Tex.
Fin. Code Section 182.502
Conversion of Trust Institution into State Trust Company
(a)
A trust institution may apply to the banking commissioner for conversion into a state trust company on a form prescribed by the banking commissioner and accompanied by any required fee if the trust institution follows the procedures prescribed by the laws of the United States, this state, another state, or another country governing the exit of the trust institution for the purpose of conversion into a state trust company from the regulatory system applicable before the conversion. A trust association or limited trust association may convert its organizational form under this section.(b)
A trust institution applying to convert into a state trust company may receive a certificate of authority to do business as a state trust company if the banking commissioner finds that:(1)
the trust institution is not engaging in a pattern or practice of unsafe and unsound fiduciary or banking practices;(2)
the trust institution has adequate capitalization for a state trust company to act as a fiduciary at the same locations as the trust institution is acting as a fiduciary before the conversion;(3)
the trust institution can be expected to operate profitably after the conversion;(4)
the officers and directors of the trust institution as a group have sufficient fiduciary experience, ability, standing, competence, trustworthiness, and integrity to justify a belief that the trust institution will operate as a state trust company in compliance with law; and(5)
each principal shareholder has sufficient experience, ability, standing, competence, trustworthiness, and integrity to justify a belief that the trust institution will be free from improper or unlawful influence or interference with respect to the trust institution’s operation as a state trust company in compliance with law.(c)
The banking commissioner may:(1)
request additional information considered necessary to make an informed decision under this section;(2)
perform an examination of the converting trust institution at the expense of the converting trust institution; and(3)
require that examination fees be paid before a certificate of authority is issued.(d)
In connection with the application, the converting trust institution must:(1)
submit a statement of the law governing the exit of the trust institution from the regulatory system applicable before the conversion and the terms of the transition into a state trust company; and(2)
demonstrate that all applicable law has been fully satisfied.
Source:
Section 182.502 — Conversion of Trust Institution into State Trust Company, https://statutes.capitol.texas.gov/Docs/FI/htm/FI.182.htm#182.502 (accessed May 18, 2024).
