Texas Finance Code

§ 34.002 — INVESTMENT IN BANK FACILITIES

FI § 34.002Title 3. FINANCIAL INSTITUTIONS AND BUSINESSES · Part A. BANKS · Ch. 34. INVESTMENTS, LOANS, AND DEPOSITS · Art. A. ACQUISITION AND OWNERSHIP OF BANK FACILITIES AND OTHER REAL PROPERTY

Statute text

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(a)Without the prior written approval of the banking commissioner, a state bank may not directly or indirectly invest an amount in excess of its unimpaired capital and surplus in bank facilities, furniture, fixtures, and equipment. Except as otherwise provided by rules adopted under this subtitle, in computing this limitation the bank:

(1)shall include:

(A)its direct investment in bank facilities;

(B)an investment in equity or investment securities of a company holding title to a facility used by the bank for a purpose specified by Section 34.001;

(C)a loan made by the bank to or on the security of equity or investment securities issued by a company holding title to a facility used by the bank; and

(D)any indebtedness incurred on bank facilities by a company:

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Legislative history

Acts 2007, 80th Leg., R.S., Ch. 110 (H.B. 2007), Sec. 3, eff. September 1, 2007.