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Review the laws governing trust companies for necessary revisions
and possible incorporation in the Texas Banking Act.
The 74th Legislature adopted the Texas Banking Act of 1995. In
adopting the Act, Chapters 1 through 10 of the Banking Code of
1943 were repealed. The new Texas Banking Act retained Chapter
11 of the old code, which contains generally unmodified state
trust company regulations.
A revised Chapter 11 was prepared, but there was insufficient
time to review the changes with the industry. The Financial Institutions
Committee decided to set aside the revised chapter and conduct
a full interim study on the issue.
Review the Texas Credit Code to identify areas that may need revision
and recommend such revisions.
Currently, the Texas Credit Code is divided into three subtitles:
Subtitle I contains general interest and usury provisions; Subtitle
II contains provisions for consumer installment loans, secondary
mortgage loans, retail installment sales, manufactured home financing,
and motor vehicle installment sales; and Subtitle III contains
revolving loan provisions.
Review federal legislation affecting the banking, thrift, or securities
industries to assess impacts on Texas and the need for revising
In 1996, federal legislation was passed clarifying the regulatory
authority of state and federal agencies over the securities industry.
The state will have exclusive regulatory jurisdictions over invest
ment advisors that have $25 million or less under management and
will no longer regulate investment advisors with more than $25
million under management. The state will retain its authority
to collect filing or registration fees with respect to securities
or securities transactions and its authority to bring enforcement
action with respect to fraud. There is no fiscal impact to state
Due to the preemptory nature of the federal securities legislation,
the committee made no recommendations.