2005 Texas Finance Code CHAPTER 37. EMERGENCIES

FINANCE CODE

CHAPTER 37. EMERGENCIES


	§ 37.001. DEFINITION.  In this chapter, "emergency" means 
a condition or occurrence that may interfere physically with the 
conduct of normal business at the offices of a bank or with the 
conduct of a particular bank operation, or that poses an imminent or 
existing threat to the safety or security of persons or property, 
including:
		(1)  fire, flood, earthquake, hurricane, tornado, or 
wind, rain, or snow storm;
		(2)  labor dispute or strike;                                                 
		(3)  power failure, transportation failure, or 
interruption of communication facilities;
		(4)  shortage of fuel, housing, food, transportation, 
or labor;             
		(5)  robbery, burglary, or attempted robbery or 
burglary;                   
		(6)  epidemic or other catastrophe;  or                                       
		(7)  riot, civil commotion, enemy attack, or other 
actual or threatened act of lawlessness or violence.

Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.                   


	§ 37.002. EMERGENCY CLOSING OF OFFICE OR OPERATION BY 
BANK.  (a) If the officers of a bank located in this state determine 
that an emergency that affects or may affect the bank's offices or a 
particular bank operation exists or is impending, the officers may 
determine:
		(1)  not to open the bank's offices or conduct the 
particular bank operation;  or
		(2)  if the bank's offices have opened or the particular 
bank operation has begun, to close the bank's offices or suspend and 
close the particular bank operation during the emergency, 
regardless of whether the banking commissioner has issued a 
proclamation of emergency.
	(b)  Subject to Subsection (c), the office or operation 
closed may remain closed until the officers determine that the 
emergency has ended and for additional time reasonably required to 
reopen.
	(c)  An office or operation may not remain closed for more 
than three consecutive days, excluding days on which the bank is 
customarily closed, without the banking commissioner's approval.
	(d)  A bank closing an office or operation under this section 
shall give notice of its action to the banking commissioner as 
promptly as possible and by any means available.

Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.                   


	§ 37.003. EMERGENCY CLOSING OF OFFICE OR OPERATION BY 
BANKING COMMISSIONER.  (a) If the banking commissioner determines 
that an emergency exists or is impending in all or part of this 
state, the banking commissioner by proclamation may authorize banks 
located in the affected area to close all or part of their offices 
or operations.
	(b)  If the banking commissioner determines that an 
emergency exists or is impending that affects or may affect one or 
more particular banks or a particular bank operation, but not banks 
located in the area generally, the banking commissioner may 
authorize the bank or banks affected to close their offices or a 
particular bank operation.
	(c)  A bank office or bank operation closed under this 
section may remain closed until the banking commissioner proclaims 
that the emergency has ended, or until an earlier time that the 
officers of the bank determine that the closed bank office or bank 
operation should reopen, except that the affected bank office or 
operation may remain closed for additional time reasonably required 
to reopen.

Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.                   


	§ 37.004. EFFECT OF CLOSING.  (a) A day on which a bank or 
one or more of its operations is closed during its normal banking 
hours as provided by this chapter is a legal holiday for all 
purposes with respect to any banking business affected by the 
closed bank or bank operation.
	(b)  A bank or a director, manager, managing participant, 
officer, or employee of a bank does not incur liability or loss of 
rights because of a closing authorized by this chapter.

Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.                   


	§ 37.005. LIMITATIONS ON WITHDRAWALS FROM STATE 
BANK.  (a) At the request of a state bank that is experiencing or 
threatened with unusual and excessive withdrawals because of 
financial conditions, panic, or crisis, the banking commissioner, 
to prevent unnecessary loss to or preference among the depositors 
and creditors of the bank and to preserve the financial structure of 
the bank and its usefulness to the community, may issue an order 
limiting the right of withdrawal by or payment to depositors, 
creditors, and other persons to whom the bank is liable.
	(b)  The order:                                                                
		(1)  must expire not later than the 10th day after the 
date it is issued;   
		(2)  must be uniform in application to each class of 
liability;  and        
		(3)  is not subject to judicial review.                                       

Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.                   


	§ 37.006. FINANCIAL MORATORIUM.  (a) The banking 
commissioner, with the approval of a majority of the finance 
commission and the governor, may proclaim a financial moratorium 
for, and invoke a uniform limitation on, withdrawal of deposits of 
every character from all banks within this state.  A bank refusing 
to comply with a written proclamation of the banking commissioner 
under this section, signed by a majority of the members of the 
finance commission and the governor:
		(1)  forfeits its charter if it is a state bank;  or                          
		(2)  may not act as reserve agent for a state bank or as 
depository of state, county, municipal, or other public money if it 
is a national bank.
	(b)  On order of the banking commissioner after refusal of a 
national bank to comply with the proclamation, a depositor of 
public money with the bank:
		(1)  shall immediately withdraw the public money from 
the bank;  and        
		(2)  may not redeposit public money in the bank without 
the banking commissioner's prior written approval.

Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.