Texas Finance Code § 204.203 Permissible Activities Of Representative Office

Sec. 204.203. PERMISSIBLE ACTIVITIES OF REPRESENTATIVE OFFICE. (a) A registered Texas representative office of a foreign bank may:

(1) solicit loans and in connection with a loan:

(A) assemble credit information about the borrower;

(B) inspect and appraise property;

(C) obtain property title information; and

(D) prepare a loan application;

(2) solicit purchasers for loans from the foreign bank;

(3) solicit persons to contract for servicing the foreign bank loans;

(4) conduct research;

(5) perform services as liaison for customers and correspondents of the foreign bank;

(6) execute loan documents relating to permitted loans with the written approval of the foreign bank;

(7) perform back office administrative functions as may be more specifically defined by rule; and

(8) engage in other activities approved by the commissioner or permitted by rule.

(b) A representative office may not solicit or accept credit balances or deposits or make final credit decisions.

(c) A Texas representative office that is or becomes a regional administrative office of the foreign bank, as may be defined more fully by rule, may engage in credit approval activities if:

(1) the foreign bank gives prior written notice to the commissioner not later than the 30th day before the date the Texas representative office engages in credit approval activities; and

(2) the commissioner does not object within the 30-day period to the conduct of the activities by the Texas representative office.

(d) Written notice under Subsection (c) must be in a form and contain the information the commissioner requires.

Added by Acts 1999, 76th Leg., ch. 344, Sec. 1.001, eff. Sept. 1, 1999.

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Last modified: September 28, 2016