SECTION 3.54. Asset Deposit and Pledge Requirement Applicable to Branch or Agency with Only Nonrelated Other Liabilities

(a) Asset pledge not generally required. Subject to subsection (b) of this section, a foreign bank that carries only nonrelated other liabilities on the books and records of its Texas state branch or agency, and does not carry nonrelated deposit liabilities, is not required to pledge assets under this subchapter.

(b) Authority of banking commissioner to require asset pledge. The banking commissioner, in his sole discretion based upon the factors identified in §3.53(e) of this title (relating to Asset Deposit and Pledge Requirement Applicable to Branch or Agency with Nonrelated Deposit Liabilities), may require a foreign bank that carries only nonrelated other liabilities on the books and records of its Texas state branch or agency to pledge assets in accordance with §3.53 of this title (relating to Asset Deposit and Pledge Requirement Applicable to Branch or Agency with Nonrelated Deposit Liabilities). In such event, the bank must comply with all provisions of this subchapter relating to the deposit and pledge of assets.

Source Note: The provisions of this §3.54 adopted to be effective November 12, 2003, 28 TexReg 9823