SECTION 3.58. Eligible Assets and Conditions

(a) Eligible assets. In addition to the assets consisting of dollar deposits and investment securities described in Finance Code, §204.113(a), a foreign bank may deposit the following assets to satisfy the pledge requirement established in §3.53 of this title (relating to Asset Deposit and Pledge Requirement Applicable to Branch or Agency with Nonrelated Deposit Liabilities):

(1) reserves maintained with a federal reserve bank in or outside this state;

(2) United States and non-United States debt obligations that are rated investment grade by a recognized United States rating service; and

(3) assets specifically approved by the banking commissioner upon prior written application.

(b) Asset pledge conditions and limitations. Unless the banking commissioner specifically permits otherwise, the following conditions and limitations apply to the asset pledge:

(1) Assets must be payable in the United States and payable in United States dollars; and

(2) Assets must be capable of being promptly sold under ordinary market conditions at a fair market value determined by reliable and continuously available price quotations, based upon actual transactions on an auction or similarly available daily bid and ask price market.

(c) Authority of banking commissioner to impose additional conditions. With respect to any asset, the commissioner may determine that, for purposes of this subchapter, a foreign bank must hold such asset in such form or subject to such conditions as the banking commissioner may prescribe. The banking commissioner may expressly disallow one or more otherwise eligible assets, either for all foreign banks or a specific foreign bank. All assets are subject to any additional conditions or limitations deemed by the banking commissioner to be necessary or desirable.

Source Note: The provisions of this §3.58 adopted to be effective November 12, 2003, 28 TexReg 9823