Part IV.
Texas Savings and Loan Department
Chapter 75.
Applications
Subchapter B. Expedited Applications
7 TAC §§75.25-75.27
The Finance Commission of Texas is again proposing new 7
TAC §§75.25 through 75.27 regarding expedited application procedures
for certain state savings banks relating to branch offices, mobile facilities,
change of office location, merger, consolidation, or purchase and assumption
transactions. A reduction in related application fees in Chapter 79 is separately
proposed for expedited applications.
The only change to the prior proposal is the inclusion of mobile facilities
and branch relocation applications in the expedited application process.
Proposed §75.25 establishes the criteria for a savings bank to be
eligible to file an expedited application. This is proposed as a reduction
of regulatory burden to those savings banks that are well rated, well managed,
and not operating under any regulatory directive or agreement.
Proposed §75.26 describes the items necessary to be filed with an
expedited application. It requires that the applicant supply the Commissioner
all information necessary to make a fully informed decision regarding an expedited
filing.
Proposed §75.27 permits discretion to the Commissioner to deny expedited
filing treatment to an otherwise eligible applicant if he finds that the proposed
transaction involves significant policy, supervisory, or legal issues.
James L. Pledger, Savings and Loan Commissioner, has determined that for
the first five year period the new sections as proposed will be in effect,
the public will benefit from less regulatory burden and there will be no fiscal
implications for state and local government as a result of enforcing or administering
these sections. Mr. Pledger estimates that, for the first five years the proposed
section is in effect, those institutions that are eligible to file under expedited
treatment will have reduced economic costs as a result of complying with the
proposed sections. No difference will exist between the cost of compliance
for small businesses and the cost of compliance for the largest businesses
affected by these sections.
Comments on the proposed sections may be submitted in writing to James
L. Pledger, Commissioner, Savings and Loan Department, 2601 North Lamar Boulevard,
Suite 201, Austin, Texas 78705-4294, or e-mailed to TSLD@mail.capnet.state.tx.us.
The new sections are proposed under §11.302 of the
Subtitle C of the
Finance Code
, §92.063
and §§92.351-92.355, Vernon's Texas Annotated Civil Statutes, are
affected by the new sections.
§75.25.Eligible Institution.
An eligible institution is a financial institution that:
(1)
is well capitalized as defined in 12 CFR §325.103;
(2)
received a composite rating of either 1 or 2 as defined
by the Uniform Financial Institutions Rating System (CAMELS) at the most recent
examination by the department or federal regulatory agencies, and management
is rated either 1 or 2;
(3)
received a CRA rating of satisfactory or above at
the savings bank's most recent inspection by the appropriate federal regulatory
agency;
(4)
is not operating in violation of a regulatory condition
or directive imposed by the state or federal banking regulatory agency; and,
(5)
is not operating under a memorandum of understanding,
order to cease and desist, or other state or federal supervisory enforcement
order issued by a state or federal banking regulatory agency.
§75.26.Expedited Applications.
(a)
An eligible institution as defined in §75.25 of this
title (relating to Eligible Institution) may file an expedited filing in lieu
of an application required pursuant to §75.33 of this title (relating
to Branch Office Applications), §75.35 of this title (relating to Mobile
Facilities), §75.38 of this title (relating to Change of Office Location),
or §75.81 of this title (relating to Reorganization, Merger, Consolidation
or Purchase and Assumption Transaction), and simultaneously tender the required
filing fee pursuant to Chapter 79, §§79.91-79.99 of this title (relating
to Fees and Charges).
(b)
An expedited filing must include the following items, unless
waived in writing by the commissioner:
(1)
a detailed description of the transaction;
(2)
a pro forma balance sheet and income statement for
all parties to the transaction, including adjustments, reflecting the proposed
transaction as of the most recent quarter ended immediately prior to the filing
of the application, demonstrating that the resulting state savings bank is
well capitalized as defined in 12 CFR §325.103;
(3)
a certified resolution of the board and, if required,
shareholders approving the proposed transaction;
(4)
copies of all other required regulatory notices or
filings submitted concerning the transaction; and,
(5)
a copy of the public notice published in conformity
with the section of this subsection that would apply had the applicant not
filed an expedited filing.
(c)
The commissioner shall approve or deny an expedited filing
on or before a date that is 30 days after the date the expedited filing is
deemed complete. The commissioner may, in the exercise of discretion, before
the expiration of the period for decision, give the applicant written notice
that the commissioner will convene a hearing to obtain evidence related to
the application, and the decision will thereafter be made in accordance with
§§79.71-79.73 of this title (relating to Hearings).
