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Statutes > Texas > Finance-code > Title-3-financial-institutions-and-businesses > Chapter-37-emergencies

FINANCE CODE

TITLE 3. FINANCIAL INSTITUTIONS AND BUSINESSES

SUBTITLE A. BANKS

CHAPTER 37. EMERGENCIES

Sec. 37.001. DEFINITION. In this chapter, "emergency" means a

condition or occurrence that may interfere physically with the

conduct of normal business at the offices of a bank or with the

conduct of a particular bank operation, or that poses an imminent

or existing threat to the safety or security of persons or

property, including:

(1) fire, flood, earthquake, hurricane, tornado, or wind, rain,

or snow storm;

(2) labor dispute or strike;

(3) power failure, transportation failure, or interruption of

communication facilities;

(4) shortage of fuel, housing, food, transportation, or labor;

(5) robbery, burglary, or attempted robbery or burglary;

(6) epidemic or other catastrophe; or

(7) riot, civil commotion, enemy attack, or other actual or

threatened act of lawlessness or violence.

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

Sec. 37.002. EMERGENCY CLOSING OF OFFICE OR OPERATION BY BANK.

(a) If the officers of a bank located in this state determine

that an emergency that affects or may affect the bank's offices

or a particular bank operation exists or is impending, the

officers may determine:

(1) not to open the bank's offices or conduct the particular

bank operation; or

(2) if the bank's offices have opened or the particular bank

operation has begun, to close the bank's offices or suspend and

close the particular bank operation during the emergency,

regardless of whether the banking commissioner has issued a

proclamation of emergency.

(b) Subject to Subsection (c), the office or operation closed

may remain closed until the officers determine that the emergency

has ended and for additional time reasonably required to reopen.

three consecutive days, excluding days on which the bank is

customarily closed, without the banking commissioner's approval.

(d) A bank closing an office or operation under this section

shall give notice of its action to the banking commissioner as

promptly as possible and by any means available.

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

Sec. 37.003. EMERGENCY CLOSING OF OFFICE OR OPERATION BY BANKING

COMMISSIONER. (a) If the banking commissioner determines that

an emergency exists or is impending in all or part of this state,

the banking commissioner by proclamation may authorize banks

located in the affected area to close all or part of their

offices or operations.

(b) If the banking commissioner determines that an emergency

exists or is impending that affects or may affect one or more

particular banks or a particular bank operation, but not banks

located in the area generally, the banking commissioner may

authorize the bank or banks affected to close their offices or a

particular bank operation.

may remain closed until the banking commissioner proclaims that

the emergency has ended, or until an earlier time that the

officers of the bank determine that the closed bank office or

bank operation should reopen, except that the affected bank

office or operation may remain closed for additional time

reasonably required to reopen.

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

Sec. 37.004. EFFECT OF CLOSING. (a) A day on which a bank or

one or more of its operations is closed during its normal banking

hours as provided by this chapter is a legal holiday for all

purposes with respect to any banking business affected by the

closed bank or bank operation.

(b) A bank or a director, officer, or employee of a bank does

not incur liability or loss of rights because of a closing

authorized by this chapter.

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

Amended by:

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

237, Sec. 64, eff. September 1, 2007.

Sec. 37.005. LIMITATIONS ON WITHDRAWALS FROM STATE BANK. (a)

At the request of a state bank that is experiencing or threatened

with unusual and excessive withdrawals because of financial

conditions, panic, or crisis, the banking commissioner, to

prevent unnecessary loss to or preference among the depositors

and creditors of the bank and to preserve the financial structure

of the bank and its usefulness to the community, may issue an

order limiting the right of withdrawal by or payment to

depositors, creditors, and other persons to whom the bank is

liable.

(b) The order:

(1) must expire not later than the 10th day after the date it is

issued;

(2) must be uniform in application to each class of liability;

and

(3) is not subject to judicial review.

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

Sec. 37.006. FINANCIAL MORATORIUM. (a) The banking

commissioner, with the approval of a majority of the finance

commission and the governor, may proclaim a financial moratorium

for, and invoke a uniform limitation on, withdrawal of deposits

of every character from all banks within this state. A bank

refusing to comply with a written proclamation of the banking

commissioner under this section, signed by a majority of the

members of the finance commission and the governor:

(1) forfeits its charter if it is a state bank; or

(2) may not act as reserve agent for a state bank or as

depository of state, county, municipal, or other public money if

it is a national bank.

(b) On order of the banking commissioner after refusal of a

national bank to comply with the proclamation, a depositor of

public money with the bank:

(1) shall immediately withdraw the public money from the bank;

and

(2) may not redeposit public money in the bank without the

banking commissioner's prior written approval.

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

Sec. 37.007. TEMPORARY BRANCH OR OFFICE. (a) If the banking

commissioner determines that an emergency has affected and will

continue to affect one or more particular bank offices for an

extended period, either as a result of the emergency or

subsequent recovery operations, the banking commissioner may

authorize the bank or banks affected to open temporary branch

offices or other facilities required for bank operations for the

purpose of prompt restoration of access by the public to banking

services.

(b) A temporary bank office opened under the authority of

Subsection (a) may remain open only for the period specified in

the banking commissioner's order, except that the banking

commissioner may extend the period the office may remain open on

a finding that the conditions requiring the temporary office

continue to exist. The bank may convert a temporary branch office

to a permanent bank location only by obtaining the prior written

approval of the banking commissioner under Section 32.203.

state that is experiencing an emergency and is contiguous to this

state, the banking commissioner may authorize a bank or banks

located in the state to open temporary offices in this state for

the purpose of prompt restoration of banking services to the

existing customers of the bank or banks, as the circumstances of

such emergency may require. A temporary bank office opened under

the authority of this subsection may remain open only for the

period specified in the banking commissioner's order, except that

the banking commissioner may extend the period the office may

remain open on a finding that the conditions requiring the

temporary office continue to exist. A bank may convert a

temporary branch office to a permanent bank location if permitted

by and subject to the conditions and requirements of Chapter 203.

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

110, Sec. 12, eff. September 1, 2007.

Sec. 37.008. REGULATORY COORDINATION. (a) To ensure effective

coordination among and between the department and other state and

federal agencies and the banking industry, and to further rapid

restoration of banking services after an emergency, the banking

commissioner may:

(1) enter into cooperative, coordinating, or information-sharing

agreements with other state or federal agencies or with or

through organizations affiliated with or representing one or more

state or federal agencies;

(2) enter into cooperative, coordinating, or information-sharing

agreements with banks or banking trade associations or other

organizations affiliated with or representing one or more banks;

and

(3) issue interpretive statements or opinions to temporarily

waive or suspend regulatory requirements that threaten to impede

recovery and restoration of financial services.

(b) Disclosure of information by or to the banking commissioner

under this section does not constitute a waiver of or otherwise

affect or diminish an evidentiary privilege to which the

information is otherwise subject, regardless of whether the

disclosure is governed by a confidentiality agreement.

Notwithstanding other law, a party to an agreement described by

Subsection (a) may execute, honor, and comply with an agreement

to maintain confidentiality and oppose disclosure of information

obtained from the banking commissioner, and shall treat as

confidential any information obtained from the banking

commissioner that is entitled to confidential treatment under

applicable state or federal law.

and assist the office of the governor in the performance of

duties under this chapter and other state or federal law as

required by Section 421.071, Government Code.

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

110, Sec. 12, eff. September 1, 2007.