2009 Texas Code
FINANCE CODE
TITLE 3. FINANCIAL INSTITUTIONS AND BUSINESSES
CHAPTER 201. GENERAL PROVISIONS  

FINANCE CODE

TITLE 3. FINANCIAL INSTITUTIONS AND BUSINESSES

SUBTITLE G. BANK HOLDING COMPANIES; INTERSTATE BANK OPERATIONS

CHAPTER 201. GENERAL PROVISIONS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 201.001. SCOPE OF SUBTITLE. (a) This subtitle:

(1) sets forth the conditions under which a company may acquire

a Texas bank or a Texas bank holding company, pursuant to the

provisions of Chapter 202;

(2) permits interstate branching under the Interstate Banking

and Branching Efficiency Act pursuant to the provisions of

Chapter 203; and

(3) provides for state regulation of the participation by

foreign banks in the financial markets of this state, pursuant to

the provisions of Chapter 204.

(b) This subtitle is not intended to discriminate against

out-of-state banks and bank holding companies in a manner that

would violate the Interstate Banking and Branching Efficiency

Act.

Added by Acts 1999, 76th Leg., ch. 344, Sec. 1.001, eff. Sept. 1,

1999.

Sec. 201.002. DEFINITIONS. (a) Unless the context requires

otherwise, in this subtitle:

(1) "Acquire" means an act that results in direct or indirect

control by a company of a bank holding company or a bank,

including an act that causes:

(A) the company to merge with a bank holding company or a bank;

(B) the company to assume direct or indirect ownership or

control of:

(i) more than 25 percent of any class of voting shares of a bank

holding company or a bank, if the acquiring company was not a

bank holding company before the acquisition;

(ii) more than five percent of any class of voting shares of a

bank holding company or a bank, if the acquiring company was a

bank holding company before the acquisition; or

(iii) all or substantially all of the assets of a bank holding

company or a bank; or

(C) an application relating to control of a bank holding company

or bank to be filed with a federal bank supervisory agency.

(2) "Affiliate" has the meaning assigned by Section 2(k), Bank

Holding Company Act (12 U.S.C. Section 1841(k)).

(3) "Agency" when used in reference to an office of a foreign

bank, has the meaning assigned by Section 1(b)(1), International

Banking Act (12 U.S.C. Section 3101(1)).

(4) "Bank":

(A) for purposes of Chapter 202 and the laws of this state as

they relate to Chapter 202, has the meaning assigned by Section

2(c), Bank Holding Company Act (12 U.S.C. Section 1841(c));

(B) for purposes of Chapter 203 and the laws of this state as

they relate to Chapter 203, has the meaning assigned to the term

"insured bank" by Section 3(h), Federal Deposit Insurance Act (12

U.S.C. Section 1813(h)), except that the term does not include a

foreign bank unless it is organized under the laws of a territory

of the United States, Puerto Rico, Guam, American Samoa, or the

Virgin Islands and its deposits are insured by the Federal

Deposit Insurance Corporation; and

(C) for purposes of Chapter 204 and the laws of this state as

they relate to Chapter 204, has the meaning assigned by Section

2(c), Bank Holding Company Act (12 U.S.C. Section 1841(c)), or

Section 3(a)(1), Federal Deposit Insurance Act (12 U.S.C. Section

1813(a)(1)), except that the term does not include a foreign bank

or a branch or agency of a foreign bank.

(5) "Bank holding company" has the meaning assigned by Section

2(a), Bank Holding Company Act (12 U.S.C. Section 1841(a)), and

includes a financial holding company.

(6) "Bank Holding Company Act" means the federal Bank Holding

Company Act of 1956 (12 U.S.C. Section 1841 et seq.), as amended.

(7) "Bank supervisory agency" means any of the following:

(A) an agency of another state with primary responsibility for

chartering and supervising banks;

(B) the Office of the Comptroller of the Currency, the Federal

Deposit Insurance Corporation, or the Board of Governors of the

Federal Reserve System, and any successor to these agencies; or

(C) an agency of a country, including a colony, dependency,

possession, or political subdivision of a country, other than the

United States with primary responsibility for chartering and

supervising banks.

