FINANCE CODE
CHAPTER 203. INTERSTATE BANK MERGERS AND BRANCHING
§ 203.001. INTERSTATE BRANCHING BY TEXAS STATE
BANKS. (a) With the prior approval of the commissioner, a Texas
state bank may establish and maintain a de novo branch or acquire a
branch in a state other than Texas pursuant to Section 32.203.
(b) With the prior approval of the commissioner, a Texas
state bank may establish, maintain, and operate one or more
branches in another state pursuant to an interstate merger
transaction in which the Texas state bank is the resulting bank.
Not later than the date on which the required application for the
interstate merger transaction is filed with the responsible federal
bank supervisory agency, the applicant Texas state bank shall file
an application on a form prescribed by the commissioner and pay the
fee prescribed by law. The applicant shall also comply with the
applicable provisions of Sections 32.301-32.303. The commissioner
shall approve the interstate merger transaction and the operation
of branches outside of this state by the Texas state bank if the
commissioner makes the findings required by Section 32.302(b). An
interstate merger transaction may be consummated only after the
applicant has received the commissioner's written approval.
Added by Acts 1999, 76th Leg., ch. 344, § 1.001, eff. Sept. 1,
1999.
§ 203.002. CONDITIONS FOR ENTRY BY DE NOVO
BRANCHING. (a) An out-of-state bank may establish a de novo
branch in this state if:
(1) the laws of the home state of the out-of-state bank
would permit a Texas bank to establish and maintain a de novo branch
in that state under substantially the same terms and conditions as
set forth in this subchapter;
(2) the out-of-state bank confirms in writing to the
commissioner that as long as it maintains a branch in this state, it
will comply with all applicable laws of this state;
(3) the applicant provides satisfactory evidence to
the commissioner of compliance with the applicable requirements of
Section 201.102; and
(4) the commissioner, acting on or before the 30th day
after the date the commissioner receives notice of an application
under Subsection (b), certifies to the responsible federal bank
supervisory agency that the requirements of this subchapter have
been met.
(b) An out-of-state bank desiring to establish and maintain
a de novo branch shall provide written notice of the proposed
transaction to the commissioner not later than the date on which the
bank applies to the responsible federal bank supervisory agency for
approval to establish the branch. The filing of the notice must be
accompanied by the filing fee, if any, prescribed by the
commissioner.
(c) A de novo branch may be established in this state
through the acquisition of a branch of an existing Texas bank if the
acquiring out-of-state bank complies with this section.
Added by Acts 1999, 76th Leg., ch. 344, § 1.001, eff. Sept. 1,
1999.
§ 203.003. ENTRY BY INTERSTATE MERGER
TRANSACTION. (a) Subject to Sections 203.004 and 203.005, one or
more Texas banks may enter into an interstate merger transaction
with one or more out-of-state banks under this chapter, and an
out-of-state bank resulting from the transaction may maintain and
operate the branches in this state of a Texas bank that participated
in the transaction. An out-of-state bank that will be the resulting
bank in the interstate merger transaction shall comply with Section
201.102.
(b) An out-of-state bank that will be the resulting bank
pursuant to an interstate merger transaction involving a Texas
state bank shall notify the commissioner of the proposed merger not
later than the date on which it files an application for an
interstate merger transaction with the responsible federal bank
supervisory agency, and shall submit a copy of that application to
the commissioner and pay the filing fee, if any, required by the
commissioner. A Texas state bank that is a party to the interstate
merger transaction shall comply with Chapter 32 and with other
applicable state and federal laws. An out-of-state bank that will
be the resulting bank in the interstate merger transaction shall
provide satisfactory evidence to the commissioner of compliance
with Section 201.102.
(c) An out-of-state bank that does not operate a branch in
this state may not establish and maintain a branch in this state
through the acquisition of a branch of an existing Texas bank except
as provided by Section 203.002.
Added by Acts 1999, 76th Leg., ch. 344, § 1.001, eff. Sept. 1,
1999.
§ 203.004. LIMITATION ON CONTROL OF DEPOSITS. (a) An
interstate merger transaction is not permitted if, on consummation
of the transaction, the resulting bank, including all depository
institution affiliates of the resulting bank, would control 20
percent or more of the total amount of deposits in this state held
by all depository institutions in this state.
(b) The commissioner may request and the applicant shall
provide supplemental information to the commissioner to aid in a
determination under this section, including information that is
more current than or in addition to information in the most recently
available summary of deposits, reports of condition, or similar
reports filed with or produced by state or federal authorities.
Added by Acts 1999, 76th Leg., ch. 344, § 1.001, eff. Sept. 1,
1999.
§ 203.005. REQUIRED AGE OF ACQUIRED BANK. (a) An
out-of-state bank may not acquire a Texas bank in an interstate
merger transaction if the Texas bank has not been in existence and
in continuous operation for at least five years as of the effective
date of the interstate merger transaction. However, this section
does not apply if the acquiring out-of-state bank could establish a
de novo branch in this state pursuant to Section 203.002.
(b) For purposes of this section:
(1) a bank that is the successor as a result of merger
or acquisition of all or substantially all of the assets of a prior
bank is considered to have been in existence and continuously
operated during the period of its existence and continuous
operation as a bank and during the period of existence and
continuous operation of the prior bank; and
(2) a bank effecting a purchase and assumption,
merger, or similar transaction with or supervised by the Federal
Deposit Insurance Corporation or its successor is considered to
have been in existence and continuously operated during the
existence and continuous operation of the bank with respect to
which the transaction was consummated.
Added by Acts 1999, 76th Leg., ch. 344, § 1.001, eff. Sept. 1,
1999.
§ 203.006. ADDITIONAL BRANCHES. An out-of-state bank
that has established or acquired a branch in this state under this
chapter may establish or acquire additional branches in this state
to the same extent that a Texas state bank may establish or acquire
a branch in this state under applicable state and federal law.
Added by Acts 1999, 76th Leg., ch. 344, § 1.001, eff. Sept. 1,
1999.
§ 203.007. EXAMINATIONS; PERIODIC REPORTS. (a) The
banking commissioner may make examinations of a branch established
and maintained in this state pursuant to this chapter by an
out-of-state bank as the banking commissioner considers necessary
to determine whether the branch is being operated in compliance
with the laws of this state and in accordance with safe and sound
banking practices. Sections 31.105-31.107 or 96.054-96.057, as
appropriate, apply to the examinations.
(b) The commissioner may prescribe requirements for
periodic reports from an out-of-state bank that operates a branch
in Texas pursuant to this chapter. Reporting requirements
prescribed by the commissioner under this section must be:
(1) consistent with the reporting requirements
applicable to Texas state banks or state savings banks, as
appropriate; and
(2) appropriate to discharge the responsibilities of
the commissioner under this chapter.
Added by Acts 1999, 76th Leg., ch. 344, § 1.001, eff. Sept. 1,
1999.
