reglab/statecodes huggingface dataset:
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle C - Savings Banks › Chapter 119 - Miscellaneous Provisions Applicable to Savings Banks › Subchapter A. General Miscellaneous Provisions › Section 119.005. State Taxation of Savings Banks

Sec. 119.005.  STATE TAXATION OF SAVINGS BANKS.  The state shall tax a domestic or federal savings bank doing business in this state in the same manner and to the same extent as a corresponding savings and loan association.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle C - Savings Banks › Chapter 119 - Miscellaneous Provisions Applicable to Savings Banks › Subchapter A. General Miscellaneous Provisions › Section 119.006. Initiation of Rulemaking by Savings Banks

Sec. 119.006.  INITIATION OF RULEMAKING BY SAVINGS BANKS.  The finance commission shall initiate rulemaking proceedings under Chapter 2001, Government Code, if at least 20 percent of the savings banks petition the finance commission in writing requesting the adoption, amendment, or repeal of a rule.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 2001, 77th Leg., ch. 867, Sec. 64, eff. Sept. 1, 2001.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle C - Savings Banks › Chapter 119 - Miscellaneous Provisions Applicable to Savings Banks › Subchapter A. General Miscellaneous Provisions › Section 119.007. Exemption From Securities Laws

Sec. 119.007.  EXEMPTION FROM SECURITIES LAWS.  A deposit account, certificate, or other evidence of an interest in the deposit liability of a savings bank or federal savings bank is not considered a security under The Securities Act (Title 12, Government Code).  A security of these savings banks, other than an interest in the deposit liability of a savings bank, is not subject to the registration requirements of that Act.  A person whose principal occupation is being an officer of a savings bank is exempt from the registration and licensing provisions of that Act with respect to that person's participation in a sale or other transaction involving securities of the savings bank of which the person is an officer.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 2.13, eff. January 1, 2022.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle C - Savings Banks › Chapter 119 - Miscellaneous Provisions Applicable to Savings Banks › Subchapter A. General Miscellaneous Provisions › Section 119.008. Liability of Commissioner and Other Commission Personnel; Defense by Attorney General

Sec. 119.008.  LIABILITY OF COMMISSIONER AND OTHER COMMISSION PERSONNEL;  DEFENSE BY ATTORNEY GENERAL.  (a)  The commissioner, a member of the finance commission, a deputy commissioner, an examiner, or any other officer or employee of the Department of Savings and Mortgage Lending is not personally liable for damages arising from the person's official act or omission unless the act or omission is corrupt or malicious.
(b)  The attorney general shall defend an action brought against a person described by Subsection (a) because of the person's official act or omission without regard to whether the person is an officer or employee of the department at the time the action is initiated.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 6.050, eff. September 1, 2007.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle C - Savings Banks › Chapter 119 - Miscellaneous Provisions Applicable to Savings Banks › Subchapter B. Access to and Disclosure of Certain Information › Section 119.101. Access to Books and Records of Savings Bank

Sec. 119.101.  ACCESS TO BOOKS AND RECORDS OF SAVINGS BANK.  (a)  The books and records of a savings bank may be examined only by:
(1)  the commissioner or the commissioner's representative in accordance with Sections 96.054-96.057;
(2)  a person authorized to act for the savings bank;
(3)  an agent of a governmental agency that has insured the deposit accounts of the savings bank;
(4)  a borrower or deposit account holder of the savings bank, in accordance with Subsection (b);  or
(5)  for a capital stock savings bank, a stockholder of the capital stock savings bank, in accordance with Subsection (c).
(b)  A borrower or deposit account holder of a savings bank is entitled to examine only the books and records of the savings bank that relate to the person's loan or deposit account.
(c)  A stockholder of a capital stock savings bank has the same right to examine the relevant books and records of a savings bank as a shareholder of a business corporation under the Texas Business Corporation Act.
(d)  A person is entitled to a partial or complete list of the stockholders of a stock savings bank or of the members of a mutual savings bank only if expressly permitted by the board of directors of the savings bank.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle C - Savings Banks › Chapter 119 - Miscellaneous Provisions Applicable to Savings Banks › Subchapter B. Access to and Disclosure of Certain Information › Section 119.102. Production and Admissibility of Items of Savings Bank in Judicial Proceeding

