reglab/statecodes huggingface dataset:
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 6 - CREDIT UNION DEPARTMENT › Chapter 91 - CHARTERING, OPERATIONS, MERGERS, LIQUIDATIONS › Subchapter E - DIRECTION OF AFFAIRS › Section 91.516 - Audits and Verifications

Current through Reg. 49, No. 28; July 12, 2024
(a)
				  Audit requirements. At least once every calendar year, the board of directors
				  shall obtain or cause to be performed an annual audit of the credit union which
				  must cover the period elapsed since the last audit period. A summary of the
				  audit must be reported to the members at the next membership meeting. The audit
				  must be conducted in accordance with generally accepted auditing standards by a
				  licensee of the Texas State Board of Public Accountancy or as permitted under
				  the provisions of §741.202(a) of the National Credit Union
				  Administration's Rules and Regulations (12 CFR, Chapter VII, Part
				  741).
(b) Definitions.
(1) A record-keeping deficiency is serious if
				  the commissioner reasonably believes that the board of directors and management
				  of the credit union have not timely met financial reporting objectives and
				  established practices and procedures sufficient to safeguard members'
				  assets.
(2) A serious recordkeeping
				  deficiency is persistent when it continues beyond a usual, expected or
				  reasonable period of time.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 6 - CREDIT UNION DEPARTMENT › Chapter 91 - CHARTERING, OPERATIONS, MERGERS, LIQUIDATIONS › Subchapter F - ACCOUNTS AND SERVICES › Section 91.601 - Share and Deposit Accounts

Current through Reg. 49, No. 28; July 12, 2024
(a)
				  Accounts. A credit union may offer any type of share or deposit accounts and
				  prescribe the terms and conditions relating to the accounts as established by
				  written policies approved by the board of directors.
(b) Policies and procedures. Each credit
				  union, before accepting any funds for any share or deposit accounts, shall
				  adopt, implement and maintain appropriate policies and procedures which
				  address, at a minimum, asset liability management and adequate liquidity
				  levels.
(c) Limitation on deposit
				  accounts. Acceptance of funds from a depositor authorized by the Act that is
				  not within the credit union's field of membership is subject to the limitations
				  prescribed by §123.201(b) of the Act. This restriction does not apply to a
				  credit union accepting for deposit the money of:
(1) the United States or any agent or
				  instrumentality of the United States;
(2) this or another state; or
(3) a political subdivision of this or
				  another state.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 6 - CREDIT UNION DEPARTMENT › Chapter 91 - CHARTERING, OPERATIONS, MERGERS, LIQUIDATIONS › Subchapter F - ACCOUNTS AND SERVICES › Section 91.602 - Solicitation and Acceptance of Brokered Deposits

Current through Reg. 49, No. 28; July 12, 2024
(a) Definitions.
(1) Brokered deposit means any deposit that
				  is obtained, directly or indirectly, from or through the mediation or
				  assistance of a deposit broker.
(2)
				  Deposit broker means a person engaged in the business of placing deposits, or
				  facilitating the placement of deposits, of third parties with financial
				  institutions; or the business of placing funds with financial institutions for
				  the purpose of selling interests in the deposit to third parties.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 6 - CREDIT UNION DEPARTMENT › Chapter 91 - CHARTERING, OPERATIONS, MERGERS, LIQUIDATIONS › Subchapter F - ACCOUNTS AND SERVICES › Section 91.608 - Confidentiality of Member Records

Current through Reg. 49, No. 28; July 12, 2024
(a)
				  Confidentiality of members' accounts. No credit union officer, director,
				  committee member or employee may disclose to any person, other than the member,
				  or to any company or governmental body the individual savings, shares, or loan
				  records of any credit union member, contained in any document or system, by any
				  means unless specifically authorized to do so in writing by such members,
				  except as follows:
(1) reporting credit
				  experience to a bona fide credit reporting agency, another credit union, or any
				  other bona fide credit-granting business and/or merchants information exchange,
				  provided that applicable state and federal laws and regulations pertaining to
				  credit collection and reporting are followed;
(2) furnishing information in response to a
				  valid request from a duly constituted government agency or taxing authority, or
				  any subdivision thereof, including law enforcement agencies;
(3) furnishing information, orally or in
				  written form, in response to the order of a court of competent jurisdiction or
				  pursuant to other processes of discovery duly issuing from a court of competent
				  jurisdiction;
(4) furnishing
				  reports of loan balances to co-borrowers, co-makers, and guarantors of loans of
				  a member and of share or deposit account balances, signature card information,
				  and related transactions to joint account holders;
(5) furnishing information to and receiving
				  information from check and draft reporting, clearing, cashing and authorization
				  services relative to past history of a member's draft and checking accounts at
				  the credit union; or
(6) as
				  otherwise authorized by law, including access by examiners of the
				  Department.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 6 - CREDIT UNION DEPARTMENT › Chapter 91 - CHARTERING, OPERATIONS, MERGERS, LIQUIDATIONS › Subchapter F - ACCOUNTS AND SERVICES › Section 91.610 - Safe Deposit Box Facilities

