reglab/statecodes huggingface dataset:
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle D - Credit Unions › Chapter 125 - Credit Union Accounts and Services › Subchapter E. Third-Party Claims and Other Rights Relating to Accounts › Section 125.401. Third-Party Claim

Sec. 125.401.  THIRD-PARTY CLAIM.  (a)  In this section:
(1)  "Credit union" includes:
(A)  a credit union organized under the laws of this state;
(B)  a foreign credit union;  and
(C)  a federal credit union.
(2)  "Out-of-state credit union" means a credit union that:
(A)  is not organized under the laws of this state;  and
(B)  has its main or principal office in another state or country.
(3)  "Texas credit union" means a credit union that:
(A)  is organized under the laws of this state or federal law;  and
(B)  has its main or principal office in this state.
(b)  A credit union doing business in this state must be served with citation or other appropriate process issued from a court in connection with a suit instituted by a third party to recover or establish an interest in a deposit or share account before the credit union is required to:
(1)  recognize the third party's claim;
(2)  withhold payment of the account to any party to the account;  or
(3)  withhold payment to the order of any party to the account.
(c)  A claim against a depositor, joint account owner, or member of a credit union shall be delivered or otherwise served as required or permitted by law at the address of the registered agent of the credit union as designated in a registration filed under Section 201.102 or 201.103, as applicable.
(d)  A claim against a depositor, joint account owner, or member of an out-of-state credit union that files a registration statement under Section 201.102 or a Texas credit union that files a registration statement under Section 201.103 is not effective with respect to the credit union if the claim is served or delivered to an address other than the address of the credit union's registered agent as provided in the registration.
(e)  To prevent or limit a credit union's compliance with or response to a claim subject to this section, the depositor, joint account owner, or member must seek an appropriate remedy, including a restraining order, injunction, or protective order, to prevent or suspend the credit union's response to a claim against the depositor, joint account owner, or member.
(f)  A credit union that does not register with the secretary of state under Section 201.102 or 201.103 is subject to service or delivery of all claims against depositors, joint account owners, or members of the credit union or against the credit union itself by serving the president or vice president of the credit union or as otherwise provided by law.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 2003, 78th Leg., ch. 533, Sec. 44, 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 E. Third-Party Claims and Other Rights Relating to Accounts › Section 125.402. Disclosure of Records of Member; Confidentiality

Sec. 125.402.  DISCLOSURE OF RECORDS OF MEMBER;  CONFIDENTIALITY.  (a)  A credit union is not required to disclose or produce to a third party or permit a third party to examine a record pertaining to the affairs of a credit union member unless:
(1)  the request is made in connection with an examination or audit by a government agency authorized by law to examine credit unions;
(2)  the member consents to the disclosure or production of the record;  or
(3)  the request is made by the department or is made in response to:
(A)  a subpoena or other court order;  or
(B)  an administrative subpoena or summons issued by a state or federal agency as authorized by law.
(b)  The commission may authorize the disclosure of information relating to a credit union member under circumstances and conditions that the commission determines are appropriate or required in the daily operation of the credit union's business.
(c)  The commission may adopt reasonable rules relating to the:
(1)  permissible disclosure of nonpublic personal information about the accounts of credit union members; and
(2)  duties of the credit union to maintain confidentiality of member accounts.
(d)  The directors, officers, committee members, and employees and any honorary or advisory directors of a credit union shall hold in confidence all information regarding transactions of the credit union, including information concerning transactions with the credit union's members and the members' personal affairs, except to the extent necessary in connection with making, extending, or collecting a loan or extension of credit, or as otherwise authorized by this section, commission rules adopted under Subsection (c), or other applicable law.
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. 17, eff. September 1, 2013.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle D - Credit Unions › Chapter 125 - Credit Union Accounts and Services › Subchapter E. Third-Party Claims and Other Rights Relating to Accounts › Section 125.403. Recovery of Document Production Expenses From Third Party

Sec. 125.403.  RECOVERY OF DOCUMENT PRODUCTION EXPENSES FROM THIRD PARTY.  (a)  A credit union or federal credit union doing business in this state is entitled to recover from a third party the reasonable cost actually incurred in disclosing or producing a record under this subtitle  or other applicable law unless the cost was incurred in connection with an examination or audit by a government agency authorized by law to examine credit unions.
(b)  The cost incurred in disclosing or producing a record includes the cost of reproduction, postage, or delivery.
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 E. Third-Party Claims and Other Rights Relating to Accounts › Section 125.404. Liens and Setoffs

