Texas Finance Code - Section 34.102. Transaction In Bank Shares Or Participation Shares
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§ 34.102. TRANSACTION IN BANK SHARES OR PARTICIPATION
SHARES. (a) A state bank may not acquire a lien by pledge or
otherwise on its own shares or participation shares, or otherwise
purchase or acquire title to its own shares or participation
shares, except:
(1) as necessary to avoid or minimize a loss on a loan
or investment previously made in good faith; or
(2) as provided by Subsection (b).
(b) With the prior written approval of the banking
commissioner or as permitted by rules adopted under this subtitle,
a state bank may acquire title to its own shares or participation
shares and hold those shares or participation shares as treasury
stock. Treasury stock acquired under this subsection is not
considered an equity investment.
(c) If a state bank acquires a lien on or title to its own
shares or participation shares under this section, the lien may not
by its original terms extend for more than two years. Except with
the prior written approval of the banking commissioner, the bank
may not hold title to its own shares or participation shares for
more than one year.
(d) A state bank may make loans on the collateral security
of securities issued by an affiliate, if the loan is subject to and
in compliance with the provisions of Sections 23A and 23B, Federal
Reserve Act (12 U.S.C. Sections 371c and 371c-1), as amended,
applicable to nonmember insured state banks by virtue of Section
18(j)(1), Federal Deposit Insurance Act (12 U.S.C. Section
1828(j)(1)), as amended.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended
by Acts 2001, 77th Leg., ch. 412, § 2.12, eff. Sept. 1, 2001.
Section: 33.209 33.210 33.211 34.001 34.002 34.003 34.101 34.102 34.103 34.104 34.105 34.106 34.107 34.201 34.202
Last modified: August 10, 2007
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