Texas Register, Volume 42, Number 43, Pages 5913-6056, October 27, 2017 Page: 5,988
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(2) an application for the transfer submitted by the person
to whom the depository account is to be transferred.
(b) A person to whom a depository account is to be transferred
must accept the transferred account subject to the terms of the deposi-
tory account agreement and must otherwise be eligible to open an ac-
count under applicable laws and regulations. If a person to whom a
depository account is to be transferred is not eligible to open an ac-
count under applicable law and these rules, the depository may close
the account and take all steps that are reasonably necessary to deliver
to the transferee the balance of the depository account, minus any ap-
plicable fees.
(c) The depository may require the transferee to provide infor-
mation as is reasonably necessary to ensure that a delivery of precious
metals under this section is made in accordance with applicable law
and policies established by the depository.
14.11. Lien on Depository Account.
(a) Without the need of any further agreement or pledge, the
depository has a lien on each depository account owned by a depository
account holder to secure any fees, charges, or other obligations owed
or that may become owed to the depository in connection with any of
the depository account holder's depository accounts.
(b) On default in the payment or in the satisfaction of a depos-
itory account holder's obligation, the depository, without notice to or
consent of the depository account holder, may, to the extent necessary
to pay or satisfy the obligation, plus any applicable fees:
(1) transfer on the depository's books all or part of the bal-
ance of a depository account;
(2) liquidate all or part of the balance of a depository ac-
count; or
(3) suspend withdrawal privileges for all or part of a depos-
itory account.
(c) To be recognized by the depository, a pledge to a third party
by a depository account holder of the holder's rights, interest, and en-
titlements in and to a depository account must be made on a form pre-
scribed by the depository. A pledge made to a third party in this man-
ner is subject to any lien of the depository on a depository account
for unpaid fees, charges, or other obligations of the depository account
holder, irrespective of whether the depository's lien was created before
or after the pledge to a third party was made or perfected.
(d) On the satisfaction of other requirements of law with re-
spect to the perfection and enforcement of a pledge of that type, and
subject to a lien of the depository and any applicable fees, the deposi-
tory may liquidate all or part of the balance of a depository account to
the extent necessary to pay or satisfy the pledge, plus any applicable
fees.
(e) If the depository liquidates all or part of a depository ac-
count to pay or satisfy a lien of the depository or a pledge under this
section, the depository shall only liquidate the minimum amount of pre-
cious metal as is available in the depository account to pay or satisfy
the lien or pledge, as determined by reference to the exchange rates ap-
plicable at the time of the liquidation. Upon liquidation, the depository
shall apply the proceeds to satisfy the lien or pledge and shall refund
to the depository account holder any amount in excess of the amount
required to pay or satisfy the lien or pledge. The depository shall not be
obligated to a depository account holder for any difference between the
official exchange rate at the time a request for liquidation was received
and the proceeds actually received upon liquidation after satisfaction
of any unpaid fees.(f) The depository may require that a secured party seeking to
enforce a pledge under this section provide information as is reasonably
necessary to ensure that a delivery of precious metals under this section
is made in accordance with applicable law and policies established by
the depository.
14.12. Applicability of Estates Code.
The applicable provisions of Estates Code, Chapters 111, 112, and 113,
govern a depository account. To be effective, the designation or revo-
cation of rights of survivorship, payment on death, or transfer on death,
must be on forms prescribed by the depository unless otherwise pro-
vided by law.
14.13. Powers of Attorney.
To be effective, a power of attorney by a depository account holder
to manage or withdraw precious metals from the depository account
holder's depository account must be executed using a form prescribed
by the depository and be notarized. Powers of attorney shall be effec-
tive for the length of time designated on the form prescribed by the
depository unless earlier revoked by the depository account holder in
writing or upon written notice of the death or adjudication of incompe-
tency of the depository account holder.
14.14. Confiscations, Requisitions, Seizures, and Certain Other Ac-
tions.
On receipt of notice of any transaction described by Government Code,
2116.023(a), with respect to all or any portion of the balance of a de-
pository account, the depository shall refer the matter to the appropriate
agency for resolution. Until the matter is resolved, the depository shall
suspend withdrawal privileges associated with the balances of the de-
pository account. The depository may prescribe procedures to allow
voluntary transfers of depository account balances among depository
account holders to continue to take place unaffected by the suspension
as authorized by this chapter or other applicable law.
14.15. Official Exchange Rates.
The comptroller shall publish on the depository website the official ex-
change rate for pricing precious metals transactions in terms of United
States dollars or other currencies.
14.16. Accounting and Reporting of Taxable Gains.
The comptroller shall provide depository account holders with state-
ments or other required documentation needed to report taxable gains
and losses arising from depository transactions in a manner that com-
plies with federal law or as prescribed by the Internal Revenue Service.
To the extent permitted by law, any statement or other documentation
required under this section may be provided electronically.
14.17. Electronic Information Sharing Systems and Processes.
(a) Depository agents must maintain suitable systems and pro-
cesses as the comptroller may prescribe for electronic information shar-
ing and communication. All reportable transactions effected on behalf
of the depository by depository agents must be reported to the deposi-
tory and integrated into the depository's records not later than 11:59:59
p.m. on the date of each transaction.
(b) The comptroller may prescribe in a depository agent agree-
ment the transactions that are reportable under this rule.
14.18. Periodic Reports.
(a) A depository agent shall submit monthly, quarterly, and an-
nual reports of all depository transactions not later than the 15th day of
the month following the expiration of the period with respect to which
such report is submitted. The comptroller may specify the forms or for-
mats of the reports required by this section and may require the reports
to be filed electronically.42 TexReg 5988 October 27, 2017 Texas Register
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Texas. Secretary of State. Texas Register, Volume 42, Number 43, Pages 5913-6056, October 27, 2017, periodical, October 27, 2017; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth897027/m1/76/?q=%22%22~1&rotate=0: accessed July 16, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting UNT Libraries Government Documents Department.