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Can you summarize 7 TXAC 3.59?
PLEDGE AND MAINTENANCE OF ASSETS BY FOREIGN BANK LICENSED TO MAINTAIN TEXAS STATE BRANCH OR AGENCY > Deposit Agreement and Conditions
Short Summary
This document outlines the requirements and conditions for a deposit agreement between a foreign bank and a depository in the context of a Texas state branch or agency. The deposit agreement must be approved by the banking commissioner and include specific terms and conditions. Only assets eligible to be pledged under the relevant regulations may be deposited into the pledge account. The assets must be pledged to the banking commissioner for the benefit of the creditors and depositors of the Texas state branch or agency. The depository must hold the assets as a special deposit, free of any liens or charges. The depository is required to furnish a receipt or statement to the foreign bank upon deposit, and must release the assets upon written request from the foreign bank or the banking commissioner. The document also covers the responsibilities of the depository in safeguarding the deposited securities and the termination provisions of the deposit agreement. The banking commissioner has the authority to impose additional terms and conditions and may terminate the deposit agreement if there is non-compliance. Overall, this document governs the deposit arrangement between foreign banks and depositories in relation to Texas state branches or agencies.
Whom does it apply to?
Foreign banks and depositories
What does it govern?
Deposit agreement and conditions for foreign banks maintaining a Texas state branch or agency
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Texas