reglab/statecodes huggingface dataset:
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle D - Credit Unions › Chapter 123 - General Powers › Subchapter B. Operational Powers › Section 123.102. Power to Sue and Defend

Sec. 123.102.  POWER TO SUE AND DEFEND.  A credit union may sue or be sued in the name of the 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 123 - General Powers › Subchapter B. Operational Powers › Section 123.103. Purchase and Sale of Property

Sec. 123.103.  PURCHASE AND SALE OF PROPERTY.  Subject to commission rules, a credit union may purchase, hold, lease, or dispose of property necessary or incidental to the operation or purpose of the 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 123 - General Powers › Subchapter B. Operational Powers › Section 123.104. Membership in Other Organization; Operation as Central Credit Union

Sec. 123.104.  MEMBERSHIP IN OTHER ORGANIZATION;  OPERATION AS CENTRAL CREDIT UNION.  A credit union may:
(1)  be a member of:
(A)  another credit union organized under this subtitle  or other law;  and
(B)  another organization approved by the board;  or
(2)  operate, with the commissioner's approval, as a central 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 123 - General Powers › Subchapter B. Operational Powers › Section 123.105. Fees

Sec. 123.105.  FEES.  (a)  A credit union may collect a fee, determined by the board, for services and administrative costs, including a fee for a check or draft that is returned because it is drawn against a closed account or an account containing insufficient or uncollected money, because of a stop payment order, or for another similar reason.
(b)  A fee under this section is an administrative expense.  The fee is in addition to interest authorized by law and is not a part of interest collected or agreed to be paid on a loan.
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 123 - General Powers › Subchapter B. Operational Powers › Section 123.106. Change of Location

Sec. 123.106.  CHANGE OF LOCATION.  (a)  A credit union changing the location of its principal place of business or any additional office or service facility shall notify the commissioner in writing of the new location and the scheduled or effective date of the change.
(b)  The credit union must submit notice to the commissioner not later than the 30th day before the scheduled or effective date of the change.  The commissioner may waive or reduce the timing of the notice requirement under this subsection.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 2003, 78th Leg., ch. 533, Sec. 34, eff. Sept. 1, 2003.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 19 (S.B. 244), Sec. 15, eff. September 1, 2013.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle D - Credit Unions › Chapter 123 - General Powers › Subchapter B. Operational Powers › Section 123.107. Insurance for Members

Sec. 123.107.  INSURANCE FOR MEMBERS.  A credit union may purchase or otherwise provide insurance for the benefit or convenience of its members in accordance with applicable law or rules adopted by the commission.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 1999, 76th Leg., ch. 157, Sec. 11, eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle D - Credit Unions › Chapter 123 - General Powers › Subchapter B. Operational Powers › Section 123.108. Donations

Sec. 123.108.  DONATIONS.  A credit union may donate to a nonprofit, civic, charitable, or community organization as authorized by the board.
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 123 - General Powers › Subchapter B. Operational Powers › Section 123.109. Seal

Sec. 123.109.  SEAL.  A credit union may adopt and use a common seal and may alter its seal at any 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 123 - General Powers › Subchapter B. Operational Powers › Section 123.110. Records

Sec. 123.110.  RECORDS.  (a)  A credit union may:
(1)  copy any record kept by the credit union;  and
(2)  dispose of the original record in accordance with commission rules.
(b)  A copy of a record is considered an original record for any purpose, including admissibility in evidence as an original record before any court or administrative agency for the purpose of the copy's admissibility in evidence.
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 123 - General Powers › Subchapter B. Operational Powers › Section 123.111. Right to Act to Mitigate or Avoid Loss

Sec. 123.111.  RIGHT TO ACT TO MITIGATE OR AVOID LOSS.  This subtitle does not prohibit a credit union from investing its money, operating a business, managing or dealing in property, or taking any other action at any time that is reasonably necessary to avoid or mitigate a loss on a loan or on an investment made or obligation created in good faith and in the usual course of the credit union's business, as authorized by this subtitle or a rule adopted by the commission.
Added by Acts 2003, 78th Leg., ch. 533, Sec. 35, eff. Sept. 1, 2003.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle D - Credit Unions › Chapter 123 - General Powers › Subchapter C. Financial Powers › Section 123.201. Power to Borrow or Lend

