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RULE §3.41Applications, Notices and Reports Related to Foreign Bank Branches and Agencies

(a) Application. To establish a Texas branch or agency, a foreign bank shall file with the banking commissioner an application for a license on the form prescribed by the commissioner. The application must:

  (1) be in English and be signed, sworn to and acknowledged by an officer of the foreign bank;

  (2) be fully completed and provide the information and include as attachments the documentation specified in the application form and the department's instructions, including the information and documentation required under the Finance Code, §204.101, and such other information and documentation as the banking commissioner reasonably requests; and

  (3) be accompanied by the application fees and applicable deposits required by §15.2 of this title (relating to Filing Fees and Cost Deposits).

(b) If a foreign bank has established an initial Texas branch or agency, the banking commissioner may waive one or more of the informational requirements of the license application form with respect to any additional Texas branches or agencies the foreign bank seeks to establish. However, payment of the application fee provided for in §15.2 of this title may not be waived.

(c) Notices. A foreign bank that maintains a Texas branch or agency shall file with the banking commissioner:

  (1) the notices and applications required under the Finance Code, Chapter 204, including §§204.005, 204.008, 204.107 - 204.109 and 204.115;

  (2) if the foreign bank intends to establish a Texas representative office, a notice at least thirty days before the effective date of the opening of the office that states or includes:

    (A) a copy of any filings with other state or federal agencies in connection with the establishment of the office;

    (B) the street and mailing address and the telephone and fax numbers for the office;

    (C) the name and qualifications of the manager or officer in charge of the office and contact information for that person;

    (D) the Texas branch or agency or other office to which the Texas representative office will report and contact information for the responsible officer at that office;

    (E) a list of the activities in which the office will engage; and

    (F) a copy of the filed document evidencing compliance with the Finance Code, §201.102;

    (G) a list of activities to be engaged in at the office; and

    (H) date on which the foreign bank plans to commence business at the office; and

  (3) if the foreign bank intends to establish, relocate or close a loan production office, the notice required under §3.91 of this title (relating to Loan Production Offices).

(d) Reports. A foreign bank that maintains a Texas branch or agency shall file with the banking commissioner the following reports:

  (1) the reports required under the Finance Code, Chapter 204, including §204.002, and, to the extent applicable, §§3.51 - 3.62 of this title (relating to Pledge and Maintenance of Assets by Foreign Bank Licensed to Maintain Texas State Branch or Agency);

  (2) an annual report, within 120 days after the close of the foreign bank's fiscal year, that is in English or accompanied by an English translation and is signed, sworn to and acknowledged by one of the authorized officers, managers, or agents transacting business in this state, and that includes:

    (A) a copy of the most recent audited financial statement of the foreign bank, expressed in the currency of the country of its incorporation or organization and in United States currency;

    (B) a letter from the certified public accountant, chartered accountant, or similar independent service provider of the foreign bank certifying that the statements have been prepared in accordance with generally accepted accounting principles of the home country of the foreign bank;

    (C) a general description of the foreign bank's business activities;

    (D) the location and a general description of the foreign bank's headquarters office if the office has been relocated since the last annual report filed under this paragraph;

    (E) disclosure of all material legal proceedings in which the foreign bank or any of its subsidiaries has been named as a defendant that could result in a material adverse impact on the financial condition of the foreign bank, and a description of such potential impact, quantified to the extent feasible;

    (F) a listing of the foreign bank's:

      (i) board of directors;

      (ii) executive officers; and

      (iii) overseas operations by office; and

    (G) a copy of the foreign bank's organizational chart by functional department.

Source Note: The provisions of this §3.41 adopted to be effective March 9, 2006, 31 TexReg 1643

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