Sec. 125.404.  LIENS AND SETOFFS.  (a)  To the extent of a member's direct or indirect indebtedness to a credit union, the credit union has:
(1)  a lien, enforceable with or without judicial process, on the member's shares and deposits, accumulated dividends, and interest;  and
(2)  a right to set off against the member's shares, deposits, accumulated dividends, and interest.
(b)  A credit union may allow a withdrawal to be made without affecting the credit union's right to a setoff or lien.
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 E. Third-Party Claims and Other Rights Relating to Accounts › Section 125.405. Account Withdrawals

Sec. 125.405.  ACCOUNT WITHDRAWALS.  (a)  A credit union may require not longer than 60 days' notice for a withdrawal from a share or deposit account.
(b)  The commissioner may impose an advance withdrawal notice requirement following issuance of a cease and desist order under Chapter 122.  The commissioner by rule may require that a requirement imposed under this subsection apply to all members of the credit union.
(c)  A membership share may not be withdrawn unless membership in the credit union is terminated.
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 F. Safe Deposit Boxes › Section 125.501. Rental of Safe Deposit Box

Sec. 125.501.  RENTAL OF SAFE DEPOSIT BOX.  A credit union or federal credit union may maintain and rent safe deposit boxes.
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 F. Safe Deposit Boxes › Section 125.502. Relationship Between Credit Union and Box Holder

Sec. 125.502.  RELATIONSHIP BETWEEN CREDIT UNION AND BOX HOLDER.  (a)  In the absence of a contract to the contrary, the relationship between a credit union and the renter of a safe deposit box maintained at the credit union is that of lessor and lessee and landlord and tenant.  The rights and liabilities of the credit union are governed by the law governing those relationships.
(b)  The lessee is for all purposes in possession of the box and its contents.
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 F. Safe Deposit Boxes › Section 125.503. Access by More Than One Person

Sec. 125.503.  ACCESS BY MORE THAN ONE PERSON.  (a)  In the absence of a contract to the contrary, a credit union shall allow each holder of a safe deposit box jointly held in the name of two or more persons or a person other than the lessee designated in the lease agreement:
(1)  access to the box;  and
(2)  removal of its contents.
(b)  A credit union is not responsible for damage arising because a holder or other designated person had access to the box or removed its contents.
(c)  The death of a holder of a jointly held safe deposit box does not affect the right of another holder or other designated person to have access to and remove contents from the box.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 1999, 76th Leg., ch. 87, Sec. 5, 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 F. Safe Deposit Boxes › Section 125.504. Relocation of Safe Deposit Box; Inventory of Contents

Sec. 125.504.  RELOCATION OF SAFE DEPOSIT BOX;  INVENTORY OF CONTENTS.  (a)  Except as otherwise provided by this section, Sections 125.505 through 125.507, Chapter 151, Estates Code, or other law, a credit union may not relocate a safe deposit box rented for a term of six months or longer if the box rental is not delinquent or may not open the box to relocate its contents to another location, unless:
(1)  the lessee is present when the box is opened or relocated; or
(2)  the lessee has given the credit union written authorization to relocate the box or to open the box for purposes of relocation.
(b)  Storage conditions at the new box location must be at least as secure as the conditions at the original location.
(c)  If the box is opened during relocation, two employees shall prepare a detailed inventory of the contents of the box.  At least one of the employees must be an officer or manager of the credit union and a notary public.
(d)  One lessee of a jointly held safe deposit box is sufficient to personally supervise or give written authorization for the box's relocation.
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. 20.015, 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 F. Safe Deposit Boxes › Section 125.505. Notice of Box Relocation

Sec. 125.505.  NOTICE OF BOX RELOCATION.  (a)  A credit union shall give a lessee of a safe deposit box at least 30 days' notice of the box's relocation.  The notice must state:
(1)  the scheduled date and time of the relocation;  and
(2)  whether the box will be opened during the relocation.
(b)  If the lessee does not personally supervise the relocation or give written authorization for the relocation, the credit union shall notify the lessee of the new box number or location not later than the 30th day after the date of the relocation.  The credit union must include a copy of the signed and notarized inventory report required by Section 125.504(c) with the notice.
(c)  A notice required by this section must be sent by certified mail, return receipt requested, to each lessee named in the records of the credit union at the address shown in those records.
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 F. Safe Deposit Boxes › Section 125.506. Cost of Notice as Box Rental

