CHAPTER 93. GENERAL POWERS

State Codes and Statutes

Back To Homepage

State Codes and Statutes

Statutes > Texas > Finance-code > Title-3-financial-institutions-and-businesses > Chapter-93-general-powers

FINANCE CODE

TITLE 3. FINANCIAL INSTITUTIONS AND BUSINESSES

SUBTITLE C. SAVINGS BANKS

CHAPTER 93. GENERAL POWERS

Sec. 93.001. GENERAL CORPORATE POWERS. (a) A savings bank has

the powers authorized by this subtitle and any other right,

privilege, or power incidental to or reasonably necessary to

accomplish the purposes of the savings bank.

(b) With the commissioner's prior approval, a savings bank may

engage in business as a savings bank in any state of the United

States to the extent permitted by the laws of that state, either

directly or through the ownership of a savings bank incorporated

under the laws of another state.

(1) sue and be sued in its corporate name;

(2) adopt and operate a reasonable bonus plan, profit-sharing

plan, stock bonus plan, stock option plan, pension plan, or

similar incentive plan for its directors, officers, or employees,

subject to any limitations under this subtitle or rules adopted

under this subtitle;

(3) make reasonable donations for the public welfare or for a

charitable, scientific, religious, or educational purpose;

(4) pledge its assets to secure deposits of public money of the

United States, if required by the United States, including

revenue and money the deposit of which is subject to control or

regulation of the United States;

(5) pledge its assets to secure deposits of public money of any

state or of a political corporation or political subdivision of

any state or of any other entity that serves a public purpose

according to rules adopted by the finance commission;

(6) become a member of or deal with any corporation or agency of

the United States or this state, to the extent that the

corporation or agency assists in furthering the purposes or

powers of savings banks, and for that purpose may purchase stock

or securities of the corporation or agency or deposit money with

the corporation or agency and may comply with any other condition

of membership credit;

(7) become a member of a federal home loan bank or the Federal

Reserve System;

(8) hold title to any assets acquired because of the collection

or liquidation of a loan, investment, or discount and may

administer those assets as necessary;

(9) receive and repay any deposit or account in accordance with

this subtitle and rules of the finance commission; and

(10) lend and invest its money as authorized by this subtitle

and rules of the finance commission.

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

Amended by Acts 2001, 77th Leg., ch. 867, Sec. 50, eff. Sept. 1,

2001.

Amended by:

Acts 2005, 79th Leg., Ch.

1018, Sec. 5.16, eff. September 1, 2005.

Sec. 93.002. ENLARGEMENT OF POWERS. (a) The finance commission

by rule may expand the powers of savings banks to accommodate or

take advantage of changing technology and to enable domestic

savings banks to respond to the needs of and convenience demanded

by consumers and businesses through on-premises or off-premises

operations.

(b) The finance commission may not authorize a domestic savings

bank to offer a financial service prohibited to a domestic

savings bank by a law of this state other than this subtitle.

commission shall consider the need to:

(1) promote a stable environment for financial institutions;

(2) provide the public with convenient, safe, and competitive

financial services; and

(3) allow for economic development in the state.

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

Sec. 93.003. POWERS OF FEDERAL SAVINGS BANK. A federal savings

bank and its members have all of the powers, privileges,

benefits, immunities, and exemptions that are provided by the law

of this state for a savings bank and the savings bank's members.

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

Sec. 93.004. POWER TO BORROW. (a) A savings bank may borrow

and give security, subject to rules adopted by the finance

commission.

(b) A savings bank at any time through action of its board may

issue a capital note, debenture, or other capital obligation

authorized by rules adopted by the finance commission.

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

Amended by Acts 2001, 77th Leg., ch. 867, Sec. 51, eff. Sept. 1,

2001.

Sec. 93.005. FISCAL AGENT. (a) A savings bank may act as

fiscal agent of the United States. A savings bank designated as

fiscal agent of the United States by the secretary of the

treasury shall act under regulations as required by the secretary

and may act as fiscal agent for an instrumentality of the United

States.

(b) A savings bank may act as fiscal agent of this state or of a

governmental subdivision or instrumentality of this state.

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

Sec. 93.006. POWER TO ACT UNDER CERTAIN FEDERAL RETIREMENT

PLANS. A savings bank or a federal savings bank, to the extent

that its charter and applicable federal regulations permit, may:

(1) exercise any power necessary to qualify as a trustee or

custodian for a retirement plan permitted or recognized by

federal law; and

(2) invest money the bank holds as trustee or custodian under

Subdivision (1) in the bank's accounts if the plan does not

prohibit that investment.

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

Sec. 93.007. TRUST POWERS. (a) A savings bank may exercise

trust powers only with the commissioner's prior written approval.

(b) The commissioner may approve the exercise of trust powers

only after finding that the applicant's savings bank:

(1) is complying with applicable regulatory capital

requirements;

(2) is well managed; and

(3) has earnings, resources, and managerial talent adequate to

maintain a trust department.

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

Sec. 93.008. POWERS RELATIVE TO OTHER FINANCIAL INSTITUTIONS.

