Tex. Fin. Code Section 35.007
Effect of Final Removal or Prohibition Order


(a)

Except as otherwise provided by law, without the prior written approval of the banking commissioner, a person subject to a final and enforceable removal or prohibition order issued by the banking commissioner, or by another state, federal, or foreign financial institution regulatory agency, may not:

(1)

serve as a director, officer, or employee of a state bank, state trust company, or holding company of a state bank, or as a director, officer, or employee with financial responsibility of any other entity chartered, registered, permitted, or licensed by the banking commissioner under the laws of this state;

(2)

directly or indirectly participate in any manner in the management of such an entity;

(3)

directly or indirectly vote for a director of such an entity; or

(4)

solicit, procure, transfer, attempt to transfer, vote, or attempt to vote a proxy, consent, or authorization with respect to voting rights in such an entity.

(b)

The person subject to the order remains entitled to receive dividends or a share of profits, return of contribution, or other distributive benefit from such an entity with respect to voting securities owned by the person.

(c)

If voting securities of an entity identified in Subsection (a)(1) cannot be voted under this section, the voting securities are considered to be authorized but unissued for purposes of determining the procedures for and results of an affected vote.

(d)

Repealed by Acts 2007, 80th Leg., R.S., Ch. 237, Sec. 80, eff. September 1, 2007.

(e)

This section and Section 35.008 (Limitation on Action) do not prohibit a removal or prohibition order that has indefinite duration or that by its terms is perpetual.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 344, Sec. 2.014, eff. Sept. 1, 1999; Acts 2001, 77th Leg., ch. 412, Sec. 2.14, eff. Sept. 1, 2001.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 237 (H.B. 1962), Sec. 80, eff. September 1, 2007.
Acts 2011, 82nd Leg., R.S., Ch. 183 (S.B. 1165), Sec. 3, eff. May 28, 2011.
Acts 2017, 85th Leg., R.S., Ch. 599 (S.B. 1401), Sec. 6, eff. September 1, 2017.

Source: Section 35.007 — Effect of Final Removal or Prohibition Order, https://statutes.­capitol.­texas.­gov/Docs/FI/htm/FI.­35.­htm#35.­007 (accessed Jun. 5, 2024).

35.0001
Applicability to Bank Subsidiaries
35.001
Determination Letter
35.002
Cease and Desist Order
35.003
Removal or Prohibition Order
35.004
Hearing on Proposed Order
35.005
Emergency Order
35.006
Copy of Letter or Order in Bank Records
35.007
Effect of Final Removal or Prohibition Order
35.008
Limitation on Action
35.009
Enforcement by Commissioner
35.010
Administrative Penalty
35.011
Payment or Appeal of Administrative Penalty
35.012
Confidentiality of Records
35.013
Collection of Fees
35.0035
Removal or Prohibition Orders in Response to Certain Criminal Offenses
35.0071
Application for Release from Final Removal or Prohibition Order
35.101
Order of Supervision
35.102
Order of Conservatorship
35.103
Notice and Hearing
35.104
Post-hearing Order
35.105
Confidentiality of Records
35.106
Authority of Supervisor
35.107
Authority of Conservator
35.108
Qualifications of Appointee
35.109
Expenses
35.110
Review of Supervisor or Conservator Decision
35.111
Venue
35.112
Duration
35.113
Administrative Election of Remedies
35.114
Release Before Hearing
35.201
Inapplicability
35.202
Investigation of Unauthorized Activity
35.203
Subpoena Authority
35.204
Enforcement of Subpoena
35.205
Confidentiality of Subpoenaed Records
35.206
Evidence
35.207
Cease and Desist Order
35.208
Emergency Cease and Desist Order
35.209
Judicial Review of Cease and Desist Order
35.210
Violation of Final Cease and Desist Order
35.211
Administrative Penalty
35.212
Payment and Appeal of Administrative Penalty
35.213
Judicial Review of Administrative Penalty
35.1001
Applicability to Bank Subsidiaries

Accessed:
Jun. 5, 2024

§ 35.007’s source at texas​.gov