Texas Finance Code

§ 37.006 — FINANCIAL MORATORIUM

FI § 37.006Title 3. FINANCIAL INSTITUTIONS AND BUSINESSES · Part A. BANKS · Ch. 37. EMERGENCIES

Statute text

(a)The banking commissioner, with the approval of a majority of the finance commission and the governor, may proclaim a financial moratorium for, and invoke a uniform limitation on, withdrawal of deposits of every character from all banks within this state. A bank refusing to comply with a written proclamation of the banking commissioner under this section, signed by a majority of the members of the finance commission and the governor:

(1)forfeits its charter if it is a state bank; or

(2)may not act as reserve agent for a state bank or as depository of state, county, municipal, or other public money if it is a national bank.

(b)On order of the banking commissioner after refusal of a national bank to comply with the proclamation, a depositor of public money with the bank:

(1)shall immediately withdraw the public money from the bank; and

(2)may not redeposit public money in the bank without the banking commissioner's prior written approval.

Legislative history

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.