Texas Finance Code 182.001 – Organization and General Powers of State Trust Company
(a) Subject to Subsection (g) and the other provisions of this chapter, one or more persons may organize and charter a state trust company as a state trust association or a limited trust association.
(b) A state trust company may engage in the trust business by:
(1) acting as trustee under a written agreement;
(2) receiving money and other property in its capacity as trustee for investment in real or personal property;
(3) acting as trustee and performing the fiduciary duties committed or transferred to it by order of a court;
(4) acting as executor, administrator, or trustee of the estate of a deceased person;
(5) acting as a custodian, guardian, conservator, or trustee for a minor or incapacitated person;
(6) acting as a successor fiduciary to a trust institution or other fiduciary;
(7) receiving for safekeeping personal property;
(8) acting as custodian, assignee, transfer agent, escrow agent, registrar, or receiver;
(9) acting as investment advisor, agent, or attorney in fact according to an applicable agreement;
(10) with the prior written approval of the banking commissioner and to the extent consistent with applicable fiduciary principles, engaging in a financial activity or an activity incidental or complementary to a financial activity, directly or through a subsidiary;
(11) exercising additional powers expressly conferred by rule of the finance commission; and
(12) exercising any incidental power that is reasonably necessary to enable it to fully exercise the powers expressly conferred according to commonly accepted fiduciary customs and usages.
Terms Used In Texas Finance Code 182.001
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- Executor: A male person named in a will to carry out the decedent
- Fiduciary: A trustee, executor, or administrator.
- Guardian: A person legally empowered and charged with the duty of taking care of and managing the property of another person who because of age, intellect, or health, is incapable of managing his (her) own affairs.
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
- Personal property: All property that is not real property.
- Property: means real and personal property. See Texas Government Code 311.005
- Rule: includes regulation. See Texas Government Code 311.005
- Trustee: A person or institution holding and administering property in trust.
- United States: includes a department, bureau, or other agency of the United States of America. See Texas Government Code 311.005
- Written: includes any representation of words, letters, symbols, or figures. See Texas Government Code 311.005
(c) For purposes of other state law, a trust association is considered a corporation and a limited trust association is considered a limited liability company. To the extent consistent with this subtitle, a trust association may exercise the powers of a Texas business corporation and a limited trust association may exercise the powers of a Texas limited liability company as reasonably necessary to enable exercise of specific powers under this subtitle.
(d) A state trust company may contribute to a community fund or to a charitable, philanthropic, or benevolent instrumentality conducive to public welfare an amount that the state trust company’s board considers appropriate and in the interests of the state trust company.
(e) Subject to § 184.301, a state trust company may deposit trust funds with itself.
(f) A state trust company insured by the Federal Deposit Insurance Corporation may receive and pay deposits, with or without interest, made by the United States, the state, a county, or a municipality.
(g) In the exercise of discretion consistent with the purposes of this subtitle, the banking commissioner may require a state trust company to conduct an otherwise authorized activity through a subsidiary.