State Codes and Statutes

Statutes > Texas > Agriculture-code > Title-4-agricultural-organizations > Chapter-56-agricultural-finance-corporations

AGRICULTURE CODE

TITLE 4. AGRICULTURAL ORGANIZATIONS

CHAPTER 56. AGRICULTURAL FINANCE CORPORATIONS

Sec. 56.001. DEFINITIONS. In this chapter:

(1) "Agricultural finance corporation" means a corporation

formed under this chapter.

(2) "Ready marketable, staple, nonperishable agricultural

products" means agricultural products that:

(A) are commonly dealt in ready markets so that their values are

easily and definitely ascertainable and realized on short notice;

and

(B) ordinarily do not substantially depreciate in quality during

the period of immaturity of the obligations that are secured by

or that represent those products.

Acts 1981, 67th Leg., p. 1123, ch. 388, Sec. 1, eff. Sept. 1,

1981.

Sec. 56.002. PURPOSE. An agricultural finance corporation may

be organized to deal in:

(1) acceptances and other receipts that are used to aid or are

issued because of the transportation, warehousing, distribution,

or financing of ready marketable, staple, nonperishable

agricultural products in domestic and foreign trade; and

(2) acceptances of banking corporations not secured by or

representing any ready marketable, staple, nonperishable

agricultural products.

Acts 1981, 67th Leg., p. 1124, ch. 388, Sec. 1, eff. Sept. 1,

1981.

Sec. 56.003. ASSETS REPRESENTED BY ACCEPTANCES OF BANKING

CORPORATIONS. At any time, the total assets of an agricultural

finance corporation that are represented by acceptances of

banking corporations not secured by or representing ready

marketable, staple, nonperishable agricultural products may not

exceed an amount equal to 10 percent of the unimpaired capital of

the corporation.

Acts 1981, 67th Leg., p. 1124, ch. 388, Sec. 1, eff. Sept. 1,

1981.

Sec. 56.004. CAPITAL STOCK. At all times an agricultural

finance corporation shall have authorized capital stock in the

amount of $500,000 or more.

Acts 1981, 67th Leg., p. 1124, ch. 388, Sec. 1, eff. Sept. 1,

1981.

Sec. 56.005. INVESTMENT OF CAPITAL. At all times, an

agricultural finance corporation shall have one-half or more of

its paid-in capital invested in obligations of the United States,

this state, or political subdivisions or incorporated cities of

this state.

Acts 1981, 67th Leg., p. 1124, ch. 388, Sec. 1, eff. Sept. 1,

1981.

Sec. 56.006. LIMIT OF INDEBTEDNESS. (a) For the purposes of

this section, the existing obligations of an agricultural finance

corporation include the primary, secondary, fixed, and contingent

obligations of the corporation but do not include an obligation

for which a liable person has furnished to the corporation funds

to pay the obligation at maturity.

(b) Except as provided by Subsection (c) of this section, an

agricultural finance corporation may not enter into a contract of

acceptance, guaranty, endorsement, or suretyship if the total of

its existing obligations plus its obligations resulting from the

contract exceeds an amount equal to five times the total of its

unimpaired capital and surplus at the time of the contract.

(c) An agricultural finance corporation may exceed the limit set

by Subsection (b) of this section if, before entering into the

contract, the corporation obtains written authorization from the

banking commissioner to do so. If authorization is obtained, the

corporation may not exceed the limit set by the commissioner, and

the limit set by the commissioner may not exceed an amount equal

to 10 times the total of the corporation's unimpaired capital and

surplus at the time of the contract.

(d) Except as provided by Subsection (e) of this section, if a

corporation enters into a contract in violation of this section,

the contract is unenforceable against the corporation.

(e) This section does not prevent the enforcement of a

prohibited obligation by a holder who has acquired the

obligation:

(1) in due course;

(2) for value;

(3) before its maturity; and

(4) without notice of its defect.

Acts 1981, 67th Leg., p. 1124, ch. 388, Sec. 1, eff. Sept. 1,

1981.

Sec. 56.007. STOCK OWNERSHIP. (a) Except as otherwise provided

by this section, an agricultural finance corporation or any

banking corporation or trust company, except a savings bank, may

hold stock of:

(1) an agricultural finance corporation; or

(2) a corporation that is chartered under the laws of the United

States or a state of the United States and that is principally

engaged in financing ready marketable, staple, nonperishable

agricultural products.

(b) The total amount of stock held in accordance with Subsection

(a) of this section may not exceed an amount equal to:

(1) 10 percent of the capital and surplus of the acquiring

corporation; or

(2) 10 percent of the capital stock of the corporation of which

the stock is to be held.

