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Can you summarize 7 TXAC Chapter 12?
TEXAS DEPARTMENT OF BANKING > LOANS AND INVESTMENTS
Short Summary
The provided legal document content covers various aspects of the ownership, management, and disposal of Other Real Estate Owned (OREO) by state banks in Texas. It provides definitions for key terms related to OREO and outlines the circumstances under which a state bank may acquire OREO. The document also establishes appraisal requirements, additional expenditures, holding period requirements, and methods of disposing of OREO. Furthermore, the document discusses the investment limits for state banks in Texas, including the definition of ‘unimpaired capital and surplus’ and the determination of investment limits. It explains the concept of hedging investments and the conditions under which a state bank may make otherwise prohibited investments or exceed statutory limits for the purpose of hedging risks. The document also highlights the importance of effective risk management and provides guidelines for documentation underlying investment decisions. Additionally, the document covers lending limits, loans, and extensions of credit in the state of Texas. It includes guidelines for calculating lending limits, credit exposure for derivative and securities financing transactions, aggregation and attribution of loans, regulations for lease financing, provisions for nonconforming loans, exemptions from lending limits, and definitions related to loans and extensions of credit. Lastly, the document governs debt cancellation contracts and debt suspension agreements entered into by state banks. It provides definitions for key terms and outlines the authority, purpose, and scope of these contracts and agreements. The document emphasizes safe and sound banking practices, consumer protections, and prohibits certain practices. It also addresses refunds of fees, payment options, and disclosure requirements. Overall, these documents provide comprehensive guidelines and regulations for state banks in Texas regarding OREO, investment limits, lending limits, and debt cancellation contracts and debt suspension agreements.
Whom does it apply to?
State banks in Texas, banks and financial institutions operating in Texas, industrial development authorities, leasing companies, and customers
What does it govern?
Ownership and management of Other Real Estate Owned (OREO) by state banks, investment limits for state banks, lending limits, loans, and extensions of credit in the state of Texas, and debt cancellation contracts and debt suspension agreements entered into by state banks
What are exemptions?
No specific exemptions are mentioned in these documents
What are the Penalties?
No specific penalties are mentioned in these documents
Jurisdiction
Texas