Section 3.4 - Foreign Banking(a) Any state-chartered bank that is well-capitalized as defined by Section 38, Federal Deposit Insurance Act, RSA 1831o, may file an application with the banking commissioner for permission to exercise, upon such conditions as may be prescribed by the banking commissioner, the following powers: (1) to establish branches in foreign countries of dependencies or insular possessions of the United States for the furtherance of foreign commerce and to act as fiscal agent for any governmental entity;(2) to invest an amount not exceeding in the aggregate 10% of its paid-in capital stock and surplus in the stock of one or more banks or corporations chartered or incorporated under the laws of the United State or of any state thereof, and principally engaged in international or foreign banking, or banking in a dependency or insular possession of the United States either directly or indirectly; and(3) to require and hold, directly or indirectly, stock or other evidences of ownership in one or more banks organized under the law of a foreign country or a dependency or insular possession of the United States and not engaged, directly or indirectly, in any activity in the United States except as, in the judgment of the banking commissioner, shall be incidental to the international or foreign business of such foreign bank; and to make loans or extensions of credit to or for the account of such bank in a manner and within limits prescribed by the banking commissioner.(b) Such application shall specify the name and capital of the state bank filing it, the powers applied for, and the place or places where the banking or financial operations proposed are to be carried on. The banking commissioner shall have the power to approve or reject such application in whole or in part and shall also have the power from time to time to increase or decrease the number of places where such banking operations may be carried on.(c) The investment limitation of Finance Code, § RSA 34.103(b), does not apply to an investment made pursuant to this section. The banking commissioner may approve any activity or investment authorized by this section subject to such restrictions as the banking commissioner deems advisable and consistent with safe and sound banking practices, and may require any investment pursuant to subsection (2) or (3) of this section to constitute a majority interest in the voting securities of the bank or corporation acquired. The provisions of this §3.4 adopted to be effective August 19, 1985, 10 TexReg 2543; amended to be effective July 13, 1994, 19 TexReg 5035; amended to be effective May 17, 1996, 21 TexReg 3929; amended to be effective March 9, 2006, 31 TexReg 1643; Amended by Texas Register, Volume 43, Number 26, June 29, 2018, TexReg 4451, eff. 7/5/2018; Amended by Texas Register, Volume 47, Number 35, September 2, 2022, TexReg 5330, eff. 9/8/2022