Texas Finance Code § 31.107 Regulation And Examination Of Related Entities

Sec. 31.107. REGULATION AND EXAMINATION OF RELATED ENTITIES. (a) The banking commissioner may regulate and examine, to the same extent as if the services or activities were performed by a state bank on its own premises:

(1) the activities of a state bank affiliate; and

(2) the performance of data processing, electronic fund transfers, or other bank services on behalf of a state bank by a third-party contractor, other than a national bank.

(b) The banking commissioner may collect a fee from an examined contractor or affiliate in connection with each examination to cover the cost of the examination or may collect that fee from the state banks that use the examined contractor.

(c) For purposes of this section, a state bank affiliate does not include a company in which ownership or membership is limited to individuals and conditioned by law on the existence and maintenance of professional licensing.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

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Last modified: September 28, 2016