Sec. 123.201.  POWER TO BORROW OR LEND.  (a)  A credit union may:
(1)  lend its funds, or engage in any other type of financing transaction authorized by applicable law or rules adopted by the commission;  and
(2)  borrow money from any source, subject to Subsection (b).
(b)  A credit union may not incur a debt without the commissioner's prior approval if the debt will cause the debt of the credit union, including a deposit of a nonmember financial institution, to exceed an amount equal to 500 percent of the credit union's unencumbered reserves and undivided earnings.
(c)  The commissioner shall grant or deny a request for approval under Subsection (b) not later than the 10th day after the date on which the request is made.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 1999, 76th Leg., ch. 157, Sec. 12, eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle D - Credit Unions › Chapter 123 - General Powers › Subchapter C. Financial Powers › Section 123.202. Receipt, Transfer, and Payment of Money

Sec. 123.202.  RECEIPT, TRANSFER, AND PAYMENT OF MONEY.  A credit union may:
(1)  receive and disburse money;
(2)  receive a payment on a share or deposit;  and
(3)  provide for the transfer or withdrawal of money from an account by the means and through the payment systems that the board determines best serve the convenience and needs of members and depositors.
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 123 - General Powers › Subchapter C. Financial Powers › Section 123.203. Acceptance of Money for Deposit From Another Entity

Sec. 123.203.  ACCEPTANCE OF MONEY FOR DEPOSIT FROM ANOTHER ENTITY.  A credit union may accept money for deposit by a savings and loan association, a savings association, the savings department of a bank, a commercial bank, a savings bank, a trust company, an insurance company, or any intermediary or other person managing or holding money on behalf of the credit union or any of the credit union's members or depositors.
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 123 - General Powers › Subchapter C. Financial Powers › Section 123.204. Action as Agent or Depository of United States or Other Governmental Entity

Sec. 123.204.  ACTION AS AGENT OR DEPOSITORY OF UNITED STATES OR OTHER GOVERNMENTAL ENTITY.  A credit union may act as agent or depository of and accept for deposit the money of:
(1)  the United States or an agent or instrumentality of the United States;
(2)  this or another state;  or
(3)  a political subdivision of this or another state, including:
(A)  a municipality;
(B)  a county;
(C)  a school district;  or
(D)  another taxing authority.
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 123 - General Powers › Subchapter C. Financial Powers › Section 123.205. Investments and Securities

Sec. 123.205.  INVESTMENTS AND SECURITIES.  (a)  In accordance with commission rules, a credit union may:
(1)  develop and offer investment programs to its members and depositors;  or
(2)  act as agent for its members and depositors in the purchase, sale, or other disposition of a security, an interest in a mutual fund, or an interest or participation in any other type of investment.
(b)  A credit union may issue and sell securities in connection with an investment program developed and offered under Subsection (a)(1).
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 123 - General Powers › Subchapter C. Financial Powers › Section 123.206. Action as Fiscal or Transfer Agent; Transfer of Certain Instruments; Signatures

Sec. 123.206.  ACTION AS FISCAL OR TRANSFER AGENT;  TRANSFER OF CERTAIN INSTRUMENTS;  SIGNATURES.  A credit union may:
(1)  act as fiscal agent or transfer agent;
(2)  transfer a registered and countersigned certificate of stock, bond, or other evidence of indebtedness;  or
(3)  guarantee a signature.
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 123 - General Powers › Subchapter C. Financial Powers › Section 123.207. Fiduciary Powers

Sec. 123.207.  FIDUCIARY POWERS.  A credit union may:
(1)  act, under court order or appointment, as guardian, receiver, trustee, executor, or administrator without giving bond;
(2)  receive an investment from a person acting as a guardian, receiver, trustee, executor, or administrator under the Estates Code or Subtitle B, Title 9, Property Code;
(3)  act as depository for money paid to a court or constituting the estate of a deceased person, a minor, or an incompetent;
(4)  accept, execute, and administer a trust as trustee;
(5)  accept funds or money for deposit by a fiduciary, trustee, receiver, guardian, executor, or administrator; or
(6)  act as custodian or trustee of a pension or profit-sharing plan, including an individual retirement account or a pension fund of a self-employed individual or of the sponsor of a credit union.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 1236 (S.B. 1296), Sec. 20.012, eff. September 1, 2015.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle D - Credit Unions › Chapter 123 - General Powers › Subchapter C. Financial Powers › Section 123.208. Dividends and Interest

