State Codes and Statutes

Statutes > Texas > Finance-code > Title-3-financial-institutions-and-businesses > Chapter-203-interstate-bank-mergers-and-branching

FINANCE CODE

TITLE 3. FINANCIAL INSTITUTIONS AND BUSINESSES

SUBTITLE G. BANK HOLDING COMPANIES; INTERSTATE BANK OPERATIONS

CHAPTER 203. INTERSTATE BANK MERGERS AND BRANCHING

Sec. 203.001. INTERSTATE BRANCHING BY TEXAS STATE BANKS. (a)

With the prior approval of the commissioner, a Texas state bank

may establish and maintain a de novo branch or acquire a branch

in a state other than Texas pursuant to Section 32.203.

(b) With the prior approval of the commissioner, a Texas state

bank may establish, maintain, and operate one or more branches in

another state pursuant to an interstate merger transaction in

which the Texas state bank is the resulting bank. Not later than

the date on which the required application for the interstate

merger transaction is filed with the responsible federal bank

supervisory agency, the applicant Texas state bank shall file an

application on a form prescribed by the commissioner and pay the

fee prescribed by law. The applicant shall also comply with the

applicable provisions of Sections 32.301-32.303. The commissioner

shall approve the interstate merger transaction and the operation

of branches outside of this state by the Texas state bank if the

commissioner makes the findings required by Section 32.302(b). An

interstate merger transaction may be consummated only after the

applicant has received the commissioner's written approval.

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

1999.

Sec. 203.002. CONDITIONS FOR ENTRY BY DE NOVO BRANCHING. (a)

An out-of-state bank may establish a de novo branch in this state

if:

(1) the laws of the home state of the out-of-state bank would

permit a Texas bank to establish and maintain a de novo branch in

that state under substantially the same terms and conditions as

set forth in this subchapter;

(2) the out-of-state bank confirms in writing to the

commissioner that as long as it maintains a branch in this state,

it will comply with all applicable laws of this state;

(3) the applicant provides satisfactory evidence to the

commissioner of compliance with the applicable requirements of

Section 201.102; and

(4) the commissioner, acting on or before the 30th day after the

date the commissioner receives notice of an application under

Subsection (b), certifies to the responsible federal bank

supervisory agency that the requirements of this subchapter have

been met.

(b) An out-of-state bank desiring to establish and maintain a de

novo branch shall provide written notice of the proposed

transaction to the commissioner not later than the date on which

the bank applies to the responsible federal bank supervisory

agency for approval to establish the branch. The filing of the

notice must be accompanied by the filing fee, if any, prescribed

by the commissioner.

(c) A de novo branch may be established in this state through

the acquisition of a branch of an existing Texas bank if the

acquiring out-of-state bank complies with this section.

(d) A depository institution may not establish or maintain a

branch in this state on the premises or property of an affiliate

if the affiliate engages in commercial activities, except as

provided by Section 92.063(d).

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

1999.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

217, Sec. 4, eff. May 25, 2007.

Sec. 203.003. ENTRY BY INTERSTATE MERGER TRANSACTION. (a)

Subject to Sections 203.004 and 203.005, one or more Texas banks

may enter into an interstate merger transaction with one or more

out-of-state banks under this chapter, and an out-of-state bank

resulting from the transaction may maintain and operate the

branches in this state of a Texas bank that participated in the

transaction. An out-of-state bank that will be the resulting bank

in the interstate merger transaction shall comply with Section

201.102.

(b) An out-of-state bank that will be the resulting bank

pursuant to an interstate merger transaction involving a Texas

state bank shall notify the commissioner of the proposed merger

not later than the date on which it files an application for an

interstate merger transaction with the responsible federal bank

supervisory agency, and shall submit a copy of that application

to the commissioner and pay the filing fee, if any, required by

the commissioner. A Texas state bank that is a party to the

interstate merger transaction shall comply with Chapter 32 and

with other applicable state and federal laws. An out-of-state

bank that will be the resulting bank in the interstate merger

transaction shall provide satisfactory evidence to the

commissioner of compliance with Section 201.102.

