85R9461 TSR-F     By: Oliveira H.B. No. 2831       A BILL TO BE ENTITLED   AN ACT   relating to investments by state banks to promote public welfare   and community development.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  The heading to Section 34.106, Finance Code, is   amended to read as follows:          Sec. 34.106.  INVESTMENTS TO PROMOTE [FOR] PUBLIC WELFARE   AND COMMUNITY DEVELOPMENT.          SECTION 2.  Section 34.106, Finance Code, is amended by   amending Subsection (d) and adding Subsection (e) to read as   follows:          (d)  A bank's aggregate equity investments under this   section[, including loans and commitments for loans,] may not:                (1)  exceed an amount equal to 15 [10] percent of the   bank's unimpaired capital and surplus; and                (2)  be made unless the bank is at least adequately   capitalized. [The banking commissioner may authorize investments   in excess of this limitation in response to a written application if   the banking commissioner concludes that:                [(1)     the excess investment is not precluded by other   applicable law; and                [(2)     the safety and soundness of the requesting bank   would not be adversely affected.]          (e)  Subject to Subsection (d), a bank's investments   described by Subsection (a), including equity investments and loans   and commitments for loans, in a single entity may not exceed 25   percent of the bank's unimpaired capital and surplus without the   prior authorization of the banking commissioner in response to a   written application.          SECTION 3.  This Act takes effect September 1, 2017.