Texas Finance Code - Section 59.005. Agency Activities
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§ 59.005. AGENCY ACTIVITIES. (a) A financial institution
may receive deposits, renew time deposits, close loans, service
loans, receive payments on loans and other obligations, and perform
other services as an agent for another financial institution under
a written agency agreement.
(b) A financial institution may not under an agency
agreement:
(1) conduct an activity as agent that it would be
prohibited from conducting as a principal under applicable state or
federal law; or
(2) have an agent conduct an activity that the bank as
principal would be prohibited from conducting under applicable
state or federal law.
(c) The banking commissioner may order a state bank or
another financial institution subject to the banking
commissioner's enforcement powers to cease acting as an agent or
principal under an agency agreement in a manner that the banking
commissioner finds to be inconsistent with safe and sound banking
practices or governing law.
(d) Notwithstanding another law, a financial institution
acting as an agent for another financial institution in accordance
with this section is not considered to be a branch of the
institution acting as principal.
(e) This section does not affect:
(1) authority under another law for a financial
institution to act as an agent on behalf of another person or to act
as a principal in employing another person as agent; or
(2) whether an agent's activities on behalf of a
financial institution under another law would cause the agent to be
considered a branch of the financial institution.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended
by Acts 1999, 76th Leg., ch. 344, § 2.016, eff. Sept. 1, 1999;
Acts 2001, 77th Leg., ch. 528, § 14, eff. Sept. 1, 2001.
Section: 37.004 37.005 37.006 59.001 59.002 59.003 59.004 59.005 59.006 59.007 59.008 59.009 59.010 59.011 59.101
Last modified: August 10, 2007
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