TEXAS BANK CHARTER ATTORNEY

A de novo Texas state bank may commence operations with a holding company as its sole shareholder. Holding company information may be accessed through the Dallas Federal Reserve web site. An out-of-state holding company may not charter a de novo institution in Texas. Texas places no additional restrictions on bank holding companies that elect financial holding company status; however, a copy of the election must be furnished to the Commissioner, Section 202.001 et seq. of the Texas Finance Code.   Generally, all Texas state banks must be FDIC insured.   A Texas state bank has the freedom to choose whether or not to apply for membership in the Federal Reserve. The Texas Department of Banking has entered into an alternate examination program with both the FDIC and the Federal Reserve.

Texas Finance Code Sec. 32.006.  ISSUANCE OF CERTIFICATE OF AUTHORITY.  A state bank may not engage in the business of banking until it receives a certificate of authority from the banking commissioner.  The banking commissioner may not deliver the certificate of authority until the bank has:

(1)  received cash for the issuance of all authorized shares in the full amount subscribed;

(2)  elected or qualified the initial officers and directors named in the application for charter or other officers and directors approved by the banking commissioner; and

(3)  complied with all the other requirements of this subtitle relating to the organization of state banks.

 

Texas Finance Code Sec. 32.003.  APPLICATION FOR STATE BANK CHARTER;  STANDARDS FOR APPROVAL.  (a)  An application for a state bank charter must be made under oath and in the form required by the banking commissioner, who shall inquire fully into the identity and character of each proposed director, officer, and principal shareholder.  The application must be accompanied by all charter fees and deposits required by law.

(b)  The banking commissioner shall grant a state bank charter only if the commissioner determines that the organizers have established that public convenience and advantage will be promoted by the establishment of the state bank.  In determining whether public convenience and advantage will be promoted, the banking commissioner shall consider the convenience of the public to be served and whether:

(1)  the organizational and capital structure and amount of initial capitalization is adequate for the business plan;

(2)  the anticipated volume and nature of business indicates a reasonable probability of success and profitability based on the market sought to be served;

(3)  the officers and directors as a group have sufficient banking experience, ability, standing, competence, trustworthiness, and integrity to justify a belief that the bank will operate in compliance with law and that success of the bank is probable;

(4)  each principal shareholder has sufficient experience, ability, standing, competence, trustworthiness, and integrity to justify a belief that the bank will be free from improper or unlawful influence or interference with respect to the bank’s operation in compliance with law; and

(5)  the organizers are acting in good faith.

 

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