(d)
The applicant bears the burden to supply all material information
necessary to enable the commissioner to make a fully informed decision regarding
the expedited filing.
§75.27.Denial of Expedited Treatment.
(a)
The commissioner may deny expedited filing treatment to
an otherwise eligible applicant, in the exercise of discretion, if the commissioner
finds that the proposed transaction involves significant policy, supervisory,
or legal issues; is contingent upon other statutory or regulatory approval;
results in an entity that is not a financial institution; or involves an entity
that is not domiciled in Texas.
(b)
The commissioner shall provide written notification to
the applicant within 15 days after receipt of the application if expedited
filing treatment is denied, indicating the reason for denial. Notification
is effective when mailed by the commissioner and is not subject to appeal.
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on March
2, 1999.
TRD-9901287
James L. Pledger
Commissioner
Texas Savings and Loan Department
Earliest possible date of adoption: April 18, 1999
For further information, please call: (512) 475-1350
7 TAC §§75.31, 75.33, 75.35, 75.37, 75.38
The Finance Commission of Texas proposes to amend 7 TAC §§75.31,
75.33, 75.35, 75.37 and 75.38 regarding additional offices and facilities
for state savings banks. The proposed amendment would reduce regulatory burden
and update the application procedures for additional offices and facilities.
The proposed amendment to §75.31 updates the requirements for home
and branch offices of state savings banks.
The proposed amendment to §75.33 updates the information required
in the application for a branch office and the findings required for approval.
It also relocates and clarifies the requirement of existing §75.31(b)
that submissions related to all facts be signed and sworn to by an officer
of the savings bank.
The proposed amendment to §75.35 updates the mobile facilities application
requirements, reducing regulatory burden and making the application process
for mobile facilities consistent with other office applications.
The proposed amendment to §75.37 provides definitional consistency
between a remote service unit under this section and the security provisions
for automatic teller machines described in §77.115. The amendment also
replaces the application requirement for remote service units with a requirement
for approval by the institution's board and notice to the commissioner. This
change will make state savings bank requirements consistent with other state
and federally chartered financial institutions and will not affect the safety
and soundness of the industry.
The proposed amendment to §75.38 clarifies that the section only applies
to relocation of home and branch offices. It also codifies and expands an
existing Department policy that permits a home office to be relocated to an
existing approved branch office and the home office to be retained as a branch
office after advance notice is provided to the Commissioner.
James L. Pledger, Savings and Loan Commissioner, has determined that for
the first five year period the amended sections as proposed will be in effect,
the public will benefit from reduced regulatory burden and there will be no
fiscal implications for state and local government as a result of enforcing
or administering these sections. Mr. Pledger estimates that, for the first
five years the proposed section is in effect, there will be no economic costs
as a result of complying with the proposed sections. No difference will exist
between the cost of compliance for small businesses and the cost of compliance
for the largest businesses affected by these sections.
Comments on the proposed sections may be submitted in writing to James
L. Pledger, Commissioner, Savings and Loan Department, 2601 North Lamar Boulevard,
Suite 201, Austin, Texas 78705-4294, or e-mailed to TSLD@mail.capnet.state.tx.us.
The amended sections are proposed under §11.302 of the
Subtitle C of the
Finance Code
, §§92.001-
92.063, Vernon's Texas Annotated Civil Statutes, is affected by these sections.
§75.31.Establishment and Operation of Additional Offices.
(a)
No
[
(b)
An authorized or approved office of a savings
bank shall be the place where the business of the savings bank is conducted,
and with the prior consent of the commissioner may include facilities ancillary
thereto for the extension of the savings bank's services to the public. Any
authorized or approved office of a savings bank shall also mean, with the
prior consent of the commissioner, separate quarters or facilities to be used
by the savings bank for the purpose of performing service functions in the
efficient conduct of its business, but which service functions do not include
the acceptance of loan applications or the payment or withdrawal on savings
accounts.
(c)
All offices of a savings bank which are located
outside the county of the domicile of its home office shall display a sign
which is suitable to advise the public of the type of additional office which
is located therein (such as branch, loan, or agency office) and the location
of the home office of such savings bank.
[
All statements of fact tendered
to the commissioner in connection with an application for an additional office
shall be verified as provided in §92.051 of the Texas Savings Bank Act.]
