Texas Finance Code 34.106 – Investments to Promote Community Development
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(a) A state bank may make investments of a predominantly civic, community, or public nature, including investments providing housing, services, or jobs or promoting the welfare of low-income and moderate-income communities or families.
(b) The bank may make the investments directly or by purchasing equity securities in an entity primarily engaged in making those investments. The bank may not make an investment that would expose the bank to unlimited liability.
Terms Used In Texas Finance Code 34.106
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Written: includes any representation of words, letters, symbols, or figures. See Texas Government Code 311.005
(c) A bank may serve as a community partner and make investments in a community partnership, as those terms are defined by the Riegle Community Development and Regulatory Improvement Act of 1994 (Pub. L. 103-325).
(d) A bank’s aggregate investments under this section may not exceed an amount equal to 15 percent of the bank’s unimpaired capital and surplus.
(e) Notwithstanding any other law, a bank’s exposure to a single project or entity described by this section, including all investments, loans, and commitments for loans, 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.