SECTION 3.93. Deposit Production Offices

(a) Engaging in deposit production activities. A Texas state bank may, to the extent authorized by its board of directors, engage in deposit production activities at a site other than the home office or a branch of the bank, including establishing a deposit production office (DPO) of the bank. A DPO may only solicit deposits, provide information about deposit products, and assist persons in completing application forms and related documents to open a deposit account. A DPO is not a branch within the meaning of Finance Code, §31.002(a)(8), so long as it does not engage the public in the business of banking as defined by Finance Code, §31.002(a)(4), including making loans, receiving deposits, and paying withdrawals, drafts, or checks. All such deposit or withdrawal activity must be performed by the state bank customer in person at the home office or a branch, or by mail, electronic transfer, or similar transfer method with the home office or a branch.

(b) Notification to the banking commissioner. Pursuant to Finance Code, §32.204(b), a Texas state bank shall notify the banking commissioner in writing before the 31st day preceding the date of establishment of a DPO, except the banking commissioner in the exercise of discretion may waive or shorten the period. The written notification must include the physical address of the DPO, a list of the specific activities to be performed at the planned DPO, and other information which the banking commissioner may reasonably request.

(c) Relocation or closure of a DPO. A Texas state bank which seeks to relocate or close an established DPO shall notify the banking commissioner in writing before the fifth day preceding the date of the planned relocation or closure of the DPO. The written notification must include the physical address of the relocated or closed DPO, the anticipated date for the closure or relocation of the DPO, and other information which the banking commissioner may reasonably request.

(d) Transactions with management and affiliates. A state bank establishing a DPO involving the purchase or lease of personal or real property from an officer, director, manager, managing participant, or principal shareholder or participant of the bank or an affiliate of the bank, must comply with the provisions of the Finance Code, §33.109, and §3.22 of this title (relating to Sale or Lease Agreements with an Officer, Director, or Principal Shareholder of the Bank or of an Affiliate of the Bank).

(e) Out-of-state banks. A bank not domiciled or primarily located in this state must comply with the provisions of the Finance Code, Chapter 201, Subchapter B (§§201.101 et seq. ), to establish a DPO in this state.

Source Note: The provisions of this §3.93 adopted to be effective March 8, 2012, 37 TexReg 1496; amended to be effective November 7, 2013, 38 TexReg 7683; amended to be effective September 8, 2022, 47 TexReg 5328