(8) "Branch" has the meaning assigned by Section 31.002(a),

except that for purposes of Chapter 204 and the laws of this

state as they relate to Chapter 204 the term:

(A) with respect to an office of a foreign bank, has the meaning

assigned by Section 1(b)(3), International Banking Act (12 U.S.C.

Section 3101(3)); and

(B) with respect to an office of a bank as defined by this

section for the purposes of Chapter 204, has the meaning assigned

to the term "domestic branch" by Section 3(o), Federal Deposit

Insurance Act (12 U.S.C. Section 1813(o)).

(9) "Commissioner" has the meaning assigned to the term "banking

commissioner" by Section 31.002(a), except that for purposes of

Chapter 203 and the laws of this state as they relate to Chapter

203, with respect to a state savings bank, the term means the

savings and mortgage lending commissioner of Texas.

(10) "Company" has the meaning assigned by Section 2(b), Bank

Holding Company Act (12 U.S.C. Section 1841(b)), and includes a

bank holding company.

(11) "Control" shall be construed consistently with Section

2(a)(2), Bank Holding Company Act (12 U.S.C. Section 1841(a)(2)),

and regulations and interpretive rulings of the Board of

Governors of the Federal Reserve System.

(12) "De novo branch" means a branch of a bank located in a host

state that:

(A) is originally established by the bank as a branch; and

(B) does not become a branch of the bank as a result of:

(i) the acquisition of another bank or a branch of another bank;

or

(ii) the merger or conversion involving the bank or branch.

(13) "Deposit" has the meaning assigned by Section 3(l), Federal

Deposit Insurance Act (12 U.S.C. Section 1813(l)).

(14) "Depository institution" means an institution included for

any purpose within the definitions of "insured depository

institution" as assigned by Sections 3(c)(2) and 3(c)(3), Federal

Deposit Insurance Act (12 U.S.C. Sections 1813(c)(2) and

1813(c)(3)).

(15) "Federal agency" means an agency of a foreign bank that is

licensed by the Comptroller of the Currency pursuant to Section

4, International Banking Act (12 U.S.C. Section 3102).

(16) "Federal branch" means a branch of a foreign bank that is

licensed by the Comptroller of the Currency pursuant to Section

4, International Banking Act (12 U.S.C. Section 3102).

(17) "Federal Deposit Insurance Act" means the Federal Deposit

Insurance Act (12 U.S.C. Section 1811 et seq.), as amended.

(18) "Foreign bank" has the meaning assigned by Section 1(b)(7),

International Banking Act (12 U.S.C. Section 3101(7)).

(19) "Foreign bank holding company" means a bank holding company

that is organized under the laws of a country other than the

United States or a territory or possession of the United States,

and includes a foreign financial holding company.

(20) "Foreign person" means a natural or juridical person who is

a citizen or national of one or more countries, including any

colonies, dependencies, or possessions of the countries, other

than the United States.

(21) "Home state" means:

(A) with respect to a national bank, the state in which the main

office of the bank is located;

(B) with respect to a state bank, the state by which the bank is

chartered;

(C) with respect to a foreign bank, the state determined to be

the home state of the foreign bank under Section 5(c),

International Banking Act (12 U.S.C. Section 3103(c)); and

(D) with respect to a bank holding company, the state in which

the total deposits of all bank subsidiaries of the company are

the largest on the later of July 1, 1966, or the date on which

the company became a bank holding company.

(22) "Home state regulator" means:

(A) with respect to an out-of-state bank holding company, the

bank supervisory agency of the home state of the bank holding

company; and

(B) with respect to an out-of-state state bank, the bank

supervisory agency of the state in which the bank is chartered.

(23) "Host state" means:

(A) with respect to a bank, a state other than the home state of

the bank in which the bank maintains or seeks to establish and

maintain a branch; and

(B) with respect to a bank holding company, a state other than

the home state of the company in which the company controls or

seeks to control a bank subsidiary.

