Texas Administrative Code
Title 7 - BANKING AND SECURITIES
Part 1 - FINANCE COMMISSION OF TEXAS
Chapter 3 - STATE BANK REGULATION
Subchapter A - SECURITIES ACTIVITIES AND SUBSIDIARIES
Section 3.5 - Financial Valuation and Advisory Services
Current through Reg. 49, No. 38; September 20, 2024
A state-chartered bank may provide financial valuation and advisory services to its depositors or clients. The term "financial valuation and advisory services" means:
(1) the valuation of a company for purposes of acquisitions, mergers, and divestitures;
(2) fairness opinions in connection with tender offers, consolidations, or mergers;
(3) advice for management or for a bankruptcy court about the viability and capital adequacy of financially troubled companies and about the fairness of proposed bankruptcy reorganizations;
(4) valuation opinions for transactions in publicly held securities;
(5) valuations of the fair market value of employee stock ownership trusts;
(6) periodic valuation of stock of privately owned companies held in pension or profit-sharing plans, charitable trusts, or venture capital funds;
(7) valuation of a privately owned company, or of a large block of publicly owned securities;
(8) valuations, for estate tax and estate planning purposes, of a company's common stock and other securities for recapitalization of a privately held company; and
(9) expert witness testimony in support of valuations.