Sec. 119.102.  PRODUCTION AND ADMISSIBILITY OF ITEMS OF SAVINGS BANK IN JUDICIAL PROCEEDING.  (a)  In a judicial proceeding, the court may order the production of books, records, and files of a savings bank.
(b)  The books, records, and files of a savings bank are not admissible as evidence in any proceeding concerning the validity of a tax assessment or the collection of delinquent taxes, penalties, and interest, unless:
(1)  a stockholder or deposit account holder is a proper party to the proceeding, in which event a book, file, or record pertaining to the account of the party is admissible;  or
(2)  the savings bank is a proper party to the proceeding, in which event a book, file, or record material to the proceeding is admissible.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle C - Savings Banks › Chapter 119 - Miscellaneous Provisions Applicable to Savings Banks › Subchapter C. Offenses and Penalties › Section 119.201. Administrative Penalty for Failing to Comply With Subtitle

Sec. 119.201.  ADMINISTRATIVE PENALTY FOR FAILING TO COMPLY WITH SUBTITLE.  (a)  The commissioner may require a savings bank that knowingly violates this subtitle or a rule adopted under this subtitle to pay to the Department of Savings and Mortgage Lending an administrative penalty not to exceed $10,000 for each day that the violation occurs after notice of the violation is given by the commissioner.
(b)  On the commissioner's certification that a savings bank has not paid a penalty assessed under this section, the attorney general may file suit to collect the penalty.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2005, 79th Leg., Ch. 1018 (H.B. 955), Sec. 3.04, eff. September 1, 2005.
Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 6.051, eff. September 1, 2007.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle C - Savings Banks › Chapter 119 - Miscellaneous Provisions Applicable to Savings Banks › Subchapter C. Offenses and Penalties › Section 119.202. Criminal Slander or Libel

Sec. 119.202.  CRIMINAL SLANDER OR LIBEL.  (a)  A person commits an offense if the person:
(1)  knowingly makes, utters, circulates, or transmits to another person a statement that is untrue and derogatory to the financial condition of a savings bank; or
(2)  with intent to injure a savings bank counsels, aids, procures, or induces another person to originate, make, utter, transmit, or circulate a statement or rumor that is untrue and derogatory to the financial condition of the savings bank.
(b)  An offense under Subsection (a) is a state jail felony.
Added by Acts 2013, 83rd Leg., R.S., Ch. 464 (S.B. 1008), Sec. 14, eff. September 1, 2013.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle D - Credit Unions › Chapter 121 - General Provisions › Section 121.001. Short Title

Sec. 121.001.  SHORT TITLE.  This subtitle may be cited as the Texas Credit Union Act.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle D - Credit Unions › Chapter 121 - General Provisions › Section 121.0011. Policy

Sec. 121.0011.  POLICY.  The purposes of this subtitle are to safeguard the public interest, to promote public confidence in credit unions doing business in this state, to provide for the protection of the interests, shares, and deposits of credit unions, to delegate to the department rulemaking and discretionary authority that may be necessary to assure that credit unions operating under this subtitle may be sufficiently flexible and readily responsive to changes in economic conditions and practices, to maintain sound credit union growth and financial integrity, fiscal responsibility, and independent judgment in the management of the business affairs of credit unions, to permit credit unions to effectively provide a full array of financial and financially related services, to provide effective supervision and regulation of credit unions and their fields of membership, and to clarify and modernize the law governing the credit unions doing business in this state.  This subtitle is the public policy of this state and necessary to the public welfare.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.15, eff. Sept. 1, 1999;  Acts 1999, 76th Leg., ch. 87, Sec. 2, eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle D - Credit Unions › Chapter 121 - General Provisions › Section 121.002. Definitions

Sec. 121.002.  DEFINITIONS.  In this subtitle:
(1)  "Board" means the board of directors of a credit union.
(2)  "Credit union," unless the context relates to a federal credit union, means a voluntary, cooperative, nonprofit financial institution authorized to do business in this state under this subtitle for purposes of:
(A)  encouraging thrift among its members;
(B)  creating a source of credit at fair and reasonable interest rates;
(C)  developing and providing to its members alternative methods of financing their purchases at reasonable costs;
(D)  providing an opportunity for its members to use and control their money to improve their economic and social condition;  and
(E)  conducting any other business, engaging in any other activity, or providing any other service that may benefit its members.
(3)  "Commission" means the Credit Union Commission.
(4)  "Commissioner" means the credit union commissioner.
(5)  "Department" means the credit union department.
(6)  "Deputy commissioner" means the deputy credit union commissioner.
(7)  "Foreign credit union" means a credit union that is not organized under the laws of this state or the United States.
(8)  "Law enforcement agency" means the Department of Public Safety of the State of Texas, the Federal Bureau of Investigation, or any local police or sheriff department.
(9)  "Membership share" means a designated share account of a credit union consisting of the balance held by the credit union and established by a credit union member in accordance with the standards specified by the credit union.
(10)  "Organization" means a corporation, partnership, association, limited liability company, or other legal entity.
(11)  "Unsafe or unsound condition," with respect to a credit union, includes:
(A)  being insolvent;
(B)  having incurred or being likely to incur a loss that will deplete all or substantially all of the credit union's net worth;  or
(C)  being in imminent danger of losing the credit union's share and deposit insurance or guarantee.
(12)  "Unsafe or unsound practice" means an action or inaction in the operation of a credit union that is contrary to generally accepted standards of prudent operation, the likely consequences of which, if continued, would be abnormal and material risk of loss or danger to a credit union, the credit union's members, or an organization insuring or guaranteeing the credit union's shares and deposits.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 1999, 76th Leg., ch. 157, Sec. 5, eff. Sept. 1, 1999; Acts 2003, 78th Leg., ch. 533, Sec. 6, eff. Sept. 1, 2003.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle D - Credit Unions › Chapter 121 - General Provisions › Section 121.003. Credit Unions Subject to Subtitle