Sec. 125.506.  COST OF NOTICE AS BOX RENTAL.  The credit union may treat the cost of certified mailings incurred in connection with each safe deposit box relocation other than the cost of the first notice as box rental due and payable at the expiration of the rental term.
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 F. Safe Deposit Boxes › Section 125.507. Emergency Relocation of Safe Deposit Box

Sec. 125.507.  EMERGENCY RELOCATION OF SAFE DEPOSIT BOX.  (a)  A credit union may relocate a safe deposit box or open the box to relocate its contents to another location if the security of the box is threatened or destroyed by an unforeseeable circumstance beyond the credit union's control, including a natural disaster such as a tornado, flood, or fire.
(b)  Not later than the 90th day after the date on which the box is relocated, the credit union shall notify each lessee in whose name the box is held of the new box number or location.  The notice must be sent by certified mail, return receipt requested, to each lessee named in the records of the credit union at the address shown in those records.
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 F. Safe Deposit Boxes › Section 125.508. Key Imprinting

Sec. 125.508.  KEY IMPRINTING.  (a)  A credit union that rents or permits access to a safe deposit box shall:
(1)  imprint all keys issued to the box after September 1, 1992, with its routing number;  or
(2)  issue keys imprinted with the routing number.
(b)  If available space on a key is insufficient for imprinting the routing number, the credit union shall attach to the key a tag imprinted with the routing number.
(c)  If a credit union believes that the routing number imprinted on a key, or a tag attached to a key, used to access a safe deposit box has been altered or defaced in a manner that the correct routing number is illegible, the credit union shall notify the Department of Public Safety, on a form designated by the commissioner, not later than the 10th day after the date the key is used to access the box.
(d)  This section does not require a credit union to inspect the routing number imprinted on a key or an attached tag to determine whether the number has been altered or defaced.
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 F. Safe Deposit Boxes › Section 125.509. Liability for Access to or Removal of Contents

Sec. 125.509.  LIABILITY FOR ACCESS TO OR REMOVAL OF CONTENTS.  A credit union that has identified the keys to a safe deposit box in accordance with Section 125.508 and that follows applicable law and the credit union's established security procedures in permitting access to the box is not liable for damages arising because of access to or removal of the box's contents.
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 F. Safe Deposit Boxes › Section 125.510. Delinquent Rents

Sec. 125.510.  DELINQUENT RENTS.  (a)  If the rental of a safe deposit box is delinquent for six months or longer, the credit union may open the box only if:
(1)  the credit union sends notice of the delinquency to the lessee;  and
(2)  the rent is not paid before the date specified in the notice.
(b)  The notice must:
(1)  be sent by certified mail, return receipt requested, to the lessee named in the books of the credit union at the address shown in those books;  and
(2)  specify a date by which payment must be made that may not be before the 61st day after the date on which the notice is mailed.
(c)  The box must be opened in the presence of two employees, and the credit union shall prepare a detailed inventory of the contents of the box as provided by reporting instructions of the comptroller.  At least one of the employees must be an officer or manager of the credit union and a notary public.
(d)  The credit union shall place the contents of the box in a sealed envelope or container that states the lessee's name.  The credit union shall hold the contents of the box subject to a lien for:
(1)  the box's rental;
(2)  the cost of opening the box;  and
(3)  any damage in connection with the box.
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 F. Safe Deposit Boxes › Section 125.511. Auction of Contents

Sec. 125.511.  AUCTION OF CONTENTS.  (a)  If the rental, cost, and damages determined under Section 125.510(d) are not paid before the second anniversary of the date on which the box is opened, the credit union may:
(1)  sell all or part of the contents at a public auction in the manner and on the notice prescribed for the sale of real property under deed of trust under Section 51.002, Property Code;  and
(2)  apply the sale proceeds to the rental, cost, and damages.
(b)  The credit union shall send to the comptroller as provided by Chapter 74, Property Code:
(1)  the unauctioned contents of a box;  and
(2)  any excess proceeds from the auction.
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 126 - Credit Union Supervision and Regulation › Subchapter A. General Provisions › Section 126.001. Appointment of Conservator or Liquidating Agent

