Texas Finance Code

§ 182.103 — CHANGE IN RESTRICTED CAPITAL

FI § 182.103Title 3. FINANCIAL INSTITUTIONS AND BUSINESSES · Part F. TRUST COMPANIES · Ch. 182. POWERS, ORGANIZATION, AND FINANCIAL REQUIREMENTS · Art. B. AMENDMENT OF CERTIFICATE; CHANGES IN CAPITAL AND SURPLUS

Statute text

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(a)A state trust company may not reduce or increase its restricted capital through dividend, redemption, issuance of shares or participation shares, or otherwise without the prior approval of the banking commissioner, except as permitted by this section or rules adopted under this chapter.

(b)Unless otherwise restricted by rules, prior approval is not required for an increase in restricted capital accomplished through:

(1)issuance of shares of common stock or their equivalent in participation shares for cash, or a cash contribution to surplus by shareholders or participants that does not result in issuance of additional common stock or other securities;

(2)declaration and payment of pro rata share dividends as defined by the Business Organizations Code; or

(3)adoption by the board of a resolution directing that all or part of undivided profits be transferred to restricted capital.

(c)Prior approval is not required for:

…

Legislative history

Acts 2007, 80th Leg., R.S., Ch. 735 (H.B. 2754), Sec. 13, eff. September 1, 2007.