(c) Except in payment of debt, a banking corporation or trust

company may not acquire stock of an agricultural finance

corporation unless it first obtains express written authorization

for the purchase from the banking commissioner under rules

adopted by the banking commissioner.

(d) If a banking corporation or trust company acquires stock of

an agricultural finance corporation in payment of debt, it shall

promptly dispose of the stock unless it obtains express

permission from the banking commissioner to retain the stock.

Acts 1981, 67th Leg., p. 1125, ch. 388, Sec. 1, eff. Sept. 1,

1981.

Sec. 56.008. REGULATION BY BANKING COMMISSIONER. (a) An

agricultural finance corporation is subject to the supervision

and control of the banking commissioner and shall conform to the

rules adopted by the banking commissioner.

(b) An agricultural finance corporation may not begin business

until authorized to do so by the banking commissioner after it

satisfactorily shows that it has complied with the law.

(c) An agricultural finance corporation is subject to the

following requirements as if it were a state bank:

(1) it shall make reports to the banking commissioner;

(2) it shall permit periodic visitations and examinations

conducted under the banking commissioner's direction; and

(3) it shall pay fees for those examinations.

(d) The banking commissioner may take charge of and liquidate an

agricultural finance corporation for causes prescribed for

similar actions against a state bank.

Acts 1981, 67th Leg., p. 1125, ch. 388, Sec. 1, eff. Sept. 1,

1981.

State Codes and Statutes

Statutes > Texas > Agriculture-code > Title-4-agricultural-organizations > Chapter-56-agricultural-finance-corporations

AGRICULTURE CODE

TITLE 4. AGRICULTURAL ORGANIZATIONS

CHAPTER 56. AGRICULTURAL FINANCE CORPORATIONS

Sec. 56.001. DEFINITIONS. In this chapter:

(1) "Agricultural finance corporation" means a corporation

formed under this chapter.

(2) "Ready marketable, staple, nonperishable agricultural

products" means agricultural products that:

(A) are commonly dealt in ready markets so that their values are

easily and definitely ascertainable and realized on short notice;

and

(B) ordinarily do not substantially depreciate in quality during

the period of immaturity of the obligations that are secured by

or that represent those products.

Acts 1981, 67th Leg., p. 1123, ch. 388, Sec. 1, eff. Sept. 1,

1981.

Sec. 56.002. PURPOSE. An agricultural finance corporation may

be organized to deal in:

(1) acceptances and other receipts that are used to aid or are

issued because of the transportation, warehousing, distribution,

or financing of ready marketable, staple, nonperishable

agricultural products in domestic and foreign trade; and

(2) acceptances of banking corporations not secured by or

representing any ready marketable, staple, nonperishable

agricultural products.

Acts 1981, 67th Leg., p. 1124, ch. 388, Sec. 1, eff. Sept. 1,

1981.

Sec. 56.003. ASSETS REPRESENTED BY ACCEPTANCES OF BANKING

CORPORATIONS. At any time, the total assets of an agricultural

finance corporation that are represented by acceptances of

banking corporations not secured by or representing ready

marketable, staple, nonperishable agricultural products may not

exceed an amount equal to 10 percent of the unimpaired capital of

the corporation.

Acts 1981, 67th Leg., p. 1124, ch. 388, Sec. 1, eff. Sept. 1,

1981.

Sec. 56.004. CAPITAL STOCK. At all times an agricultural

finance corporation shall have authorized capital stock in the

amount of $500,000 or more.

Acts 1981, 67th Leg., p. 1124, ch. 388, Sec. 1, eff. Sept. 1,

1981.

Sec. 56.005. INVESTMENT OF CAPITAL. At all times, an

agricultural finance corporation shall have one-half or more of

its paid-in capital invested in obligations of the United States,

this state, or political subdivisions or incorporated cities of

this state.

Acts 1981, 67th Leg., p. 1124, ch. 388, Sec. 1, eff. Sept. 1,

1981.

Sec. 56.006. LIMIT OF INDEBTEDNESS. (a) For the purposes of

this section, the existing obligations of an agricultural finance

corporation include the primary, secondary, fixed, and contingent

obligations of the corporation but do not include an obligation

for which a liable person has furnished to the corporation funds

to pay the obligation at maturity.

(b) Except as provided by Subsection (c) of this section, an

agricultural finance corporation may not enter into a contract of

acceptance, guaranty, endorsement, or suretyship if the total of

its existing obligations plus its obligations resulting from the

contract exceeds an amount equal to five times the total of its

unimpaired capital and surplus at the time of the contract.