Sec. 123.208.  DIVIDENDS AND INTEREST.  (a)  A credit union may:
(1)  declare and pay a dividend on a share;
(2)  contract for and pay interest on a deposit;  or
(3)  refund interest to a borrower.
(b)  A dividend or interest may be paid at a rate and on the conditions that the board authorizes.
(c)  The commissioner may restrict the payment of a dividend:
(1)  if the commissioner issues a cease and desist order under Section 122.257;  or
(2)  as necessary to protect the member's interests and preserve the solvency of the credit union as authorized by commission rule.
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 123 - General Powers › Subchapter C. Financial Powers › Section 123.209. Transfer System

Sec. 123.209.  TRANSFER SYSTEM.  A credit union may establish, operate, or participate in a system that allows the transfer of credit union money or the shares or deposits of its members by electronic or other means, including a clearinghouse association, a data processing or other electronic network, the Federal Reserve System, or any other government payment or liquidity program.
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 123 - General Powers › Subchapter C. Financial Powers › Section 123.210. Sale of Certain Instruments or Securities; Fee

Sec. 123.210.  SALE OF CERTAIN INSTRUMENTS OR SECURITIES;  FEE.  A credit union may:
(1)  collect, receive, and disburse money:
(A)  in connection with the sale of a traveler's check, money order, cashier's check or draft, treasurer's draft, similar instrument, or security of any type;  or
(B)  for another purpose that may provide a benefit or convenience for its members;  and
(2)  collect a fee for those services.
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 123 - General Powers › Subchapter C. Financial Powers › Section 123.211. Certificates of Indebtedness

Sec. 123.211.  CERTIFICATES OF INDEBTEDNESS.  The commission by rule may authorize a credit union to issue certificates of indebtedness that are subordinated to all other claims of credit union creditors.
Added by Acts 2003, 78th Leg., ch. 533, Sec. 36, eff. Sept. 1, 2003.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle D - Credit Unions › Chapter 123 - General Powers › Subchapter C. Financial Powers › Section 123.212. Check and Money Transfer Services

Sec. 123.212.  CHECK AND MONEY TRANSFER SERVICES.  A credit union may sell to a person within its field of membership negotiable checks, money orders, and other similar money transfer instruments or services and may also cash checks and money orders for a person within its field of membership for a fee.
Added by Acts 2003, 78th Leg., ch. 533, Sec. 37, eff. Sept. 1, 2003.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle D - Credit Unions › Chapter 124 - Loans and Investments › Subchapter A. General Provisions Concerning Loans to Members › Section 124.001. Authorization

Sec. 124.001.  AUTHORIZATION.  A credit union may make a loan to a member:
(1)  in accordance with rules adopted by the commission;
(2)  for a purpose the credit union approves;  and
(3)  on security and terms the credit union requires.
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 124 - Loans and Investments › Subchapter A. General Provisions Concerning Loans to Members › Section 124.002. Limitations on Interest Rates

Sec. 124.002.  LIMITATIONS ON INTEREST RATES.  The interest rate on a loan to a member may not exceed:
(1)  1-1/2 percent per month on the unpaid balance;
(2)  28 percent a year to the extent that federal credit unions are permitted to charge that rate; or
(3)  a higher rate authorized by law, including a rate authorized by Chapter 303.
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. 16, eff. September 1, 2013.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle D - Credit Unions › Chapter 124 - Loans and Investments › Subchapter A. General Provisions Concerning Loans to Members › Section 124.003. Limitations on Loans

Sec. 124.003.  LIMITATIONS ON LOANS.  A credit union may not make a loan to a member or a business interest of the member if the loan would cause the aggregate amount of loans to the member and the member's business interests to exceed:
(1)  an amount equal to 10 percent of the credit union's total assets;  or
(2)  a lesser amount established by commission rule.
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 124 - Loans and Investments › Subchapter A. General Provisions Concerning Loans to Members › Section 124.004. Written Instrument Required

Sec. 124.004.  WRITTEN INSTRUMENT REQUIRED.  A credit union loan must be evidenced by a written instrument.
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 124 - Loans and Investments › Subchapter A. General Provisions Concerning Loans to Members › Section 124.005. Applicability of Other Law

