Bill Text: TX SB726 | 2019-2020 | 86th Legislature | Enrolled

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Bill Title: Relating to investments by state banks to promote community development.

Spectrum: Slight Partisan Bill (Republican 2-1)

Status: (Passed) 2019-04-25 - Effective on 9/1/19 [SB726 Detail]

Download: Texas-2019-SB726-Enrolled.html

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S.B. No. 726

AN ACT
relating to investments by state banks to promote community
development.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Section 34.106, Finance Code, is
amended to read as follows:
Sec. 34.106. INVESTMENTS TO PROMOTE COMMUNITY DEVELOPMENT
[FOR PUBLIC WELFARE].
SECTION 2. Section 34.106, Finance Code, is amended by
amending Subsection (d) and adding Subsection (e) to read as
follows:
(d) A bank's aggregate investments under this section[,
including loans and commitments for loans,] may not exceed an
amount equal to 15 [10] percent of the bank's unimpaired capital and
surplus. [The banking commissioner may authorize investments in
excess of this limitation in response to a written application if
the banking commissioner concludes that:
[(1) the excess investment is not precluded by other
applicable law; and
[(2) the safety and soundness of the requesting bank
would not be adversely affected.]
(e) Notwithstanding any other law, a bank's exposure to a
single project or entity described by this section, including all
investments, loans, and commitments for loans, may not exceed 25
percent of the bank's unimpaired capital and surplus without the
prior authorization of the banking commissioner in response to a
written application.
SECTION 3. This Act takes effect September 1, 2019.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 726 passed the Senate on
March 27, 2019, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 726 passed the House on
April 11, 2019, by the following vote: Yeas 145, Nays 1, one
present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor