Texas Finance Code - Section 34.106. Investments For Public Welfare
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§ 34.106. INVESTMENTS FOR PUBLIC WELFARE. (a) A state
bank may make investments of a predominantly civic, community, or
public nature, including investments providing housing, services,
or jobs or promoting the welfare of low-income and moderate-income
communities or families.
(b) The bank may make the investments directly or by
purchasing equity securities in an entity primarily engaged in
making those investments. The bank may not make an investment that
would expose the bank to unlimited liability.
(c) A bank may serve as a community partner and make
investments in a community partnership, as those terms are defined
by the Riegle Community Development and Regulatory Improvement Act
of 1994 (Pub. L. 103-325).
(d) A bank's aggregate investments under this section,
including loans and commitments for loans, may not exceed an amount
equal to 10 percent of the bank's capital and certified surplus.
The banking commissioner may authorize investments in excess of
this limitation in response to a written application 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.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended
by Acts 2001, 77th Leg., ch. 412, § 2.13, eff. Sept. 1, 2001.
Section: 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 34.302
Last modified: August 10, 2007
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