(c) An out-of-state bank that does not operate a branch in this

state may not establish and maintain a branch in this state

through the acquisition of a branch of an existing Texas bank

except as provided by Section 203.002.

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

1999.

Sec. 203.004. LIMITATION ON CONTROL OF DEPOSITS. (a) An

interstate merger transaction is not permitted if, on

consummation of the transaction, the resulting bank, including

all depository institution affiliates of the resulting bank,

would control 20 percent or more of the total amount of deposits

in this state held by all depository institutions in this state.

(b) The commissioner may request and the applicant shall provide

supplemental information to the commissioner to aid in a

determination under this section, including information that is

more current than or in addition to information in the most

recently available summary of deposits, reports of condition, or

similar reports filed with or produced by state or federal

authorities.

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

1999.

Sec. 203.005. REQUIRED AGE OF ACQUIRED BANK. (a) An

out-of-state bank may not acquire a Texas bank in an interstate

merger transaction if the Texas bank has not been in existence

and in continuous operation for at least five years as of the

effective date of the interstate merger transaction. However,

this section does not apply if the acquiring out-of-state bank

could establish a de novo branch in this state pursuant to

Section 203.002.

(b) For purposes of this section:

(1) a bank that is the successor as a result of merger or

acquisition of all or substantially all of the assets of a prior

bank is considered to have been in existence and continuously

operated during the period of its existence and continuous

operation as a bank and during the period of existence and

continuous operation of the prior bank; and

(2) a bank effecting a purchase and assumption, merger, or

similar transaction with or supervised by the Federal Deposit

Insurance Corporation or its successor is considered to have been

in existence and continuously operated during the existence and

continuous operation of the bank with respect to which the

transaction was consummated.

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

1999.

Sec. 203.006. ADDITIONAL BRANCHES. An out-of-state bank that

has established or acquired a branch in this state under this

chapter may establish or acquire additional branches in this

state to the same extent that a Texas state bank may establish or

acquire a branch in this state under applicable state and federal

law.

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

1999.

Sec. 203.007. EXAMINATIONS; PERIODIC REPORTS. (a) The banking

commissioner may make examinations of a branch established and

maintained in this state pursuant to this chapter by an

out-of-state bank as the banking commissioner considers necessary

to determine whether the branch is being operated in compliance

with the laws of this state and in accordance with safe and sound

banking practices. Sections 31.105-31.107 or 96.054-96.057, as

appropriate, apply to the examinations.

(b) The commissioner may prescribe requirements for periodic

reports from an out-of-state bank that operates a branch in Texas

pursuant to this chapter. Reporting requirements prescribed by

the commissioner under this section must be:

(1) consistent with the reporting requirements applicable to

Texas state banks or state savings banks, as appropriate; and

(2) appropriate to discharge the responsibilities of the

commissioner under this chapter.

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

1999.

State Codes and Statutes

Statutes > Texas > Finance-code > Title-3-financial-institutions-and-businesses > Chapter-203-interstate-bank-mergers-and-branching

FINANCE CODE

TITLE 3. FINANCIAL INSTITUTIONS AND BUSINESSES

SUBTITLE G. BANK HOLDING COMPANIES; INTERSTATE BANK OPERATIONS

CHAPTER 203. INTERSTATE BANK MERGERS AND BRANCHING

Sec. 203.001. INTERSTATE BRANCHING BY TEXAS STATE BANKS. (a)

With the prior approval of the commissioner, a Texas state bank

may establish and maintain a de novo branch or acquire a branch

in a state other than Texas pursuant to Section 32.203.

(b) With the prior approval of the commissioner, a Texas state

bank may establish, maintain, and operate one or more branches in

another state pursuant to an interstate merger transaction in

which the Texas state bank is the resulting bank. Not later than

the date on which the required application for the interstate

merger transaction is filed with the responsible federal bank

supervisory agency, the applicant Texas state bank shall file an

application on a form prescribed by the commissioner and pay the

fee prescribed by law. The applicant shall also comply with the

applicable provisions of Sections 32.301-32.303. The commissioner

shall approve the interstate merger transaction and the operation

of branches outside of this state by the Texas state bank if the

commissioner makes the findings required by Section 32.302(b). An

interstate merger transaction may be consummated only after the

applicant has received the commissioner's written approval.

