1. (a) A state chartered bank may engage in private placement transactions by acting as broker and bringing together buyers and sellers of privately placed instruments. The term "private placement transactions" means:

   1. (1) making recommendations regarding the terms and timing of the transaction;
   2. (2) assisting in the preparation of the financing documents;
   3. (3) contacting potential institutional investors;
   4. (4) arranging meetings between the issuer and potential investors; and
   5. (5) assisting in subsequent negotiations involving these parties.
2. (b) Except as otherwise permitted by Finance Code, Title 3, Subtitle A, a state chartered bank may not acquire for its own account any equity securities for which it has acted as agent or broker pursuant to this section.

Source Note:The provisions of this §3.1 adopted to be effective August 19, 1985, 10 TexReg 2542; amended to be effective May 17, 1996, 21 TexReg 3929.