Sec. 126.001.  APPOINTMENT OF CONSERVATOR OR LIQUIDATING AGENT.  The commissioner may appoint any person, including the share and deposit guaranty corporation or credit union provided for by Section 15.410, as a conservator or a liquidating agent under this chapter.
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 126 - Credit Union Supervision and Regulation › Subchapter A. General Provisions › Section 126.003. Enforceability of Agreement Made by Credit Union Before Conservatorship or Liquidation

Sec. 126.003.  ENFORCEABILITY OF AGREEMENT MADE BY CREDIT UNION BEFORE CONSERVATORSHIP OR LIQUIDATION.  An agreement that tends to diminish or defeat the interest of the conservator or liquidating agent in an asset acquired under this chapter, either as security for a loan or by purchase, is not valid against the conservator or liquidating agent unless the agreement is:
(1)  in writing;
(2)  executed by the credit union and each person claiming an adverse interest under the agreement, including the obligor, contemporaneously with the acquisition of the asset by the credit union;
(3)  approved by the board with the approval recorded in the minutes of the board;  and
(4)  an official record of the credit union continuously from the time of its execution.
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 126 - Credit Union Supervision and Regulation › Subchapter B. Examinations › Section 126.051. Examinations

Sec. 126.051.  EXAMINATIONS.  (a)  The department, through examiners it appoints and in accordance with commission rules, shall periodically examine the books and records of each credit union.
(b)  In lieu of an examination under this section, the commissioner may accept:
(1)  the examination report of a regulator authorized to examine a credit union, foreign credit union, federal credit union, or other financial institution;  or
(2)  the audit report of an accountant, satisfactory to the commissioner, who has made and submitted a report of the condition of the affairs of a credit union, foreign credit union, federal credit union, or other financial institution.
(c)  The commissioner may accept all or part of a report in lieu of all or part of an examination.  An accepted part of the report has the same validity as an examination under this section.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 2003, 78th Leg., ch. 533, Sec. 46, eff. Sept. 1, 2003.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle D - Credit Unions › Chapter 126 - Credit Union Supervision and Regulation › Subchapter B. Examinations › Section 126.052. Access to Information

Sec. 126.052.  ACCESS TO INFORMATION.  An officer, director, agent, or employee of a credit union shall give an examiner free access to any information relating to the credit union's business, including access to books, papers, securities, and other records.
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 126 - Credit Union Supervision and Regulation › Subchapter B. Examinations › Section 126.053. Witnesses; Production of Documents

Sec. 126.053.  WITNESSES;  PRODUCTION OF DOCUMENTS.  (a)  In an examination conducted under this subchapter, the commissioner or the commissioner's designee may:
(1)  subpoena witnesses;
(2)  administer an oath or affirmation to a person, including any officer, director, agent, or employee of a credit union, and examine the person under oath or affirmation on any subject the commissioner considers pertinent to the financial condition or the safety and soundness of the activities of a credit union;  or
(3)  require and compel by subpoena the production of documents that are not voluntarily produced, including books, papers, securities, and records.
(b)  The commissioner may apply to a district court in Travis County for an order requiring a person to obey a subpoena, to appear, or to answer questions in connection with the examination or investigation.
(c)  The court shall issue an order under Subsection (b) if the court finds good cause to issue the subpoena or to take testimony.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 2003, 78th Leg., ch. 533, Sec. 47, eff. Sept. 1, 2003.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle D - Credit Unions › Chapter 126 - Credit Union Supervision and Regulation › Subchapter B. Examinations › Section 126.054. Report of Examination

Sec. 126.054.  REPORT OF EXAMINATION.  (a)  An examiner shall report the results of an examination, including a general statement of the credit union's affairs, on a form prescribed by the commissioner and approved by the commission.
(b)  The department shall send a copy of the report to the board not later than the 30th day after the examination date.
(c)  The report of examination is confidential.  The commissioner may provide a copy of the report to other parties as described in Section 126.002(c).
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 1999, 76th Leg., ch. 157, Sec. 14, eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle D - Credit Unions › Chapter 126 - Credit Union Supervision and Regulation › Subchapter B. Examinations › Section 126.055. Fee