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

1999.

Sec. 203.002. CONDITIONS FOR ENTRY BY DE NOVO BRANCHING. (a)

An out-of-state bank may establish a de novo branch in this state

if:

(1) the laws of the home state of the out-of-state bank would

permit a Texas bank to establish and maintain a de novo branch in

that state under substantially the same terms and conditions as

set forth in this subchapter;

(2) the out-of-state bank confirms in writing to the

commissioner that as long as it maintains a branch in this state,

it will comply with all applicable laws of this state;

(3) the applicant provides satisfactory evidence to the

commissioner of compliance with the applicable requirements of

Section 201.102; and

(4) the commissioner, acting on or before the 30th day after the

date the commissioner receives notice of an application under

Subsection (b), certifies to the responsible federal bank

supervisory agency that the requirements of this subchapter have

been met.

(b) An out-of-state bank desiring to establish and maintain a de

novo branch shall provide written notice of the proposed

transaction to the commissioner not later than the date on which

the bank applies to the responsible federal bank supervisory

agency for approval to establish the branch. The filing of the

notice must be accompanied by the filing fee, if any, prescribed

by the commissioner.

(c) A de novo branch may be established in this state through

the acquisition of a branch of an existing Texas bank if the

acquiring out-of-state bank complies with this section.

(d) A depository institution may not establish or maintain a

branch in this state on the premises or property of an affiliate

if the affiliate engages in commercial activities, except as

provided by Section 92.063(d).

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

1999.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

217, Sec. 4, eff. May 25, 2007.

Sec. 203.003. ENTRY BY INTERSTATE MERGER TRANSACTION. (a)

Subject to Sections 203.004 and 203.005, one or more Texas banks

may enter into an interstate merger transaction with one or more

out-of-state banks under this chapter, and an out-of-state bank

resulting from the transaction may maintain and operate the

branches in this state of a Texas bank that participated in the

transaction. An out-of-state bank that will be the resulting bank

in the interstate merger transaction shall comply with Section

201.102.

(b) An out-of-state bank that will be the resulting bank

pursuant to an interstate merger transaction involving a Texas

state bank shall notify the commissioner of the proposed merger

not later than the date on which it files an application for an

interstate merger transaction with the responsible federal bank

supervisory agency, and shall submit a copy of that application

to the commissioner and pay the filing fee, if any, required by

the commissioner. A Texas state bank that is a party to the

interstate merger transaction shall comply with Chapter 32 and

with other applicable state and federal laws. An out-of-state

bank that will be the resulting bank in the interstate merger

transaction shall provide satisfactory evidence to the

commissioner of compliance with Section 201.102.

(c) An out-of-state bank that does not operate a branch in this

state may not establish and maintain a branch in this state

through the acquisition of a branch of an existing Texas bank

except as provided by Section 203.002.

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

1999.

Sec. 203.004. LIMITATION ON CONTROL OF DEPOSITS. (a) An

interstate merger transaction is not permitted if, on

consummation of the transaction, the resulting bank, including

all depository institution affiliates of the resulting bank,

would control 20 percent or more of the total amount of deposits

in this state held by all depository institutions in this state.

(b) The commissioner may request and the applicant shall provide

supplemental information to the commissioner to aid in a

determination under this section, including information that is

more current than or in addition to information in the most

recently available summary of deposits, reports of condition, or

similar reports filed with or produced by state or federal

authorities.

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

1999.

Sec. 203.005. REQUIRED AGE OF ACQUIRED BANK. (a) An

out-of-state bank may not acquire a Texas bank in an interstate

merger transaction if the Texas bank has not been in existence

and in continuous operation for at least five years as of the

effective date of the interstate merger transaction. However,

this section does not apply if the acquiring out-of-state bank

could establish a de novo branch in this state pursuant to

Section 203.002.

(b) For purposes of this section:

(1) a bank that is the successor as a result of merger or

acquisition of all or substantially all of the assets of a prior

bank is considered to have been in existence and continuously

operated during the period of its existence and continuous

operation as a bank and during the period of existence and

continuous operation of the prior bank; and

(2) a bank effecting a purchase and assumption, merger, or

similar transaction with or supervised by the Federal Deposit

Insurance Corporation or its successor is considered to have been

in existence and continuously operated during the existence and

continuous operation of the bank with respect to which the

transaction was consummated.

