Texas Finance Code
§ 31.107 — REGULATION AND EXAMINATION OF RELATED ENTITIES
FI § 31.107Title 3. FINANCIAL INSTITUTIONS AND BUSINESSES · Part A. BANKS · Ch. 31. GENERAL PROVISIONS · Art. B. REGULATION OF BANKING BY BANKING COMMISSIONER
Statute text
View on source(a)The banking commissioner may regulate and examine, to the same extent as if the services or activities were performed by a state bank on its own premises:
(1)the activities of a state bank affiliate; and
(2)the services or activities of a third-party service provider that a state bank or state bank affiliate has contracted for or otherwise arranged to be performed on behalf of the state bank or state bank affiliate.
(b)The banking commissioner may collect a fee from an examined third-party service provider or affiliate in connection with each examination to cover the cost of the examination or may collect that fee from the state banks that use the examined third-party service provider.
(c)For purposes of this section, a state bank affiliate does not include a company in which ownership or membership is limited to individuals and conditioned by law on the existence and maintenance of professional licensing.
(d)To promote regulatory efficiency, if, in the preceding 24 months, a third-party service provider or affiliate has been examined by a federal or state financial services regulatory agency or by a member agency of the Federal Financial Institutions Examination Council, or its successor agency, the banking commissioner may accept the results of that examination instead of conducting the banking commissioner's own examination of the third-party service provider or affiliate. Nothing in this subsection shall be construed as limiting or restricting the banking commissioner from participating in an examination of a third-party service provider or affiliate conducted by a federal or state financial services regulatory agency or by a member agency of the Federal Financial Institutions Examination Council, or its successor agency.
…
Legislative history
Acts 2017, 85th Leg., R.S., Ch. 599 (S.B. 1401), Sec. 2, eff. September 1, 2017. Acts 2019, 86th Leg., R.S., Ch. 652 (S.B. 1823), Sec. 3, eff. September 1, 2019.