Sec. 124.005.  APPLICABILITY OF OTHER LAW.  Subtitle B, Title 4, does not apply to a credit union loan or extension of credit unless the agreement that evidences the transaction specifically provides otherwise.
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 124 - Loans and Investments › Subchapter B. Open-End Credit Plan or Line of Credit › Section 124.051. Open-End Credit Plan

Sec. 124.051.  OPEN-END CREDIT PLAN.  A credit union may enter into a written agreement with a member under which:
(1)  the member is allowed to borrow money from time to time;  and
(2)  interest may from time to time be computed on the unpaid balance.
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 124 - Loans and Investments › Subchapter B. Open-End Credit Plan or Line of Credit › Section 124.052. Line of Credit

Sec. 124.052.  LINE OF CREDIT.  A credit union may approve in advance a line of credit and grant advances to a member within the limit of the extension of credit.
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 124 - Loans and Investments › Subchapter B. Open-End Credit Plan or Line of Credit › Section 124.053. Additional Loan Application Not Required

Sec. 124.053.  ADDITIONAL LOAN APPLICATION NOT REQUIRED.  An additional loan application is not required under an open-end credit plan under Section 124.051 or line of credit under Section 124.052 if the aggregate obligation does not exceed a limit of the extension of credit the credit union establishes.
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 124 - Loans and Investments › Subchapter C. Loan Expenses › Section 124.101. Borrower Payment of Loan Expenses

Sec. 124.101.  BORROWER PAYMENT OF LOAN EXPENSES.  A credit union may require a member to pay all reasonable expenses and fees incurred in connection with making, closing, disbursing, extending, readjusting, or renewing a loan, whether or not those expenses or fees are paid to third parties.
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 124 - Loans and Investments › Subchapter C. Loan Expenses › Section 124.102. Collection of Loan Expenses

Sec. 124.102.  COLLECTION OF LOAN EXPENSES.  A payment authorized by Section 124.101 may be:
(1)  collected by the credit union and:
(A)  retained by the credit union;  or
(B)  paid to a person rendering a service in connection with the payment;  or
(2)  paid directly by the member to the third party to whom it is payable.
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 124 - Loans and Investments › Subchapter C. Loan Expenses › Section 124.103. Character of Expense or Fee

Sec. 124.103.  CHARACTER OF EXPENSE OR FEE.  An expense or fee authorized by Section 124.101 is not interest.
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 124 - Loans and Investments › Subchapter D. Loan Payments › Section 124.151. Prepayment Privilege

Sec. 124.151.  PREPAYMENT PRIVILEGE.  A loan may be prepaid in whole or in part, without penalty, during regular working hours on any day on which the credit union is open for business, except as provided by Section 124.152.
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 124 - Loans and Investments › Subchapter D. Loan Payments › Section 124.152. Conditions for Prepayment of Loan Secured by Real Property

Sec. 124.152.  CONDITIONS FOR PREPAYMENT OF LOAN SECURED BY REAL PROPERTY.  A credit union may require a partial prepayment that is made on a loan secured by a lien or mortgage on or other type of security interest in real property to be made:
(1)  on the date monthly installments are due;  and
(2)  in the amount of that part of one or more monthly installments that would be applicable to principal.
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 124 - Loans and Investments › Subchapter D. Loan Payments › Section 124.153. Penalty for Late Payment

Sec. 124.153.  PENALTY FOR LATE PAYMENT.  (a)  A credit union, in accordance with its bylaws, may charge a member a penalty when a loan payment is past due.
(b)  A credit union may charge only one penalty on each past due payment.
(c)  A penalty under this section is not interest.
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 124 - Loans and Investments › Subchapter E. Loans to Directors, Employees, and Credit Committee Members › Section 124.201. Authorization

Sec. 124.201.  AUTHORIZATION.  Only if done in accordance with limitations imposed by Section 124.202, a credit union may make a loan or extend a line of credit to:
(1)  a director, senior management employee, or member of the credit committee;  or
(2)  the immediate family of the director, senior management employee, or member of the credit committee.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 2003, 78th Leg., ch. 533, Sec. 38, eff. Sept. 1, 2003.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle D - Credit Unions › Chapter 124 - Loans and Investments › Subchapter E. Loans to Directors, Employees, and Credit Committee Members › Section 124.202. Conditions of Loans

