FINANCE CODE
CHAPTER 93. GENERAL POWERS
§ 93.001. GENERAL CORPORATE POWERS. (a) A savings
bank has the powers authorized by this subtitle and any other right,
privilege, or power incidental to or reasonably necessary to
accomplish the purposes of the savings bank.
(b) With the commissioner's prior approval, a savings bank
may engage in business as a savings bank in any state of the United
States to the extent permitted by the laws of that state, either
directly or through the ownership of a savings bank incorporated
under the laws of another state.
(c) A savings bank may:
(1) sue and be sued in its corporate name;
(2) adopt and operate a reasonable bonus plan,
profit-sharing plan, stock bonus plan, stock option plan, pension
plan, or similar incentive plan for its directors, officers, or
employees, subject to any limitations under this subtitle or rules
adopted under this subtitle;
(3) make reasonable donations for the public welfare
or for a charitable, scientific, religious, or educational purpose;
(4) pledge its assets to secure deposits of public
money of the United States, if required by the United States,
including revenue and money the deposit of which is subject to
control or regulation of the United States;
(5) pledge its assets to secure deposits of public
money of any state or of a political corporation or political
subdivision of any state;
(6) become a member of or deal with any corporation or
agency of the United States or this state, to the extent that the
corporation or agency assists in furthering the purposes or powers
of savings banks, and for that purpose may purchase stock or
securities of the corporation or agency or deposit money with the
corporation or agency and may comply with any other condition of
membership credit;
(7) become a member of a federal home loan bank or the
Federal Reserve System;
(8) hold title to any assets acquired because of the
collection or liquidation of a loan, investment, or discount and
may administer those assets as necessary;
(9) receive and repay any deposit or account in
accordance with this subtitle and rules of the finance commission;
and
(10) lend and invest its money as authorized by this
subtitle and rules of the finance commission.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended
by Acts 2001, 77th Leg., ch. 867, § 50, eff. Sept. 1, 2001.
§ 93.002. ENLARGEMENT OF POWERS. (a) The finance
commission by rule may expand the powers of savings banks to
accommodate or take advantage of changing technology and to enable
domestic savings banks to respond to the needs of and convenience
demanded by consumers and businesses through on-premises or
off-premises operations.
(b) The finance commission may not authorize a domestic
savings bank to offer a financial service prohibited to a domestic
savings bank by a law of this state other than this subtitle.
(c) In adopting a rule under this section, the finance
commission shall consider the need to:
(1) promote a stable environment for financial
institutions;
(2) provide the public with convenient, safe, and
competitive financial services; and
(3) allow for economic development in the state.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 93.003. POWERS OF FEDERAL SAVINGS BANK.
See, also, italicized material following text of this section
A federal savings bank and its members have all of the powers,
privileges, benefits, immunities, and exemptions that are provided
by the law of this state for a savings bank and the savings bank's
members.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
Amendment by Acts 1997, 75th Leg., ch. 994, § 2
V.T.C.A., Government Code § 311.031(c) provides, in part, that
the repeal of a statute by a code does not affect an amendment of the
statute by the same legislature which enacted the code and that the
amendment is preserved and given effect as part of the code
provision.
Section 2 of Acts 1997, 75th Leg., ch. 994, eff. Sept. 1, 1997,
amends § 11.06 of Vernon's Ann.Civ.St. art. 489e [now this
section] without reference to the repeal of said article by Acts
1997, 75th Leg., ch. 1008, § 6. As so amended, § 11.06 reads:
""Federal Savings Banks. (a) A federal savings bank is not a
foreign corporation or foreign savings bank. Unless federal laws
or regulations provide otherwise, a federal savings bank and the
members of a federal savings bank have all of the rights, powers,
privileges, benefits, immunities, and exemptions that are provided
by this Act and other laws of this state relating to a savings bank
or its members. This provision is in addition to and supplemental
to any provision of this Act which by specific reference is
applicable to a federal savings bank and its members.
"(b) A federal savings bank that has been merged, consolidated, or
converted into a domestic or foreign savings bank or association is
entitled to retain any duly authorized offices under the terms
provided for a foreign savings bank under Section 11.07 of this
Act."
§ 93.004. POWER TO BORROW. (a) A savings bank may
borrow and give security, subject to rules adopted by the finance
commission.
