Tex. Fin. Code § 32.103 · Subchapter B. AMENDMENT OF CERTIFICATE; CHANGES IN CAPITAL AND SURPLUS
CHANGE IN OUTSTANDING CAPITAL AND SURPLUS.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) A state bank may not reduce or increase its outstanding capital and surplus through dividend, redemption, issuance of shares, or otherwise, without the prior written approval of the banking commissioner, except as permitted by this section or rules adopted under this subtitle.
(b) Unless restricted by rule, prior written approval is not required for an increase in capital and surplus accomplished through:
(1) issuance of shares of common stock for cash, or a cash contribution to surplus by shareholders that does not result in issuance of additional common stock or other securities;
(2) declaration and payment of pro rata share dividends as defined by the Business Organizations Code; or
(3) adoption by the board of a resolution directing that all or part of undivided profits be transferred to capital or surplus.
(c) Prior approval is not required for:
(1) a decrease in capital or surplus caused by losses in excess of undivided profits; or
(2) a change in capital and surplus resulting from accounting adjustments required by a transaction approved by the banking commissioner if the accounting adjustments are reasonably disclosed in the submitted application.
Notes and commentary — not statutory text
History
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 237 (H.B. 1962), Sec. 16, eff. September 1, 2007.
Acts 2007, 80th Leg., R.S., Ch. 735 (H.B. 2754), Sec. 4, eff. September 1, 2007.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/FI/htm/FI.32.htm
- Text hash
- sha256 354ede1eb8b938e38dd535fae53cf9b43053d51a9712481752747a26e0424fa6
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
Cited by 2 provisions
Provisions in this library whose text cites Tex. Fin. Code § 32.103. Each shows the citation as that text prints it.
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.