Texas Finance Code

§ 34.004 — RETENTION OF NONPARTICIPATING ROYALTY INTERESTS

FI § 34.004Title 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)Notwithstanding Section 34.003(a), a state bank may hold nonparticipating royalty interests if:

(1)the state bank acquires the interest pursuant to Section 34.003(a)(3) or retains the interest in a sale of property acquired under that section;

(2)the interest is nonparticipating due to the fact the interest:

(A)is nonpossessory;

(B)does not bear executive rights, the right of ingress and egress, the right to receive bonus payments, or the right to receive delay rentals; and

(C)is accordingly not subject to expenses of exploration, development, production, operation, maintenance, or abandonment, or other expenses associated with extracting and marketing the minerals subject to the interest;

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Legislative history

Acts 2013, 83rd Leg., R.S., Ch. 940 (H.B. 1664), Sec. 8, eff. June 14, 2013.