Section 75.2 - DefinitionsAs used in this chapter, and in the Commissioner's administration and enforcement of Finance Code Title 3, Subtitle C, the following words and terms are assigned the following meanings, unless the context clearly indicates otherwise.
(1) Affiliate--An affiliate of, or person affiliated with, a person that directly or indirectly, through one or more intermediaries, controls or is controlled by, or is under common control with, the person specified.(2) Affiliated person--(A) a director, officer, or controlling person of a savings bank;(B) a spouse of a director, officer, or controlling person of a savings bank;(C) a member of the immediate family of a director, officer, or controlling person of a savings bank, who is a director or officer of any subsidiary of a savings bank or of any holding company affiliate of a savings bank;(D) any company (other than the savings bank, its holding company, or an operating subsidiary) of which a director, officer, or controlling person of a savings bank:(i) is a director or officer;(ii) in the case of a limited liability company, is a manager or managing member;(iii) in the case of a partnership, is a general partner;(iv) in the case of a partnership, is a limited partner who, directly or indirectly, either alone or with his or her spouse and the members of their immediate family who are also affiliated persons of the savings bank, owns an interest of 10% or more in the partnership (based on the value of their contribution) or who, directly or indirectly with other directors, officers, and controlling persons of a savings bank, and their spouses and their immediate family members who are also affiliated persons of the savings bank, owns an interest of 25% or more in the partnership; or(v) directly or indirectly, either alone or with their spouse and the members of their immediate family, who are also affiliated persons of the savings bank, owns or controls 10% or more of any class of equity securities, or owns or controls with other directors, officers, and controlling persons of a savings bank and their spouses and their immediate family members, who are also affiliated persons of the savings bank, 25% or more of any class of equity securities; and(E) any trust or other estate in which a director, officer, or controlling person of a savings bank, or a member of the director's, officer's, or controlling person's immediate family, has a substantial beneficial interest or as to which such person or his or her spouse serves as trustee or in a similar fiduciary capacity.(3) Application--An application requesting authorization or other relief from the Commissioner pursuant to this chapter or under the Texas Savings Bank Act for which a filing fee is required under §75.102 of this section (relating to Application Fees and Charges).(4) Appropriate banking agency--Has the meaning assigned by the Texas Savings Bank Act (Finance Code § 91.002).(5) Board--Has the meaning assigned by the Texas Savings Bank Act (Finance Code § 91.002).(6) Bylaws--The rules adopted to regulate or manage a company, regardless of the name used to designate the rules, and with respect to a limited liability company (including a limited savings bank), means the company agreement, or similar rules adopted to regulate or manage the limited liability company.(7) Capital stock--Has the meaning assigned by the Texas Savings Bank Act (Tex. Fin. Code §91.002).(8) Capital stock savings bank--Has the meaning assigned by the Texas Savings Bank Act (Finance Code § 91.002).(9) Certificate of formation--The document evidencing the formation of the business entity, referred to in other governmental jurisdictions as the articles of incorporation, certificate of incorporation, or articles of organization, as applicable.(10) Commissioner--The savings and mortgage lending commissioner appointed under Finance Code Chapter 13.(11) Company--Has the meaning assigned by the Texas Savings Bank Act (Finance Code § 91.002).(12) Control--The power to exercise, directly or indirectly, a controlling influence over the management or policies of a company. Control is deemed to exist when a person, directly or indirectly, or acting through or in concert with one or more persons: (A) owns, controls, or has the power to vote 25% or more of any class of voting securities of a company;(B) is an officer or director of the company and owns, controls, or has the power to vote 10% or more of any class of voting securities of a company, and no other person owns, controls, or has the power to vote a greater percentage of that class of voting securities; or(C) controls, in any manner, the election of a majority of the directors, trustees, or other persons exercising similar functions of a company.