Relating to the regulation of state banks.

Contracts

• Commercial Loan Agreements: Review all security agreements where state bank stock is pledged as collateral. Default remedies must be updated to reflect that the lender cannot exercise voting rights upon foreclosure until a written notice is filed with the Banking Commissioner.
• Shareholder Agreements: Buy-sell agreements involving existing controlling shareholders (holding 25%+) can be expedited. The requirement for a full regulatory application for these specific acquirers has been removed.

Hiring/Training

• Board of Directors: Directors of banks under supervision must be retrained immediately to understand that the dividend ban now extends to stock and property dividends, not just cash.
• Loan Workout Officers: Staff handling foreclosures on pledged securities must be trained to file the regulatory notice immediately upon taking title to bank stock.

Reporting & Record-Keeping

• New Filing (Notice of Acquisition): A "Written Notice of Acquisition" is now required for parties acquiring bank stock through foreclosure or inheritance. This must be filed *before* voting the shares.
• Corporate Minutes: For banks under supervision, minutes must explicitly document that no dividends of any kind (cash or non-cash) are declared without written regulatory approval.

Fees & Costs

• Cost Reduction: Existing controlling shareholders (25%+) acquiring additional shares are now exempt from the application fees associated with Section 33.001.
• No New Fees: The bill does not introduce new statutory fees.