| (a) Asset pledge required. A foreign bank that maintains
and operates a Texas state branch or agency, and carries nonrelated
deposit liabilities on the books and records of its Texas state branch
or agency as liabilities of such branch or agency, must pledge and
keep assets on deposit with a depository in accordance with this subchapter.
(b) Amount of deposit. Subject to a minimum deposit
of $100,000, the amount of assets required to be deposited under subsection
(a), based upon the lower of principal amount or market value, is
equal to the lesser of:
(1) one percent of the average total nonrelated liabilities,
consisting of nonrelated deposit liabilities and nonrelated other
liabilities, for the previous calendar quarter of such branch or agency
appearing on the books, accounts and records of such branch or agency;
or
(2) $100 million.
(c) Pledge of assets to banking commissioner. The assets
required to be deposited under this section are deemed to be pledged
to the banking commissioner for the benefit of the creditors and depositors
of the Texas state branch's or agency's business in this State. Notwithstanding
any provision of the Uniform Commercial Code to the contrary, the
banking commissioner is deemed to have a security interest in such
assets. The foreign bank must ensure that the banking commissioner
has a perfected, first-priority security interest in such assets under
applicable law at all times.
(d) Projection of liabilities. Prior to its first Texas
state branch or agency carrying nonrelated deposit liabilities on
the books and records of such branch or agency, a foreign bank must
deposit assets based upon such branch's or agency's projection of
total nonrelated liabilities, consisting of nonrelated deposit liabilities
and nonrelated other liabilities, at the end of its first year of
such operations.
(e) Increase in amount of required deposit. The banking
commissioner may increase the amount required to be deposited by a
foreign bank under this section if necessary or desirable to:
(1) maintain the Texas state branch or agency in sound
financial condition;
(2) protect the depositors, creditors and the public
interest in Texas; or
(3) support public confidence in the business of the
Texas state branch or agency.
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