By: Holland, Longoria (Senate Sponsor - Buckingham) H.B. No. 2579          (In the Senate - Received from the House April 24, 2017;   May 1, 2017, read first time and referred to Committee on Business &   Commerce; May 10, 2017, reported favorably by the following vote:     Yeas 7, Nays 0; May 10, 2017, sent to printer.)Click here to see the committee vote     A BILL TO BE ENTITLED   AN ACT     relating to the bond and other coverages required to be maintained   by or for the benefit of a savings bank.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 92.156, Finance Code, is amended to read   as follows:          Sec. 92.156.  FINANCIAL INSTITUTION BOND [INDEMNITY BONDS OF   DIRECTORS, OFFICERS, AND EMPLOYEES]. (a) A savings bank shall   maintain a financial institution [blanket indemnity] bond that   provides [with an] adequate coverage to protect [corporate surety   protecting] the savings bank from loss:                (1)  by or through dishonest or criminal action or   omission, including fraud, theft, or misplacement [robbery, or   burglary], by any of the following persons:                      (A)  an officer or employee of the savings bank;                      (B)  an attorney retained by the savings bank;                      (C)  a nonemployee performing data processing   services for the savings bank; or                      (D)  a director of the savings bank performing a    [when the director performs the] duty of an officer or employee; or                (2)  by other perils such as robbery, burglary,   forgery, or alteration.          (b)  A savings bank that employs a collection agent who is   not covered by the bond required by Subsection (a) shall:                (1)  ensure that the savings bank is included as a loss   payee in the collection agent's crime coverage; and                (2)  obtain a certificate of insurance evidencing the   sufficiency of the collection agent's crime coverage [provide for   the bonding of the agent in an amount equal to at least twice the   average monthly collection of the agent unless the agent is a   financial institution insured by the Federal Deposit Insurance   Corporation. An agent shall settle with the savings bank at least   monthly].          (c)  Subject to rules adopted under Subsection (e), the board   shall, at least annually, review and approve:                (1)  the coverage, including the amount of the   coverage, provided by the bond and the form of the bond; and                (2)  the sustainability [sufficiency] of the corporate    surety or insurer that issued the bond.          (d)  The bond must provide that a cancellation or other   termination by the corporate surety or insurer or by the insured is   not effective until the earlier of:                (1)  the date the commissioner approves; or                (2)  the 30th day after the date written notice of the   cancellation is given to the commissioner.          (e)  The finance commission may adopt rules establishing:                (1)  the coverage, including the amount of the   coverage, that must be provided by the bond and the form of the   bond; and                (2)  the sustainability [sufficiency] of the corporate   surety or insurer that issues the bond.          SECTION 2.  Not later than January 1, 2018:                (1)  a savings bank that maintains a bond under Section   92.156, Finance Code, on the effective date of this Act shall obtain   a bond that satisfies the requirements of Section 92.156, Finance   Code, as amended by this Act; and                (2)  a collection agent employed by a savings bank   shall maintain crime coverage in compliance with Section 92.156(b),   Finance Code, as amended by this Act.          SECTION 3.  This Act takes effect September 1, 2017.     * * * * *