(c) An agricultural finance corporation may exceed the limit set

by Subsection (b) of this section if, before entering into the

contract, the corporation obtains written authorization from the

banking commissioner to do so. If authorization is obtained, the

corporation may not exceed the limit set by the commissioner, and

the limit set by the commissioner may not exceed an amount equal

to 10 times the total of the corporation's unimpaired capital and

surplus at the time of the contract.

(d) Except as provided by Subsection (e) of this section, if a

corporation enters into a contract in violation of this section,

the contract is unenforceable against the corporation.

(e) This section does not prevent the enforcement of a

prohibited obligation by a holder who has acquired the

obligation:

(1) in due course;

(2) for value;

(3) before its maturity; and

(4) without notice of its defect.

Acts 1981, 67th Leg., p. 1124, ch. 388, Sec. 1, eff. Sept. 1,

1981.

Sec. 56.007. STOCK OWNERSHIP. (a) Except as otherwise provided

by this section, an agricultural finance corporation or any

banking corporation or trust company, except a savings bank, may

hold stock of:

(1) an agricultural finance corporation; or

(2) a corporation that is chartered under the laws of the United

States or a state of the United States and that is principally

engaged in financing ready marketable, staple, nonperishable

agricultural products.

(b) The total amount of stock held in accordance with Subsection

(a) of this section may not exceed an amount equal to:

(1) 10 percent of the capital and surplus of the acquiring

corporation; or

(2) 10 percent of the capital stock of the corporation of which

the stock is to be held.

(c) Except in payment of debt, a banking corporation or trust

company may not acquire stock of an agricultural finance

corporation unless it first obtains express written authorization

for the purchase from the banking commissioner under rules

adopted by the banking commissioner.

(d) If a banking corporation or trust company acquires stock of

an agricultural finance corporation in payment of debt, it shall

promptly dispose of the stock unless it obtains express

permission from the banking commissioner to retain the stock.

Acts 1981, 67th Leg., p. 1125, ch. 388, Sec. 1, eff. Sept. 1,

1981.

Sec. 56.008. REGULATION BY BANKING COMMISSIONER. (a) An

agricultural finance corporation is subject to the supervision

and control of the banking commissioner and shall conform to the

rules adopted by the banking commissioner.

(b) An agricultural finance corporation may not begin business

until authorized to do so by the banking commissioner after it

satisfactorily shows that it has complied with the law.

(c) An agricultural finance corporation is subject to the

following requirements as if it were a state bank:

(1) it shall make reports to the banking commissioner;

(2) it shall permit periodic visitations and examinations

conducted under the banking commissioner's direction; and

(3) it shall pay fees for those examinations.

(d) The banking commissioner may take charge of and liquidate an

agricultural finance corporation for causes prescribed for

similar actions against a state bank.

Acts 1981, 67th Leg., p. 1125, ch. 388, Sec. 1, eff. Sept. 1,

1981.


State Codes and Statutes


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State Codes and Statutes

Statutes > Texas > Agriculture-code > Title-4-agricultural-organizations > Chapter-56-agricultural-finance-corporations

AGRICULTURE CODE

TITLE 4. AGRICULTURAL ORGANIZATIONS

CHAPTER 56. AGRICULTURAL FINANCE CORPORATIONS

Sec. 56.001. DEFINITIONS. In this chapter:

(1) "Agricultural finance corporation" means a corporation

formed under this chapter.

(2) "Ready marketable, staple, nonperishable agricultural

products" means agricultural products that:

(A) are commonly dealt in ready markets so that their values are

easily and definitely ascertainable and realized on short notice;

and

(B) ordinarily do not substantially depreciate in quality during

the period of immaturity of the obligations that are secured by

or that represent those products.

Acts 1981, 67th Leg., p. 1123, ch. 388, Sec. 1, eff. Sept. 1,

1981.

Sec. 56.002. PURPOSE. An agricultural finance corporation may

be organized to deal in:

(1) acceptances and other receipts that are used to aid or are

issued because of the transportation, warehousing, distribution,

or financing of ready marketable, staple, nonperishable

agricultural products in domestic and foreign trade; and

(2) acceptances of banking corporations not secured by or

representing any ready marketable, staple, nonperishable

agricultural products.

Acts 1981, 67th Leg., p. 1124, ch. 388, Sec. 1, eff. Sept. 1,

1981.