Sec. 126.055.  FEE.  The commission may establish and a credit union shall pay a fee based on the cost of performing an examination of the credit union.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 1999, 76th Leg., ch. 157, Sec. 15, eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle D - Credit Unions › Chapter 126 - Credit Union Supervision and Regulation › Subchapter C. Conservatorship Order › Section 126.101. Conservatorship Order; Appointment of Conservator

Sec. 126.101.  CONSERVATORSHIP ORDER;  APPOINTMENT OF CONSERVATOR.  (a)  The commissioner may immediately issue a conservatorship order and appoint a conservator to manage a credit union's affairs if:
(1)  the commissioner, in performing the duties under this subtitle, finds that:
(A)  the credit union is insolvent or in imminent danger of insolvency;  or
(B)  the credit union or an employee, officer, or director of a credit union, including an honorary or advisory director has:
(i)  violated this subtitle, a rule adopted under this subtitle, or another law that applies to credit unions;
(ii)  violated or neglected a final order of the commissioner or commission;
(iii)  refused to submit to examination under oath;
(iv)  refused to permit the commissioner or the commissioner's representative to examine the credit union's records and affairs, including books, papers, and accounts;
(v)  conducted the credit union's business in an unsafe, unauthorized, or unlawful manner;  or
(vi)  failed or refused to authorize and direct another person to permit the commissioner or the commissioner's representative to examine the credit union's records in the other person's custody or control, including books, papers, and accounts, following the commissioner's request for the granting of that authority and direction;  and
(2)  the commissioner determines that the finding under Subdivision (1) is sufficiently severe to require immediate affirmative action to prevent further dissipation of the credit union's assets.
(b)  The order must clearly state the grounds for conservatorship.
(c)  The board may:
(1)  agree in writing to a conservatorship order; and
(2)  waive its right to appeal the order under Section 126.105.
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. 19, eff. September 1, 2013.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle D - Credit Unions › Chapter 126 - Credit Union Supervision and Regulation › Subchapter C. Conservatorship Order › Section 126.102. Service of Order

Sec. 126.102.  SERVICE OF ORDER.  (a)  A conservatorship order must be served personally to an officer or director of the credit union by the commissioner, the deputy commissioner, or another person authorized by the commissioner.
(b)  Service may be by mail if an officer or director is not available for service on the date personal service of the order is attempted.
(c)  Service by mail  must be by certified or registered mail, must be addressed to the credit union at the address shown for its principal office by department records and to the home address of the chairman of the board, and is complete on deposit of the order in a postpaid, properly addressed wrapper, in a post office or official depository under the care and custody of the United States Postal Service.
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. 20, eff. September 1, 2013.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle D - Credit Unions › Chapter 126 - Credit Union Supervision and Regulation › Subchapter C. Conservatorship Order › Section 126.103. Effect of Order

Sec. 126.103.  EFFECT OF ORDER.  Following service of a conservatorship order:
(1)  the commissioner shall take possession and control of the credit union's books, records, property, assets, and business;  and
(2)  the credit union shall cease all operations except those authorized by the commissioner and conducted under the commissioner's supervision.
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 126 - Credit Union Supervision and Regulation › Subchapter C. Conservatorship Order › Section 126.105. Appeal of Order; Hearing

Sec. 126.105.  APPEAL OF ORDER;  HEARING.  (a)  Unless the board waives its right to appeal under Section 126.101(c), the board may file a written appeal of the conservatorship order with the commissioner not later than the 10th business day after the date the order is served as provided by Section 126.102.  The appeal must include a certified copy of the board resolution and must state whether the board requests a hearing.
(b)  If the board requests a hearing, the commissioner shall promptly request from the State Office of Administrative Hearings a hearing date that is not earlier than the 11th day nor later than the 30th day after the date on which the commissioner receives the appeal.
(c)  The commissioner shall give the credit union notice of the date, time, and place of the hearing.
(d)  The filing of an appeal does not suspend the order, and the order remains in effect until the commission's final disposition of the appeal.
(e)  Not later than the 45th day after a proposal for decision is received from the State Office of Administrative Hearings, the commission shall meet to consider the proposal.
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. 21, eff. September 1, 2013.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle D - Credit Unions › Chapter 126 - Credit Union Supervision and Regulation › Subchapter C. Conservatorship Order › Section 126.106. Failure to Appeal or Appear

