SECTION 14.1. Definitions

As used in this chapter and in these rules, the following words and terms shall have the following meanings, unless the context clearly indicates otherwise:

(1) Account services--Are those services and transactions performed by a depository agent that are made in connection with creating, transferring, clearing, settling, or liquidating the rights and interests of a depository account holder in a depository account.

(A) Account services include:

(i) assisting retail customers in opening or creating a depository account;

(ii) accepting deposits from depository account holders on behalf of the depository;

(iii) processing withdrawal requests;

(iv) assisting retail customers in transferring depository account balances;

(v) assisting retail customers in closing a depository account; and

(vi) otherwise accessing the depository account of a depository account holder to help manage the account on behalf of the depository account holder.

(B) For the purposes of this chapter account services do not include:

(i) participation as a party or counterparty to a purchase or sale of bullion or specie, if the purchase or sale is an independent transaction and the bullion or specie is not being purchased or sold on behalf of the depository; or

(ii) arranging the shipment, delivery or transport of precious metals, bullion or specie to the depository, if the transaction is made or provided by a person who is not authorized to act on behalf of the depository and the transaction does not involve accessing the account of a depository account holder.

(2) Administrator--The bullion depository administrator appointed by the comptroller to administer, supervise, and direct the operations and affairs of the depository or the administrator's designee.

(3) Bullion--Precious metals that are formed into uniform shapes and quantities such as ingots, bars, or plates, with uniform content and purity, as are suitable for or customarily used in the purchase, sale, storage, transfer, and delivery of bulk or wholesale transactions in precious metals.

(4) Business day--A day other than a Saturday, Sunday, or banking holiday for a bank chartered under the laws of this state.

(5) Deposit--The establishment of an executory obligation of the depository to deliver to the order of the person establishing with the depository the obligation, on demand, a quantity of a specified precious metal, in bullion or specie, or a combination of bullion and specie, equal to the quantity of the same precious metal delivered by or on behalf of the depositor into the custody of the depository or a depository agent, subject to the terms of the depository account agreement.

(6) Depositor--A person who makes a deposit.

(7) Depository--The Texas Bullion Depository, a state agency, created by Government Code, §2116.002.

(8) Depository account--The business arrangement between the depository and a depositor through which the depository provides services to a depositor and records transactions that evidence the rights, interests, and entitlements established in favor of a depositor with respect to a deposit of bullion or specie.

(9) Depository account holder--The original depositor for a depository account, or the successor or assignee of the original depositor.

(10) Depository agent-- A financial institution that has entered into an agreement with the depository to provide a retail location for the provision of depository services to the general public for or on behalf of the depository.

(11) Fees--The fees, service charges, penalties or other amounts charged to a depository account holder for services or activities regarding a depository account.

(12) Financial Institution--Has the meaning assigned by Finance Code, §201.101.

(13) For or on behalf of the depository--Pursuant to express authorization by the depository. A service or transaction is not made for or on behalf of the depository unless the person providing the service or transaction has entered into an agreement with the depository to act as a depository agent and the person acts only within the scope of authority conferred by the agreement or the depository is a party to the transaction. The depository is not a party to a transaction involving the shipment, transport, or delivery of precious metals, bullion or specie merely by virtue of the fact that the depository is the destination for such shipment, transport, or delivery.

(14) Precious metal--A metal, including gold, silver, platinum, palladium, and rhodium, that:

(A) bears a high value-to-weight ratio relative to common industrial metals; and

(B) customarily is formed into bullion or specie.

(15) Specie--A precious metal stamped into coins of uniform shape, size, design, content, and purity, suitable for or customarily used as currency, as a medium of exchange, or as the medium for purchase, sale, storage, transfer, or delivery of precious metals in retail or wholesale transactions.

Source Note: The provisions of this §14.1 adopted to be effective December 27, 2017, 42 TexReg 7411; amended to be effective June 29, 2022, 47 TexReg 3694