FINANCE CODE
SUBTITLE C. SAVINGS BANKS
CHAPTER 91. GENERAL PROVISIONS
§ 91.001. SHORT TITLE. This subtitle may be cited as
the Texas Savings Bank Act.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 91.002. DEFINITIONS. In this subtitle:
(1) "Appropriate banking agency":
(A) means:
(i) with respect to a savings bank
chartered by this state, the Savings and Loan Department;
(ii) with respect to a federal savings
bank, the Office of Thrift Supervision;
(iii) with respect to a savings and loan
association chartered by this state, the Savings and Loan
Department;
(iv) with respect to a federal savings and
loan association, the Office of Thrift Supervision;
(v) with respect to a bank chartered by this
state, the Texas Department of Banking; and
(vi) with respect to a national bank, the
Office of the Comptroller of the Currency; and
(B) includes:
(i) in each case in which a state bank is a
member of the Federal Reserve System, the board of governors of the
Federal Reserve System;
(ii) in each case where required by the
Federal Deposit Insurance Act (12 U.S.C. Section 1811 et seq.), the
Federal Deposit Insurance Corporation; and
(iii) any successor of a state or federal
agency specified by this subdivision.
(2) "Board" means the board of directors of a savings
bank.
(3) "Capital stock" means the units into which the
proprietary interest in a capital stock savings bank is divided.
(4) "Capital stock savings bank" means a savings bank
authorized to issue capital stock.
(5) "Commissioner" means the savings and loan
commissioner.
(6) "Company" means a corporation, partnership,
trust, joint-stock company, association, unincorporated
organization, or other legal entity, or a combination of any of
those entities acting together.
(7) "Deposit account" means a savings account,
certificate of deposit, withdrawable deposit, demand deposit
account, checking account, or any other term referring to the
amount of money a savings bank owes an account holder as the result
of the deposit of money in the savings bank.
(8) "Deposit liability" means the aggregate amount of
money shown by the books of the savings bank to be owed the savings
bank's deposit account holders after applying any legal or
contractual reduction.
(9) "Domestic savings bank" means a savings bank
organized under the laws of this state.
(10) "Earnings on account" means interest
contractually payable or dividends declared payable to holders of
deposit accounts in a savings bank.
(11) "Federal Deposit Insurance Corporation" includes
any successor.
(12) "Federal savings bank" means a savings bank
incorporated under the laws of the United States.
(13) "Finance commission" means the Finance
Commission of Texas.
(14) "Financial institution" has the meaning assigned
by Section 201.101.
(15) "Foreign savings bank" means a savings bank:
(A) organized under the laws of:
(i) a state of the United States other than
this state; or
(ii) the United States; and
(B) the principal office of which is located
outside this state.
(16) "Holding company" means a company that directly
or indirectly controls a savings bank or controls another company
that directly or indirectly controls a savings bank.
(17) "Loss reserves" means the aggregate amount of the
reserves allocated by a savings bank solely to absorb losses.
(18) "Member" means, with respect to a mutual savings
bank, a person:
(A) holding an account with the mutual savings
bank;
(B) assuming or obligated on a loan in which the
mutual savings bank has an interest; or
(C) owning property that secures a loan in which
the mutual savings bank has an interest.
(19) "Mutual savings bank" means a savings bank not
authorized to issue capital stock.
(20) "Regulatory capital" means a common stockholders'
equity, including retained earnings, noncumulative perpetual
preferred stock and related earnings, minority interests in the
equity accounts of fully consolidated subsidiaries, and other
elements established by rules of the finance commission.
(21) "Savings bank" means an institution organized
under or subject to this subtitle.
(22) "Shareholder" means the owner of capital stock.
(23) "Surplus" means the aggregate amount of:
(A) the undistributed earnings of a savings bank
held as undivided profits or unallocated reserves for general
corporate purposes; and
(B) paid-in surplus held by the savings bank.
(24) "Unsafe and unsound practice" means an action or
inaction in the operation of a savings bank that is likely to:
(A) cause insolvency or substantial dissipation
of assets or earnings; or
(B) reduce the ability of the savings bank to
timely satisfy withdrawal requests of deposit account holders.
(25) "Withdrawal value of deposit account" means the
net amount of money that may be withdrawn by an account holder from
a deposit account after applying any legal or contractual
reduction.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended
by Acts 1999, 76th Leg., ch. 62, § 7.32(a), eff. Sept. 1, 1999;
Acts 2001, 77th Leg., ch. 867, § 33, eff. Sept. 1, 2001; Acts
2003, 78th Leg., ch. 172, § 1, eff. Sept. 1, 2003.
§ 91.003. CONTROL; SUBSIDIARY. (a) For purposes of
this subtitle, a person controls a savings bank if the person has
the power to direct or cause the direction of the management and
policies of the savings bank directly or indirectly. A person is
considered to control a savings bank if the person, individually or
acting with others, directly or indirectly holds with the power to
vote, owns, or controls, or holds proxies representing, at least 25
percent of the voting stock or voting rights of a savings bank.
(b) For purposes of this subtitle, a company is a subsidiary
of a savings bank if the savings bank or another company directly or
indirectly controlled by the savings bank controls the company. A
savings bank is considered to control a company if the savings bank,
directly or indirectly or acting with one or more other persons or
through one or more subsidiaries:
(1) holds with the power to vote, owns, or controls, or
holds proxies representing, more than 25 percent of the voting
stock or voting rights of the company;
(2) controls in any manner the election of a majority
of the directors of the company;
(3) is a general partner in the company; or
(4) has contributed more than 25 percent of the equity
capital of the company.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 91.004. NOTICE OF HEARING; RIGHT TO
RESPOND. (a) Notice of a hearing under this subtitle shall be
given to each domestic and federal savings bank in the county in
which the subject matter of the hearing is or will be located,
except that notice of a hearing under an order under Chapter 96
shall be given to each party affected by the order.
(b) Each interested party is entitled to an opportunity to
respond and present evidence and argument on each issue involved in
a hearing under this subtitle.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 91.005. RECORD OF PROCEEDING. On written request by
an interested party, the commissioner shall keep a formal record of
the proceedings of a hearing under this subtitle.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 91.006. DECISION OR ORDER. (a) A decision or order
adverse to a party who appeared and participated in a hearing must
be in writing and include separately stated findings of fact and
conclusions of law on the issues material to the decision or order.
Findings of fact that are stated in statutory language must be
accompanied by a concise and explicit statement of the underlying
facts supporting the findings.
(b) A decision or order entered after a hearing is final and
appealable on the 15th day after the date it is entered unless a
party files a motion for rehearing before that date. If the motion
for rehearing is overruled, a decision or order is appealable after
the date an order overruling a motion for rehearing is entered.
(c) Each party to a hearing shall be promptly notified
personally or by mail of a decision, order, or other action taken in
respect to the subject matter of the hearing.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 91.007. FEES. The finance commission by rule shall:
(1) set the amount of fees the commissioner charges
for:
(A) supervision and examination of savings
banks;
(B) filing an application or other documents;
(C) conducting a hearing; and
(D) other services the commissioner performs;
and
(2) specify the time and manner of payment of the fees.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended
by Acts 2001, 77th Leg., ch. 867, § 34, eff. Sept. 1, 2001.