Sec. 126.106.  FAILURE TO APPEAL OR APPEAR.   If the board does not appeal the conservatorship order or fails to appear at the hearing provided for by Section 126.105, the credit union is presumed to have consented to the commissioner's disposition action, and the commissioner may dispose of the conservatorship matter as the commissioner considers appropriate.
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. 22, eff. September 1, 2013.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle D - Credit Unions › Chapter 126 - Credit Union Supervision and Regulation › Subchapter C. Conservatorship Order › Section 126.107. Extension of Date and Time for Hearing

Sec. 126.107.  EXTENSION OF DATE AND TIME FOR HEARING.  The parties may agree to extend the date and time of the hearing.
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 126 - Credit Union Supervision and Regulation › Subchapter C. Conservatorship Order › Section 126.108. Confidentiality; Disclosure

Sec. 126.108.  CONFIDENTIALITY;  DISCLOSURE.  A conservatorship order and a copy of a notice, correspondence, transcript, pleading, or other document relating to the order are confidential and may be disclosed only in a related legal proceeding or as otherwise authorized by law.  The commissioner may release to the public information regarding the existence of an order if the commissioner concludes that release of the information would enhance effective enforcement of the order.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 2003, 78th Leg., ch. 533, Sec. 48, eff. Sept. 1, 2003.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle D - Credit Unions › Chapter 126 - Credit Union Supervision and Regulation › Subchapter D. Administration of Conservatorship › Section 126.151. Conservator Subject to Commission Control

Sec. 126.151.  CONSERVATOR SUBJECT TO COMMISSION CONTROL.  A conservator shall exercise the powers authorized under Sections 126.152-126.154 subject to commission rules and under the commissioner's supervision.
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 126 - Credit Union Supervision and Regulation › Subchapter D. Administration of Conservatorship › Section 126.152. General Powers of Conservator

Sec. 126.152.  GENERAL POWERS OF CONSERVATOR.  The conservator may:
(1)  take possession and control of the books, records, property, assets, and business of the credit union;
(2)  conduct the business and affairs of the credit union;
(3)  sell or assign assets to the conservator;  and
(4)  perform any other action as necessary in connection with the conservatorship.
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 126 - Credit Union Supervision and Regulation › Subchapter D. Administration of Conservatorship › Section 126.153. Powers Relating to Claims

Sec. 126.153.  POWERS RELATING TO CLAIMS.  The conservator may:
(1)  determine the existence and amount of claims;
(2)  allow proved claims of security, preference, or priority;
(3)  disallow unproved claims of security, preference, or priority;  and
(4)  settle or release a claim in favor of or against 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 126 - Credit Union Supervision and Regulation › Subchapter D. Administration of Conservatorship › Section 126.154. Power to Repudiate Burdensome Transaction

Sec. 126.154.  POWER TO REPUDIATE BURDENSOME TRANSACTION.  The conservator may repudiate a contract or unexpired lease the conservator considers burdensome 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 126 - Credit Union Supervision and Regulation › Subchapter D. Administration of Conservatorship › Section 126.155. Power to Protect, Preserve, and Recover Property

Sec. 126.155.  POWER TO PROTECT, PRESERVE, AND RECOVER PROPERTY.  (a)  The conservator may take measures necessary to preserve, protect, and recover the assets or property of the credit union, including filing a lawsuit against any person.
(b)  An asset or property of the credit union includes a claim or cause of action that belongs to or that may be asserted by the credit union.
(c)  The conservator may deal with that property in the capacity of conservator.
(d)  The conservator may file, prosecute, or defend a suit brought by or against the credit union if the conservator considers it necessary to protect the interested party or property affected by the suit.
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 126 - Credit Union Supervision and Regulation › Subchapter D. Administration of Conservatorship › Section 126.156. Duties of Conservator

Sec. 126.156.  DUTIES OF CONSERVATOR.  The conservator shall:
(1)  take actions as directed by the commissioner to remove the causes and conditions that made the conservatorship necessary;  and
(2)  report to the commissioner from time to time during the conservatorship as required by the commissioner.
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 126 - Credit Union Supervision and Regulation › Subchapter D. Administration of Conservatorship › Section 126.157. Term of Conservator