(13) Controlling person--A person having control as defined by paragraph (12) of this section.(14) Day--A calendar day, unless another method of counting days is specified.(15) Deposit account--Has the meaning assigned by the Texas Savings Bank Act (Finance Code § 91.002).(16) Deposit liability--Has the meaning assigned by the Texas Savings Bank Act (Finance Code § 91.002).(17) FDIC--The Federal Deposit Insurance Corporation, including any successor.(18) Finance Commission--The Finance Commission of Texas, the oversight body responsible for overseeing and coordinating the Department under Finance Code Chapter 11.(19) Financial institution--Has the meaning assigned by the Texas Savings Bank Act (Finance Code § 91.002).(20) GAAP--Generally Accepted Accounting Principles.(21) Holding company affiliate--A company of which a savings bank is a subsidiary and any other subsidiary of such company other than a subsidiary of the savings bank.(22) Home office--The office where a savings bank has its headquarters and from which all of its operations are directed.(23) Immediate family--The spouse of an individual, the individual's minor children, and any of the individual's children (including adults) residing in the individual's home.(24) Issuer--The savings bank that issued the security in question.(25) Limited savings bank--Has the meaning assigned by the Texas Savings Bank Act (Finance Code § 91.002).(26) Managing officer--An individual designated by the board as being responsible for, and having the authority to direct, the day-to-day operations of the savings bank. The managing officer must have sufficient banking experience, ability, standing, competence, trustworthiness, and integrity to justify a belief that, under the management and supervision of the managing officer, the savings bank will operate in compliance with applicable law and that success of the savings bank is probable.(27) Member--Has the meaning assigned by the Texas Savings Bank Act (Finance Code § 91.002).(28) Mutual savings bank--Has the meaning assigned by the Texas Savings Bank Act (Finance Code § 91.002).(29) Officer--The president, any vice president (but not an assistant vice president, second president, or other vice president having authority similar to an assistant or second vice president), the secretary, the treasurer, the comptroller, and any other person performing similar functions with respect to any entity or organization, whether incorporated or unincorporated. The term "officer" includes the chairman of the board, if the savings bank's certificate of formation or bylaws authorize the chairman to participate in the operating management of the entity or organization, or if the chairman actually participates in such management.(30) Person--An individual, corporation, a partnership, an association, a joint stock company, a trust, an unincorporated organization, any similar entity, or any combination of the foregoing acting in concert.(31) Recourse-- A contract by a borrower or guarantor to repay 100% of all amounts due and owing under the loan.(32) Savings bank--Has the meaning assigned by the Texas Savings Bank Act (Finance Code § 91.002).(33) Shareholder--Has the meaning assigned by the Texas Savings Bank Act (Finance Code § 91.002).(34) Subsidiary-- Any company that is controlled by the savings bank or by a company that is controlled by a company which is controlled, directly or indirectly, by the savings bank.(35) Surplus--Has the meaning assigned by the Texas Savings Bank Act (Finance Code § 91.002).(36) Texas Savings Bank Act--Finance Code Title3, Subtitle C (Finance Code § 91.001 et seq.).(37) Unsafe and unsound practice--Has the meaning assigned by the Texas Savings Bank Act (Finance Code § 91.002), and includes excessive operating expenses, excessive growth, high-risk or undiversified investment positions, and non-existent or poorly followed lending or underwriting policies, procedures, or guidelines.(38) Voting security--includes any security convertible into or evidencing a right to acquire a voting security.(39) Withdrawal value--Has the meaning assigned by the Texas Savings Bank Act (Finance Code § 91.002) in defining "withdrawal value of deposit account."7 Tex. Admin. Code § 75.2
The provisions of this §75.2 adopted to be effective September 23, 1993, 18 TexReg 6094; Amended by Texas Register, Volume 41, Number 18, April 29, 2016, TexReg 3114, eff. 5/5/2016; Adopted by Texas Register, Volume 46, Number 11, March 12, 2021, TexReg 1631, eff. 3/15/2021; Adopted by Texas Register, Volume 47, Number 45, November 11, 2022, TexReg 7537, eff. 11/20/2022