(a) Required notice. An out-of-state trust company or a state-chartered bank, the deposits of which are not insured by the Federal Deposit Insurance Corporation, may establish an initial representative trust office in this state after registration with the banking commissioner in accordance and in compliance with Finance Code §187.202 and this section, provided that the relevant home state regulator is a current party to regulatory information sharing and cooperation agreements with the banking commissioner that satisfy the requirements of Finance Code §181.303 and §187.301. At least 30 days before the proposed opening date of the proposed office, the institution must submit a written notice to the banking commissioner containing:
  (1) the name of the institution and the address of its principal office;
  (2) the physical address and the proposed opening date of the proposed office;
  (3) a description of the proposed activities at the office consistent with the limitations of Finance Code §187.201;
  (4) a copy of the institution's chartering document and evidence that the institution is active and in good standing;
  (5) a copy of the resolution adopted by the board of the institution authorizing establishment of the proposed office;
  (6) a copy of the institution's registration filed with the secretary of state pursuant to Finance Code §201.102;
  (7) copies of any home state regulatory notices or filings required in connection with establishing the proposed office in this state;
  (8) contact information for the institution's home state regulator;
  (9) current financial statements evidencing tangible equity capital, defined as the total of owner's equity, surplus, and undivided profits reduced by the total of intangible assets, in an amount that equals or exceeds the minimum amount of restricted capital required for a state trust company pursuant to Finance Code §182.008; and
  (10) the executed agreement required by subsection (b) of this section.
(b) Required agreement. The institution must submit its enforceable written agreement in the form provided by the banking commissioner, duly executed by an authorized officer of the institution, in which the institution agrees to:
  (1) maintain tangible equity capital in an amount that equals or exceeds the minimum amount of restricted capital required for a state trust company pursuant to Finance Code §182.008, at all times during the period an office of the institution is maintained in this state;
  (2) cooperate with and participate in examination at least once every 12 months at the discretion of the banking commissioner, and to pay the costs of each such examination as provided by §17.22 of this title (relating to Examination and Investigation Fees); and
  (3) provide prompt written notice to the banking commissioner:
    (A) pursuant to Finance Code §187.306, at least 30 days before the effective date of the event, or, in the case of an emergency transaction, a shorter period before the effective date consistent with applicable state or federal law, of:
      (i) a merger or other transaction that would cause a change of control with respect to the institution and require an application to be filed with the home state regulator;
      (ii) a transfer of all or substantially all of the trust accounts or trust assets of the institution to another person; or
      (iii) the relocation, closing, or other disposition of an office of the institution in this state.
    (B) not later than 30 days after the institution receives notice of the imposition of or a proposed enforcement action or condition by the institution's home state regulator.
(c) When the office may open. The institution may commence business at the representative trust office on the 31st day after the date the banking commissioner receives the notice unless the banking commissioner specifies an earlier or later date.
  (1) The 30-day period of review may be extended by the banking commissioner on a determination that the written notice raises issues that require additional information or additional time for analysis. If the period of review is extended, the institution may establish the representative trust office only on prior written approval by the banking commissioner.
  (2) The banking commissioner may deny approval of the representative trust office if the banking commissioner finds that the institution lacks sufficient financial resources to undertake the proposed expansion without adversely affecting its safety or soundness or that the proposed office would be contrary to the public interests.
(d) Additional offices. An out-of-state trust company or uninsured state-chartered bank that has established and is maintaining a representative trust office in this state pursuant to this section may establish additional representative trust offices in this state without providing notice to the banking commissioner.

Source Note: The provisions of this §21.44 adopted to be effective May 5, 2016, 41 TexReg 3101