Sec. 126.157.  TERM OF CONSERVATOR.  The conservator shall serve until the purposes of the conservatorship are accomplished.
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 126 - Credit Union Supervision and Regulation › Subchapter D. Administration of Conservatorship › Section 126.158. Transfer of Management of Rehabilitated Credit Union

Sec. 126.158.  TRANSFER OF MANAGEMENT OF REHABILITATED CREDIT UNION.  If the credit union is rehabilitated, the conservator shall return the management of the credit union to the board under terms that are reasonable and necessary to prevent a recurrence of the conditions that created the need for conservatorship.
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 126 - Credit Union Supervision and Regulation › Subchapter D. Administration of Conservatorship › Section 126.159. Cost of Conservatorship

Sec. 126.159.  COST OF CONSERVATORSHIP.  (a)  The commissioner shall determine and approve any reasonable expenses attributable to the service of a conservator, including costs incurred by the department and the compensation and expenses of the conservator and any professional employees appointed to represent or assist the conservator.  The commissioner or an employee of the department may not receive compensation in addition to salary for serving as conservator, but the department may receive reimbursement for the fully allocated personnel cost associated with the service of the commissioner or the employee as conservator.
(b)  All approved expenses shall be paid by the credit union. The department has a lien against the assets and money of the credit union to secure payment of approved expenses.  The lien has a higher priority than any other lien against the credit union.
(c)  Notwithstanding this subchapter, the credit union may retain attorneys and hire other persons to assist the credit union in contesting or satisfying the requirements of an order of conservatorship.  The commissioner shall authorize the payment of reasonable fees and expenses for the attorneys and other persons as expenses of the conservatorship.
(d)  The commissioner may waive or defer collection of assessment or examination fees by the department from the credit union during a period of conservatorship if the waiver or deferral would appear to benefit the prospects for rehabilitation.  As a condition of release from conservatorship, the commissioner may require the rehabilitated credit union to pay or develop a reasonable plan for payment of any deferred fees.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 2003, 78th Leg., ch. 533, Sec. 49, eff. Sept. 1, 2003.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle D - Credit Unions › Chapter 126 - Credit Union Supervision and Regulation › Subchapter D. Administration of Conservatorship › Section 126.160. Jurisdiction and Venue

Sec. 126.160.  JURISDICTION AND VENUE.  (a)  A suit filed against a credit union while the credit union is under conservatorship, or against a person in connection with an action taken or decision made by that person as a conservator of a credit union, must be brought in Travis County regardless of whether the credit union remains under conservatorship.
(b)  A suit filed by the conservator under Section 126.155 may be brought in Travis County.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 2003, 78th Leg., ch. 533, Sec. 50, eff. Sept. 1, 2003.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle D - Credit Unions › Chapter 126 - Credit Union Supervision and Regulation › Subchapter D. Administration of Conservatorship › Section 126.161. Exhaustion of Administrative Remedies

Sec. 126.161.  EXHAUSTION OF ADMINISTRATIVE REMEDIES.  Administrative remedies must be exhausted before a court may:
(1)  assert jurisdiction over a claim against the conservator or the credit union;  or
(2)  restrain or otherwise affect the exercise of the powers or functions of the conservator.
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 126 - Credit Union Supervision and Regulation › Subchapter E. Liquidation Order; Injunction › Section 126.201. Liquidation Order; Appointment of Liquidating Agent

Sec. 126.201.  LIQUIDATION ORDER; APPOINTMENT OF LIQUIDATING AGENT.  (a)  After the commissioner has issued a conservatorship order and provided an opportunity for hearing, the commissioner by liquidation order may appoint a liquidating agent and direct that the credit union be liquidated if:
(1)  the board requests issuance of a liquidation order and liquidation of the credit union;
(2)  the credit union otherwise consents to the liquidation; or
(3)  the commissioner:
(A)  finds that the closing of the credit union and the liquidation of the credit union's assets are in the public interest and the best interest of the credit union's members, depositors, and creditors; and
(B)  determines that the credit union is not in a condition to continue business and cannot be rehabilitated as provided by this chapter.
(b)  If the board consents to the liquidation order and waives the necessity of a conservatorship order, the commissioner may issue a liquidation order without first issuing a conservatorship order.
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. 23, eff. September 1, 2013.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle D - Credit Unions › Chapter 126 - Credit Union Supervision and Regulation › Subchapter E. Liquidation Order; Injunction › Section 126.202. Service of Order

