Texas Finance Code Title 3, Chapter 35 - Enforcement Actions

SUBCHAPTER A ENFORCEMENT ORDERS: BANKS AND MANAGEMENT

• Texas Section 35.0001 - Applicability To Bank Subsidiaries
  This subchapter applies to a subsidiary of a state bank, a present or former officer, director, or employee of a subsidiary, or a controlling shareholder...
• Texas Section 35.001 - Determination Letter
  (a) If the banking commissioner determines from examination or other credible evidence that a state bank is in a condition that may warrant the issuance...
• Texas Section 35.002 - Cease And Desist Order
  (a) The banking commissioner has grounds to issue a cease and desist order to an officer, employee, or director of a state bank, or the...
• Texas Section 35.003 - Removal Or Prohibition Order
  (a) The banking commissioner has grounds to remove or prohibit a present or former officer, director, or employee of a state bank from office or...
• Texas Section 35.0035 - Removal Or Prohibition Orders In Response To Certain Criminal Offenses
  (a) For purposes of this section, a person is considered to have been finally convicted of an offense if the person's case is not subject...
• Texas Section 35.004 - Hearing On Proposed Order
  (a) A requested hearing on a proposed order shall be held not later than the 30th day after the date the first request for a...
• Texas Section 35.005 - Emergency Order
  (a) If the banking commissioner believes that immediate action is necessary to prevent immediate and irreparable harm to the bank and its depositors, creditors, and...
• Texas Section 35.006 - Copy Of Letter Or Order In Bank Records
  A copy of a determination letter, proposed order, emergency order, or final order issued by the banking commissioner under this subchapter shall be immediately brought...
• Texas Section 35.007 - Effect Of Final Removal Or Prohibition Order
  (a) Except as otherwise provided by law, without the prior written approval of the banking commissioner, a person subject to a final and enforceable removal...
• Texas Section 35.0071 - Application For Release From Final Removal Or Prohibition Order
  (a) After the expiration of 10 years from date of issuance, a person who is subject to a prohibition or removal order issued under this...
• Texas Section 35.008 - Limitation On Action
  The banking commissioner may not initiate an enforcement action under this subchapter later than the fifth anniversary of the date the banking commissioner discovered or...
• Texas Section 35.009 - Enforcement By Commissioner
  (a) If the banking commissioner reasonably believes that a bank or other person has violated any of the following, the banking commissioner may take any...
• Texas Section 35.010 - Administrative Penalty
  (a) The banking commissioner may initiate a proceeding for an administrative penalty against a bank or other person by serving on the bank or other...
• Texas Section 35.011 - Payment Or Appeal Of Administrative Penalty
  (a) When a penalty order under Section 35.010 becomes final, the bank or other person, as applicable, shall pay the penalty or appeal by filing...
• Texas Section 35.012 - Confidentiality Of Records
  A copy of a notice, correspondence, transcript, pleading, or other document in the records of the department relating to an order issued under this subchapter...

