Texas Finance Code - Section 34.105. Other Direct Equity Investments
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§ 34.105. OTHER DIRECT EQUITY INVESTMENTS. (a) A state
bank may purchase for its own account equity securities of any class
issued by:
(1) a bank service corporation, except that the bank
may not invest more than an amount equal to 15 percent of the bank's
capital and certified surplus in a single bank service corporation
or more than an amount equal to five percent of its assets in all
bank service corporations;
(2) an agricultural credit corporation, except that
the bank may not invest more than an amount equal to 30 percent of
the bank's capital and certified surplus in the agricultural credit
corporation unless the bank owns at least 80 percent of the equity
securities of the agricultural credit corporation;
(3) a small business investment company if the
aggregate investment does not exceed an amount equal to 10 percent
of the bank's capital and certified surplus;
(4) a banker's bank if the aggregate investment does
not exceed an amount equal to 15 percent of the bank's capital and
certified surplus or result in the bank acquiring or retaining
ownership, control, or power to vote more than five percent of any
class of voting securities of the banker's bank; or
(5) a housing corporation if the sum of the amount of
investment and the amount of loans and commitments for loans to the
housing corporation does not exceed an amount equal to 10 percent of
the bank's capital and certified surplus.
(b) On written application, the banking commissioner may
authorize investments in excess of a limitation of Subsection (a)
if the banking commissioner concludes that:
(1) the excess investment is not precluded by other
applicable law; and
(2) the safety and soundness of the requesting bank
would not be adversely affected.
(c) For purposes of this section:
(1) "Agricultural credit corporation" means a company
organized solely to make loans to farmers and ranchers for
agricultural purposes, including the breeding, raising, fattening,
or marketing of livestock.
(2) "Banker's bank" means a bank insured by the Federal
Deposit Insurance Corporation or a bank holding company that owns
or controls such an insured bank if:
(A) all equity securities of the bank or bank
holding company, other than director's qualifying shares or shares
issued under an employee compensation plan, are owned by depository
institutions or depository institution holding companies; and
(B) the bank or bank holding company and all its
subsidiaries are engaged exclusively in providing:
(i) services to or for other depository
institutions, depository institution holding companies, and the
directors, managers, managing participants, officers, and
employees of other depository institutions and depository
institution holding companies; and
(ii) correspondent banking services at the
request of other depository institutions, depository institution
holding companies, or their subsidiaries.
(3) "Bank service corporation" has the meaning
assigned by the Bank Service Corporation Act (12 U.S.C. Section
1861 et seq.) or a successor to that Act.
(4) "Housing corporation" means a corporation
organized under Title IX of the Housing and Urban Development Act of
1968 (42 U.S.C. Section 3931 et seq.), a partnership, limited
partnership, or joint venture organized under Section 907(a) or (c)
of that Act (42 U.S.C. Section 3937(a) or (c)), or a housing
corporation organized under the laws of this state to engage in or
finance low-income and moderate-income housing developments or
projects.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
Section: 34.001 34.002 34.003 34.101 34.102 34.103 34.104 34.105 34.106 34.107 34.201 34.202 34.203 34.204 34.301
Last modified: August 10, 2007
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