Current through Reg. 49, No. 28; July 12, 2024
(a)
				  Purpose. Finance Code §
										RSA 59.110
				  requires credit unions to imprint keys issued to safe deposit boxes with the
				  institution's routing number. In addition, it requires a report to the
				  Department of Public Safety if the routing number is altered or defaced so that
				  the correct routing number is illegible. The purpose of this section is to
				  clarify the requirements of the noted section of the Finance Code.
(b) Definitions. The following words and
				  terms, when used in this section, shall have the following meanings, unless the
				  context clearly indicates otherwise.
(1)
				  Credit union--This term includes all state or federal credit unions that have
				  been assigned a routing number unique to that institution.
(2) Routing number--The number printed on the
				  face of a share draft or check in fractional form or in nine-digit form that
				  identifies a paying financial institution.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 6 - CREDIT UNION DEPARTMENT › Chapter 91 - CHARTERING, OPERATIONS, MERGERS, LIQUIDATIONS › Subchapter G - LENDING POWERS › Section 91.701 - Lending Powers

Current through Reg. 49, No. 28; July 12, 2024
(a) Authorization.
				  A credit union may originate, invest in, sell, purchase, service, or
				  participate in loans or otherwise extend credit in accordance with the Act,
				  these Rules, and other applicable law.
(b) Written Policies. Before engaging in any
				  lending activity, each credit union shall establish written lending policies
				  that set prudent credit underwriting and documentation standards for each
				  specific type of lending activity. The lending policies shall contain a general
				  outline of the manner in which loans are made, serviced, and collected. In
				  addition the policies must:
(1) Be consistent
				  with safe and sound credit union practices;
(2) Be appropriate to the size and financial
				  condition of the credit union and the nature and scope of its
				  operations;
(3) Be compatible with
				  the size and expertise of the credit union's lending staff;
(4) Be compliant with all related laws and
				  regulations;
(5) Be reviewed and
				  approved by the credit union's board of directors at inception and annually,
				  thereafter;
(6) Address loan
				  portfolio diversification standards to avoid undue concentrations of
				  risk;
(7) Address loan
				  documentation and underwriting standards that are clear and
				  measurable;
(8) Address loan
				  administration procedures for monitoring the loss exposure from the loan
				  portfolio;
(9) Address loan pricing
				  guidelines to ensure that the rate of return is consistent with the risk from
				  the lending activity; and
(10)
				  State the lending authority delegated to any individuals or committees by the
				  board of directors.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 6 - CREDIT UNION DEPARTMENT › Chapter 91 - CHARTERING, OPERATIONS, MERGERS, LIQUIDATIONS › Subchapter G - LENDING POWERS › Section 91.703 - Interest Rates

Current through Reg. 49, No. 28; July 12, 2024
(a) Loans made by
				  each credit union shall bear interest at a rate or rates as may be determined
				  by the credit union's board of directors. A board may delegate all or part of
				  its power to determine the interest rates on any lending transactions. The
				  board may also authorize a refund of interest on loans under the conditions it
				  may prescribe.
(b) A loan may
				  provide for variable interest rates, so long as the factor or index governing
				  the extent of the variation is not under the control of the credit union and
				  can be readily ascertained from sources available to the public or any other
				  index approved in writing by the commissioner which is not available to the
				  public.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 6 - CREDIT UNION DEPARTMENT › Chapter 91 - CHARTERING, OPERATIONS, MERGERS, LIQUIDATIONS › Subchapter G - LENDING POWERS › Section 91.704 - Real Estate Lending

