Texas Finance Code
§ 34.101 — SECURITIES
FI § 34.101Title 3. FINANCIAL INSTITUTIONS AND BUSINESSES · Part A. BANKS · Ch. 34. INVESTMENTS, LOANS, AND DEPOSITS · Art. B. INVESTMENTS
Statute text
View on source(a)A state bank may purchase and sell securities without recourse solely on the order and for the account of a customer.
(b)Except as otherwise provided by this subtitle or rules adopted under this subtitle, a state bank may not:
(1)underwrite an issue of securities; or
(2)invest its money in equity securities except as necessary to avoid or minimize a loss on a loan or investment previously made in good faith.
(c)A state bank may purchase investment securities for its own account under limitations and restrictions prescribed by rules adopted under this subtitle. Except as otherwise provided by this section, the amount of the investment securities of any one obligor or maker held by the bank for its own account may not exceed an amount equal to 15 percent of the bank's unimpaired capital and surplus. The banking commissioner may authorize investments in excess of this limitation on written application if the banking commissioner determines that:
(1)the excess investment is not prohibited by other applicable law; and
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Legislative history
Acts 2007, 80th Leg., R.S., Ch. 110 (H.B. 2007), Sec. 5, eff. September 1, 2007.