Letters of No Objection

Instructions for obtaining a letter of no objection from the Banking Commissioner to use certain words in a title of a corporation, partnership, limited liability company and assumed business or professional names.

Under the provisions of Sections 31.005 and 181.004(a) of the Texas Finance Code, the name of a domestic or foreign corporation is prohibited from containing certain words in its title. The Banking Commissioner has the authority to issue a letter of no objection for use of these words or terms. Receipt of the letter from the Commissioner will enable the requestor to submit certain filings to the Secretary of State.

The following names, or phonetically similar derivatives of such names, taken from the list of prohibited names, have been determined to require a letter of no objection from the Banking Commissioner.

  • Bank
  • Banc
  • Bank and Trust
  • Trust

Persons seeking the issuance of a letter of no objection are to submit a letter containing the following information to the Banking Department's Corporate Activities Division at the address appearing below:

  1. A detailed letter describing in plain language:
    • the exact name they are seeking to use and the primary business activities of the entity in Texas; and
    • why use of the term "bank," "banc," "trust," etc., is important to use in the name and yet is not deceptive to the public; and
    • the license status on the entity either: (1) indicating the status of any license(s) that the corporation must obtain in order to do business in this state, or (2) representing that no license or authorization is necessary to conduct that business in this state.
  2. Description of products and services that are currently offered and will be offered by the entity.
  3. A commitment addressed to the Commissioner from management of the entity, or an agent authorized to bind the entity, that the entity will not advertise or hold out to the public in any manner that it is a state or national bank, trust company or depository institution, or that it is authorized to conduct banking or trust business;
  4. A full explanation of any affiliation with a bank, bank holding company, trust company, or other financial institution;
  5. Evidence of any qualification to do business in other states; and,
  6. $100 filing fee, made payable to the Texas Department of Banking.
  7. If the entity owns or operates a website, that contains the words "bank," "banc," "trust" etc., management of the entity, or an agent authorized to bind the entity, must submit a commitment that the entity will prominently display the following disclaimer on its homepage "(name of entity) is not a chartered bank or trust company, or depository institution. It is not authorized to accept deposits or trust accounts and is not licensed or regulated by any state or federal banking authority."

The agency will review the proposed name and use of terms, along with other material submitted as a whole in order to make a decision. Submission of the $100 filing fee is required for consideration, but does not constitute guarantee of approval of the proposed name. Generally, we will grant a request if, in context, the term is not misleading and is used (1) to indicate a permissible and authorized affiliation with a bank or trust company; (2) by an actual trust or entity controlled by the trust for the purpose of conducting its own business (other than the business of providing banking or fiduciary services to the public); (3) by a vendor of services or products to financial institutions in a manner and context that fairly describes its business; or (4) as a term of art in a manner and context that clearly invokes an established secondary meaning. If your request falls outside these parameters, the chance of approval is slim.

Requests should be addressed to:

Corporate Activities Division
Texas Department of Banking
2601 North Lamar Blvd.
Austin, TX 78705-4294

Corporate Activities

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