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

1999.

Sec. 203.006. ADDITIONAL BRANCHES. An out-of-state bank that

has established or acquired a branch in this state under this

chapter may establish or acquire additional branches in this

state to the same extent that a Texas state bank may establish or

acquire a branch in this state under applicable state and federal

law.

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

1999.

Sec. 203.007. EXAMINATIONS; PERIODIC REPORTS. (a) The banking

commissioner may make examinations of a branch established and

maintained in this state pursuant to this chapter by an

out-of-state bank as the banking commissioner considers necessary

to determine whether the branch is being operated in compliance

with the laws of this state and in accordance with safe and sound

banking practices. Sections 31.105-31.107 or 96.054-96.057, as

appropriate, apply to the examinations.

(b) The commissioner may prescribe requirements for periodic

reports from an out-of-state bank that operates a branch in Texas

pursuant to this chapter. Reporting requirements prescribed by

the commissioner under this section must be:

(1) consistent with the reporting requirements applicable to

Texas state banks or state savings banks, as appropriate; and

(2) appropriate to discharge the responsibilities of the

commissioner under this chapter.

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

1999.


State Codes and Statutes


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State Codes and Statutes

Statutes > Texas > Finance-code > Title-3-financial-institutions-and-businesses > Chapter-203-interstate-bank-mergers-and-branching

FINANCE CODE

TITLE 3. FINANCIAL INSTITUTIONS AND BUSINESSES

SUBTITLE G. BANK HOLDING COMPANIES; INTERSTATE BANK OPERATIONS

CHAPTER 203. INTERSTATE BANK MERGERS AND BRANCHING

Sec. 203.001. INTERSTATE BRANCHING BY TEXAS STATE BANKS. (a)

With the prior approval of the commissioner, a Texas state bank

may establish and maintain a de novo branch or acquire a branch

in a state other than Texas pursuant to Section 32.203.

(b) With the prior approval of the commissioner, a Texas state

bank may establish, maintain, and operate one or more branches in

another state pursuant to an interstate merger transaction in

which the Texas state bank is the resulting bank. Not later than

the date on which the required application for the interstate

merger transaction is filed with the responsible federal bank

supervisory agency, the applicant Texas state bank shall file an

application on a form prescribed by the commissioner and pay the

fee prescribed by law. The applicant shall also comply with the

applicable provisions of Sections 32.301-32.303. The commissioner

shall approve the interstate merger transaction and the operation

of branches outside of this state by the Texas state bank if the

commissioner makes the findings required by Section 32.302(b). An

interstate merger transaction may be consummated only after the

applicant has received the commissioner's written approval.

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

1999.

Sec. 203.002. CONDITIONS FOR ENTRY BY DE NOVO BRANCHING. (a)

An out-of-state bank may establish a de novo branch in this state

if:

(1) the laws of the home state of the out-of-state bank would

permit a Texas bank to establish and maintain a de novo branch in

that state under substantially the same terms and conditions as

set forth in this subchapter;

(2) the out-of-state bank confirms in writing to the

commissioner that as long as it maintains a branch in this state,

it will comply with all applicable laws of this state;

(3) the applicant provides satisfactory evidence to the

commissioner of compliance with the applicable requirements of

Section 201.102; and

(4) the commissioner, acting on or before the 30th day after the

date the commissioner receives notice of an application under

Subsection (b), certifies to the responsible federal bank

supervisory agency that the requirements of this subchapter have

been met.

(b) An out-of-state bank desiring to establish and maintain a de

novo branch shall provide written notice of the proposed

transaction to the commissioner not later than the date on which

the bank applies to the responsible federal bank supervisory

agency for approval to establish the branch. The filing of the

notice must be accompanied by the filing fee, if any, prescribed

by the commissioner.

(c) A de novo branch may be established in this state through

the acquisition of a branch of an existing Texas bank if the

acquiring out-of-state bank complies with this section.

