CHAPTER 91. GENERAL PROVISIONS

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FINANCE CODE

TITLE 3. FINANCIAL INSTITUTIONS AND BUSINESSES

SUBTITLE C. SAVINGS BANKS

CHAPTER 91. GENERAL PROVISIONS

Sec. 91.001. SHORT TITLE. This subtitle may be cited as the

Texas Savings Bank Act.

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

Sec. 91.002. DEFINITIONS. In this subtitle:

(1) "Appropriate banking agency":

(A) means:

(i) with respect to a savings bank chartered by this state, the

Department of Savings and Mortgage Lending;

(ii) with respect to a federal savings bank, the Office of

Thrift Supervision;

(iii) with respect to a savings and loan association chartered

by this state, the Department of Savings and Mortgage Lending;

(iv) with respect to a federal savings and loan association, the

Office of Thrift Supervision;

(v) with respect to a bank chartered by this state, the Texas

Department of Banking; and

(vi) with respect to a national bank, the Office of the

Comptroller of the Currency; and

(B) includes:

(i) in each case in which a state bank is a member of the

Federal Reserve System, the board of governors of the Federal

Reserve System;

(ii) in each case where required by the Federal Deposit

Insurance Act (12 U.S.C. Section 1811 et seq.), the Federal

Deposit Insurance Corporation; and

(iii) any successor of a state or federal agency specified by

this subdivision.

(2) "Board" means the board of directors of a savings bank or

the managers of a savings bank organized as a limited savings

bank.

(3) "Capital stock" means the units into which the proprietary

interest in a capital stock savings bank is divided.

(4) "Capital stock savings bank" means a savings bank authorized

to issue capital stock.

(5) "Commissioner" means the savings and mortgage lending

commissioner.

(6) "Company" means a corporation, partnership, trust,

joint-stock company, association, unincorporated organization, or

other legal entity, or a combination of any of those entities

acting together.

(7) "Deposit account" means a savings account, certificate of

deposit, withdrawable deposit, demand deposit account, checking

account, or any other term referring to the amount of money a

savings bank owes an account holder as the result of the deposit

of money in the savings bank.

(8) "Deposit liability" means the aggregate amount of money

shown by the books of the savings bank to be owed the savings

bank's deposit account holders after applying any legal or

contractual reduction.

(9) "Domestic savings bank" means a savings bank organized under

the laws of this state.

(10) "Earnings on account" means interest contractually payable

or dividends declared payable to holders of deposit accounts in a

savings bank.

(11) "Federal Deposit Insurance Corporation" includes any

successor.

(12) "Federal savings bank" means a savings bank incorporated

under the laws of the United States.

(13) "Finance commission" means the Finance Commission of Texas.

(14) "Financial institution" has the meaning assigned by Section

201.101.

(15) "Foreign savings bank" means a savings bank:

(A) organized under the laws of:

(i) a state of the United States other than this state; or

(ii) the United States; and

(B) the principal office of which is located outside this state.

(16) "Holding company" means a company that directly or

indirectly controls a savings bank or controls another company

that directly or indirectly controls a savings bank.

(16-a) "Limited savings bank" means a savings bank electing to

be organized as a limited liability company under this subtitle.

(17) "Loss reserves" means the aggregate amount of the reserves

allocated by a savings bank solely to absorb losses.

(18) "Member" means:

(A) with respect to a mutual savings bank, a person:

(i) holding an account with the mutual savings bank;

(ii) assuming or obligated on a loan in which the mutual savings

bank has an interest; or

(iii) owning property that secures a loan in which the mutual

savings bank has an interest; or

(B) with respect to a savings bank organized as a limited

savings bank, a person who owns a membership interest in the

limited savings bank.

(19) "Mutual savings bank" means a savings bank not authorized

to issue capital stock.

(20) "Regulatory capital" means a common stockholders' equity,

including retained earnings, noncumulative perpetual preferred

stock and related earnings, minority interests in the equity

accounts of fully consolidated subsidiaries, and other elements

established by rules of the finance commission.

