| (a) Any state-chartered bank that is well-capitalized
as defined by Section 38, Federal Deposit Insurance Act, 12 U.S.C. §1831o,
may file an application with the banking commissioner for permission
to exercise, upon such conditions as may be prescribed by the banking
commissioner, the following powers:
(1) to establish branches in foreign countries of dependencies
or insular possessions of the United States for the furtherance of
foreign commerce and to act as fiscal agent for any governmental entity;
(2) to invest an amount not exceeding in the aggregate
10% of its paid-in capital stock and surplus in the stock of one or
more banks or corporations chartered or incorporated under the laws
of the United State or of any state thereof, and principally engaged
in international or foreign banking, or banking in a dependency or
insular possession of the United States either directly or indirectly;
and
(3) to require and hold, directly or indirectly, stock
or other evidences of ownership in one or more banks organized under
the law of a foreign country or a dependency or insular possession
of the United States and not engaged, directly or indirectly, in any
activity in the United States except as, in the judgment of the banking
commissioner, shall be incidental to the international or foreign
business of such foreign bank; and to make loans or extensions of
credit to or for the account of such bank in a manner and within limits
prescribed by the banking commissioner.
(b) Such application shall specify the name and capital
of the state bank filing it, the powers applied for, and the place
or places where the banking or financial operations proposed are to
be carried on. The banking commissioner shall have the power to approve
or reject such application in whole or in part and shall also have
the power from time to time to increase or decrease the number of
places where such banking operations may be carried on.
(c) The investment limitation of Finance Code, §34.103(b),
does not apply to an investment made pursuant to this section. The
banking commissioner may approve any activity or investment authorized
by this section subject to such restrictions as the banking commissioner
deems advisable and consistent with safe and sound banking practices,
and may require any investment pursuant to subsection (2) or (3) of
this section to constitute a majority interest in the voting securities
of the bank or corporation acquired.
|
| Source Note: The provisions of this §3.4 adopted to be effective August 19, 1985, 10 TexReg 2543; amended to be effective July 13, 1994, 19 TexReg 5035; amended to be effective May 17, 1996, 21 TexReg 3929; amended to be effective March 9, 2006, 31 TexReg 1643; amended to be effective July 5, 2018, 43 TexReg 4451; amended to be effective September 8, 2022, 47 TxReg 5328 |