(d) A depository institution may not establish or maintain a

branch in this state on the premises or property of an affiliate

if the affiliate engages in commercial activities, except as

provided by Section 92.063(d).

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

1999.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

217, Sec. 4, eff. May 25, 2007.

Sec. 203.003. ENTRY BY INTERSTATE MERGER TRANSACTION. (a)

Subject to Sections 203.004 and 203.005, one or more Texas banks

may enter into an interstate merger transaction with one or more

out-of-state banks under this chapter, and an out-of-state bank

resulting from the transaction may maintain and operate the

branches in this state of a Texas bank that participated in the

transaction. An out-of-state bank that will be the resulting bank

in the interstate merger transaction shall comply with Section

201.102.

(b) An out-of-state bank that will be the resulting bank

pursuant to an interstate merger transaction involving a Texas

state bank shall notify the commissioner of the proposed merger

not later than the date on which it files an application for an

interstate merger transaction with the responsible federal bank

supervisory agency, and shall submit a copy of that application

to the commissioner and pay the filing fee, if any, required by

the commissioner. A Texas state bank that is a party to the

interstate merger transaction shall comply with Chapter 32 and

with other applicable state and federal laws. An out-of-state

bank that will be the resulting bank in the interstate merger

transaction shall provide satisfactory evidence to the

commissioner of compliance with Section 201.102.

(c) An out-of-state bank that does not operate a branch in this

state may not establish and maintain a branch in this state

through the acquisition of a branch of an existing Texas bank

except as provided by Section 203.002.

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

1999.

Sec. 203.004. LIMITATION ON CONTROL OF DEPOSITS. (a) An

interstate merger transaction is not permitted if, on

consummation of the transaction, the resulting bank, including

all depository institution affiliates of the resulting bank,

would control 20 percent or more of the total amount of deposits

in this state held by all depository institutions in this state.

(b) The commissioner may request and the applicant shall provide

supplemental information to the commissioner to aid in a

determination under this section, including information that is

more current than or in addition to information in the most

recently available summary of deposits, reports of condition, or

similar reports filed with or produced by state or federal

authorities.

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

1999.

Sec. 203.005. REQUIRED AGE OF ACQUIRED BANK. (a) An

out-of-state bank may not acquire a Texas bank in an interstate

merger transaction if the Texas bank has not been in existence

and in continuous operation for at least five years as of the

effective date of the interstate merger transaction. However,

this section does not apply if the acquiring out-of-state bank

could establish a de novo branch in this state pursuant to

Section 203.002.

(b) For purposes of this section:

(1) a bank that is the successor as a result of merger or

acquisition of all or substantially all of the assets of a prior

bank is considered to have been in existence and continuously

operated during the period of its existence and continuous

operation as a bank and during the period of existence and

continuous operation of the prior bank; and

(2) a bank effecting a purchase and assumption, merger, or

similar transaction with or supervised by the Federal Deposit

Insurance Corporation or its successor is considered to have been

in existence and continuously operated during the existence and

continuous operation of the bank with respect to which the

transaction was consummated.

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

1999.

Sec. 203.006. ADDITIONAL BRANCHES. An out-of-state bank that

has established or acquired a branch in this state under this

chapter may establish or acquire additional branches in this

state to the same extent that a Texas state bank may establish or

acquire a branch in this state under applicable state and federal

law.

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

1999.

Sec. 203.007. EXAMINATIONS; PERIODIC REPORTS. (a) The banking

commissioner may make examinations of a branch established and

maintained in this state pursuant to this chapter by an

out-of-state bank as the banking commissioner considers necessary

to determine whether the branch is being operated in compliance

with the laws of this state and in accordance with safe and sound

banking practices. Sections 31.105-31.107 or 96.054-96.057, as

appropriate, apply to the examinations.

(b) The commissioner may prescribe requirements for periodic

reports from an out-of-state bank that operates a branch in Texas

pursuant to this chapter. Reporting requirements prescribed by

the commissioner under this section must be:

(1) consistent with the reporting requirements applicable to

Texas state banks or state savings banks, as appropriate; and

(2) appropriate to discharge the responsibilities of the

commissioner under this chapter.

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

1999.


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