILITIES. (a) Without the
prior written approval of the banking commissioner, a state bank
may not directly or indirectly invest an amount in excess of its
capital and certified surplus in bank facilities, furniture,
fixtures, and equipment. Except as otherwise provided by rules
adopted under this subtitle, in computing this limitation the bank:
(1) shall include:
(A) its direct investment in bank facilities;
(B) an investment in equity or investment
securities of a company holding title to a facility used by the bank
for a purpose specified by Section 34.001;
(C) a loan made by the bank to or on the security
of equity or investment securities issued by a company holding
title to a facility used by the bank; and
(D) any indebtedness incurred on bank facilities
by a company:
(i) that holds title to the facility;
(ii) that is an affiliate of the bank; and
(iii) in which the bank is invested in the
manner described by Paragraph (B) or (C); and
(2) may exclude an amount included under Subdivisions
(1)(B)-(D) to the extent a lease of a facility from the company
holding title to the facility is capitalized on the books of the
bank.
(b) Real property acquired for the purposes described by
Section 34.001(3) and not improved and occupied by the bank ceases
to be a bank facility on the third anniversary of the date of its
acquisition unless the banking commissioner on application grants
written approval to further delay in the improvement and occupation
of the property by the bank.
(c) A bank shall comply with regulatory accounting
principles in accounting for its investment in and depreciation of
bank facilities, furniture, fixtures, and equipment.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
Section: 33.206 33.207 33.208 33.209 33.210 33.211 34.001 34.002 34.003 34.101 34.102 34.103 34.104 34.105 34.106
Last modified: August 10, 2007
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