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Can you summarize 7 TXAC 3.53?
PLEDGE AND MAINTENANCE OF ASSETS BY FOREIGN BANK LICENSED TO MAINTAIN TEXAS STATE BRANCH OR AGENCY > Asset Deposit and Pledge Requirement Applicable to Branch or Agency with Nonrelated Deposit Liabilities
Short Summary
This legal document, found in the Texas Administrative Code, pertains to the asset deposit and pledge requirement applicable to foreign banks that maintain and operate a Texas state branch or agency and carry nonrelated deposit liabilities on the books and records of such branch or agency. The document requires these foreign banks to pledge and keep assets on deposit with a depository in accordance with the subchapter. The amount of assets required to be deposited is based on the lower of the principal amount or market value and is determined by either one percent of the average total nonrelated liabilities or $100 million, subject to a minimum deposit of $100,000. The assets required to be deposited are deemed to be pledged to the banking commissioner for the benefit of the creditors and depositors of the Texas state branch’s or agency’s business in the state. The banking commissioner is deemed to have a security interest in such assets, and the foreign bank must ensure that the banking commissioner has a perfected, first-priority security interest in such assets under applicable law at all times. The document also outlines provisions for the projection of liabilities and the potential increase in the required deposit amount by the banking commissioner. The effective date of this document is September 8, 2022.
Whom does it apply to?
Foreign banks that maintain and operate a Texas state branch or agency and carry nonrelated deposit liabilities on the books and records of such branch or agency
What does it govern?
Asset Deposit and Pledge Requirement Applicable to Branch or Agency with Nonrelated Deposit Liabilities
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
Texas