Sec. 121.003.  CREDIT UNIONS SUBJECT TO SUBTITLE.  A credit union organized and existing under the laws of this state is governed by and authorized to do business under this subtitle.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle D - Credit Unions › Chapter 121 - General Provisions › Section 121.004. Liberal Construction

Sec. 121.004.  LIBERAL CONSTRUCTION.  This subtitle shall be liberally construed to effect its purposes.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle D - Credit Unions › Chapter 121 - General Provisions › Section 121.005. Hearings

Sec. 121.005.  HEARINGS.  (a)  A hearing held under this subtitle is governed by Chapter 2001, Government Code.
(b)  The commission may adopt rules of procedure for a hearing held under this subtitle.
(c)  This section does not apply to a meeting under Section 122.005.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.14(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle D - Credit Unions › Chapter 121 - General Provisions › Section 121.006. Procedure and Rules Applicable to Certain Proceedings

Sec. 121.006.  PROCEDURE AND RULES APPLICABLE TO CERTAIN PROCEEDINGS.  (a)  If the commissioner proposes to revoke a credit union's certificate of incorporation, the credit union is entitled to a hearing conducted by the State Office of Administrative Hearings.
(b)  A proceeding for a disciplinary action is governed by Chapter 2001, Government Code.  Rules of practice adopted by the commission under Section 2001.004, Government Code, applicable to a proceeding for a disciplinary action may not conflict with rules adopted by the State Office of Administrative Hearings.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.14(b), eff. Sept. 1, 1999.  Amended by Acts 2003, 78th Leg., ch. 533, Sec. 7, eff. Sept. 1, 2003.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle D - Credit Unions › Chapter 122 - Organizational and Financial Requirements › Subchapter A. Incorporation Requirements › Section 122.001. Application to Incorporate

Sec. 122.001.  APPLICATION TO INCORPORATE.  (a)  Seven or more individuals may apply to incorporate a credit union under this chapter if:
(1)  each is at least 18 years old;
(2)  a majority are residents of this state;
(3)  each has subscribed for at least 10 shares;  and
(4)  all share the definable community of interest stated in the articles of incorporation.
(b)  The incorporators shall file with the commissioner:
(1)  an application in a form prescribed by the commission;  and
(2)  filing fees required and set by the commission.
(c)  The application must contain:
(1)  two copies of the articles of incorporation, which must state:
(A)  the name of the credit union;
(B)  the municipality and county where the credit union's principal place of business is to be located;
(C)  that the credit union's term of existence is perpetual;
(D)  that the credit union's fiscal year is the calendar year;
(E)  the initial share accounts;
(F)  the name and address of, and the number of shares subscribed by, each incorporator;
(G)  the number of directors constituting the initial board and the name and address of each person who will serve as director until the first annual meeting or until a successor is elected and qualified;  and
(H)  the definable community of interest shared by the members of the credit union at the time of incorporation;
(2)  two copies of the standard bylaws for the general operation of the credit union;  and
(3)  a business plan covering three years and providing a detailed explanation of actions intended to accomplish the primary functions of the credit union.
(d)  Repealed by Acts 2021, 87th Leg., R.S., Ch. 300 (S.B. 707), Sec. 7, eff. September 1, 2021.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 2003, 78th Leg., ch. 533, Sec. 8, eff. Sept. 1, 2003.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 300 (S.B. 707), Sec. 7, eff. September 1, 2021.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle D - Credit Unions › Chapter 122 - Organizational and Financial Requirements › Subchapter A. Incorporation Requirements › Section 122.002. Standard Articles of Incorporation and Bylaws

