POWERS RELATIVE TO OTHER FINANCIAL INSTITUTIONS

(a) Subject to limitations prescribed by rule of the finance commission, a savings bank may make a loan or investment or engage in an activity permitted: (1) under state law for a bank or savings and loan association; or (2) under federal law for a federal savings and loan association, savings bank, or national bank if the financial institution's principal office is located in this state. (b) Notwithstanding any other law, a savings bank organized and chartered under this chapter may perform an act, own property, or offer a product or service that is at the time permissible within the United States for a depository institution organized under federal law or the law of this state or another state if the commissioner approves the exercise of the power as provided by this section, subject to the same limitations and restrictions applicable to the other depository institution by pertinent law, except to the extent the limitations and restrictions are modified by rules adopted under Subsection (e). This section may not be used to alter or negate the application of the laws of this state with respect to: (1) establishment and maintenance of a branch in this state or another state or country; (2) permissible interest rates and loan fees chargeable in this state; (3) fiduciary duties owed to a client or customer by the bank in its capacity as fiduciary in this state; (4) consumer protection laws applicable to transactions in this state; or (5) compliance with the qualified thrift assets test contained in Section 92.204. (c) A savings bank that intends to exercise a power, directly or through a subsidiary, granted by Subsection (b) that is not otherwise authorized for savings banks under the statutes of this state shall submit a letter to the commissioner describing in detail the power that the savings bank proposes to exercise and the specific authority of another depository institution to exercise the power. The savings bank shall attach copies, if available, of relevant law, regulations, and interpretive letters. The commissioner may deny the bank from exercising the power if the commissioner finds that: (1) specific authority does not exist for another depository institution to exercise the proposed power; (2) if the savings bank is insured by the Federal Deposit Insurance Corporation, the savings bank is prohibited from exercising the power under Section 24, Federal Deposit Insurance Act (12 U.S.C. Section 1831a), and related regulations; (3) the exercise of the power by the bank would adversely affect the safety and soundness of the bank; or (4) at the time the application is made, the savings bank is not well capitalized and well managed. (d) A savings bank that is denied the requested power by the commissioner under this section may appeal. The notice of appeal must be in writing and must be received by the commissioner not later than the 30th day after the date of the denial. An appeal under this section is a contested case under Chapter 2001, Government Code. (e) To effectuate this section, the finance commission may adopt rules implementing the method or manner in which a savings bank exercises specific powers granted under this section, including rules regarding the exercise of a power that would be prohibited to savings banks under state law but for this section. (f) The exercise of a power by a savings bank in compliance with and in the manner authorized by this section is not a violation of any statute of this state.