(24) "International Banking Act" means the federal International

Banking Act of 1978 (12 U.S.C. Section 3101 et seq.), as amended.

(25) "Interstate Banking and Branching Efficiency Act" means the

federal Riegle-Neal Interstate Banking and Branching Efficiency

Act of 1994, Public Law No. 103-328, codified at various sections

of Title 12, United States Code.

(26) "Interstate branch" means a branch of a bank or a branch of

a foreign bank, as the context requires, established, acquired,

or retained pursuant to the Interstate Banking and Branching

Efficiency Act, outside the home state of the bank or foreign

bank. The term does not include, with respect to a foreign bank,

a limited branch as that term is defined by this section.

(27) "Interstate merger transaction" means:

(A) the merger of banks with different home states and the

conversion of branches of a bank involved in the merger into

branches of the resulting bank; or

(B) the purchase of all or substantially all of the assets,

including all or substantially all of the branches, of a bank

whose home state is different from the home state of the

acquiring bank.

(28) "Limited branch" means a branch of a foreign bank that

accepts only the deposits that would be permissible for a

corporation organized under Section 25A, Federal Reserve Act (12

U.S.C. Section 611 et seq.), in accordance with Section 5(a)(7),

International Banking Act (12 U.S.C. Section 3103(a)(7)).

(29) "Out-of-state bank" means a bank whose home state is

another state.

(30) "Out-of-state bank holding company" means a bank holding

company whose home state is another state, and includes an

out-of-state financial holding company.

(31) "Out-of-state foreign bank" means a foreign bank whose home

state is another state.

(32) "Out-of-state state bank" means a bank chartered under the

laws of another state.

(33) "Representative office" has the meaning assigned by Section

1(b)(15), International Banking Act (12 U.S.C. Section 3101(15)).

(34) "Resulting bank" means a bank that results from an

interstate merger transaction.

(35) "State" means a state of the United States, the District of

Columbia, a territory of the United States, Puerto Rico, Guam,

American Samoa, the Trust Territory of the Pacific Islands, the

Virgin Islands, or the Northern Mariana Islands, except that for

purposes of Chapter 202 and the laws of this state as they relate

to Chapter 202 the term means a state, territory, or other

possession of the United States, including the District of

Columbia.

(36) "State bank" means a Texas state bank or an out-of-state

state bank, including an out-of-state state savings bank.

(37) "State savings bank" has the meaning assigned to the term

"savings bank" by Section 3(g), Federal Deposit Insurance Act (12

U.S.C. Section 1813(g)), and includes a savings bank organized

under Subtitle C or under similar laws of another state.

(38) "Subsidiary" has the meaning assigned by Section 2(d), Bank

Holding Company Act (12 U.S.C. Section 1841(d)).

(39) "Texas bank" means a bank whose home state is this state,

except that for purposes of Chapter 202 and the laws of this

state as they relate to Chapter 202 the term means a Texas state

bank or a national bank organized under federal law with its main

office in this state.

(40) "Texas bank holding company" means a bank holding company

whose home state is this state and that is not controlled by a

bank holding company other than a Texas bank holding company, and

includes a Texas financial holding company.

(41) "Texas representative office" means a representative office

that is located in this state and registered pursuant to

Subchapter C, Chapter 204.

(42) "Texas state agency," means, when used in reference to an

office of a foreign bank, an agency of a foreign bank that is

located in this state and licensed pursuant to Subchapter B,

Chapter 204.

(43) "Texas state bank" means a bank that is organized under

Subtitle A.

(44) "Texas state branch," means, when used in reference to an

office of a foreign bank, a branch of a foreign bank that is

located in this state and licensed pursuant to Subchapter B,

Chapter 204.

(45) "United States" means:

(A) when used in a geographical sense, the several states, the

District of Columbia, Puerto Rico, Guam, American Samoa, the

American Virgin Islands, the Trust Territory of the Pacific

Islands, and other territories of the United States; and

(B) when used in a political sense, the federal government of

the United States.

