# Tex. Finance Code § 34.104: MUTUAL FUNDS

> Texas · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_TX_Cfi_C34_S34.104

## Section

- **Citation:** Tex. Finance Code § 34.104
- **Heading:** MUTUAL FUNDS
- **Jurisdiction:** Texas
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** TX Code / Code fi / Chapter 34 / Section 34.104

## Text

(a) A state bank may invest for its own account in equity securities of an investment company registered under the Investment Company Act of 1940 (15 U.S.C. Section 80a-1 et seq.) and the Securities Act of 1933 (15 U.S.C. Section 77a et seq.) if the portfolio of the investment company consists wholly of investments in which the bank could invest directly for its own account.

(b) If the portfolio of an investment company described by Subsection (a) consists wholly of investments in which the bank could invest directly without limitation, the bank may invest in the investment company without limitation.

(c) The bank may invest not more than an amount equal to 15 percent of the bank's unimpaired capital and surplus in an investment company described by Subsection (a) the portfolio of which contains an investment or obligation in which the bank could not invest directly without limitation under this chapter.

(d) A state bank that invests in an investment company as provided by Subsection (c) shall periodically determine that its pro rata share of any security in the portfolio of the investment company combined with the bank's pro rata share of that security held by all other investment companies in which the bank has invested and with the bank's own direct investment and loan holdings is not in excess of applicable investment and lending limitations.

## Nearby sections

- [Tex. Finance Code § 34.001 § 34.001. DEFINITION.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cfi_C34_S34.001.md)
- [Tex. Finance Code § 34.002 § 34.002. INVESTMENT IN BANK FACILITIES.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cfi_C34_S34.002.md)
- [Tex. Finance Code § 34.003 § 34.003. OTHER REAL PROPERTY.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cfi_C34_S34.003.md)
- [Tex. Finance Code § 34.004 § 34.004. RETENTION OF NONPARTICIPATING ROYALTY INTERESTS.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cfi_C34_S34.004.md)
- [Tex. Finance Code § 34.101 § 34.101. SECURITIES.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cfi_C34_S34.101.md)
- [Tex. Finance Code § 34.102 § 34.102. TRANSACTION IN BANK SHARES.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cfi_C34_S34.102.md)
- [Tex. Finance Code § 34.103 § 34.103. BANK SUBSIDIARIES.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cfi_C34_S34.103.md)
- [Tex. Finance Code § 34.104 § 34.104. MUTUAL FUNDS.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cfi_C34_S34.104.md)
- [Tex. Finance Code § 34.105 § 34.105. OTHER DIRECT EQUITY INVESTMENTS.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cfi_C34_S34.105.md)
- [Tex. Finance Code § 34.106 § 34.106. INVESTMENTS TO PROMOTE COMMUNITY DEVELOPMENT.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cfi_C34_S34.106.md)
- [Tex. Finance Code § 34.107 § 34.107. ENGAGING IN COMMERCE PROHIBITED.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cfi_C34_S34.107.md)
- [Tex. Finance Code § 34.201 § 34.201. LENDING LIMITS.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cfi_C34_S34.201.md)
- [Tex. Finance Code § 34.202 § 34.202. VIOLATION OF LENDING LIMIT.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cfi_C34_S34.202.md)
- [Tex. Finance Code § 34.203 § 34.203. LOAN EXPENSES AND FEES.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cfi_C34_S34.203.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_TX_Cfi_C34_S34.104. Check the current official text before relying on it. Not legal advice.