(a) Subject to limitations prescribed by rule of the finance

commission, a savings bank may make a loan or investment or

engage in an activity permitted:

(1) under state law for a bank or savings and loan association;

(2) under federal law for a federal savings and loan

association, savings bank, or national bank if the financial

institution's principal office is located in this state.

(b) Notwithstanding any other law, a savings bank organized and

chartered under this chapter may perform an act, own property, or

offer a product or service that is at the time permissible within

the United States for a depository institution organized under

federal law or the law of this state or another state if the

commissioner approves the exercise of the power as provided by

this section, subject to the same limitations and restrictions

applicable to the other depository institution by pertinent law,

except to the extent the limitations and restrictions are

modified by rules adopted under Subsection (e). This section may

not be used to alter or negate the application of the laws of

this state with respect to:

(1) establishment and maintenance of a branch in this state or

another state or country;

(2) permissible interest rates and loan fees chargeable in this

state;

(3) fiduciary duties owed to a client or customer by the bank in

its capacity as fiduciary in this state;

(4) consumer protection laws applicable to transactions in this

state; or

(5) compliance with the qualified thrift assets test contained

in Section 92.204.

through a subsidiary, granted by Subsection (b) that is not

otherwise authorized for savings banks under the statutes of this

state shall submit a letter to the commissioner describing in

detail the power that the savings bank proposes to exercise and

the specific authority of another depository institution to

exercise the power. The savings bank shall attach copies, if

available, of relevant law, regulations, and interpretive

letters. The commissioner may deny the bank from exercising the

power if the commissioner finds that:

(1) specific authority does not exist for another depository

institution to exercise the proposed power;

(2) if the savings bank is insured by the Federal Deposit

Insurance Corporation, the savings bank is prohibited from

exercising the power under Section 24, Federal Deposit Insurance

Act (12 U.S.C. Section 1831a), and related regulations;

(3) the exercise of the power by the bank would adversely affect

the safety and soundness of the bank; or

(4) at the time the application is made, the savings bank is not

well capitalized and well managed.

(d) A savings bank that is denied the requested power by the

commissioner under this section may appeal. The notice of appeal

must be in writing and must be received by the commissioner not

later than the 30th day after the date of the denial. An appeal

under this section is a contested case under Chapter 2001,

Government Code.

(e) To effectuate this section, the finance commission may adopt

rules implementing the method or manner in which a savings bank

exercises specific powers granted under this section, including

rules regarding the exercise of a power that would be prohibited

to savings banks under state law but for this section.

(f) The exercise of a power by a savings bank in compliance with

and in the manner authorized by this section is not a violation

of any statute of this state.

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

Amended by Acts 2001, 77th Leg., ch. 867, Sec. 52, eff. Sept. 1,

2001.

Amended by:

Acts 2005, 79th Leg., Ch.

1018, Sec. 5.17, eff. September 1, 2005.

Sec. 93.009. RIGHT TO ACT TO AVOID LOSS. (a) This subtitle

does not deny a savings bank the right to invest its money,

operate a business, manage or deal in property, or take other

action during any period that is reasonably necessary to avoid

loss on a loan or on an investment made or obligation created in

good faith in the usual course of the bank's business, as

authorized by this subtitle or a rule adopted under this

subtitle.

(b) This subtitle does not prohibit a savings bank from:

(1) developing or building on land it has acquired under this

section; or

(2) completing the construction of a building under a

construction loan contract in which the borrower has not complied

with the contract.

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

Sec. 93.010. CLOSING PLACE OF BUSINESS. A savings bank may

close its place of business at any time its board of directors

determines.

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

Sec. 93.011. EMERGENCY CLOSING. (a) If the officers of a

savings bank determine that an emergency that affects or may

affect the savings bank's offices or operations exists or is

impending, the officers, as reasonable, may determine:

(1) not to conduct the involved operations or open the offices

on any business or banking day; or

(2) if the savings bank is open, to close the offices or the

involved operations for the duration of the emergency.

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

remain closed until the officers determine that the emergency has

ended and for any additional time reasonably required to reopen.

section shall notify the commissioner of its action by any means

available and as promptly as conditions permit. An office or

operation may not be closed for more than 48 consecutive hours,

excluding other legal holidays, without the commissioner's

approval.

(d) In this section, "emergency" means a condition or occurrence

that physically interferes with the conduct of normal business at

the offices of a savings bank or of a particular savings bank

operation or that poses an imminent or existing threat to the

safety or security of persons, property, or both. The term

includes a condition or occurrence arising from:

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

snowstorm;

(2) labor dispute and strike;

(3) power failure;

(4) transportation failure;

(5) interruption of communication facilities;

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

(7) robbery or burglary;

(8) actual or threatened enemy attack;

(9) epidemic or other catastrophe;

(10) riot or civil commotion; or

(11) any other actual or threatened unlawful or violent act.

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

Sec. 93.012. EFFECT OF CLOSING. (a) A day on which a savings

bank or one or more of its operations are closed under Section

93.011 during all or part of its normal business hours is

considered to be a legal holiday to the extent the savings bank

suspends operations.

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

savings bank does not incur liability or loss of rights from a

closing authorized by Section 93.011.

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

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

Loading..

Loading, Please Wait!