Sec. 122.002.  STANDARD ARTICLES OF INCORPORATION AND BYLAWS.  (a)  To simplify the process of organizing new credit unions, the commission shall prepare standard articles of incorporation and bylaws.
(b)  The standard forms shall be made available without charge to a person desiring to organize a credit union.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle D - Credit Unions › Chapter 122 - Organizational and Financial Requirements › Subchapter A. Incorporation Requirements › Section 122.003. Corporate Name; Criminal Penalty

Sec. 122.003.  CORPORATE NAME;  CRIMINAL PENALTY.  (a)  The name of a credit union must include the words "credit union" or the abbreviation "CU" and an appropriate descriptive word or words, or an acronym made up of initials of the appropriate descriptive word or words and ending in "CU," approved by the commissioner.
(b)  Unless a credit union is formed by merger or consolidation, the commissioner may not issue a certificate of incorporation to the credit union or approve the change of the name of the credit union if it would have the same name as another credit union or a name so nearly resembling the name of another credit union as to be calculated to deceive.
(c)  A person who is not a credit union authorized to do business in this state under this subtitle or the Federal Credit Union Act (12 U.S.C. Section 1751 et seq.), or an organization, corporation, or association the membership or ownership of which is primarily confined to credit unions or credit union organizations, may not do business under or use a name or title containing the words "credit union" or any derivation of that term that:
(1)  indicates or reasonably implies that the person carries on or transacts the kind of business carried on or transacted by a credit union;  or
(2)  is calculated to lead a person to believe that the business being conducted is the type of business carried on or transacted by a credit union.
(d)  A person who violates Subsection (c) commits a Class A misdemeanor.
(e)  The commissioner may petition a court to enjoin a violation of this section.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 1999, 76th Leg., ch. 157, Sec. 6, eff. Sept. 1, 1999;  Acts 2003, 78th Leg., ch. 533, Sec. 9, eff. Sept. 1, 2003.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle D - Credit Unions › Chapter 122 - Organizational and Financial Requirements › Subchapter A. Incorporation Requirements › Section 122.004. Investigation by Commissioner

Sec. 122.004.  INVESTIGATION BY COMMISSIONER.  The commissioner may conduct an investigation and obtain any information or report from any person, including a law enforcement agency, that the commissioner considers necessary.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle D - Credit Unions › Chapter 122 - Organizational and Financial Requirements › Subchapter A. Incorporation Requirements › Section 122.005. Procedure for Certain Approvals

Sec. 122.005.  PROCEDURE FOR CERTAIN APPROVALS.  (a)  This section applies to a request for approval by the commissioner of:
(1)  an application for incorporation under this subchapter;
(2)  a request for approval of an amendment to a credit union's articles of incorporation under Section 122.011, including an amendment to expand the credit union's field of membership;  and
(3)  a merger or consolidation under Subchapter D.
(b)  Before approving a request to which this section applies, the commissioner shall submit notice of the request to the secretary of state for publication in the Texas Register.  The commission by rule shall provide for other appropriate public notice of the request.  The commissioner may waive the requirements of this subsection or permit delayed public notice on a determination that waiver or delay is in the public interest.  If the requirements of this subsection are waived, the information that would be contained in a public notice becomes public information under Chapter 552, Government Code, on the 35th day after the date the request is made.
(c)  Before making a determination on a request to which this section applies, the commissioner must accept comment from any interested party that wishes to comment.  This comment may be in the form of written testimony or may be provided at a meeting with the commissioner held for the purpose of receiving the comment.  This meeting shall be held if requested by any interested party.  The commissioner may hold the meeting regardless of whether an interested party requests the meeting.  The commission may establish reasonable rules governing the circumstances and conduct of the meeting.  Chapter 2001, Government Code, does not apply to the meeting.  Not later than the 60th day after the date the notice is published in the Texas Register, or if the notice is not published, after the date the request is received, the commissioner shall approve or disapprove the application.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.01(a), eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle D - Credit Unions › Chapter 122 - Organizational and Financial Requirements › Subchapter A. Incorporation Requirements › Section 122.006. Decision on Application to Incorporate; Issuance of Certificate