Sec. 124.202.  CONDITIONS OF LOANS.  A loan or extension of a line of credit under Section 124.201:
(1)  must comply with this subtitle  and rules adopted under this subtitle with respect to loans to other borrowers;
(2)  may not be on terms more favorable than those extended to other borrowers;  and
(3)  must be approved by the board before the credit union makes or agrees to make the loan if the aggregate amount of the loan and other outstanding loans to the person, the person's business interests, and the person's immediate family is greater than the sum of:
(A)  $10,000 or a higher amount established by commission rule;  and
(B)  the amount of the shares and deposits pledged for the loan.
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 124 - Loans and Investments › Subchapter E. Loans to Directors, Employees, and Credit Committee Members › Section 124.203. Authorization to Act as Comaker, Guarantor, or Endorser

Sec. 124.203.  AUTHORIZATION TO ACT AS COMAKER, GUARANTOR, OR ENDORSER.  A credit union may permit a director, senior management employee, or member of the credit committee to act as comaker, guarantor, or endorser of a loan to a member only in accordance with limitations imposed by Section 124.204.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 2003, 78th Leg., ch. 533, Sec. 39, eff. Sept. 1, 2003.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle D - Credit Unions › Chapter 124 - Loans and Investments › Subchapter E. Loans to Directors, Employees, and Credit Committee Members › Section 124.204. Prior Approval Required

Sec. 124.204.  PRIOR APPROVAL REQUIRED.  The board must give its approval before the credit union permits a director, senior management employee, or member of the credit committee to act as comaker, guarantor, or endorser of a loan to a member if the amount of the loan or aggregate of outstanding loans to the comaker, guarantor, or endorser is greater than the sum of:
(1)  $10,000 or a higher amount established by commission rule;  and
(2)  the amount of the shares and deposits pledged for the loan.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 2003, 78th Leg., ch. 533, Sec. 40, eff. Sept. 1, 2003.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle D - Credit Unions › Chapter 124 - Loans and Investments › Subchapter F. Illegal Loans › Section 124.251. Illegality of Loan Not a Defense

Sec. 124.251.  ILLEGALITY OF LOAN NOT A DEFENSE.  The illegality of a loan is not a defense in a credit union's action to recover on the loan.
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 124 - Loans and Investments › Subchapter F. Illegal Loans › Section 124.252. Illegality of Loan Not a Bar to Enforcement or Collection

Sec. 124.252.  ILLEGALITY OF LOAN NOT A BAR TO ENFORCEMENT OR COLLECTION.  The illegality of a loan does not prevent enforcement of the loan agreement against or collection of the loan from a person who is otherwise liable on the loan, including:
(1)  the borrower;  or
(2)  a guarantor or surety.
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 124 - Loans and Investments › Subchapter G. Loan Programs › Section 124.301. Participation Loans

Sec. 124.301.  PARTICIPATION LOANS.  A credit union may market and sell participations in loans to members originated by the credit union to another credit union, corporation, or financial organization.
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 124 - Loans and Investments › Subchapter G. Loan Programs › Section 124.302. Government Loan Programs

Sec. 124.302.  GOVERNMENT LOAN PROGRAMS.  A credit union may participate in:
(1)  a guaranteed loan program of the United States government or a state government;  and
(2)  another government loan program approved by the commission.
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 124 - Loans and Investments › Subchapter H. Investment of Money › Section 124.351. Permitted Investments

Sec. 124.351.  PERMITTED INVESTMENTS.  (a)  A credit union may invest money not used in loans to members in:
(1)  capital shares, obligations, participation certificates, or common or preferred stock of an agency, association, or company, subject to Section 124.352(a);
(2)  loans to a national or state credit union association or corporation of which the credit union is a member;
(3)  obligations, bonds, notes, or other evidences of indebtedness of a state or political subdivision of a state;
(4)  certificates of deposit or other accounts issued by a state or national bank, savings and loan association, savings association, or mutual savings bank;
(5)  securities, obligations, participations, or other instruments of or issued by the United States, or in a trust established for investing directly or collectively in those investments;
(6)  loans to, shares of, or deposits in another credit union, a central credit union, a corporate credit union, a central liquidity facility established under state or federal law, a trust, or an organization established for lending directly or collectively to credit unions;
(7)  securities, obligations, participations, or other instruments fully or partially guaranteed as to principal, interest, or both by the United States, or in a trust established for investing directly or collectively in those investments;
(8)  participation loans with another credit union, corporation, credit organization, or financial organization;
(9)  notes receivable, loans to members, or other assets of a credit union operating under this subtitle  or the Federal Credit Union Act (12 U.S.C. Section 1751 et seq.);  and
(10)  other investments authorized by rules adopted by the commission that satisfy Subsection (b).
(b)  A rule adopted under Subsection (a)(10) must be responsive to:
(1)  changes in economic conditions or competitive practices;  and
(2)  the need for safety and soundness of credit union investments.
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 124 - Loans and Investments › Subchapter H. Investment of Money › Section 124.352. Limitations on Investments

