Tex. Fin. Code § 59.005 · Subchapter A. GENERAL PROVISIONS
AGENCY ACTIVITIES.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) A financial institution may receive deposits, renew time deposits, close loans, service loans, receive payments on loans and other obligations, and perform other services as an agent for another financial institution under a written agency agreement.
(b) A financial institution may not under an agency agreement:
(1) conduct an activity as agent that it would be prohibited from conducting as a principal under applicable state or federal law; or
(2) have an agent conduct an activity that the bank as principal would be prohibited from conducting under applicable state or federal law.
(c) The banking commissioner may order a state bank or another financial institution subject to the banking commissioner's enforcement powers to cease acting as an agent or principal under an agency agreement in a manner that the banking commissioner finds to be inconsistent with safe and sound banking practices or governing law.
(d) Notwithstanding another law, a financial institution acting as an agent for another financial institution in accordance with this section is not considered to be a branch of the institution acting as principal.
(e) This section does not affect:
(1) authority under another law for a financial institution to act as an agent on behalf of another person or to act as a principal in employing another person as agent; or
(2) whether an agent's activities on behalf of a financial institution under another law would cause the agent to be considered a branch of the financial institution.
Notes and commentary — not statutory text
History
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 344, Sec. 2.016, eff. Sept. 1, 1999; Acts 2001, 77th Leg., ch. 528, Sec. 14, eff. Sept. 1, 2001.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/FI/htm/FI.59.htm
- Text hash
- sha256 deb4e64cebda1b55e4b0759b8f1768b75eadb0704fa98ebbe58fc6d9d2bb968b
- 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
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.