Current through Reg. 49, No. 28; July 12, 2024
(a) Definitions.
				  For the purposes of this section, the following words and terms shall have the
				  following meanings, unless the context clearly indicates otherwise.
(1) First lien means any mortgage that takes
				  priority over any other lien or encumbrance on the same property and that must
				  be satisfied before other liens or encumbrances may share in proceeds from the
				  property's sale.
(2) Home loan
				  means a loan that is:
(A) made to one or more
				  individuals for personal, family, or household purposes; and
(B) secured in whole or part by:
(i) a manufactured home, as defined by
				  Finance Code §
													RSA 347.002, used or
				  to be used as the borrower's principal residence; or
(ii) real property improved by a dwelling
				  designed for occupancy by four or fewer families and used or to be used as the
				  borrower's principal residence.
(3) Improved residential real estate means
				  residential real estate containing offsite improvements, such as access to
				  streets, curbs, and utility connections, sufficient to make the property ready
				  for residential construction, and real estate in the process of being improved
				  by a building.
(4) Other acceptable
				  collateral means any collateral in which the credit union has a perfected
				  security interest, that has a quantifiable value, and is accepted by the credit
				  union in accordance with safe and sound lending practices.
(5) Owner-occupied means that the owner of
				  the underlying real property occupies a dwelling unit of the real property as a
				  principal residence.
(6) Readily
				  marketable collateral means insured deposits, financial instruments, and
				  bullion in which the credit union has a perfected interest. Financial
				  instruments and bullion must be saleable under ordinary circumstances with
				  reasonable promptness at a fair market value determined by quotations based on
				  actual transactions, on an auction or similarly available daily bid and ask
				  price market.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 6 - CREDIT UNION DEPARTMENT › Chapter 91 - CHARTERING, OPERATIONS, MERGERS, LIQUIDATIONS › Subchapter G - LENDING POWERS › Section 91.705 - Home Improvement Loans

Current through Reg. 49, No. 28; July 12, 2024
In addition to the requirements of this chapter, all loans
					 in which the proceeds are used to construct new improvements or renovate
					 existing improvements on a homestead property must also comply with the
					 requirements of Section 50(a)(5), Article XVI, Texas
					 Constitution.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 6 - CREDIT UNION DEPARTMENT › Chapter 91 - CHARTERING, OPERATIONS, MERGERS, LIQUIDATIONS › Subchapter G - LENDING POWERS › Section 91.706 - Home Equity Loans

Current through Reg. 49, No. 28; July 12, 2024
For any loan secured by an encumbrance against the equity
					 in a homestead property, the terms and conditions set forth in this chapter and
					 in Section 50, Article XVI, Texas Constitution will apply. If there is an
					 irreconcilable conflict between a constitutional provision and the provision of
					 this section, the constitutional requirement shall prevail.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 6 - CREDIT UNION DEPARTMENT › Chapter 91 - CHARTERING, OPERATIONS, MERGERS, LIQUIDATIONS › Subchapter G - LENDING POWERS › Section 91.707 - Reverse Mortgages

Current through Reg. 49, No. 28; July 12, 2024
A credit union may offer reverse mortgages to its members
					 under the terms and conditions set forth in Section 50, Article XVI, Texas
					 Constitution and other applicable law. In the event of an irreconcilable
					 conflict between any specific requirement contained in this section and a
					 constitutional provision, the constitutional requirement shall
					 prevail.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 6 - CREDIT UNION DEPARTMENT › Chapter 91 - CHARTERING, OPERATIONS, MERGERS, LIQUIDATIONS › Subchapter G - LENDING POWERS › Section 91.710 - Overdraft Protection

Current through Reg. 49, No. 28; July 12, 2024
(a) Written
				  Policy. A credit union may advance money to a member to cover an account
				  deficit without having a credit application from the borrower on file if the
				  credit union has written policies and procedures adequate to address the
				  credit, operational, and other risks associated with this type of program. The
				  policy must:
(1) Set a cap on the total
				  dollar amount of all overdrafts the credit union will honor consistent with the
				  credit union's ability to absorb losses;
(2) Establish a time limit no later than 60
				  calendar days from the date first overdrawn to charge off the overdraft balance
				  if the member does not repay the overdraft balance, or does not obtain an
				  approved loan from the credit union;
(3) Limit the dollar amount of overdrafts the
				  credit union will honor per account;
(4) Institute prudent practices related to
				  suspension of overdraft protection services; and
(5) Establish the fee, if any, the credit
				  union will charge members for honoring overdrafts.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 6 - CREDIT UNION DEPARTMENT › Chapter 91 - CHARTERING, OPERATIONS, MERGERS, LIQUIDATIONS › Subchapter G - LENDING POWERS › Section 91.711 - Purchase and Sale of Member Loans