Sec. 124.352.  LIMITATIONS ON INVESTMENTS.  (a)  An investment under Section 124.351(a)(1) may be made only if:
(1)  the membership or ownership of the agency, association, or company is restricted to credit unions and their members or organizations of credit unions;  and
(2)  the agency, association, or company is designed primarily to serve or otherwise assist credit union operations.
(b)  An investment under Section 124.351(a)(1) or (2) in any one agency, association, or company may not exceed the lesser of the amount equal to:
(1)  five percent of the credit union's total assets;  or
(2)  its reserves and undivided earnings.
(c)  Notwithstanding Subsection (a), the commission by rule may authorize an investment under Section 124.351(a)(1) in an agency, association, or company:
(1)  whose membership or ownership is not restricted to credit unions and their members or organizations of credit unions;  or
(2)  that is not designed primarily to serve or otherwise assist credit union operations.
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 125 - Credit Union Accounts and Services › Subchapter A. General Provisions › Section 125.001. Definition

Sec. 125.001.  DEFINITION.  In this chapter, "multiple-party account" has the meaning assigned by Section 113.004, Estates Code, except that the term includes an account in which one or more of the parties is an organization, association, corporation, or partnership.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 1236 (S.B. 1296), Sec. 20.013, eff. September 1, 2015.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle D - Credit Unions › Chapter 125 - Credit Union Accounts and Services › Subchapter A. General Provisions › Section 125.002. Share Account

Sec. 125.002.  SHARE ACCOUNT.  (a)  Shares and membership shares shall be subscribed to and paid for in the manner prescribed by the bylaws.  A credit union may limit the number of shares that may be owned by a member, but any such limitation must be applied equally to all members.
(b)  A credit union may require credit union members to subscribe to and make payments on membership shares.  Membership shares may not be pledged as security on any loan.
(c)  The board of directors may establish different classes of share accounts classified in relation to different rights, restrictions, par value, and dividend rates.
(d)  A joint account may hold more than one membership share, supporting membership for more than one member of the credit union.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 2003, 78th Leg., ch. 533, Sec. 41, eff. Sept. 1, 2003.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle D - Credit Unions › Chapter 125 - Credit Union Accounts and Services › Subchapter A. General Provisions › Section 125.003. Deposit Accounts

Sec. 125.003.  DEPOSIT ACCOUNTS.  A deposit account consists of payments made under an agreement between the credit union and a depositor, including a draft account, checking account, savings account, certificate of deposit, individual development account, or other similar account or arrangement.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 2003, 78th Leg., ch. 533, Sec. 42, eff. Sept. 1, 2003.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle D - Credit Unions › Chapter 125 - Credit Union Accounts and Services › Subchapter A. General Provisions › Section 125.004. Construction With Other Laws

Sec. 125.004.  CONSTRUCTION WITH OTHER LAWS.  This chapter may not be construed to conflict with the laws of the United States or the laws of this state governing the taxation of multiple-party accounts.
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 125 - Credit Union Accounts and Services › Subchapter B. Multiple-Party Accounts › Section 125.101. Form of Account

Sec. 125.101.  FORM OF ACCOUNT.  (a)  A member of a credit union or of a federal credit union doing business in this state may designate one or more persons to own a share or deposit account with the member in a multiple-party account.
(b)  The account may provide for a right of survivorship.
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 125 - Credit Union Accounts and Services › Subchapter B. Multiple-Party Accounts › Section 125.102. Powers of Account Holders