Sec. 126.202.  SERVICE OF ORDER.  The commissioner shall serve a liquidation order in the same manner provided for service of a conservatorship order.
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 126 - Credit Union Supervision and Regulation › Subchapter E. Liquidation Order; Injunction › Section 126.203. Suit for Injunction

Sec. 126.203.  SUIT FOR INJUNCTION.  (a)  Not later than the fifth day after the date on which the liquidation order is served, a credit union that has not requested or consented to a liquidation order may, if authorized by certified board resolution, sue to enjoin the commissioner from liquidating the credit union.
(b)  The suit must be brought in the district court of the county in which the credit union's principal office is located.
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 126 - Credit Union Supervision and Regulation › Subchapter E. Liquidation Order; Injunction › Section 126.204. Action Pending Injunction Hearing

Sec. 126.204.  ACTION PENDING INJUNCTION HEARING.  (a)  The court, without notice or hearing, may restrain the commissioner from liquidating the credit union's assets until after a hearing on the suit is held.
(b)  If the court restrains the commissioner, the court shall instruct the commissioner to hold the credit union's assets in the commissioner's possession and control until disposition of the suit.
(c)  With court approval, the commissioner may take any necessary or proper action to prevent loss or depreciation in the value of the assets.
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 126 - Credit Union Supervision and Regulation › Subchapter E. Liquidation Order; Injunction › Section 126.205. Hearing on Injunction; Appeal

Sec. 126.205.  HEARING ON INJUNCTION;  APPEAL.  (a)  The court, as soon as possible, shall hear the suit and shall enter a judgment enjoining or refusing to enjoin the commissioner from liquidating the credit union's assets.
(b)  The commissioner, regardless of the judgment entered by the trial court or any supersedeas bond filed, shall retain possession and control of the credit union's assets until final disposition of any appeal of the judgment.
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 126 - Credit Union Supervision and Regulation › Subchapter E. Liquidation Order; Injunction › Section 126.206. National Credit Union Administration as Liquidating Agent

Sec. 126.206.  NATIONAL CREDIT UNION ADMINISTRATION AS LIQUIDATING AGENT.  (a)  The commissioner may tender a credit union that has been closed for liquidation to the National Credit Union Administration or its successor as liquidating agent if the shares and deposits of the credit union were insured by the National Credit Union Share Insurance Fund or its successor on the date of closing.
(b)  After acceptance of tender of the credit union, the National Credit Union Administration or its successor, as liquidating agent of the credit union, shall perform the acts and duties that it considers necessary or desirable and that are permitted or required by federal law or this chapter.  The National Credit Union Administration, as liquidating agent, is not subject to commission control.
(c)  If the National Credit Union Share Insurance Fund pays the insured share and deposit liabilities of a credit union that is being liquidated under this subchapter, the National Credit Union Administration is subrogated, to the extent of the payment, to all rights that the owners of the share or deposit accounts have against the credit union.
Added by Acts 2003, 78th Leg., ch. 533, Sec. 51, eff. Sept. 1, 2003.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle D - Credit Unions › Chapter 126 - Credit Union Supervision and Regulation › Subchapter F. Administration of Liquidation › Section 126.251. Permissible Activities in Liquidation

Sec. 126.251.  PERMISSIBLE ACTIVITIES IN LIQUIDATION.  (a)  A credit union in liquidation continues in existence to discharge debts, collect and distribute assets, and wind up the credit union's business.
(b)  The credit union may sue and be sued to enforce debts and obligations until its affairs are fully adjusted.
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 126 - Credit Union Supervision and Regulation › Subchapter F. Administration of Liquidation › Section 126.252. Compensation of Credit Union Employees and Officers

Sec. 126.252.  COMPENSATION OF CREDIT UNION EMPLOYEES AND OFFICERS.  (a)  This chapter does not prevent compensation of a salaried employee or officer of a credit union during the credit union's liquidation.
(b)  The compensation is considered an incidental expense of the liquidation.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.