HB 3806
AN ACT relating to prohibited activities of a state trust company under
89th Regular Session
Jan 14, 2025 - Jun 2, 2025 • Session ended
Awaiting Committee Assignment
Bill filed, pending referral to House committee
Committee
Not yet assigned
Fiscal Note
Not available
What This Bill Does
Outlines restrictions on state trust companies during periods of supervision by the banking commissioner. During such a period, trust companies cannot sell assets, lend or invest funds, incur new debts, pay dividends, solicit new client accounts, change executive leadership, or engage in any activities deemed by the commissioner to potentially threaten the company's financial stability. These limitations require prior approval from the banking commissioner and aim to protect the trust company's financial health during supervised periods.
Bill Text
relating to prohibited activities of a state trust company under BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 185.106, Finance Code, is amended to Sec. 185.106. DUTIES OF STATE TRUST COMPANY UNDER SUPERVISION. During a period of supervision, a state trust company, without the prior approval of the banking commissioner or the supervisor or as otherwise permitted or restricted by the order (1) dispose of, sell, transfer, convey, or encumber the state trust company's assets; (2) lend or invest the state trust company's funds; (3) incur a debt, obligation, or liability; (4) pay a [cash] dividend to the state trust company's (5) solicit or accept any new client accounts; [or] (6) remove an executive officer or director, change the number of executive officers or directors, or have any other change in the position of executive officer or director; or (7) engage in any other activity determined by the banking commissioner to threaten the safety and soundness of the SECTION 2. This Act takes effect September 1, 2025.
Bill History
Bill filed: AN ACT relating to prohibited activities of a state trust company under
Related Guides
Learn more about tracking Texas legislation and working with lobbyists.
How to Read & Track Texas Bills
Master bill numbering, understand legislative language, and learn effective tracking strategies.
Understanding Texas Legislative Deadlines
Navigate the 140-day session with critical calendar dates and filing deadlines.
How Laws Get Made in Texas
Follow a bill's journey from filing to the governor's desk through committees and floor votes.
When Should Your Business Hire a Lobbyist?
Discover the signs that your business needs professional advocacy at the Texas Capitol.