(46) "Financial holding company" means a bank holding company

that has elected to be treated as a financial holding company

under 12 U.S.C. Section 1843(l).

(47) "Functional regulatory agency" means a department or agency

of this state, another state, the United States, or a foreign

government with whom the United States currently maintains

diplomatic relations that regulates and charters, licenses, or

registers persons engaged in financial activities or activities

incidental or complementary to financial activities, including

activities related to banking, insurance, or securities.

(b) The definitions provided by Section 31.002 apply to this

subtitle to the extent not inconsistent with this section and as

the context requires.

(c) The definitions shall be liberally construed to accomplish

the purposes of this subtitle.

(d) The finance commission by rule may adopt other definitions

to accomplish the purposes of this subtitle.

Added by Acts 1999, 76th Leg., ch. 344, Sec. 1.001, eff. Sept. 1,

1999. Amended by Acts 2001, 77th Leg., ch. 528, Sec. 27, eff.

Sept. 1, 2001.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

921, Sec. 6.058, eff. September 1, 2007.

Sec. 201.003. RULES. (a) The finance commission may adopt

rules to accomplish the purposes of this subtitle, including

rules necessary or reasonable to:

(1) implement and clarify this subtitle in a manner consistent

with and to the extent permitted by applicable federal law;

(2) preserve or protect the safety and soundness of banking in

this state;

(3) grant at least the same rights and privileges to Texas state

banks that are or may be granted to other depository

institutions;

(4) recover the cost of maintaining and operating the department

and the cost of enforcing this subtitle by imposing and

collecting ratable and equitable fees for supervision and

regulation, including fees for notices, applications, and

examinations; and

(5) facilitate the fair hearing and adjudication of matters

before the commissioner and the finance commission.

(b) In adopting rules, the finance commission shall consider the

need to:

(1) coordinate with applicable federal law;

(2) promote a stable banking environment;

(3) provide the public with convenient, safe, and competitive

banking services;

(4) preserve and promote the competitive position of Texas state

banks with regard to other depository institutions consistent

with the safety and soundness of Texas state banks and the Texas

state bank system; and

(5) allow for economic development in this state.

(c) The presence or absence in this subtitle of a specific

reference to rules regarding a particular subject does not

enlarge or diminish the rulemaking authority provided by this

section.

Added by Acts 1999, 76th Leg., ch. 344, Sec. 1.001, eff. Sept. 1,

1999. Amended by Acts 2001, 77th Leg., ch. 528, Sec. 28, eff.

Sept. 1, 2001.

Sec. 201.004. LAW APPLICABLE TO INTERSTATE BRANCHES. (a) The

laws of this state apply to an interstate branch located in this

state to the same extent the laws of this state would apply if

the branch in this state were a national bank with its main

office located in this state, except to the extent otherwise

provided under federal law.

(b) To the extent provided by Section 4.102(c), Business &

Commerce Code, the laws of this state govern a deposit contract

between a bank and a consumer account holder if the branch or

separate office of the bank that accepts the deposit contract is

located in this state.

(c) Without limiting Subsection (a), for purposes of the laws of

this state relating to authority to act as a fiduciary,

depository of public funds, or custodian of securities pledged to

secure public funds, or authority to engage in repurchase

transactions with public entities, a legally operating interstate

branch in this state is considered to be in, within, located in,

authorized to do business in, domiciled in, and chartered in this

state.

Added by Acts 1999, 76th Leg., ch. 344, Sec. 1.001, eff. Sept. 1,

1999.