Sec. 122.006.  DECISION ON APPLICATION TO INCORPORATE;  ISSUANCE OF CERTIFICATE.  (a)  The commissioner shall approve an application to incorporate a credit union if the commissioner determines:
(1)  that the incorporators have complied with this chapter and rules adopted under this chapter;  and
(2)  from information furnished with the application, the results of any investigation, the evidence submitted at any hearing, and information in the department's official records, that:
(A)  the character and general fitness of the incorporators and the members of the initial board warrant belief that the credit union's business and affairs will be properly administered in accordance with this subtitle and rules adopted under this subtitle;
(B)  the character and size of the field of membership to be served by the credit union conform with this subtitle and rules adopted under this subtitle and favor the credit union's economic viability;  and
(C)  the incorporators and the members of the initial board are acting in good faith and are making the application in accordance with the purposes of this subtitle.
(b)  In addition to the determinations made under Subsection (a) and in accordance with commission rules, the commissioner shall consider the effect of overlapping fields of membership on the applicant credit union and existing state or federal credit unions doing business in this state.  The commissioner may consider the availability and adequacy of financial services in the local community and the effect that the incorporation of the credit union would have on the local community.  As a condition of approval of the application, the commissioner may require the applicant credit union to limit or eliminate overlaps, in accordance with the rules, to achieve the purposes of this subtitle and promote the welfare and stability of those credit unions.
(c)  The commissioner by written order shall state the determinations required by Subsection (a) and approve or deny the application.  The commissioner may make approval of an application conditional and shall include any conditions in the order approving the application.
(d)  An order of the commissioner or commission shall be promptly mailed to the incorporators by registered or certified mail.
(e)  After the commissioner in the absence of an appeal or the commission after the conclusion of an appeal approves the application, the commissioner shall:
(1)  issue a certificate of incorporation;
(2)  deliver copies of the approved articles of incorporation and bylaws to the incorporators;  and
(3)  retain copies of those documents in the department's permanent files.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.01(b), eff. Sept. 1, 1999;  Acts 2003, 78th Leg., ch. 533, Sec. 10, eff. Sept. 1, 2003.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle D - Credit Unions › Chapter 122 - Organizational and Financial Requirements › Subchapter A. Incorporation Requirements › Section 122.007. Appeal to Commission

Sec. 122.007.  APPEAL TO COMMISSION.  (a)  The commission by rule shall provide for appeal of the commissioner's order by an incorporator or other aggrieved person.
(b)  The commissioner's order may be appealed to the commission not later than the 60th day after the date of the order.
(c)  After reviewing information or evidence the commission considers necessary or relevant, the commission by written order shall affirm or reverse the commissioner's decision.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle D - Credit Unions › Chapter 122 - Organizational and Financial Requirements › Subchapter A. Incorporation Requirements › Section 122.008. Effect of Issuance of Certificate of Incorporation

Sec. 122.008.  EFFECT OF ISSUANCE OF CERTIFICATE OF INCORPORATION.  (a)  A credit union's existence begins when the commissioner issues the certificate of incorporation.
(b)  The certificate of incorporation is conclusive evidence that the incorporators have complied with this subtitle  and that the credit union is incorporated under this chapter.
(c)  Acceptance of a certificate of incorporation by the credit union is conclusive evidence that the credit union is authorized to do business under this subtitle.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 19 (S.B. 244), Sec. 4, eff. September 1, 2013.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle D - Credit Unions › Chapter 122 - Organizational and Financial Requirements › Subchapter A. Incorporation Requirements › Section 122.009. Requirements for Commencing Business

Sec. 122.009.  REQUIREMENTS FOR COMMENCING BUSINESS.  (a)  A credit union may not transact business or incur debt that is not incidental to its organization or to obtaining a subscription to or payment for its shares or deposits before it:
(1)  has received paid-in shares or deposits of at least $1,000;
(2)  has at least 100 members;
(3)  has fulfilled all agreements and conditions related to approval of an application for incorporation and issuance of a certificate of incorporation;  and
(4)  has notified the department of its compliance with Subdivisions (1)-(3).
(b)  The commission may adopt reasonable rules to:
(1)  require greater minimum membership and paid-in shares or deposits;  or
(2)  prescribe additional requirements a credit union must meet before transacting business or incurring indebtedness.
(c)  The commissioner may waive a requirement of this section or of a rule adopted under this section if the commissioner finds that the credit union:
(1)  does not have supervisory problems that adversely affect its ability to operate properly;  and
(2)  is adequately capitalized.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle D - Credit Unions › Chapter 122 - Organizational and Financial Requirements › Subchapter A. Incorporation Requirements › Section 122.010. Deadline for Commencing Business

Sec. 122.010.  DEADLINE FOR COMMENCING BUSINESS.  (a)  A credit union shall begin business before six months after the date of the order approving the credit union's application.
(b)  On request and for good cause shown, the commissioner may grant a credit union that has not begun business within the time prescribed by Subsection (a) a reasonable extension to provide an opportunity to overcome the cause of the delay.
(c)  The incorporators may appeal to the commission, in accordance with commission rules, a commissioner's decision refusing a request for an extension.
(d)  The commissioner may cancel the certificate of incorporation in accordance with commission rules if a credit union does not begin business within the prescribed time.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle D - Credit Unions › Chapter 122 - Organizational and Financial Requirements › Subchapter A. Incorporation Requirements › Section 122.011. Amendment of Articles of Incorporation or Bylaws