Current through Reg. 49, No. 28; July 12, 2024
(a)
				  Policies. A credit union may sell or purchase all or part of a participation
				  interest in a member loan or pool of member loans in accordance with written
				  policies adopted by the board of directors that address the following matters:
(1) The type of entities to which the credit
				  union is authorized to sell participation interests in member loans;
(2) The types of member loans in which the
				  credit union may purchase or sell a participation interest and the types of
				  participation interests which may be purchased or sold;
(3) The underwriting standards to be applied
				  in the purchase of participation interests in member loans;
(4) Limitations on the aggregate principal
				  amount of participation interest in member loans that the credit union may
				  purchase from a single entity as necessary to diversify risk, and limitations
				  on the aggregate amount the credit union may purchase from all
				  entities;
(5) Provision for the
				  identification and reporting of member loans in which participation interests
				  are sold or purchased; and
(6)
				  Requirements for providing and securing in a timely manner adequate credit and
				  other information needed to make an independent judgment.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 6 - CREDIT UNION DEPARTMENT › Chapter 91 - CHARTERING, OPERATIONS, MERGERS, LIQUIDATIONS › Subchapter G - LENDING POWERS › Section 91.712 - Plastic Cards

Current through Reg. 49, No. 28; July 12, 2024
(a) Definitions.
				  The following words and terms, when used in this chapter, shall have the
				  following meanings, unless the context clearly indicates otherwise.
(1) Card Activation - process of sending new
				  plastic cards from the issuer to the legitimate cardholder in an "inactive"
				  mode and making the card usable. Upon receiving the card, the legitimate
				  cardholder must call or log on to the issuer/processor's website and go through
				  a member verification process before the card is "activated".
(2) Card Security Code - a set of unique
				  numbers encoded on the magnetic strip of plastic cards used to combat
				  counterfeit fraud.
(3) Neural
				  Network - a computer program that monitors usage patterns of an account and
				  typical fraud patterns. The program analyzes activity to determine fraud risk
				  scores to detect potentially fraudulent activity.
(4) Plastic Cards - includes credit cards,
				  debit cards, automated teller machine (ATM) or specific network cards; and
				  predetermined stored value and smart cards with micro-processor
				  chips.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 6 - CREDIT UNION DEPARTMENT › Chapter 91 - CHARTERING, OPERATIONS, MERGERS, LIQUIDATIONS › Subchapter G - LENDING POWERS › Section 91.714 - Leasing

Current through Reg. 49, No. 28; July 12, 2024
(a) Definitions.
				  For the purposes of this section:
(1) The
				  term net lease means a lease under which the credit union will not, directly or
				  indirectly, provide or be obligated to provide for:
(A) the servicing, repair or maintenance of
				  leased property during the lease term;
(B) the purchasing of parts and accessories
				  for the leased property, except that improvements and additions to the leased
				  property may be leased to the lessee upon its request in accordance with the
				  full-payout requirements of subsection (c)(2)(A) of this section;
(C) the loan of replacement or substitute
				  property while the leased property is being serviced;
(D) the purchasing of insurance for the
				  lessee, except where the lessee has failed to discharge a contractual
				  obligation to purchase or maintain insurance; or
(E) the renewal of any license, registration,
				  or filing for the property unless such action by the credit union is necessary
				  to protect its interest as an owner or financier of the property.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 6 - CREDIT UNION DEPARTMENT › Chapter 91 - CHARTERING, OPERATIONS, MERGERS, LIQUIDATIONS › Subchapter G - LENDING POWERS › Section 91.715 - Exceptions to the General Lending Policies

Current through Reg. 49, No. 28; July 12, 2024
(a) Credit unions may provide for the
				  consideration of loan requests from creditworthy members whose credit needs do
				  not fit within the credit union's general lending policies. A credit union may
				  provide for prudently underwritten exceptions to its lending policies. However,
				  the Board is responsible for establishing written standards for the review and
				  approval of exception loans.
(b)
				  Each credit union establishing exceptions to its general lending policies shall
				  establish an appropriate internal process for the review and approval of loans
				  that do not conform to its own internal policy standards. The approval of any
				  such loan shall also be supported by a written justification that clearly sets
				  forth all of the relevant credit factors that support the underwriting
				  decision. The justification and approval documents for such loans will be
				  maintained as a part of the permanent loan file. Each credit union shall
				  monitor compliance with its lending policies and individually report exception
				  loans of a significant size to its board of directors.
(c) Exception loans shall be identified in
				  the credit union's records and their aggregate amount reported at least
				  annually to the board of directors. The aggregate amount of all such loans
				  shall not exceed 10 percent of the credit union's net worth.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 6 - CREDIT UNION DEPARTMENT › Chapter 91 - CHARTERING, OPERATIONS, MERGERS, LIQUIDATIONS › Subchapter G - LENDING POWERS › Section 91.716 - Prohibited Fees