[
The commissioner shall furnish
approved forms of application and other information to aid in the filing of
applications for additional offices. Such forms are available from the Department
at 2601 North Lamar, Suite 201, Austin, Texas 78705.]
§75.33.Branch Office Applications.
(a)
Each application for permission to establish a branch office
shall state the proposed location thereof; [
(b)
All statements of fact tendered
to the commissioner in connection with branch office application must be signed
and sworn to.
(c)
[
(1)
The operation and condition of the applying savings bank
affords no basis for supervisory objection.
[
The proposed operation
will not unduly harm any other savings bank or savings and loan association
operating in the community of the proposed branch.]
[
A separate enclosed office
area will be provided (such enclosure may be by counters or railing of less
than ceiling height).]
[
The proposed branch office
will have qualified full-time management.]
[
There is a public need
for the proposed branch office and the volume of business in the community
in which the proposed branch office will conduct its business is such as to
indicate a profitable operation to the savings bank within a reasonable period
of time.]
(2)
[
(3)
The financial effect of
establishing and operating the proposed office will not adversely affect the
safe and sound operation of the applying savings bank.
(d)
[
§75.35.Mobile Facilities.
(a)
Each application for permission to establish a mobile facility
shall state the proposed location(s)
and times
at which the facility
will operate; the need therefor; the personnel and office facilities to be
provided and the estimated expense of such facility
.
[
(b)
Mobile facilities must be operated consistent with the
following requirements:
(1)
(No change.)
[
The mobile facility shall
be established and operated at two or more locations, each of which at the
time of filing of the application shall be more than 10 miles from the locations
of any home or branch office of any other savings bank or savings and loan
association.]
[
Any such facility shall
be open for business at the same location on the same day or days of each
week (established holidays excepted) but shall not be consecutive days, during
such hours aggregating a total of not less than four hours a day as the institution's
board of directors may from time to time determine.]
(2)
[
[
Operation of such facility
shall not be conducted at any location after the expiration of such period
of time as the commissioner shall prescribe which shall not exceed three years
except with subsequent approval of the commissioner.]
§75.37.Remote Service Units.
(a)
Remote service unit is an
ATM, as defined by §77.115,
[
(b)
A savings bank
may, to the extent authorized by its
board of directors,
[
[
The location or address of
the proposed remote service unit(s) as well as the address of the existing
facility or agency in the county;]
[
The extent of participation
or nonparticipation with other financial institution(s);]
[
A detailed account of
proposed security measures;]
[
An estimated cost to
the association to equip and maintain the operations of the proposed remote
service unit; and]
[
Such other information
as may be required by the commissioner.]
[
Upon receipt of the application
the commissioner shall submit a summary of details pertaining to such application
for publication in the next issue Texas Register following the date the information
is received. If no protest is received, the savings bank may establish or
relocate and begin operation of the requested remote service unit on the 31st
day after the date the commissioner receives the application, unless the commissioner
specifies an earlier or later date, or disapproves the request. If written
protest is filed within 10 days following publication, the commissioner shall
provide the applicant and protestant with 10 days notice of hearing, set and
hold the hearing, and decide the matter in the same manner and within the
time as provided in this chapter for new charter applications.]
[
The commissioner may approve
an application for a remote service unit if he has affirmatively found from
data furnished with the application, his official records, and the evidence
adduced at any hearing, that security of the savings bank's funds and that
of its account holders will be maintained, the operations and condition of
the applying savings bank affords no basis for supervisory objection, the
proposed operation will not unduly harm any other savings bank or savings
and loan association operating in the community of the remote service unit,
and the proposed service will be a substantial convenience to the public.]
§75.38.Change of Home or Branch Office Location.
(a)
A savings bank may not move
its home office or any
branch office
[
(b)
Notwithstanding (a), a savings
bank may retain its existing home office as a branch office and relocate its
home office to another established branch office by providing the commissioner
with prior written notice. Upon such notification, the establishment of such
office shall be deemed an approved administrative office of the bank.
(c)
[
[
The commissioner may not approve
an application to move or relocate any office of a savings bank, unless he
shall have found from the data furnished with the application, the evidence
adduced at the hearing, and his official records, all of the findings necessary
for approval of a branch office.]
(d)
(No change.)
(e)
The commissioner may not approve
an application to move or relocate any office of a savings bank, unless he
shall have found from the data furnished with the application, the evidence
adduced at the hearing, and his official records, all of the findings necessary
for approval of a branch office.
[
This section does not apply
to offices set forth in §75.34 of this title (relating to Loan Offices
and Administrative Offices).]