Sec. 122.011.  AMENDMENT OF ARTICLES OF INCORPORATION OR BYLAWS.  (a)  The board may amend the articles of incorporation or bylaws by a two-thirds vote of the directors present at a meeting at which a quorum is present.  The board shall submit amendments to the commissioner.
(b)  Unless the amendment is a standard bylaw adopted by the commission, the commissioner in writing shall approve or disapprove an amendment.
(c)  In approving an amendment, the commissioner shall make the findings and may take the actions provided by Sections 122.006(a) and (b).  The commissioner may not approve an amendment if the commissioner finds that it violates this subtitle  or rules adopted under this subtitle.  The commissioner shall state with reasonable specificity the reasons for disapproval.  An amendment takes effect on the commissioner's approval.
(d)  The board shall report an amendment to the credit union's membership not later than the next membership meeting after the commissioner approves the amendment.
(e)  The commission shall adopt rules for an appeal of the commissioner's decision on an amendment.  The commissioner's order approving or disapproving an amendment may be appealed to the commission not later than the 60th day after the date of the order.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.02(a), eff. Sept. 1, 1999;  Acts 2003, 78th Leg., ch. 533, Sec. 11, eff. Sept. 1, 2003.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle D - Credit Unions › Chapter 122 - Organizational and Financial Requirements › Subchapter A. Incorporation Requirements › Section 122.012. Place of Business

Sec. 122.012.  PLACE OF BUSINESS.  (a)  A credit union shall maintain on file with the department a statement specifying the street and post office address of the credit union's principal place of business.
(b)  A credit union shall provide the commissioner with written notice not later than the 30th day before the date that the credit union establishes additional offices or service facilities.  A new office or service facility must be reasonably necessary to provide services to the credit union's members.  The credit union shall additionally notify the commissioner in writing not later than the 10th business day after the date that the new office or service facility begins operating.  For purposes of this subsection, an unmanned teller machine is not considered a service facility.
(c)  The commission by rule may prescribe what constitutes an office or service facility.
(d)  In accordance with rules adopted by the commission and after notifying the commissioner in writing, a credit union may close any office or service facility, provided that the credit union designates and maintains an office as its principal place of business in this state.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 1999, 76th Leg., ch. 157, Sec. 7, eff. Sept. 1, 1999.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 19 (S.B. 244), Sec. 5, eff. September 1, 2013.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle D - Credit Unions › Chapter 122 - Organizational and Financial Requirements › Subchapter A. Incorporation Requirements › Section 122.013. Foreign Credit Unions

Sec. 122.013.  FOREIGN CREDIT UNIONS.  (a)  A foreign credit union may do business in this state if it is organized in a state or country that allows any credit union organized under this subtitle to do business in that state or country.
(b)  A foreign credit union doing business in this state is subject to rules adopted under this subtitle and any additional commission requirement.
(c)  The commissioner may suspend or revoke a foreign credit union's authority to do business in this state if the commissioner finds that the foreign credit union:
(1)  has failed to conduct its business in this state in a manner consistent with the laws of this state;
(2)  is in an unsafe or unsound condition;
(3)  refuses to comply with an order of the commissioner;
(4)  refuses to comply with a request by the commissioner to review the books and records of the credit union; or
(5)  has not met or does not meet a requirement imposed by commission rules.
(d)  The commission may require a foreign credit union operating in this state to submit periodic reports.  The required reports shall be provided by the foreign credit union or by the credit union supervisory agency having primary responsibility for that credit union.  Any reporting requirements prescribed by the commission under this subsection must be consistent with the reporting requirements applicable to credit unions and appropriate for the purpose of enabling the commissioner to regulate credit unions.
(e)  A foreign credit union from a jurisdiction that allows a credit union to exercise additional powers and authorities not granted in this state may not exercise any of those powers or authorities in this state until the foreign credit union requests and obtains permission from the commissioner to exercise those powers or authorities.  If the commissioner determines that there are no safety and soundness concerns, the commissioner shall approve the request and shall publish the powers or authorities granted in the manner authorized by Section 15.4041 or 15.4042 for the issuance of an interpretive statement or an opinion.  When approved, those powers or authorities shall be available to all credit unions authorized to engage in business under this subtitle.
(f)  A foreign credit union may not use this section to alter or negate the application to the credit union of any law of this state regarding:
(1)  permissible interest rates;
(2)  loan fees;  or
(3)  licensing or regulatory requirements that relate to insurance, securities, marketing or sales activities, or real estate development and that are administered by an agency of this state.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 1999, 76th Leg., ch. 157, Sec. 8, eff. Sept. 1, 1999;  Acts 2003, 78th Leg., ch. 533, Sec. 12, eff. Sept. 1, 2003.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 19 (S.B. 244), Sec. 6, eff. September 1, 2013.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle D - Credit Unions › Chapter 122 - Organizational and Financial Requirements › Subchapter A. Incorporation Requirements › Section 122.0131. Temporary Foreign Credit Union Office