Sec. 201.005. COOPERATIVE AGREEMENTS; FEES. (a) To carry out

the purposes of this subtitle, to the extent permitted by federal

law, the commissioner may:

(1) enter into cooperative, coordinating, or information sharing

agreements with another bank supervisory agency, a functional

regulatory agency, or an organization affiliated with or

representing one or more bank supervisory agencies;

(2) with respect to periodic examination or other supervision or

investigation, accept reports of examination or investigation by,

and reports submitted to, another bank supervisory agency or

functional regulatory agency in lieu of conducting examinations

or investigations or receiving reports as might otherwise be

required or permissible under this subtitle;

(3) enter into contracts with another bank supervisory agency or

functional regulatory agency having concurrent regulatory or

supervisory jurisdiction to engage the services of the agency for

reasonable compensation to assist in connection with the

commissioner's performance of official duties under this subtitle

or other law, or to provide services to the agency for reasonable

compensation in connection with the agency's performance of

official duties under law, except that Chapter 2254, Government

Code, does not apply to the contracts;

(4) enter into joint examinations or joint enforcement actions

with another bank supervisory agency or functional regulatory

agency having concurrent regulatory or supervisory jurisdiction,

except that the commissioner may independently take action under

Section 201.009 if the commissioner determines that the action is

necessary to carry out the commissioner's responsibilities under

this subtitle or to enforce compliance with the laws of this

state; and

(5) assess supervisory and examination fees to be paid by a

state bank, state savings bank, bank holding company, or foreign

bank in connection with the commissioner's performance of duties

under this subtitle.

(b) Supervisory or examination fees assessed by the commissioner

in accordance with this subtitle may be shared with another bank

supervisory agency, a functional regulatory agency, or an

organization affiliated with or representing one or more bank

supervisory agencies in accordance with an agreement between the

commissioner and the agency or organization. The commissioner may

also receive a portion of supervisory or examination fees

assessed by another bank supervisory agency or functional

regulatory agency in accordance with an agreement between the

commissioner and the agency.

Added by Acts 1999, 76th Leg., ch. 344, Sec. 1.001, eff. Sept. 1,

1999. Amended by Acts 2001, 77th Leg., ch. 528, Sec. 29, eff.

Sept. 1, 2001.

Sec. 201.006. ISSUANCE OF INTERPRETIVE STATEMENTS AND OPINIONS.

(a) To encourage the effective coordination and implementation

of home state laws and host state laws with respect to interstate

branching, the commissioner, directly or through a deputy

commissioner or department attorney, may:

(1) issue interpretive statements containing matters of general

policy to guide the public and banks and bank holding companies

subject to this subtitle;

(2) amend or repeal a published interpretive statement by

issuing an amended statement or notice of repeal of a statement

and publishing the statement or notice;

(3) issue, in response to specific requests from the public or

the banking industry, opinions interpreting this subtitle or

determining the applicability of laws of this state to the

operation of interstate branches or other offices in this state

by out-of-state banks or in other states by Texas banks; and

(4) amend or repeal an opinion by issuing an amended opinion or

notice of repeal of an opinion, except that the requesting party

may rely on the original opinion if:

(A) all material facts were originally disclosed to the

commissioner;

(B) the safety and soundness of the affected bank or bank

holding company will not be affected by further reliance on the

original opinion; and

(C) the text and interpretation of relevant, governing

provisions of applicable home state, host state, and federal law

have not been changed by legislative or judicial action.

(b) An interpretive statement or opinion may be disseminated by

newsletter, via electronic medium such as the internet, in a

volume of statutes or related materials published by the

commissioner or others, or by other means reasonably calculated

to notify persons affected by the interpretive statement or

opinion. An opinion may be disseminated to the public if the

commissioner determines that the opinion is useful for the

general guidance and convenience of the public or banks or bank

holding companies. A published opinion must be redacted to

preserve the confidentiality of the requesting party unless the

requesting party consents to be identified in the published

opinion. Notice of an amended or withdrawn statement or opinion

must be disseminated in a substantially similar manner as the

affected statement or opinion was originally disseminated.

(c) An interpretive statement or opinion issued under this

subtitle does not have the force of law and is not a rule for the

purposes of Chapter 2001, Government Code, unless adopted by the

finance commission as provided by Chapter 2001, Government Code.

