SECTION 3.5. Financial Valuation and Advisory Services


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  • A state-chartered bank may provide financial valuation and advisory services to its depositors or clients. The term "financial valuation and advisory services" means:

    (1) the valuation of a company for purposes of acquisitions, mergers, and divestitures;

    (2) fairness opinions in connection with tender offers, consolidations, or mergers;

    (3) advice for management or for a bankruptcy court about the viability and capital adequacy of financially troubled companies and about the fairness of proposed bankruptcy reorganizations;

    (4) valuation opinions for transactions in publicly held securities;

    (5) valuations of the fair market value of employee stock ownership trusts;

    (6) periodic valuation of stock of privately owned companies held in pension or profit-sharing plans, charitable trusts, or venture capital funds;

    (7) valuation of a privately owned company, or of a large block of publicly owned securities;

    (8) valuations, for estate tax and estate planning purposes, of a company's common stock and other securities for recapitalization of a privately held company; and

    (9) expert witness testimony in support of valuations.

Source Note: The provisions of this §3.5 adopted to be effective August 19, 1985, 10 TexReg 2543.