(b) A state trust company may engage in the trust business by: (1) acting as trustee under a written agreement; (2) receiving money and other property in its capacity as trustee for investment in real or personal property; (3) acting as trustee and performing the fiduciary duties committed or transferred to it by order of a court; (4) acting as executor, administrator, or trustee of the estate of a deceased person; (5) acting as a custodian, guardian, conservator, or trustee for a minor or incapacitated person; (6) acting as a successor fiduciary to a trust institution or other fiduciary; (7) receiving for safekeeping personal property; (8) acting as custodian, assignee, transfer agent, escrow agent, registrar, or receiver; (9) acting as investment advisor, agent, or attorney in fact according to an applicable agreement; (10) with the prior written approval of the banking commissioner and to the extent consistent with applicable fiduciary principles, engaging in a financial activity or an activity incidental or complementary to a financial activity, directly or through a subsidiary; (11) exercising additional powers expressly conferred by rule of the finance commission; and. To meet this threshold, the OFR will consider (1) the applicants business plan (2) the applicants projected financial performance; and (3) the feasibility of the trust company with respect to asset and liability growth and management. Amended by Acts 2001, 77th Leg., ch. 6.009(a), eff. Sept. 1, 1999. Copyright 2023 EPGD ATTORNEYS AT LAW, P.A. (c) Unless the submission presents novel or unusual questions, the banking commissioner shall approve or reject the series not later than the 31st day after the date the banking commissioner considers the submission informationally complete and accepted for filing. The banking commissioner shall prepare a written report of the investigation. Periodically the board may vote to designate and record in its minutes the amount of certified surplus. NOTICE AND EFFECT OF REVOCATION OF EXEMPTION. There are additional requirements when it comes to regulations, oversights, and financial reporting. Sept. 1, 1999. Learn more, including special instructions for Microsoft Edge users. (d) The amount of any outstanding capital notes or debentures that meet the requirements of this section and that are subordinated to unsecured creditors of the state trust company may be included in equity capital of the state trust company for purposes of determining hazardous condition or insolvency, and for such other purposes provided by rules adopted under this subtitle. MERGER APPLICATION; GROUNDS FOR APPROVAL. GROUNDS FOR REVOCATION OF EXEMPTION. The firms that did not participate in DFAST 2021 have SCB requirements based on DFAST 2020 results and that have been adjusted by the Federal Reserve Board pursuant to 12 C.F.R. Trust Company and Trust Facility Frequently Asked Questions Questions and Answers: 1. Who is authorized to engage in trust business in California? In coordination with other U.S. regulators and international standard setters, the OCC identifies and develops policies to address emerging risks to bank capital. 1420, Sec. (d) A relocation of a state trust company's home office may not be made, and another action that would effect an abandonment of the state trust company's initial home office may not be taken, without the prior written approval of the banking commissioner. The Capital Adequacy Requirements (CAR) for banks (including federal credit unions), bank holding companies, federally regulated trust companies, federally regulated loan companies and cooperative retail associations are set out in nine chapters, each of which has been issued as a separate document. Private trust companies are seen as entities that are untested. If the banking commissioner sets a hearing, the banking commissioner shall conduct a public hearing and as many prehearing conferences and opportunities for discovery as the banking commissioner considers advisable and consistent with governing statutes and rules, except that the banking commissioner may not permit discovery of confidential information in the charter application or the investigation report. Sec. 182.012. 575 (S.B. (a) A protest of a charter application must be received by the department before the 15th day after the date the organizers publish notice under Section 182.004(a) and must be accompanied by the fees and deposits required by law. 1420, Sec. Therefore, the guidance should be modified as needed to correspond with each institutions unique business model. Acts 2013, 83rd Leg., R.S., Ch. SALE OF ASSETS. A continual outlay of money for administration costs. Acts 2007, 80th Leg., R.S., Ch. TREF07 (2/2016) - 1 - Texas Department of Banking. Sept. 1, 1999. SUBCHAPTER C. STATE TRUST COMPANY OFFICES. 735 (H.B. September 1, 2007. September 1, 2007. 182.304. (c) An exemption granted under this section may be made subject to conditions or limitations imposed by the banking commissioner consistent with this subtitle. (2) the Federal Deposit Insurance Corporation or its successor approves the transaction, if the deposits of the state trust company are insured. In the exercise of discretion, the banking commissioner may consider granting a hearing on a charter application at the request of the applicant or a protesting party. (C) offer customers available or emerging technological means for using fiduciary and financial services or for the document imaging of data; (5) whether the activity would violate applicable fiduciary duties or otherwise pose a substantial risk to the safety and soundness of a state trust company or the fiduciary and financial system generally; and. Section 240.17Ad-2(b) - Securities Processing . If applicable, statements in the response and in the reply may be supported by references to data available in sources of which official notice may properly be taken. 62, Sec. Sept. 1, 1999. The minimum capital of a trust company is two hundred thousand dollars. (4) defining or further defining terms used by this section. (b) A series of shares or participation shares may be established in the manner provided by the Business Organizations Code, but the shares or participation shares of the series may not be issued and sold except on compliance with Section 182.103. The original and one copy of the certificate of amendment or restated certificate of formation must be filed with the banking commissioner for approval. (d) Amendment or restatement of the certificate of formation of a state trust company and approval of the board and shareholders or participants must be made or obtained in accordance with the Business Organizations Code, except as otherwise provided by this subtitle or rules adopted under this subtitle. Recent Credit Report. Added by Acts 1999, 76th Leg., ch. 875), Sec. September 1, 2015. 