Adopted Amendments to 7 TAC §21.4

Title 7. Banking and Securities
Part 2. Texas Department of Banking
Chapter 21. Trust Company Corporate Activities
Subchapter A. Fees and Other Provisions of General Applicability
7 TAC §21.4

The Finance Commission of Texas (the commission), on behalf of the Texas Department of Banking (the department), adopts amendments to §21.4, concerning required information and abandoned filings, with changes to the proposed text as published in the July 4, 2014, issue of the Texas Register (39 TexReg 5014), which will be republished.

Changes in the proposed text are found in 7 TAC §21.4(c), and modify the basis for granting a request for extension of time to complete an application from the commissioner’s sole discretion to a finding of good and sufficient cause.

The amended rule is adopted to allow the Texas Banking Commissioner (commissioner), upon a finding of good and sufficient cause to grant an applicant additional time to complete a filing. This provides an opportunity for applicants to continue to provide information needed by the department to make a meaningful evaluation and determination in processing the application.

The department deleted the current language in  §21.4(c), which contained deadlines for an applicant to request more time to submit information in conjunction with an application and for the commissioner to act on such requests. The department amended §21.4(c) to state simply that the commissioner may grant an applicant additional time and that the commissioner will communicate his or her decision to the applicant before the expiration of the filing period.

The Department received no comments regarding the proposed amendments.

The amendment is adopted pursuant to Finance Code, §181.003, which authorizes the Finance Commission to adopt rules to accomplish the purposes of Subtitle F, the Texas Trust Company Act, including rules to implement Subtitle F.

§21.4. Required Information and Abandoned Filings.

            (a)        Required information. The banking commissioner may investigate and evaluate facts related to a submitted filing or accepted filing to the extent necessary to reach an informed decision. The banking commissioner may require any person or entity connected with the matter to which the submitted or accepted filing pertains to submit additional information, including, but not limited to, an opinion of counsel with respect to a matter of law or an opinion, review or compilation prepared by a certified public accountant.

            (b)        Accepted for filing. On or before the 15th day after initial submission of an application, the banking commissioner shall issue a written notice informing the applicant either that all filing fees have been paid and the application is complete and accepted for filing, or that the application is deficient and specific additional information is required.

            (c)        Time limit for providing required information. Unless otherwise provided for in the Trust Company Act, this chapter or rules and regulations adopted pursuant to the Trust Company Act, all required information necessary for the banking commissioner to declare that a submission is an accepted filing shall be provided to the department on or before the 61st day after the date of the initial submission of the filing. Upon a finding of good and sufficient cause, the banking commissioner shall grant an applicant additional time to complete the application. Extensions will be communicated to the applicant before the expiration of the filing period.

            (d)       Abandoned filing. The banking commissioner may determine any submitted or accepted filing to be abandoned, without prejudice to the right to refile, if the information required by the Trust Company Act, this chapter, or any rule or regulation adopted pursuant to the Trust Company Act, or additional requested information, is not furnished within the time period specified by subsection (c) of this section or as requested by the banking commissioner in writing to the person or entity making the submission. The banking commissioner may determine a submitted or accepted filing for which fees required by the Trust Company Act or by this chapter are not paid within 30 days of receipt of the initial submission to be abandoned.

            (e)        Notice. The banking commissioner shall give written notice of any submitted or accepted filing considered to be abandoned. Notice of abandonment shall be effective upon mailing by the department. Fees paid related to an abandoned filing are nonrefundable.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on August 15, 2014.


Effective Date: September 4, 2014