Texas § FI.59.005 - AGENCY ACTIVITIES
Full text of Texas The Texas Constitution § FI.59.005 — AGENCY ACTIVITIES, with citation guidance and answers to common questions.
§ FI.59.005. AGENCY ACTIVITIES
AGENCY ACTIVITIES. (a) A financial institution may receive deposits, renew time deposits, close loans, service loans, receive payments on loans and other obligations, and perform other services as an agent for another financial institution under a written agency agreement. (b) A financial institution may not under an agency agreement: (1) conduct an activity as agent that it would be prohibited from conducting as a principal under applicable state or federal law; or (2) have an agent conduct an activity that the bank as principal would be prohibited from conducting under applicable state or federal law. (c) The banking commissioner may order a state bank or another financial institution subject to the banking commissioner's enforcement powers to cease acting as an agent or principal under an agency agreement in a manner that the banking commissioner finds to be inconsistent with safe and sound banking practices or governing law. (d) Notwithstanding another law, a financial institution acting as an agent for another financial institution in accordance with this section is not considered to be a branch of the institution acting as principal. (e) This section does not affect: (1) authority under another law for a financial institution to act as an agent on behalf of another person or to act as a principal in employing another person as agent; or (2) whether an agent's activities on behalf of a financial institution under another law would cause the agent to be considered a branch of the financial institution. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 344, Sec. 2.016, eff. Sept. 1, 1999; Acts 2001, 77th Leg., ch. 528, Sec. 14, eff. Sept. 1, 2001.
Frequently Asked Questions About Texas § FI.59.005
What does The Texas Constitution § FI.59.005 cover?
Section FI.59.005 ("AGENCY ACTIVITIES") is part of the The Texas Constitution, the codified statutory law of Texas. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Texas § FI.59.005?
A common citation format is "The Texas Constitution § FI.59.005" (Texas). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Texas law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Texas official source linked on this page or consult a licensed Texas attorney.
How does Texas § FI.59.005 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Texas can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Texas.