(b) A savings bank at any time through action of its board
may issue a capital note, debenture, or other capital obligation
authorized by rules adopted by the finance commission.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended
by Acts 2001, 77th Leg., ch. 867, § 51, eff. Sept. 1, 2001.
§ 93.005. FISCAL AGENT. (a) A savings bank may act as
fiscal agent of the United States. A savings bank designated as
fiscal agent of the United States by the secretary of the treasury
shall act under regulations as required by the secretary and may act
as fiscal agent for an instrumentality of the United States.
(b) A savings bank may act as fiscal agent of this state or
of a governmental subdivision or instrumentality of this state.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 93.006. POWER TO ACT UNDER CERTAIN FEDERAL RETIREMENT
PLANS. A savings bank or a federal savings bank, to the extent that
its charter and applicable federal regulations permit, may:
(1) exercise any power necessary to qualify as a
trustee or custodian for a retirement plan permitted or recognized
by federal law; and
(2) invest money the bank holds as trustee or
custodian under Subdivision (1) in the bank's accounts if the plan
does not prohibit that investment.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 93.007. TRUST POWERS. (a) A savings bank may
exercise trust powers only with the commissioner's prior written
approval.
(b) The commissioner may approve the exercise of trust
powers only after finding that the applicant's savings bank:
(1) is complying with applicable regulatory capital
requirements;
(2) is well managed; and
(3) has earnings, resources, and managerial talent
adequate to maintain a trust department.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 93.008. POWERS RELATIVE TO OTHER FINANCIAL
INSTITUTIONS. Subject to limitations prescribed by rule of the
finance commission, a savings bank may make a loan or investment or
engage in an activity permitted:
(1) under state law for a bank or savings and loan
association; or
(2) under federal law for a federal savings and loan
association, savings bank, or national bank if the financial
institution's principal office is located in this state.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended
by Acts 2001, 77th Leg., ch. 867, § 52, eff. Sept. 1, 2001.
§ 93.009. RIGHT TO ACT TO AVOID LOSS. (a) This
subtitle does not deny a savings bank the right to invest its money,
operate a business, manage or deal in property, or take other action
during any period that is reasonably necessary to avoid loss on a
loan or on an investment made or obligation created in good faith in
the usual course of the bank's business, as authorized by this
subtitle or a rule adopted under this subtitle.
(b) This subtitle does not prohibit a savings bank from:
(1) developing or building on land it has acquired
under this section; or
(2) completing the construction of a building under a
construction loan contract in which the borrower has not complied
with the contract.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 93.010. CLOSING PLACE OF BUSINESS. A savings bank may
close its place of business at any time its board of directors
determines.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 93.011. EMERGENCY CLOSING. (a) If the officers of a
savings bank determine that an emergency that affects or may affect
the savings bank's offices or operations exists or is impending,
the officers, as reasonable, may determine:
(1) not to conduct the involved operations or open the
offices on any business or banking day; or
(2) if the savings bank is open, to close the offices
or the involved operations for the duration of the emergency.
(b) Subject to Subsection (c), a closed office or operation
may remain closed until the officers determine that the emergency
has ended and for any additional time reasonably required to
reopen.
(c) A savings bank that closes an office or operation under
this section shall notify the commissioner of its action by any
means available and as promptly as conditions permit. An office or
operation may not be closed for more than 48 consecutive hours,
excluding other legal holidays, without the commissioner's
approval.
(d) In this section, "emergency" means a condition or
occurrence that physically interferes with the conduct of normal
business at the offices of a savings bank or of a particular savings
bank operation or that poses an imminent or existing threat to the
safety or security of persons, property, or both. The term includes
a condition or occurrence arising from:
(1) fire, flood, earthquake, hurricane, tornado,
wind, rain, or snowstorm;
(2) labor dispute and strike;
(3) power failure;
(4) transportation failure;
(5) interruption of communication facilities;
(6) shortage of fuel, housing, food, transportation,
or labor;
(7) robbery or burglary;
(8) actual or threatened enemy attack;
(9) epidemic or other catastrophe;
(10) riot or civil commotion; or
(11) any other actual or threatened unlawful or
violent act.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 93.012. EFFECT OF CLOSING. (a) A day on which a
savings bank or one or more of its operations are closed under
Section 93.011 during all or part of its normal business hours is
considered to be a legal holiday to the extent the savings bank
suspends operations.
(b) A savings bank or a director, officer, or employee of a
savings bank does not incur liability or loss of rights from a
closing authorized by Section 93.011.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
