1. (a) The comptroller may revoke a depository's designation as a state depository for one year if, after notice and a hearing, the comptroller makes a written finding that the depository, while acting as either a depository or a custodian:

   1. (1) did not maintain reasonable compliance with this chapter; and
   2. (2) failed to remedy a violation of this chapter within a reasonable time after receiving written notice of the violation.

2. (b) The comptroller may permanently revoke a depository's designation as a state depository if the comptroller makes a written finding that the depository:

   1. (1) has not maintained reasonable compliance with this chapter; and
   2. (2) has acted in bad faith by not remedying a violation of this chapter.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993.

Amended by Acts 1997, 75th Leg., ch. 891, Sec. 3.19, eff. Sept. 1, 1997.