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on March
2, 1999.
TRD-9901286
James L. Pledger
Commissioner
Texas Savings and Loan Department
Earliest possible date of adoption: April 18, 1999
For further information, please call: (512) 475-1350
Subchapter F. Fees and Charges
Subchapter C. Additional Offices
Except for those additional offices
set forth in the alternative procedures established in §75.34, no
]
savings bank shall establish
,
[
or
] maintain
or
relocate
[
an office other than
] its home office
or a
branch office
without the prior written approval of the commissioner.
A savings bank's home office shall be the place where a savings bank has its
headquarters and from where all of its operations are directed.
(b)
(c)
the location of other offices
of the applicant and other savings banks or savings and loan associations
within the community; the need therefor;
] the personnel and office facilities
to be provided;
and
the estimated
cost and projected profits
[
annual volume of business, income and expense
] of such
office [
and shall be accompanied by a proposed annual budget of the applying
savings bank
]. Each application for a branch office shall be set for
hearing, notice given, hearing held, and decision reached in the same manner
and within the time as provided in this chapter for new charter applications
and the hearing may be dispensed with under the same conditions.
(b)
] The commissioner may not approve
an application for a branch office unless he shall have affirmatively found
from the data furnished with the application, the evidence adduced at the
hearing and his official records that:
(2)
(3)
(4)
(5)
(6)
] The character, responsibility
and general fitness of the current
management
[
directors and
officers
] of the applicant are such as to [
command confidence and
] warrant belief that the branch office will be
operated
[
honestly and efficiently conducted
] in accordance with the [
intent and purpose of the
] Act.
(c)
] The branch office facility
will commence operation within a period of 12 months after the date of approval
unless an extension is granted, in writing, by the commissioner. No more than
one 12-month extension will be approved by the commissioner, unless good cause
for such extension is shown. At the end of any approved extension, if the
office has not been opened, the authority for such office shall be forfeited.
, and
shall be accompanied by a proposed annual budget of the applying savings bank.
] Each application for a mobile facility shall be set for hearing, notice
given, hearing held, and decision reached in the same manner and within the
time as herein provided for new charter applications and the hearing may be
dispensed with under the same conditions. An application for permission to
establish a mobile facility may not be approved unless the commissioner shall
have affirmatively found from the data furnished with the application, the
evidence adduced at the hearing, and his official records, all of the findings
necessary for approval of a branch office.
(2)
(3)
(4)
] [
The mobile equipment
used in the establishment and operation of such facility shall not remain
at the site except for business hours approved by the savings bank. Further,
each
]
Each
applicant shall show that adequate safeguards
exist
for the security [
protection
] of such mobile facility
and its content
.
[
will exist.
] The commissioner may
require further safeguards
,
if in his opinion the proposed safeguards
are
[
be
] inadequate.
(5)
information-processing device, to be
] operated off-premises
of an approved savings bank office
.
[
, including associated
equipment structures and systems, by which information relating to financial
services rendered the public is stored and transmitted simultaneously or otherwise
to a financial institution. The term includes any facility which for activation
and account access requires the use of an activator and personal identifier
in the possession of the user and includes on-line computer terminals, and
on-line cash dispensing machines and automated teller machines.
] A remote
service unit is not an office of the savings bank within the meaning of §92.063
of the Texas Savings Bank Act.
seeking to
] establish and operate,
close,
or relocate a remote service unit
. A savings bank
shall file
written notice
[
an application
] with the
commissioner
prior to opening, closing or relocating a remote service
unit. Upon such notification, the establishment, closing or relocation of
the unit shall be deemed approved by the commissioner.
[
that includes
the following information:
]
(1)
(2)
(3)
(4)
(5)
(c)
(d)
any office
] beyond its immediate vicinity
without prior approval of the commissioner. Immediate vicinity is the area
included within a radius or distance of one mile from the present location
of such office. Any relocation within the immediate vicinity as defined in
this section will require the approval of the commissioner, if the office
to be relocated has not been open for business at its present location for
more than two years.
(b)
] Each application for such
approval shall state the exact proposed new location of the office to be relocated
.
[
and shall be supported with statements, exhibits, maps, and
other data, properly verified under oath, which shall be sufficiently detailed
and comprehensive to enable the commissioner to pass upon the factors for
approval. Such supporting
]
Supporting
data shall [
also
] include estimates of the cost of removal to and maintenance of the
new location.
(c)
(e)
Chapter 79.
Miscellaneous