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.