Current through Reg. 49, No. 28; July 12, 2024
A credit union shall not make any loan or extend any credit
					 if, either directly or indirectly, any commission, fee, or other compensation
					 from any person or entity other than the credit union is to be received by the
					 credit union's directors, committee members, senior management employees, loan
					 officers, or any immediate family members of such individuals, in connection
					 with underwriting, insuring, servicing, or collecting the loan or extension of
					 credit.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 6 - CREDIT UNION DEPARTMENT › Chapter 91 - CHARTERING, OPERATIONS, MERGERS, LIQUIDATIONS › Subchapter G - LENDING POWERS › Section 91.717 - More Stringent Restrictions

Current through Reg. 49, No. 28; July 12, 2024
The Commissioner may impose more stringent restrictions on
					 a credit union's loans if the Commissioner determines that such restrictions
					 are necessary to protect the safety and soundness of the credit
					 union.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 6 - CREDIT UNION DEPARTMENT › Chapter 91 - CHARTERING, OPERATIONS, MERGERS, LIQUIDATIONS › Subchapter G - LENDING POWERS › Section 91.718 - Charging Off or Setting Up Reserves

Current through Reg. 49, No. 28; July 12, 2024
(a)
				  The commissioner, after a determination of value in accordance with generally
				  accepted accounting principles, may order that assets in the aggregate, to the
				  extent that such assets have depreciated in value, or to the extent the value
				  of such assets, including loans, are overstated in value for any reason, be
				  charged off, or that a special reserve or reserves equal to such depreciation
				  or overstated value be established.
(b) A credit union's financial statements
				  shall provide for full and fair disclosure of all assets, liabilities, and
				  members' equity, including such valuation allowance accounts as may be
				  necessary to present fairly the financial position; and all income and expenses
				  necessary to present fairly the results of operations for the period
				  concerned.
(c) The Board of
				  directors is responsible for ensuring that the credit union has controls in
				  place to consistently determine the allowance for loan and lease losses (ALLL)
				  in accordance with its written polices, generally accepted accounting
				  principles, and relevant supervisory guidance. Policies shall be appropriately
				  tailored to the size and complexity of the credit union and its loan and lease
				  portfolio. As a minimum, a credit union shall develop, maintain, and document
				  the methodology used to determine the amounts of an appropriate ALLL and
				  provisions for loan and lease losses. Adjustments to the ALLL shall be made
				  prior to the end of each calendar quarter in order to accurately reflect the
				  loss exposure on the quarterly call reports.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 6 - CREDIT UNION DEPARTMENT › Chapter 91 - CHARTERING, OPERATIONS, MERGERS, LIQUIDATIONS › Subchapter H - INVESTMENTS › Section 91.801 - Investments in Credit Union Service Organizations

Current through Reg. 49, No. 28; July 12, 2024
(a) Definitions. As used in this section:
(1) A credit union service organization
				  (CUSO) is an organization whose primary purpose is to strengthen or advance the
				  credit union movement, serve or otherwise assist credit unions or their
				  operations, and provide products or services authorized by this section to
				  credit unions and their members.
(2) An investment in a CUSO includes the
				  following:
(A) an investment in the stock,
				  bonds, debentures, or other equity ownership interest of the CUSO;
				  and
(B) loans granted by a third
				  party to the CUSO which are guaranteed in writing by the credit
				  union.
(3) A financing
				  program is a plan, approved by the credit union's board of directors, that
				  provides for multiple extensions of credit to a CUSO during the regular course
				  of business.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 6 - CREDIT UNION DEPARTMENT › Chapter 91 - CHARTERING, OPERATIONS, MERGERS, LIQUIDATIONS › Subchapter H - INVESTMENTS › Section 91.804 - Custody and Safekeeping