Sec. 122.0131.  TEMPORARY FOREIGN CREDIT UNION OFFICE.  If a state contiguous to this state experiences an emergency, on a request by that state's credit union regulatory agency, the commissioner may authorize one or more credit unions located in that state to open temporary offices in this state to more promptly restore credit union services to their members.  The commissioner shall issue an order permitting the temporary office and specifying the period the office may remain open.  On a finding that the conditions requiring the temporary office continue to exist, the commissioner may extend the period the office may remain open.  A credit union may convert a temporary office authorized under this section to a permanent location and operate as a foreign credit union if it qualifies to do business in this state as a foreign credit union under Section 122.013 and commission rules.
Added by Acts 2013, 83rd Leg., R.S., Ch. 19 (S.B. 244), Sec. 7, eff. September 1, 2013.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle D - Credit Unions › Chapter 122 - Organizational and Financial Requirements › Subchapter A. Incorporation Requirements › Section 122.014. Underserved-Area Credit Union

Sec. 122.014.  UNDERSERVED-AREA CREDIT UNION.  (a)  In this section, "secondary capital account" means a nontransactional account in an amount greater than $100,000 as established by the commission that is:
(1)  owned by a person other than an individual;  and
(2)  subordinated to other creditors.
(b)  A credit union may apply to the commissioner for the designation of the credit union as an underserved-area credit union.
(c)  The commissioner may designate a credit union as an underserved-area credit union only if:
(1)  at least 50 percent of a substantial and well-defined segment of the credit union's members or potential members who are at least 15 years of age earn not more than 80 percent of the state or national household median income, whichever is higher;
(2)  the credit union submits an acceptable written strategic plan for marketing to and serving the segment described by Subdivision (1);  and
(3)  the credit union submits other information and satisfies other criteria as may reasonably be required by the commissioner.
(d)  In addition to the powers and authorities granted to credit unions under this subtitle or otherwise, an underserved-area credit union may:
(1)  issue secondary capital accounts to members or nonmembers of the credit union on the filing of an application with and the advance approval of the commissioner;  and
(2)  accept shares and deposits from nonmembers.
(e)  The commission may adopt rules for the organization and operation of underserved-area credit unions, including rules requiring disclosures to purchasers of secondary capital accounts and other rules concerning those accounts.
Added by Acts 2003, 78th Leg., ch. 533, Sec. 13, eff. Sept. 1, 2003.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle D - Credit Unions › Chapter 122 - Organizational and Financial Requirements › Subchapter B. Administration › Section 122.051. Membership

Sec. 122.051.  MEMBERSHIP.  (a)  A person may be a member of a credit union only if the person is an incorporator or other person who:
(1)  shares a definable community of interest, in accordance with the credit union's articles of incorporation or bylaws, including a community of interest based on occupation, association, or residence;
(2)  has paid an entrance fee or membership fee, or both, as required by the bylaws;
(3)  has complied with the minimum share, including membership share, requirements or other qualifying account requirements established by the board;  and
(4)  has complied with any other requirement of the articles of incorporation and bylaws.
(b)  The state acting through the comptroller as administrator of the state's deferred compensation program or a political subdivision acting through an appropriate officer as administrator of the political subdivision's deferred compensation program may be a member of a credit union for purposes of funding a deferred compensation program.  The state or a political subdivision funding a deferred compensation program is not required to pay an entrance fee.
(c)  A member who leaves the field of membership may retain membership in the credit union under reasonable board standards.
(d)  In this subsection, "good cause" includes the act of physically or verbally abusing a credit union member or employee.  A person's membership in a credit union may be terminated or suspended for good cause or for not maintaining membership requirements, under the conditions and in accordance with the procedures provided in the bylaws.  A credit union may also discontinue providing any or all services to a member for good cause without terminating or suspending the person's membership.  Termination or suspension of a person's membership in the credit union or discontinuing services does not relieve the person from any outstanding obligations owed to the credit union.
(e)  Two or more persons within the credit union's field of membership who have jointly subscribed for one or more share or deposit accounts under a joint account and who have complied with all membership requirements may each be admitted to membership.
(f)  A credit union authorized to engage in business under this subtitle may accept as a member any other credit union organized or chartered under the laws of this or another state or of the United States.  Those credit union members are not entitled to any voting privileges.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 2003, 78th Leg., ch. 533, Sec. 14, eff. Sept. 1, 2003.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle D - Credit Unions › Chapter 122 - Organizational and Financial Requirements › Subchapter B. Administration › Section 122.052. Meetings of Members; Voting