An interpretive statement or opinion is an administrative

construction of this subtitle entitled to great weight if the

construction is reasonable and does not conflict with this

subtitle.

Added by Acts 1999, 76th Leg., ch. 344, Sec. 1.001, eff. Sept. 1,

1999. Amended by Acts 2001, 77th Leg., ch. 412, Sec. 5.01, eff.

Sept. 1, 2001.

Sec. 201.007. CONFIDENTIALITY. Except as expressly provided

otherwise in this subtitle, confidentiality of information

obtained by the commissioner under this subtitle is governed by

Subchapter D, Chapter 31, or, with respect to a state savings

bank, Subtitle C, and may not be disclosed by the commissioner or

an employee of the commissioner's department except as provided

by Subchapter D, Chapter 31, or, with respect to a state savings

bank, Subtitle C.

Added by Acts 1999, 76th Leg., ch. 344, Sec. 1.001, eff. Sept. 1,

1999.

Sec. 201.008. NOTICE OF SUBSEQUENT EVENT. Each out-of-state

state bank that has established and maintains an interstate

branch in this state pursuant to this subtitle shall give written

notice to the commissioner, at least 30 days before the effective

date of the event, or in the case of an emergency transaction,

within a shorter period consistent with applicable state or

federal law, of a merger or other transaction that would cause a

change of control with respect to the bank or a bank holding

company that controls the bank, with the result that an

application would be required to be filed with the bank's home

state regulator or a federal bank supervisory agency, including

an application filed pursuant to the Change in Bank Control Act

of 1978 (12 U.S.C. Section 1817(j)), as amended, or the Bank

Holding Company Act (12 U.S.C. Section 1841 et seq.).

Added by Acts 1999, 76th Leg., ch. 344, Sec. 1.001, eff. Sept. 1,

1999.

Sec. 201.009. ENFORCEMENT; APPEALS. (a) If the commissioner

determines that a bank holding company or a foreign bank has

violated this subtitle or other applicable law of this state, the

commissioner may take any enforcement action the commissioner

would be empowered to take if the bank holding company or foreign

bank were a Texas state bank, except that the commissioner shall

promptly give notice to the home state regulator of each

enforcement action taken against an out-of-state bank holding

company or foreign bank and, to the extent practicable, shall

consult and cooperate with the home state regulator in pursuing

and resolving the enforcement action. A bank holding company or

foreign bank may appeal a final order or other decision of the

commissioner under this subtitle as provided by Sections 31.202,

31.203, and 31.204.

(b) If the commissioner determines that an interstate branch

maintained by an out-of-state state bank in this state is being

operated in violation of a law of this state or in an unsafe and

unsound manner, the commissioner may take any enforcement action

the commissioner would be empowered to take if the branch were a

Texas state bank or state savings bank, as the case may be,

except that the commissioner shall promptly give notice to the

home state regulator of each enforcement action taken against an

out-of-state state bank and, to the extent practicable, shall

consult and cooperate with the home state regulator in pursuing

and resolving the enforcement action. An out-of-state state bank

may appeal a final order or other decision of the commissioner

under this subtitle as provided by Sections 31.202, 31.203, and

31.204, or as provided under Subtitle C with respect to a state

savings bank.

(c) Notwithstanding Subsections (a) and (b), the commissioner

may enforce the laws of this state against an entity subject to

this subtitle by appropriate action in the courts, including an

action for injunctive relief, if the banking commissioner

concludes the action is necessary or desirable.

Added by Acts 1999, 76th Leg., ch. 344, Sec. 1.001, eff. Sept. 1,

1999.

Sec. 201.010. TAXATION. A bank subject to this subtitle is

subject to the franchise tax to the extent provided by Chapter

171, Tax Code.

Added by Acts 1999, 76th Leg., ch. 344, Sec. 1.001, eff. Sept. 1,

1999.

Sec. 201.011. SEVERABILITY. The provisions of this subtitle or

the applications of those provisions are severable as provided by

Section 311.032(c), Government Code.