Current through Reg. 49, No. 28; July 12, 2024
(a) A credit
				  union's purchased investments and repurchased collateral must be in its
				  possession, recorded as owned by the credit union through the federal reserve
				  book-entry system, or be held by a board-approved safekeeper under a bailment
				  for hire contract or a custodial arrangement subject to regulation by the
				  Securities and Exchange Commission. Any safekeeper used by a credit union must
				  be regulated and supervised by either the Securities and Exchange Commission or
				  a federal or state financial institution regulatory agency. For the purposes of
				  this section a bailment for hire contract has the same meaning as in
				  §91.802 (relating to Other Investments). Annually, a credit union must
				  analyze the ability of any safekeeper used by the credit union to fulfill its
				  custodial responsibilities, as evidenced by capital strength and financial
				  conditions. The credit union should consider current financial data, annual
				  reports, reports of nationally-recognized statistical rating organizations
				  (NRSROs), relevant disclosure documents such as annual independent auditor
				  reports, and other sources of financial information. At least monthly, a credit
				  union must obtain and reconcile a statement of purchased investments and
				  repurchased collateral held in safekeeping.
(b) A credit union that invests funds in a
				  certificate of deposit in a financial institution as defined in §91.802
				  (relating to Other Investments) shall hold such certificate of deposit in the
				  name of the credit union or, if held by a safekeeper or registered
				  broker-dealer, in the safekeeper's or registered broker-dealer's name as
				  custodial nominee for a credit union. Any certificate of deposit held by a
				  safekeeper or registered broker-dealer as custodial nominee for a credit union
				  or the credit union's registered broker or dealer must be eligible for extended
				  or flow-through insurance coverage to the credit union through either the
				  Federal Deposit Insurance Corporation or the National Credit Union Share
				  Insurance Fund.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 6 - CREDIT UNION DEPARTMENT › Chapter 91 - CHARTERING, OPERATIONS, MERGERS, LIQUIDATIONS › Subchapter H - INVESTMENTS › Section 91.805 - Loan Participation Investments

Current through Reg. 49, No. 28; July 12, 2024
(a) A credit union may purchase a
				  participation interest in a loan where the borrower is neither a member of the
				  credit union or a member of another participating credit union, as permitted by
				  §
										RSA
				  124.351(a)(8) of the Texas
				  Finance Code , provided the following conditions are satisfied :
(1) the purchase complies with all regulatory
				  requirements to the same extent as if the credit union had originated the loan
				  ;
(2) the originating lender
				  retains at least 10 percent of the outstanding balance of the loan through the
				  life of the loan ;
(3) the purchase
				  complies with the credit union's investment policy, which, at a minimum, must:
(A) establish the same degree of independent
				  credit and collateral analysis as if the credit union was the originator;
				  and
(B) establish commitment limits
				  for aggregate purchased participations, out-of-area participations, and loans
				  originated by individual lead institutions.
(4) the written loan participation agreement
				  fully describes the lead institution's responsibilities, establishes
				  requirements for obtaining timely borrower credit information, addresses
				  remedies upon default, and outlines dispute resolution procedures.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 6 - CREDIT UNION DEPARTMENT › Chapter 91 - CHARTERING, OPERATIONS, MERGERS, LIQUIDATIONS › Subchapter H - INVESTMENTS › Section 91.808 - Reporting Investment Activities to the Board of Directors

Current through Reg. 49, No. 28; July 12, 2024
(a) A credit union
				  shall provide its board of directors a monthly comprehensive report of
				  investment activities, including:
(1)
				  investments purchased and sold during the month;
(2) unrealized market gains or losses
				  compared to book value for each security at month's end;
(3) fair or market value of each
				  security;
(4) total book value of
				  investments outstanding at month's end;
(5) unrecorded and unreported obligations to
				  buy or sell investments; and
(6)
				  amount of investments, other than deposits and investments in designated
				  depositories, that are not either issued by, or fully guaranteed as to
				  principal and interest by, the Federal Deposit Insurance Corporation, the
				  National Credit Union Administration, the United States or any agency,
				  enterprise, corporation, or instrumentality of the United States, or in any
				  trust or trusts established for investing, directly or collectively, in such
				  securities, obligations or instruments.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 6 - CREDIT UNION DEPARTMENT › Chapter 91 - CHARTERING, OPERATIONS, MERGERS, LIQUIDATIONS › Subchapter H - INVESTMENTS › Section 91.809 - Purchase of Assets and Assumption of Liabilities

Current through Reg. 49, No. 28; July 12, 2024
(a) With approval of the Commissioner, a
				  credit union may initiate a program of purchasing loans or assuming an
				  assignment of deposits, shares, or liabilities from:
(1) Any credit union;
(2) Any other financial-type institution
				  (including depository institutions, mortgage banks, consumer finance companies,
				  insurance companies, loan brokers, and other loan sellers or liability
				  traders); or
(3) Any successor in
				  interest to any institution identified in subsection (a)(1) or (a)(2) of this
				  section.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 6 - CREDIT UNION DEPARTMENT › Chapter 91 - CHARTERING, OPERATIONS, MERGERS, LIQUIDATIONS › Subchapter I - RESERVES AND DIVIDENDS › Section 91.901 - Reserve Requirements