Sec. 122.052.  MEETINGS OF MEMBERS;  VOTING.  (a)  Members of a credit union shall hold an annual or special meeting at the time and place and in the manner provided by the bylaws.
(b)  In determining a question requiring action by the members, each member may cast only one vote, regardless of the number of shares the member holds.
(c)  The board may authorize voting by mail or by electronic means.  Mail and electronic balloting shall be conducted in accordance with commission rules.
(d)  A member that is not an organization may not vote by proxy.  A member that is an organization may be represented by and vote through a designated representative who is authorized, in writing, by the organization's governing body to represent the organization.
(e)  The credit union's bylaws may establish a minimum age requirement to vote.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 2003, 78th Leg., ch. 533, Sec. 15, eff. Sept. 1, 2003.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle D - Credit Unions › Chapter 122 - Organizational and Financial Requirements › Subchapter B. Administration › Section 122.053. Board of Directors; Terms and Duties

Sec. 122.053.  BOARD OF DIRECTORS;  TERMS AND DUTIES.  (a)  A board of at least five members shall direct the business and affairs of a credit union.
(b)  The membership of the credit union shall elect the board at an annual membership meeting, from the membership, and in the manner provided by the bylaws.  A board member shall hold office until a successor is qualified and elected or appointed.
(c)  A director shall take and subscribe to an oath or affirmation that the director:
(1)  will diligently and honestly perform the director's duties in administering the credit union's affairs;
(2)  although the director may delegate the performance of those duties, remains responsible for the performance of the duties;
(3)  will not knowingly violate or willingly permit the violation of an applicable law;  and
(4)  will exercise the care and diligence reasonable and necessary to administer the affairs of the credit union in a safe and sound manner.
(d)  The bylaws shall prescribe the directors' terms and the board's duties.  A term may not exceed three years.  A director may serve more than one term.
(e)  The board shall meet at least once each month.
(f)  A director may not vote by proxy.  A director may participate in and act at any meeting of the board by means of electronic communications equipment through which all persons participating in the meeting can communicate with each other.  Participation in a meeting in the manner authorized by this subsection constitutes attendance at a meeting.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 2003, 78th Leg., ch. 533, Sec. 16, eff. Sept. 1, 2003.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 19 (S.B. 244), Sec. 8, eff. September 1, 2013.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle D - Credit Unions › Chapter 122 - Organizational and Financial Requirements › Subchapter B. Administration › Section 122.054. Qualification of Directors

Sec. 122.054.  QUALIFICATION OF DIRECTORS.  (a)  The commission by rule shall establish qualifications for a director.  The rules must provide that a person may not serve as director if the person:
(1)  has been convicted of a criminal offense involving dishonesty or breach of trust;
(2)  is not eligible for coverage under the blanket bond required by Section 122.063 and rules adopted under this subtitle;  or
(3)  has defaulted on payment of a voluntary obligation to the credit union or has otherwise caused the credit union to incur a financial loss.
(b)  The president or an employee of a credit union may not serve as director of the credit union unless permitted by the credit union's bylaws.  If the bylaws permit the president or an employee to serve on the board, the bylaws must require that persons serve on the board so that the president and employees of the credit union never constitute a majority of the board.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 2003, 78th Leg., ch. 533, Sec. 17, eff. Sept. 1, 2003.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle D - Credit Unions › Chapter 122 - Organizational and Financial Requirements › Subchapter B. Administration › Section 122.055. Vacancies; Removal

Sec. 122.055.  VACANCIES;  REMOVAL.  (a)  The office of a director becomes vacant if the director dies, resigns, is removed, has been absent from more meetings than the total number of absences permitted by commission rule, or does not possess or maintain the qualifications required to serve on the board.
(b)  Unless the bylaws provide otherwise, the remaining directors by majority vote shall fill a vacancy, regardless of whether the remaining directors constitute a quorum.  A director elected by the board to fill a vacancy holds office until the next annual membership meeting, at which the position shall be filled for the remainder of the unexpired term by vote of the members.
(c)  A director may be removed from office according to the removal procedure provided by the bylaws.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 2003, 78th Leg., ch. 533, Sec. 18, eff. Sept. 1, 2003.