Sec. 125.102.  POWERS OF ACCOUNT HOLDERS.  (a)  A party to a multiple-party account may make a payment on a share or deposit account and a withdrawal subject to the account agreement.
(b)  A party to the account may not vote in matters pertaining to, obtain a loan through, or hold office in the credit union unless the party is a member of the 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 125 - Credit Union Accounts and Services › Subchapter B. Multiple-Party Accounts › Section 125.103. Powers of Members Relating to Account

Sec. 125.103.  POWERS OF MEMBERS RELATING TO ACCOUNT.  Subject to a policy adopted by the board, a member of a credit union by written notice to the credit union may:
(1)  change or cancel a multiple-party account designation;
(2)  change the form of the account;  or
(3)  stop or vary payment under the terms of the account.
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 125 - Credit Union Accounts and Services › Subchapter B. Multiple-Party Accounts › Section 125.104. Ownership Interest

Sec. 125.104.  OWNERSHIP INTEREST.  (a)  The parties to a multiple-party account are presumed to own the account in equal undivided interests unless:
(1)  the account agreement provides otherwise;  or
(2)  satisfactory proof of the net contributions to the account exists.
(b)  The net contribution of a party to a multiple-party account is computed by adding:
(1)  the total amount of all of the payments on a share or deposit made by or for the party, less the amount of all of the withdrawals made by or for the party that have not been paid to or applied for the use of another party;
(2)  the pro rata share of interest or dividends included in the current balance of the account;  and
(3)  any life insurance proceeds added to the account because of the death of the party.
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 125 - Credit Union Accounts and Services › Subchapter B. Multiple-Party Accounts › Section 125.105. Discharge of Liability on Payment

Sec. 125.105.  DISCHARGE OF LIABILITY ON PAYMENT.  Payment of all or part of a multiple-party account to a party to the account discharges the credit union's liability to each party to the extent of the payment.
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 125 - Credit Union Accounts and Services › Subchapter B. Multiple-Party Accounts › Section 125.106. Division of Account on Death

Sec. 125.106.  DIVISION OF ACCOUNT ON DEATH.  (a)  Unless otherwise provided by the account agreement or a trust agreement, the only effect the death of a party to a multiple-party account has on the beneficial ownership of the account is to transfer the decedent's right in the account to the decedent's estate.
(b)  An account that does not expressly provide for right of survivorship is presumed to be a nonsurvivorship account.
(c)  If the credit union complies with an account agreement, the credit union may pay money representing shares or deposits on the order of a party either before or after the death of another party.
(d)  A credit union acting under Subsection (c) does not have further liability for the amount paid.
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 125 - Credit Union Accounts and Services › Subchapter B. Multiple-Party Accounts › Section 125.107. Setoff of Account

Sec. 125.107.  SETOFF OF ACCOUNT.  Without qualifying another statutory right to a setoff or lien and subject to a contractual provision accepted by the credit union, a credit union has the right of setoff against the entire amount of a multiple-party account in which a party to the account is indebted to the 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 125 - Credit Union Accounts and Services › Subchapter C. Minor Accounts › Section 125.201. Powers of Credit Union Relating to Account

Sec. 125.201.  POWERS OF CREDIT UNION RELATING TO ACCOUNT.  A credit union may:
(1)  open a share or deposit account in the name of a minor;
(2)  receive a payment on the account by or for the minor;
(3)  pay withdrawals;
(4)  accept pledges to the credit union by or for the minor;  and
(5)  act in any other matter with respect to an account on the order of a minor.
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 125 - Credit Union Accounts and Services › Subchapter C. Minor Accounts › Section 125.202. Voting; Office-Holding

Sec. 125.202.  VOTING;  OFFICE-HOLDING.  (a)  If permitted by the credit union's bylaws, a minor:
(1)  may vote in a meeting of the credit union's members;  and
(2)  is eligible to hold an office or committee membership in the credit union.
(b)  A minor may not vote through a parent or guardian at a meeting of the credit union's members.
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 125 - Credit Union Accounts and Services › Subchapter C. Minor Accounts › Section 125.203. Discharge of Liability on Payment; Effect on Minor of Required Action

