Sec. 96.002. ADOPTION OF RULES. (a) The finance commission may adopt rules necessary to supervise and regulate savings banks and to protect public investment in savings banks, including rules relating to: (1) the minimum amounts of capital required to incorporate and operate as a savings bank, which may not be less than the amounts required of corresponding national banks; (2) the fees and procedures for processing, hearing, and deciding applications filed with the commissioner or the Department of Savings and Mortgage Lending under this subtitle; (3) the books and records that a savings bank is required to keep and the location at which the books and records are required to be maintained; (4) the accounting principles and practices that a savings bank is required to observe; (5) the conditions under which records may be copied or reproduced for permanent storage before the originals are destroyed; (6) the form, content, and time of publication of statements of condition; (7) the form and content of any report that a savings bank is required to prepare and publish or file under this chapter; (8) the manner in which assets, liabilities, and transactions in general are to be described when entered in the books of a savings bank, so that the entry accurately describes the subject matter of the entry; (9) the conditions under which the commissioner may require an asset to be charged off or reserves established by transfer from surplus or paid-in capital because of depreciation of or overstated value of the asset; (10) the change of control of a savings bank; (11) the conduct, management, and operation of a savings bank; (12) the withdrawable accounts, bonuses, plans, and contracts for savings programs; (13) the merger, consolidation, reorganization, conversion, and liquidation of a savings bank; (14) the establishment of an additional office or the change of office location or name of a savings bank; (15) the requirements for a savings bank's holding companies, including those relating to: (A) registration and periodic reporting of a holding company with the commissioner; and (B) transactions between a holding company, an affiliate of a holding company, or a savings bank; and (16) the powers of a savings bank to make loans and investments that contain provisions reasonably necessary to ensure that a loan made by a savings bank is consistent with sound lending practices and that the savings bank's investment will promote the purposes of this subtitle, including provisions governing: (A) the type of loans and the conditions under which a savings bank may originate, make, or sell loans; (B) the conditions under which a savings bank may purchase or participate in a loan made by another lender; (C) the conditions for the servicing of a loan for another lender; (D) the conditions under which a savings bank may lend money on the security of a loan made by another person; (E) the conditions under which a savings bank may pledge loans held by it as collateral for borrowing by the savings bank; (F) the conditions under which a savings bank may invest in securities and debt instruments; (G) the documentation that a savings bank must have in its files at the time of funding or purchase of a loan, an investment, or a participation in a loan; (H) the form and content of statements of expenses and fees and other charges that are paid by a borrower or that a borrower is obligated to pay; (I) the title information that must be maintained; (J) the borrower's insurance coverage of property securing a loan; (K) an appraisal report; (L) the financial statement of a borrower; (M) the fees or other compensation that may be paid to a person in connection with obtaining a loan for a savings bank, including an officer, director, employee, affiliated person, consultant, or third party; (N) the conditions under which the savings bank may advance money to pay a tax, assessment, insurance premium, or other similar charge for the protection of the savings bank's interest in property securing the savings bank's loans; (O) the terms under which a savings bank may acquire and deal in real property; (P) the valuation on a savings bank's books of real property held by the savings bank; (Q) the terms governing the investment by a savings bank in a subsidiary, the powers that may be exercised by a subsidiary, and the activities that may be engaged in by a subsidiary; and (R) any other matter considered necessary to administer each type of transaction. (b) A savings bank or its subsidiary may not engage in a transaction in violation of a rule adopted under this subtitle.
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