Bill Text: TX SB1919 | 2017-2018 | 85th Legislature | Introduced

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Bill Title: Relating to the bond and other coverages required to be maintained by or for the benefit of a savings bank.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2017-03-23 - Referred to Business & Commerce [SB1919 Detail]

Download: Texas-2017-SB1919-Introduced.html

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85R5938 EES-F
By: Buckingham S.B. No. 1919

A BILL TO BE ENTITLED
AN ACT
relating to the bond and other coverages required to be maintained
by or for the benefit of a savings bank.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 92.156, Finance Code, is amended to read
as follows:
Sec. 92.156. FINANCIAL INSTITUTION BOND [INDEMNITY BONDS OF
DIRECTORS, OFFICERS, AND EMPLOYEES]. (a) A savings bank shall
maintain a financial institution [blanket indemnity] bond that
provides [with an] adequate coverage to protect [corporate surety
protecting] the savings bank from loss:
(1) by or through dishonest or criminal action or
omission, including fraud, theft, or misplacement [robbery, or
burglary], by any of the following persons:
(A) an officer or employee of the savings bank;
(B) an attorney retained by the savings bank;
(C) a nonemployee performing data processing
services for the savings bank; or
(D) a director of the savings bank performing a
[when the director performs the] duty of an officer or employee; or
(2) by other perils such as robbery, burglary,
forgery, or alteration.
(b) A savings bank that employs a collection agent who is
not covered by the bond required by Subsection (a) shall:
(1) ensure that the savings bank is included as a loss
payee in the collection agent's crime coverage; and
(2) obtain a certificate of insurance evidencing the
sufficiency of the collection agent's crime coverage [provide for
the bonding of the agent in an amount equal to at least twice the
average monthly collection of the agent unless the agent is a
financial institution insured by the Federal Deposit Insurance
Corporation. An agent shall settle with the savings bank at least
monthly].
(c) Subject to rules adopted under Subsection (e), the board
shall, at least annually, review and approve:
(1) the coverage, including the amount of the
coverage, provided by the bond and the form of the bond; and
(2) the sustainability [sufficiency] of the corporate
surety or insurer that issued the bond.
(d) The bond must provide that a cancellation or other
termination by the corporate surety or insurer or by the insured is
not effective until the earlier of:
(1) the date the commissioner approves; or
(2) the 30th day after the date written notice of the
cancellation is given to the commissioner.
(e) The finance commission may adopt rules establishing:
(1) the coverage, including the amount of the
coverage, that must be provided by the bond and the form of the
bond; and
(2) the sustainability [sufficiency] of the corporate
surety or insurer that issues the bond.
SECTION 2. Not later than January 1, 2018:
(1) a savings bank that maintains a bond under Section
92.156, Finance Code, on the effective date of this Act shall obtain
a bond that satisfies the requirements of Section 92.156, Finance
Code, as amended by this Act; and
(2) a collection agent employed by a savings bank
shall maintain crime coverage in compliance with Section 92.156(b),
Finance Code, as amended by this Act.
SECTION 3. This Act takes effect September 1, 2017.