Sec. 125.203.  DISCHARGE OF LIABILITY ON PAYMENT;  EFFECT ON MINOR OF REQUIRED ACTION.  (a)  A payment or delivery of rights made by a credit union or a federal credit union to any of the following persons in connection with an account in the name of a minor discharges the credit union or federal credit union to the extent of the payment or delivery:
(1)  the minor;
(2)  a party to the account;  or
(3)  the parent or guardian of a deceased minor.
(b)  The payment and a receipt, pledge, or other action required by the credit union is binding on the minor as if the minor had the capacity of an adult.
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 125 - Credit Union Accounts and Services › Subchapter D. Trust Account › Section 125.301. Form of Account

Sec. 125.301.  FORM OF ACCOUNT.  (a)  A credit union may issue shares or receive a deposit:
(1)  in a revocable trust, if:
(A)  a settlor is a member of the credit union;  or
(B)  a trustee or a beneficiary is a member of the credit union and the settlor is a member of the trustee's or beneficiary's family as that term is defined by the board in a written policy;  or
(2)  in an irrevocable trust, if a settlor, trustee, or beneficiary is a member of the credit union.
(b)  A credit union may rely on any information provided by the trustee to determine whether a trust is revocable or irrevocable.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 1999, 76th Leg., ch. 87, Sec. 4, eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle D - Credit Unions › Chapter 125 - Credit Union Accounts and Services › Subchapter D. Trust Account › Section 125.302. Loans to Nonmember Trustee

Sec. 125.302.  LOANS TO NONMEMBER TRUSTEE.  Subject to limitations imposed by this subtitle  or a rule adopted under this subtitle, a credit union may make a fully secured loan to a nonmember trustee to enable the trustee to perform or assist the trustee in performing the trustee's fiduciary responsibilities.
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 125 - Credit Union Accounts and Services › Subchapter D. Trust Account › Section 125.303. Beneficiary Fees

Sec. 125.303.  BENEFICIARY FEES.  A beneficiary who is not a member of a credit union is not required to pay a membership entrance fee.
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 125 - Credit Union Accounts and Services › Subchapter D. Trust Account › Section 125.304. Limitations Placed on Beneficiary

Sec. 125.304.  LIMITATIONS PLACED ON BENEFICIARY.  A beneficiary who is not a member of a credit union may not vote in matters pertaining to, obtain a loan through, or hold office in the 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 125 - Credit Union Accounts and Services › Subchapter D. Trust Account › Section 125.305. Account Transaction Inquiries

Sec. 125.305.  ACCOUNT TRANSACTION INQUIRIES.  The credit union is not required to inquire of a trustee the reason for a transaction or the intended use for money withdrawn or borrowed.
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 125 - Credit Union Accounts and Services › Subchapter D. Trust Account › Section 125.306. Discharge of Liability on Payment

Sec. 125.306.  DISCHARGE OF LIABILITY ON PAYMENT.  Payment of all or part of the shares and deposits to a trustee or other person authorized to request present payment on a trust account discharges the liability of the credit union to each settlor, trustee, and beneficiary to the extent of the payment.
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 125 - Credit Union Accounts and Services › Subchapter D. Trust Account › Section 125.307. Termination of Account

Sec. 125.307.  TERMINATION OF ACCOUNT.  When a trust is terminated, the credit union shall pay money remaining in a trust account as:
(1)  directed by the trustee;
(2)  prescribed by the trust agreement;  or
(3)  provided by applicable law, in the absence of direction from the trustee or by the trust agreement.
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 125 - Credit Union Accounts and Services › Subchapter D. Trust Account › Section 125.308. Effect of Death of Trustee on Account

Sec. 125.308.  EFFECT OF DEATH OF TRUSTEE ON ACCOUNT.  (a)  The death of a trustee does not affect the ownership or disposition of a trust account unless:
(1)  the trust agreement provides otherwise; or
(2)  there is not a surviving trustee, and:
(A)  the account is a trust account subject to Subchapter B, Chapter 111, and Chapters 112 and 113, Estates Code; or
(B)  written evidence of the terms of the trust does not exist.
(b)  On the death of a trustee for a trust account for which the death of a trustee affects the ownership disposition of the account, the credit union shall pay out money in the trust account:
(1)  in accordance with the trust agreement;  or
(2)  in the absence of written evidence of the terms of the trust, to a beneficiary or any other person authorized by law to request or receive payment.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 1236 (S.B. 1296), Sec. 20.014, eff. September 1, 2015.