Texas Finance Code

§ 32.103 — CHANGE IN OUTSTANDING CAPITAL AND SURPLUS

FI § 32.103Title 3. FINANCIAL INSTITUTIONS AND BUSINESSES · Part A. BANKS · Ch. 32. POWERS, ORGANIZATION, AND FINANCIAL REQUIREMENTS · Art. B. AMENDMENT OF CERTIFICATE; CHANGES IN CAPITAL AND SURPLUS

Statute text

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(a)A state bank may not reduce or increase its outstanding capital and surplus through dividend, redemption, issuance of shares, or otherwise, without the prior written approval of the banking commissioner, except as permitted by this section or rules adopted under this subtitle.

(b)Unless restricted by rule, prior written approval is not required for an increase in capital and surplus accomplished through:

(1)issuance of shares of common stock for cash, or a cash contribution to surplus by shareholders 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 capital or surplus.

(c)Prior approval is not required for:

…

Legislative history

Acts 2007, 80th Leg., R.S., Ch. 237 (H.B. 1962), Sec. 16, eff. September 1, 2007. Acts 2007, 80th Leg., R.S., Ch. 735 (H.B. 2754), Sec. 4, eff. September 1, 2007.