Current through Reg. 49, No. 28; July 12, 2024
(a)
				  Definitions. The words and terms, when used in this chapter, shall have the
				  following meanings, unless the context clearly indicates otherwise.
(1) Net worth means the retained earnings
				  balance of the credit union as determined under generally accepted accounting
				  principles. Retained earnings consist of undivided earnings, regular reserves,
				  and any other appropriations designated by management, the insuring
				  organization, or the commission. This means that only undivided earnings and
				  appropriations of undivided earnings are included in net worth. Net worth does
				  not include the allowance for loan and lease losses account.
(2) Net worth ratio means, with respect to a
				  credit union, the ratio of the net worth of the credit union to the total
				  assets of the credit union.
(3)
				  Total assets means the average of the total assets as measured using one of the
				  following methods:
(A) Average Quarterly
				  Balance--the average of quarter-end balances of the four most recent calendar
				  quarters; or
(B) Average Monthly
				  Balance--the average of month-end balances over the three calendar months of
				  the calendar quarter; or
(C)
				  Average Daily Balance--the average daily balance over the calendar quarter;
				  or
(D) Quarter-End Balance--the
				  quarter-end balance of the calendar quarter as reported on the credit union's
				  call report.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 6 - CREDIT UNION DEPARTMENT › Chapter 91 - CHARTERING, OPERATIONS, MERGERS, LIQUIDATIONS › Subchapter I - RESERVES AND DIVIDENDS › Section 91.902 - Dividends

Current through Reg. 49, No. 28; July 12, 2024
(a) Dividend
				  eligibility shall be prescribed by written board policy.
(b) When a credit union is subject to a cease
				  and desist order or is otherwise notified that it is deemed to be in a troubled
				  condition or engaged in an unsafe practice, the credit union must obtain prior
				  written approval of the commissioner before it declares or pays any dividend or
				  interest refund. A request for approval to pay a dividend or interest refund
				  under this section must be in writing and must include the following supporting
				  information:
(1) the proposed dividend and/or
				  interest refund rate and the estimated total dollar amount of
				  payment;
(2) an analysis of the
				  credit union's ability to make the payment from current earnings without
				  incurring an operating loss for the period; and
(3) an explanation of the progress in
				  resolving the areas of concern detailed in the cease and desist order or the
				  examiner's findings schedule of the most recent report of
				  examination.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 6 - CREDIT UNION DEPARTMENT › Chapter 91 - CHARTERING, OPERATIONS, MERGERS, LIQUIDATIONS › Subchapter J - CHANGES IN CORPORATE STATUS › Section 91.1003 - Mergers/Consolidations

Current through Reg. 49, No. 28; July 12, 2024
(a) Definitions.
				  The following words and terms, when used in this section, shall have the
				  following meanings, unless the context clearly indicates otherwise.
(1) Acquirer credit union--The credit union
				  that will continue in operation after the merger/consolidation.
(2) Acquiree credit union--The credit union
				  that will cease to exist as an operating credit union at the time of the
				  merger/consolidation.
(3) Merger
				  inducement--A promise by a credit union to pay to the members of another credit
				  union a sum of money or other material benefit upon the successful completion
				  of a merger of the two credit unions.
(4) Substantial--An amount that is large in
				  size, value, or importance. For purposes of this section, an amount is
				  substantial if it exceeds $1,000.00 in total.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 6 - CREDIT UNION DEPARTMENT › Chapter 91 - CHARTERING, OPERATIONS, MERGERS, LIQUIDATIONS › Subchapter J - CHANGES IN CORPORATE STATUS › Section 91.1005 - Conversion to a Texas Credit Union

Current through Reg. 49, No. 28; July 12, 2024
(a)
				  Authority to convert. A federal credit union or an out of state credit union is
				  authorized to convert to a credit union incorporated under the laws of this
				  state by Section 122.203 of the Act.
(b) Requirements for conversion. A credit
				  union wishing to convert to a credit union incorporated under the laws of this
				  state shall comply with the following requirements:
(1) Submit a complete application on a form
				  and in a manner prescribed by the commissioner;
(2) Furnish evidence that the current federal
				  or state regulatory agency having jurisdiction over the applicant has no
				  preliminary objection to the conversion plan;
(3) Submit to a conversion examination by the
				  department and pay the supplemental examination fee prescribed in §
											RSA 97.113 of
				  this title (relating to Operating Fees). The commissioner may waive the
				  examination or the fee, upon finding good cause;
(4) Furnish evidence confirming that the
				  applicant has complied with all applicable requirements of and has completed
				  the conversion in a manner satisfactory to the insuring organization and the
				  current federal or state regulatory agency; and
(5) Furnish evidence that the applicant has
				  established or will relocate its principal place of business in a specific
				  location in the State of Texas.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 6 - CREDIT UNION DEPARTMENT › Chapter 91 - CHARTERING, OPERATIONS, MERGERS, LIQUIDATIONS › Subchapter J - CHANGES IN CORPORATE STATUS › Section 91.1006 - Conversions to a Federal or Out-of-State Credit Union