Added by Acts 1999, 76th Leg., ch. 344, Sec. 1.001, eff. Sept. 1,

1999.

SUBCHAPTER B. REGISTRATION OF FINANCIAL INSTITUTIONS

Sec. 201.101. DEFINITIONS. In this subchapter:

(1) "Financial institution" means:

(A) a bank as defined for any purpose by Section 201.002(a)(4),

whether chartered under the laws of this state, another state,

the United States, or another country, including a state savings

bank;

(B) a savings and loan association chartered under Chapter 62 or

similar laws of another state;

(C) a federal savings and loan association, federal savings

bank, or federal credit union;

(D) a credit union chartered under Chapter 122 or similar laws

of another state; or

(E) a trust company chartered under the laws of this state or

another state.

(2) "Out-of-state financial institution" means a financial

institution that:

(A) is not chartered under the laws of this state; and

(B) has its main or principal office in another state or

country.

(3) "Texas financial institution" means a financial institution

that:

(A) is chartered under the laws of this state or under federal

law; and

(B) has its main or principal office in this state.

Added by Acts 1999, 76th Leg., ch. 344, Sec. 1.001, eff. Sept. 1,

1999.

Sec. 201.102. REGISTRATION TO DO BUSINESS. An out-of-state

financial institution must file an application for registration

with the secretary of state, before operating a branch or other

office in this state, by complying with the law of this state

relating to foreign corporations doing business in this state,

notwithstanding a provision in that law that purports to limit or

prohibit its applicability to financial institutions.

Added by Acts 1999, 76th Leg., ch. 344, Sec. 1.001, eff. Sept. 1,

1999.

Sec. 201.103. APPOINTMENT OF AGENT TO RECEIVE SERVICE OF

PROCESS. (a) A Texas financial institution may file in the

office of the secretary of state a statement appointing an agent

authorized to receive service of process.

(b) A statement appointing an agent must set forth:

(1) the name of the Texas financial institution;

(2) the federal tax identification number of the Texas financial

institution;

(3) the address, including the street address, of the principal

office of the Texas financial institution; and

(4) the name of the agent in this state authorized to receive

service of process and the agent's address, including the street

address, in this state.

(c) The agent named under Subsection (b) must be:

(1) an individual resident of this state;

(2) a domestic corporation, limited partnership, partnership,

limited liability company, professional association, cooperative,

or real estate investment trust; or

(3) a foreign entity registered with the secretary of state to

transact business in this state.

(d) A statement appointing an agent must be signed by an officer

of the Texas financial institution. The statement must also be

signed by the person appointed agent, who by signing accepts the

appointment. The appointed agent may resign by filing a

resignation in the office of the secretary of state and giving

notice to the Texas financial institution.

(e) The secretary of state shall collect for the use of the

state:

(1) a fee of $25 for indexing and filing the original statement

appointing an agent; and

(2) a fee of $15 for filing an amendment to or cancellation of a

statement appointing an agent.

(f) An amendment to a statement appointing an agent to receive

service of process must meet the requirements for execution of an

original statement.

(g) A statement appointing an agent may be canceled by filing

with the secretary of state a written notice of cancellation

executed by an officer of the Texas financial institution. A

notice of cancellation must contain:

(1) the name of the Texas financial institution;

(2) the federal tax identification number of the Texas financial

institution;

(3) the date of filing of the statement appointing the agent;

and

(4) the current street address of the principal office of the

Texas financial institution.

(h) Service of process on a registered agent appointed under

this section is an alternate method of service in addition to

other methods provided by law unless other law specifically

requires service to be made on the registered agent. A

resignation or notice of cancellation is effective immediately on

acknowledgement of filing by the secretary of state, and after

the acknowledgement the financial institution is subject to

service of process as otherwise provided by law.

(i) The secretary of state may adopt forms and procedural rules

for filing of documents under this section.

Added by Acts 1999, 76th Leg., ch. 344, Sec. 1.001, eff. Sept. 1,

1999.