Texas Finance Code Title 3, Chapter 32 - Powers, Organization, And Financial Requirements

SUBCHAPTER A ORGANIZATION AND POWERS IN GENERAL

• Texas Section 32.001 - Organization And General Powers Of State Bank
  (a) One or more persons, a majority of whom are residents of this state, may organize a state bank as a banking association or a...
• Texas Section 32.002 - Certificate Of Formation Of State Bank
  (a) The certificate of formation of a state bank must be signed and acknowledged by each organizer and must contain: (1) the name of the...
• Texas Section 32.003 - Application For State Bank Charter; Standards For Approval
  (a) An application for a state bank charter must be made under oath and in the form required by the banking commissioner, who shall inquire...
• Texas Section 32.004 - Notice And Investigation Of Charter Application
  (a) The organizers shall solicit comments and protests by publishing notice of the application, its date of filing, and the identity of the organizers, in...
• Texas Section 32.005 - Protest; Hearing; Decision On Charter Application
  (a) A protest of a charter application must be received by the department before the 15th day after the date the organizers publish notice under...
• Texas Section 32.006 - Issuance Of Certificate Of Authority
  A state bank may not engage in the business of banking until it receives a certificate of authority from the banking commissioner. The banking commissioner...
• Texas Section 32.007 - Deadline To Begin Business
  If the state bank does not open and engage in the business of banking within six months after the date of the granting of its...
• Texas Section 32.008 - Application Of General Corporate Law
  (a) The Business Organizations Code applies to a banking association as if it were a for-profit corporation, and to a limited banking association as if...
• Texas Section 32.009 - Parity Between State And National Banks
  (a) Section 16(a), Article XVI, Texas Constitution, empowers the legislature to authorize the incorporation of state banks and provide for a system of state regulation...
• Texas Section 32.010 - Additional Powers
  (a) Notwithstanding another law, a Texas state bank may perform an act, own property, or offer a product or service that is at the time...

SUBCHAPTER B AMENDMENT OF CERTIFICATE; CHANGES IN CAPITAL AND SURPLUS

• Texas Section 32.011 - Financial Activities
  (a) The finance commission by rule may determine that an activity not otherwise approved or authorized for a state bank under this subtitle or other...
• Texas Section 32.101 - Amendment Or Restatement Of State Bank Certificate Of Formation
  (a) A state bank that has been granted a certificate of authority may amend or restate its certificate of formation for any lawful purpose, including...
• Texas Section 32.102 - Establishing Series Of Shares
  (a) If the certificate of formation expressly gives the board of a state bank authority to establish shares in series and determine the preferences, limitations,...
• Texas Section 32.103 - Change In Outstanding Capital And Surplus
  (a) A state bank may not reduce or increase its outstanding capital and surplus through dividend, redemption, issuance of shares, or otherwise, without the prior...

SUBCHAPTER C BANK OFFICES

• Texas Section 32.104 - Capital Notes Or Debentures
  (a) With the prior written approval of the banking commissioner, a state bank may at any time, through action of its board and without requiring...
• Texas Section 32.201 - Conduct Of The Business Of Banking
  (a) A state bank may engage in the banking business at its home office, at an approved branch office location, and through electronic terminals. A...
• Texas Section 32.202 - Home Office
  (a) Each state bank must have and continuously maintain in this state a home office. The home office must be a location at which the...
• Texas Section 32.203 - Branch Offices
  (a) A state bank may establish and maintain a branch office at any location on prior written approval of the banking commissioner. If the banking...

SUBCHAPTER D MERGER

• Texas Section 32.204 - Deposit Or Loan Production Offices
  (a) A state bank may establish one or more deposit or loan production offices for the purpose of: (1) soliciting deposit accounts, applications for loans,...
• Texas Section 32.301 - Merger Authority
  (a) Two or more financial institutions, corporations, or other entities with the authority to participate in a merger, at least one of which is a...
• Texas Section 32.302 - Approval Of Banking Commissioner
  (a) If the merger is subject to the prior written approval of the banking commissioner, the original certificate of merger and a number of copies...
• Texas Section 32.303 - Rights Of Dissenters From Merger
  A shareholder may dissent from the merger to the extent, and by following the procedure provided, by the Business Organizations Code or any rules adopted...

SUBCHAPTER E PURCHASE OR SALE OF ASSETS

• Texas Section 32.304 - Limitation On Control Of Deposits
  (a) A merger is not permitted under this subchapter if, on consummation of the transaction, the resulting state bank, including all insured depository institution affiliates...
• Texas Section 32.401 - Authority To Purchase Assets
  (a) A state bank may purchase assets from another financial institution or other seller, except that the prior written approval of the banking commissioner is...
• Texas Section 32.402 - Authority To Act As Disbursing Agent
  (a) The purchasing bank may hold the purchase price and any additional money delivered to it by the selling institution in trust for, or as...
• Texas Section 32.403 - Liquidation Of Selling Institution
  If the selling financial institution is at any time after the sale of assets voluntarily or involuntarily closed for liquidation by a state or federal...
• Texas Section 32.404 - Payment To Depositors And Creditors
  The purchasing bank may pay a depositor or creditor of the selling institution the amount to be paid the person under the terms of the...
• Texas Section 32.405 - Sale Of Assets
  (a) A state bank may sell a portion of its assets to another financial institution or other buyer, except that the prior written approval of...

SUBCHAPTER F EXIT OF STATE BANK OR ENTRY OF ANOTHER FINANCIAL INSTITUTION

• Texas Section 32.406 - Limitation On Control Of Deposits
  (a) A purchase of assets is not permitted under Section 32.401 if, on consummation of the transaction, the acquiring state bank, including all insured depository...
• Texas Section 32.501 - Merger Or Conversion Of State Bank Into Another Financial Institution
  (a) Subject to Subtitle G, a state bank may act as necessary under and to the extent permitted by the laws of the United States,...
• Texas Section 32.502 - Conversion Of Financial Institution Into State Bank
  (a) A financial institution, as that term is defined by Section 201.101, may apply to the banking commissioner for conversion into a state bank on...

Last modified: September 28, 2016