Sec. 56.003. ASSETS REPRESENTED BY ACCEPTANCES OF BANKING

CORPORATIONS. At any time, the total assets of an agricultural

finance corporation that are represented by acceptances of

banking corporations not secured by or representing ready

marketable, staple, nonperishable agricultural products may not

exceed an amount equal to 10 percent of the unimpaired capital of

the corporation.

Acts 1981, 67th Leg., p. 1124, ch. 388, Sec. 1, eff. Sept. 1,

1981.

Sec. 56.004. CAPITAL STOCK. At all times an agricultural

finance corporation shall have authorized capital stock in the

amount of $500,000 or more.

Acts 1981, 67th Leg., p. 1124, ch. 388, Sec. 1, eff. Sept. 1,

1981.

Sec. 56.005. INVESTMENT OF CAPITAL. At all times, an

agricultural finance corporation shall have one-half or more of

its paid-in capital invested in obligations of the United States,

this state, or political subdivisions or incorporated cities of

this state.

Acts 1981, 67th Leg., p. 1124, ch. 388, Sec. 1, eff. Sept. 1,

1981.

Sec. 56.006. LIMIT OF INDEBTEDNESS. (a) For the purposes of

this section, the existing obligations of an agricultural finance

corporation include the primary, secondary, fixed, and contingent

obligations of the corporation but do not include an obligation

for which a liable person has furnished to the corporation funds

to pay the obligation at maturity.

(b) Except as provided by Subsection (c) of this section, an

agricultural finance corporation may not enter into a contract of

acceptance, guaranty, endorsement, or suretyship if the total of

its existing obligations plus its obligations resulting from the

contract exceeds an amount equal to five times the total of its

unimpaired capital and surplus at the time of the contract.

(c) An agricultural finance corporation may exceed the limit set

by Subsection (b) of this section if, before entering into the

contract, the corporation obtains written authorization from the

banking commissioner to do so. If authorization is obtained, the

corporation may not exceed the limit set by the commissioner, and

the limit set by the commissioner may not exceed an amount equal

to 10 times the total of the corporation's unimpaired capital and

surplus at the time of the contract.

(d) Except as provided by Subsection (e) of this section, if a

corporation enters into a contract in violation of this section,

the contract is unenforceable against the corporation.

(e) This section does not prevent the enforcement of a

prohibited obligation by a holder who has acquired the

obligation:

(1) in due course;

(2) for value;

(3) before its maturity; and

(4) without notice of its defect.

Acts 1981, 67th Leg., p. 1124, ch. 388, Sec. 1, eff. Sept. 1,

1981.

Sec. 56.007. STOCK OWNERSHIP. (a) Except as otherwise provided

by this section, an agricultural finance corporation or any

banking corporation or trust company, except a savings bank, may

hold stock of:

(1) an agricultural finance corporation; or

(2) a corporation that is chartered under the laws of the United

States or a state of the United States and that is principally

engaged in financing ready marketable, staple, nonperishable

agricultural products.

(b) The total amount of stock held in accordance with Subsection

(a) of this section may not exceed an amount equal to:

(1) 10 percent of the capital and surplus of the acquiring

corporation; or

(2) 10 percent of the capital stock of the corporation of which

the stock is to be held.

(c) Except in payment of debt, a banking corporation or trust

company may not acquire stock of an agricultural finance

corporation unless it first obtains express written authorization

for the purchase from the banking commissioner under rules

adopted by the banking commissioner.

(d) If a banking corporation or trust company acquires stock of

an agricultural finance corporation in payment of debt, it shall

promptly dispose of the stock unless it obtains express

permission from the banking commissioner to retain the stock.

Acts 1981, 67th Leg., p. 1125, ch. 388, Sec. 1, eff. Sept. 1,

1981.

Sec. 56.008. REGULATION BY BANKING COMMISSIONER. (a) An

agricultural finance corporation is subject to the supervision

and control of the banking commissioner and shall conform to the

rules adopted by the banking commissioner.

(b) An agricultural finance corporation may not begin business

until authorized to do so by the banking commissioner after it

satisfactorily shows that it has complied with the law.

(c) An agricultural finance corporation is subject to the

following requirements as if it were a state bank:

(1) it shall make reports to the banking commissioner;

(2) it shall permit periodic visitations and examinations

conducted under the banking commissioner's direction; and

(3) it shall pay fees for those examinations.

(d) The banking commissioner may take charge of and liquidate an

agricultural finance corporation for causes prescribed for

similar actions against a state bank.

Acts 1981, 67th Leg., p. 1125, ch. 388, Sec. 1, eff. Sept. 1,

1981.


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