(21) "Savings bank" means an institution organized under or

subject to this subtitle.

(22) "Shareholder" means the owner of capital stock.

(23) "Surplus" means the aggregate amount of:

(A) the undistributed earnings of a savings bank held as

undivided profits or unallocated reserves for general corporate

purposes; and

(B) paid-in surplus held by the savings bank.

(24) "Unsafe and unsound practice" means an action or inaction

in the operation of a savings bank that is likely to:

(A) cause insolvency or substantial dissipation of assets or

earnings; or

(B) reduce the ability of the savings bank to timely satisfy

withdrawal requests of deposit account holders.

(25) "Withdrawal value of deposit account" means the net amount

of money that may be withdrawn by an account holder from a

deposit account after applying any legal or contractual

reduction.

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

Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.32(a), eff. Sept.

1, 1999; Acts 2001, 77th Leg., ch. 867, Sec. 33, eff. Sept. 1,

2001; Acts 2003, 78th Leg., ch. 172, Sec. 1, eff. Sept. 1, 2003.

Amended by:

Acts 2005, 79th Leg., Ch.

1018, Sec. 5.02, eff. September 1, 2005.

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

921, Sec. 6.037, eff. September 1, 2007.

Sec. 91.003. CONTROL; SUBSIDIARY. (a) For purposes of this

subtitle, a person controls a savings bank if the person has the

power to direct or cause the direction of the management and

policies of the savings bank directly or indirectly. A person is

considered to control a savings bank if the person, individually

or acting with others, directly or indirectly holds with the

power to vote, owns, or controls, or holds proxies representing,

at least 25 percent of the voting stock or voting rights of a

savings bank.

(b) For purposes of this subtitle, a company is a subsidiary of

a savings bank if the savings bank or another company directly or

indirectly controlled by the savings bank controls the company. A

savings bank is considered to control a company if the savings

bank, directly or indirectly or acting with one or more other

persons or through one or more subsidiaries:

(1) holds with the power to vote, owns, or controls, or holds

proxies representing, more than 25 percent of the voting stock or

voting rights of the company;

(2) controls in any manner the election of a majority of the

directors of the company;

(3) is a general partner in the company; or

(4) has contributed more than 25 percent of the equity capital

of the company.

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

Sec. 91.004. NOTICE OF HEARING; RIGHT TO RESPOND. (a) Notice

of a hearing under this subtitle shall be given to each domestic

and federal savings bank in the county in which the subject

matter of the hearing is or will be located, except that notice

of a hearing under an order under Chapter 96 shall be given to

each party affected by the order.

(b) Each interested party is entitled to an opportunity to

respond and present evidence and argument on each issue involved

in a hearing under this subtitle.

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

Sec. 91.005. RECORD OF PROCEEDING. On written request by an

interested party, the commissioner shall keep a formal record of

the proceedings of a hearing under this subtitle.

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

Sec. 91.006. DECISION OR ORDER. (a) A decision or order

adverse to a party who appeared and participated in a hearing

must be in writing and include separately stated findings of fact

and conclusions of law on the issues material to the decision or

order. Findings of fact that are stated in statutory language

must be accompanied by a concise and explicit statement of the

underlying facts supporting the findings.

(b) A decision or order entered after a hearing is final and

appealable on the 15th day after the date it is entered unless a

party files a motion for rehearing before that date. If the

motion for rehearing is overruled, a decision or order is

appealable after the date an order overruling a motion for

rehearing is entered.

personally or by mail of a decision, order, or other action taken

in respect to the subject matter of the hearing.

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

Sec. 91.007. FEES. The finance commission by rule shall:

(1) set the amount of fees the commissioner charges for:

(A) supervision and examination of savings banks;

(B) filing an application or other documents;

(D) other services the commissioner performs; and

(2) specify the time and manner of payment of the fees.

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

Amended by Acts 2001, 77th Leg., ch. 867, Sec. 34, eff. Sept. 1,

2001.

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

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