SUBCHAPTER B SUPERVISION AND CONSERVATORSHIP

• Texas Section 35.013 - Collection Of Fees
  The department may sue to enforce the collection of a fee owed to the department under a law administered by the department. In the suit...
• Texas Section 35.1001 - Applicability To Bank Subsidiaries
  This subchapter applies to a subsidiary of a state bank, a present or former officer, director, or employee of a subsidiary, or a controlling shareholder...
• Texas Section 35.101 - Order Of Supervision
  (a) The banking commissioner by order may appoint a supervisor over a state bank if the banking commissioner determines from examination or other credible evidence...
• Texas Section 35.102 - Order Of Conservatorship
  (a) The banking commissioner by order may appoint a conservator for a state bank if the banking commissioner determines from examination or other credible evidence...
• Texas Section 35.103 - Notice And Hearing
  (a) An order issued under Section 35.101 or 35.102 must contain or be accompanied by a notice that, at the request of the bank, a...
• Texas Section 35.104 - Post-hearing Order
  (a) If after the hearing the banking commissioner finds that the bank has been rehabilitated, that its hazardous condition has been remedied, that irreparable harm...
• Texas Section 35.105 - Confidentiality Of Records
  An order issued under this subchapter and a copy of a notice, correspondence, transcript, pleading, or other document in the records of the department relating...
• Texas Section 35.106 - Authority Of Supervisor
  During a period of supervision, a bank, without the prior approval of the banking commissioner or the supervisor or as otherwise permitted or restricted by...
• Texas Section 35.107 - Authority Of Conservator
  (a) A conservator appointed under this subchapter shall immediately take charge of the bank and all of its property, books, records, and affairs on behalf...
• Texas Section 35.108 - Qualifications Of Appointee
  The banking commissioner may appoint as a supervisor or conservator any person who in the judgment of the banking commissioner is qualified to serve. The...
• Texas Section 35.109 - Expenses
  (a) The banking commissioner shall determine and approve the reasonable expenses attributable to the service of a supervisor or conservator, including costs incurred by the...
• Texas Section 35.110 - Review Of Supervisor Or Conservator Decision
  (a) Notwithstanding Section 35.107(b), a majority of the bank's board, acting directly or through counsel who affirmatively represents that the requisite majority has been obtained,...
• Texas Section 35.111 - Venue
  (a) A suit filed against a bank while the bank is under conservatorship, or against a person in connection with an action taken or decision...
• Texas Section 35.112 - Duration
  A supervisor or conservator serves for the period necessary to accomplish the purposes of the supervision or conservatorship as intended by this subchapter. A rehabilitated...
• Texas Section 35.113 - Administrative Election Of Remedies
  The banking commissioner may take any action authorized by Chapter 36 regardless of the existence of supervision or conservatorship. A period of supervision or conservatorship...

SUBCHAPTER C UNAUTHORIZED ACTIVITY: INVESTIGATION AND ENFORCEMENT

• Texas Section 35.114 - Release Before Hearing
  This subchapter does not prevent release of the bank from supervision or conservatorship before a hearing if the banking commissioner is satisfied that requirements for...
• Texas Section 35.201 - Inapplicability
  This subchapter does not apply to a financial institution, as that term is defined by Section 201.101, that lawfully maintains its main office or a...
• Texas Section 35.202 - Investigation Of Unauthorized Activity
  (a) If the banking commissioner has reason to believe that a person has engaged, is engaging, or is likely to engage in an unauthorized activity,...
• Texas Section 35.203 - Subpoena Authority
  (a) This section applies only to an investigation of an unauthorized activity as provided by Section 35.202 and does not affect the conduct of a...
• Texas Section 35.204 - Enforcement Of Subpoena
  (a) If necessary, the banking commissioner may apply to a district court of Travis County or of the county in which the subpoena was served...
• Texas Section 35.205 - Confidentiality Of Subpoenaed Records
  (a) A book, account, record, paper, correspondence, or other document subpoenaed and produced under Section 35.203 that is otherwise made privileged or confidential by law...
• Texas Section 35.206 - Evidence
  (a) On certification by the banking commissioner, a book, record, paper, or document produced or testimony taken as provided by Section 35.204 and held by...
• Texas Section 35.207 - Cease And Desist Order
  (a) The banking commissioner may serve a proposed cease and desist order on a person that the banking commissioner believes is engaging or is likely...
• Texas Section 35.208 - Emergency Cease And Desist Order
  (a) The banking commissioner may issue an emergency cease and desist order to a person whom the banking commissioner reasonably believes is engaging in a...
• Texas Section 35.209 - Judicial Review Of Cease And Desist Order
  (a) A person affected by a cease and desist order issued, affirmed, or modified after a hearing may file a petition for judicial review. (b)...
• Texas Section 35.210 - Violation Of Final Cease And Desist Order
  (a) If the banking commissioner reasonably believes that a person has violated a final and enforceable cease and desist order, the banking commissioner may: (1)...
• Texas Section 35.211 - Administrative Penalty
  (a) The banking commissioner may initiate an action for an administrative penalty against a person for violation of a cease and desist order by serving...
• Texas Section 35.212 - Payment And Appeal Of Administrative Penalty
  (a) When an administrative penalty order under Section 35.211 becomes final, a person affected by the order, within the time permitted by law for appeal,...
• Texas Section 35.213 - Judicial Review Of Administrative Penalty
  (a) If on judicial review the court sustains the penalty order, the court shall order the person to pay the full amount of the penalty...

Last modified: September 28, 2016