S.B. No. 726
 
 
 
 
AN ACT
  relating to investments by state banks to promote community
  development.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  The heading to Section 34.106, Finance Code, is
  amended to read as follows:
         Sec. 34.106.  INVESTMENTS TO PROMOTE COMMUNITY DEVELOPMENT
  [FOR PUBLIC WELFARE].
         SECTION 2.  Section 34.106, Finance Code, is amended by
  amending Subsection (d) and adding Subsection (e) to read as
  follows:
         (d)  A bank's aggregate investments under this section[,
  including loans and commitments for loans,] may not exceed an
  amount equal to 15 [10] percent of the bank's unimpaired capital and
  surplus. [The banking commissioner may authorize investments in
  excess of this limitation in response to a written application if
  the banking commissioner concludes that:
               [(1)     the excess investment is not precluded by other
  applicable law; and
               [(2)     the safety and soundness of the requesting bank
  would not be adversely affected.]
         (e)  Notwithstanding any other law, a bank's exposure to a
  single project or entity described by this section, including all
  investments, loans, and commitments for loans, may not exceed 25
  percent of the bank's unimpaired capital and surplus without the
  prior authorization of the banking commissioner in response to a
  written application.
         SECTION 3.  This Act takes effect September 1, 2019.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 726 passed the Senate on
  March 27, 2019, by the following vote:  Yeas 31, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 726 passed the House on
  April 11, 2019, by the following vote:  Yeas 145, Nays 1, one
  present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor