FINANCE CODE

CHAPTER 98. FOREIGN FINANCIAL INSTITUTIONS

SUBCHAPTER A. GENERAL PROVISIONS


	§ 98.001.  LIMITATION ON RIGHT TO DO BUSINESS AS SAVINGS 
BANK.  (a)  A person may not do business as a savings bank in this 
state or maintain an office in this state for the purpose of doing 
business in this state unless the person is a:
		(1)  domestic savings bank;                                                   
		(2)  federal savings bank;  or                                                
		(3)  foreign savings bank that holds a certificate of 
authority issued under Subchapter I, Chapter 92, or Section 61, 
Chapter 61, General Laws, Acts of the 41st Legislature, 2nd Called 
Session, 1929 (Article 881a-60, Vernon's Texas Civil Statutes).
	(b)  Subsection (a) does not prohibit activity that is not 
considered to be transacting business in this state under Section 
B, Article 8.01, Texas Business Corporation Act.

Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.                   


	§ 98.002.  APPLICATION OF LAW AND RULES.  This subtitle  
and each rule adopted under this subtitle apply to the operations in 
this state of a foreign savings bank and may be enforced by the 
commissioner.

Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.                   


	§ 98.003.  CONTRACTS CONSTRUED UNDER LAW OF THIS 
STATE.  A contract between a foreign savings bank and a resident of 
this state is governed by the laws of this state.

Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.                   


	§ 98.004.  FEDERAL SAVINGS BANK.  A federal savings bank 
is not a foreign corporation or foreign savings bank for purposes of 
this subtitle.

Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.                   


	§ 98.005.  AUTHORIZATION TO RETAIN OFFICES.  A federal 
savings bank that has been merged, consolidated, or converted into 
a domestic or foreign savings bank or association is entitled to 
retain any authorized office under the terms provided for a foreign 
savings bank under Subchapter I, Chapter 92.

Added by Acts 1999, 76th Leg., ch. 62, § 7.35(a), eff. Sept. 1, 
1999.    

SUBCHAPTER B. POWERS OF FOREIGN SAVINGS BANK;  ELIGIBILITY OF 
ACCOUNTS FOR INVESTMENT


	§ 98.101.  POWERS OF FOREIGN SAVINGS BANK;  ELIGIBILITY 
OF ACCOUNTS FOR INVESTMENT.  (a)  A foreign savings bank operating 
under a certificate of authority issued under Subchapter I, Chapter 
92, has the rights and privileges of a savings bank created under 
this subtitle.  The savings bank's deposit accounts are eligible 
for investment to the same extent as those of a domestic savings 
bank.
	(b)  A foreign savings bank may not be considered a savings 
bank organized under the laws of this state.
	(c)  A foreign savings bank operating in this state under 
this chapter may not exercise a power, perform a function, or offer 
a service that a domestic savings bank may not exercise, perform, or 
offer.

Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.                   

SUBCHAPTER C. CERTIFICATE OF AUTHORITY


	§ 98.201.  RENEWAL OF CERTIFICATE.  A foreign savings 
bank may renew a certificate of authority issued under Subchapter 
I, Chapter 92, by paying a renewal fee in January of each year.  The 
finance commission by resolution shall set the fee annually.

Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.                   


	§ 98.202.  REVOCATION OF CERTIFICATE.  (a)  The 
commissioner may revoke a foreign savings bank's certificate of 
authority on the failure or refusal of the savings bank to comply 
with a final order of the commissioner.
	(b)  On revocation under Subsection (a), an agent of the 
savings bank may not transact business in this state except to:
		(1)  receive a payment to apply to an active loan 
contract;  or             
		(2)  pay a withdrawal request.                                                

Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.                   

SUBCHAPTER D. EXAMINATION AND REGULATION


	§ 98.301.  FREQUENCY OF EXAMINATION.  A foreign savings 
bank holding a certificate of authority issued under Subchapter I, 
Chapter 92, may be examined not more than once each year.

Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.                   


	§ 98.302.  EXAMINATION CHARGES.  A foreign savings bank 
holding a certificate of authority issued under Subchapter I, 
Chapter 92, shall pay:
		(1)  an examination fee in the amount set for a domestic 
savings bank under Section 91.007;
		(2)  all travel expenses of the examination;  and                             
		(3)  the amount of the examination expense that exceeds 
the amount of the examination fee, if any.

Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.                   


	§ 98.303.  AGREEMENT WITH REGULATORY AUTHORITY OF OTHER 
STATE.  (a)  The commissioner, in exercising the supervisory and 
regulatory authority granted under Chapter 96, may enter into a 
cooperative agreement with a regulatory authority of another state 
to facilitate the regulation of foreign savings banks doing 
business in this state.
	(b)  The commissioner may accept a report of an examination 
and other records from the regulatory authority of the other state 
instead of conducting an examination outside this state.

Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.                   


	§ 98.304.  COMMISSIONER'S AUTHORITY TO ISSUE 
ORDERS.  The commissioner may issue an order against a foreign 
savings bank holding a certificate of authority in the same manner 
provided by Chapter 96 for issuance of an order against a domestic 
savings bank.

Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.