73, eff. The notes or debentures must be subordinate to the claims of depositors and may be subordinate to other claims, including the claims of other creditors or classes of creditors or the shareholders or participants. 599 (S.B. Amended by Acts 2001, 77th Leg., ch. 804), Sec. For additional information, contact the Division of Financial Institutions Tallahassee office at (850) 410-9800 or via e-mail at OFRFinancialInstitutions@flofr.gov. Sept. 1, 2001. Statutory requirements for the organization of a bank or trust company are contained in Article XV of the Banking Law. (c) The state trust company shall maintain records necessary to verify the certification. Sept. 1, 1999. The banking commissioner shall include any conditions in the order granting the charter. Sec. The completed reports, signature pages and fee must be submitted to the Division no later than January 30. (c) The banking commissioner may approve the merger if: (A) has complied with the statutes and rules relating to the organization of a state trust company; and. 182.005. (f) Each buyer in a transaction described by Subsection (c) that is a trust institution or other fiduciary shall succeed by operation of law to all of the rights, privileges, and fiduciary obligations of the selling state trust company under each account included in the assets acquired. Sept. 1, 2001. June 14, 2013. NRS 669.085 Pre-opening examination by Commissioner; other requirements. Learn more, including special instructions for Microsoft Edge users. Acts 2013, 83rd Leg., R.S., Ch. 2. (a) The purchasing state trust company may hold the purchase price and any additional funds delivered to it by the selling institution in trust for the selling institution and may act as agent of the selling institution in disbursing those funds in trust by paying the creditors of the selling institution. The application must be supported by information, records, and opinions of counsel that the banking commissioner requires. L. No. (b) Repealed by Acts 2015, 84th Leg., R.S., Ch. 182.003. Sept. 1, 2001. In addition, trust companies shall pay the actual cost for each on-site examination and the additional supervision costs for any trust company operating under an enforcement action. Subject to Subchapter C, Chapter 187, a company does not engage in the trust business in a manner requiring a state charter by: (1) acting in a manner authorized by law and in the scope of authority as an agent of a trust institution; (2) rendering a service customarily performed as an attorney in a manner approved and authorized by the Supreme Court of Texas or State Bar of Texas; (3) acting as trustee under a deed of trust made only as security for the payment of money or for the performance of another act; (4) conducting business as a trust institution if the exercise of fiduciary powers in this state by the trust institution is not otherwise prohibited by law; (5) engaging in a business regulated by the Office of Consumer Credit Commissioner, except as limited by rules adopted by the finance commission; (6) receiving and distributing rents and proceeds of sale as a licensed real estate broker on behalf of a principal in a manner authorized by the Texas Real Estate Commission; (7) engaging in a securities transaction or providing an investment advisory service as a licensed and registered dealer, salesman, or advisor to the extent that the activity is regulated by the State Securities Board or the Securities and Exchange Commission; (8) engaging in the sale and administration of an insurance product by an insurance company or agent authorized or licensed by the Texas Department of Insurance to the extent that the activity is regulated by the Texas Department of Insurance; (9) engaging in the lawful sale of prepaid funeral benefits under a permit issued by the banking commissioner under Chapter 154; (10) engaging in the lawful business of a perpetual care cemetery corporation under Chapter 712, Health and Safety Code; (11) engaging as a principal in the money services business under a license issued by the banking commissioner under Chapter 151; (12) acting as trustee under a voting trust as provided by Section 6.251, Business Organizations Code; (13) acting as trustee by a public, private, or independent institution of higher education or a university system, as defined by Section 61.003, Education Code, including an affiliated foundation or corporation of such an institution or system acting as trustee as provided by the Education Code; (14) engaging in another activity expressly excluded from the application of this subtitle by rule of the finance commission; (15) rendering services customarily performed by a certified accountant in a manner authorized by the Texas State Board of Public Accountancy; (16) serving as trustee of a charitable trust as provided by Section 2.106, Business Organizations Code; (17) performing escrow or settlement services if licensed or authorized under Title 11, Insurance Code; (18) acting as a qualified intermediary in a tax deferred exchange under Section 1031, Internal Revenue Code of 1986, and applicable regulations; (19) providing permitted services at a trust representative office established in this state pursuant to Subchapter C, Chapter 187; or. ^$b:$T20]xqBg`` 15, eff. Sec. None, zero, zilch. The banking commissioner may not deliver the charter until the state trust company has: (1) received cash in at least the full amount of restricted capital from subscriptions for the issuance of shares or participation shares; (2) elected or qualified the initial officers and directors or managers, as appropriate, named in the application for charter or other officers and directors or managers approved by the banking commissioner; and. September 1, 2015. 237 (H.B. When trustees are family members, there is an increased potential for conflict among family members. 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