| (a) Establishment or relocation by notice. A trust
company may establish or relocate an additional office pursuant to
Finance Code, §182.203, by filing a written notice with the banking
commissioner containing all information required by subsection (b)
of this section, accompanied by the required filing fee pursuant to §21.2
of this title (relating to Filing and Investigation Fees), and notice
of the submission must be published as required by subsection (d)
of this section. A trust company filing notice of an additional office
under this subsection may establish the additional office on the 31st
day after the date the required notice and fee are received by the
banking commissioner unless the banking commissioner gives notice
in writing, prior to the expiration of that time period, that an earlier
or later date is authorized or that additional information is required
pursuant to subsection (c) of this section.
(b) Contents of notice. The notice filed under subsection
(a) of this section must disclose:
(1) the name and home office location of the trust
company requesting the additional office;
(2) the street address of the trust company's proposed
additional office;
(3) a description of the activities proposed to be
conducted at the proposed additional office;
(4) the desired effective date for establishment of
the additional office;
(5) a certified copy of the resolution adopted by the
trust company's board of directors authorizing the proposed additional
office;
(6) the cost to be incurred in connection with the
establishment of the additional office and a statement of the impact
of such cost on the trust company's ability to meet liquidity requirements;
(7) a description of any actual proposed, or contemplated
financial involvement by any officer, director, manager, managing
participant, or principal shareholder or participant of the trust
company with respect to establishing the additional office;
(8) evidence that the trust company has considered
applicable federal law, if any; and
(9) such other information as the banking commissioner
may require.
(c) Request for additional information. At any time
before the 31st day after the date the notice required by subsection
(a) of this section is filed, the banking commissioner may issue written
notice to the trust company specifying a later date for establishing
or relocating an additional office and requiring the submission of
additional information and additional time for analysis. Upon issuance
of a notice requiring the submission of additional information and
additional time for analysis, the trust company may establish or relocate
the additional office only on written approval of the banking commissioner.
(d) Public notice and participation.
(1) Within 14 days of the initial submission of the
notice required under subsection (a) of this section, the trust company
shall publish notice of the submission as required by §21.5 of
this title (relating to Public Notice). Notice must be published in
the community where the proposed additional office will be located
and must specifically disclose the location of the proposed additional
office.
(2) For a period of 14 days after publication of notice
or such longer period as the banking commissioner may allow for good
cause shown, the public may submit written comments or protests. Persons
submitting comments will not be charged fees or costs, but are not
entitled to further notice of or participation in the proceedings.
Each protesting party has the rights and responsibilities set forth
in subsections (f) and (g) of this section.
(e) Criteria for determining significant supervisory
or regulatory concern. The banking commissioner may deny permission
to establish or relocate an additional office of a trust company if
the commissioner has significant supervisory or regulatory concern
about the proposed transaction.
(1) In evaluating whether significant supervisory concerns
exist regarding a proposed additional office, the banking commissioner
shall consider the financial condition of the trust company, the financial
effect of the additional office on the trust company, the management
abilities of the trust company, and the history and prospects of the
trust company and its affiliates regarding fulfillment of responsibilities
to regulatory agencies and to the public. A request will ordinarily
be denied if the trust company is in less than satisfactory financial
condition as of its most recent examination.
(2) In evaluating whether significant regulatory concerns
exist regarding a proposed additional office, the banking commissioner
will consider the relevant marketplace and the convenience of the
public in accessing desired trust services and preferred trustees.
The banking commissioner will follow the principles that the marketplace
normally is the best regulator of economic activity, and that healthy
competition promotes a sound and more efficient trust company system
that serves customers well. Accordingly, absent significant supervisory
concerns, the general policy of the banking commissioner is to approve
applications, requests and notices to establish and relocate additional
offices, provided that approval would not otherwise violate applicable
provisions of federal or state law (including any requirements for
federal banking agency approval).
(3) In evaluating whether the banking commissioner
should have significant supervisory or regulatory concerns as set
forth in paragraphs (1) and (2) of this subsection, the banking commissioner
will consider written material in the record, including the contents
of the application, notice or request, comments on file, the department's
files as they relate to the current financial condition of the trust
company, and other data that the banking commissioner may properly
officially notice. Specifically, the banking commissioner shall approve
the establishment or relocation of an additional office if the following
considerations are met:
(A) the department's files do not indicate significant
supervisory concerns as they relate to the current financial condition
of the trust company, including but not limited to its capital, asset
quality, management, earnings and liquidity;
(B) the costs of establishing or relocating the office,
including costs of purchasing or leasing the office site, necessary
furnishings, staffing and equipment, do not significantly affect the
operations of the trust company as a whole;
(C) the projected earnings appear reasonable and sufficient
to support expenses attributable to the establishment and relocation
of the office without jeopardizing the safety and soundness of the
trust company;
(D) the depth and quality of management of the trust
company and of the proposed additional office are sufficient to justify
a belief that the trust company will operate in compliance with law;
(E) the trust company has demonstrated a responsiveness
to recommendations made in past state and federal regulatory examinations
or other regulatory findings and the trust company has generally been
operated in substantial compliance with all applicable state and federal
laws; and
(F) no areas of general supervisory concern exist as
determined by the banking commissioner in the exercise of discretion.
(4) The banking commissioner shall direct the department
to assemble, evaluate, and make a recommendation regarding all relevant
documentation and data as set forth in this subsection on or before
the 30th day after the date the application is accepted for filing.
(5) The banking commissioner shall either approve,
conditionally approve, or deny the application, notice, or request
on or before the 30th day after the date of the department's recommendation.
(f) Protest.
(1) A protest may be initiated by notifying the department
in writing of the intent to protest the establishment of an additional
office at the specified location within the time period allowed by
subsection (d) of this section, accompanied by the filing fee as set
forth in §21.2(c) of this title (relating to Filing and Investigation
Fees). If the protest is untimely, the filing fee will be returned
to the protesting party. If the protest is timely, the department
will notify the applicant of the protest and mail or deliver a complete
copy of the non-confidential sections of the application to the protesting
party on or before the 14th day after receipt of the protest or the
application, whichever occurs later.
(2) The protesting party shall file a detailed protest
responding to each substantive statement contained in the notice on
or before the 20th day after the date of receipt of the application.
The protesting party's response must indicate with regard to each
such statement whether it is admitted or denied. The applicant shall
file a written reply to the detailed response on or before the 10th
day after the date the response is filed. Both the detailed response
and the reply thereto must be verified by affidavit and must contain
a certificate of service on the opposing party. When Cont'd... |