Current through Reg. 49, No. 28; July 12, 2024
(a) Authority to Convert. A credit union
				  organized under the laws of this state is authorized to convert to a federal
				  credit union or an out-of-state credit union by Sections 122.201 and 122.202 of
				  the Act.
(b) Requirements for
				  Conversion. A credit union wishing to convert to a federal credit union or an
				  out-of-state credit union shall comply with the following requirements:
(1) Furnish evidence to the department that a
				  conversion proposal has been approved by a two-thirds vote of the board of
				  directors;
(2) Submit copies of all
				  filings made with any state or federal regulatory agency and insuring
				  organization with jurisdiction over any aspect of the conversion
				  process;
(3) Furnish evidence
				  confirming that the insuring organization and the acquiring state or federal
				  regulatory agency have no preliminary objections to the plan;
(4) Submit a vote certification as required
				  by §
											RSA
				  91.1008(c) of this chapter
				  showing that the conversion proposal was approved by an affirmative vote of a
				  majority of the eligible members of the credit union voting; and
(5) Furnish written evidence confirming that
				  the credit union has met all of the conversion requirements of the insuring
				  organization and the acquiring state or federal regulatory agency.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 6 - CREDIT UNION DEPARTMENT › Chapter 91 - CHARTERING, OPERATIONS, MERGERS, LIQUIDATIONS › Subchapter J - CHANGES IN CORPORATE STATUS › Section 91.1007 - Conversion to a Mutual Savings Institution

Current through Reg. 49, No. 28; July 12, 2024
(a) Authority to convert. A credit union
				  organized under the laws of this state is authorized to convert to a mutual
				  savings bank or association by §123.003 of the Act.
(b) Requirements for conversion. A credit
				  union that is considering converting to a mutual savings bank or association
				  must comply with the following requirements:
(1) Preliminary communication with membership
				  and department. At least thirty days prior to a final vote by the board of
				  directors to formally adopt a conversion proposal, the credit union shall send
				  notice to the department and each member advising that the board is considering
				  a possible conversion to a mutual savings bank or association. The notice
				  shall, at a minimum, contain the following information:
(A) a prominent legend in bold-face type that
				  advises members of a potential conversion;
(B) the electronic availability of
				  information related to a potential conversion;
(C) a telephone number and e-mail address
				  that members may use to request copies of the potential conversion information
				  that is available by electronic means;
(D) the ability of members to submit written
				  comments on the potential conversion; and
(E) a clear, concise, and impartial
				  description of the potential conversion to be considered by the
				  board.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 6 - CREDIT UNION DEPARTMENT › Chapter 91 - CHARTERING, OPERATIONS, MERGERS, LIQUIDATIONS › Subchapter J - CHANGES IN CORPORATE STATUS › Section 91.1008 - Conversion Voting Procedures and Restrictions; Filing Requirements

Current through Reg. 49, No. 28; July 12, 2024
(a) Voting
				  procedures. Eligible members may vote on a plan of conversion by written ballot
				  either filed in person at a special meeting held on the date set for the vote
				  or mailed by the member. The vote on a conversion proposal must be by secret
				  ballot. Mail balloting must be conducted in accordance with §
										RSA
				  91.302 of this Chapter.
(b) Definitions.
(1) "Eligible Member" means a member of a
				  credit union who is approved and fully qualified for membership in accordance
				  with the credit union's bylaws and written policies as of the eligibility
				  record date.
(2) "Eligibility
				  Record Date" means the cut off date for determining eligible members, which
				  shall be deemed to be the last day of the month immediately preceding the date
				  the credit union's board of directors notifies members or the public that it is
				  contemplating a conversion.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 6 - CREDIT UNION DEPARTMENT › Chapter 91 - CHARTERING, OPERATIONS, MERGERS, LIQUIDATIONS › Subchapter J - CHANGES IN CORPORATE STATUS › Section 91.1010 - Voluntary Liquidation

Current through Reg. 49, No. 28; July 12, 2024
(a)
				  Definitions. The following words and terms, when used in this section, shall
				  have the following meanings, unless the context clearly indicates otherwise.
(1) Voluntary liquidation means the
				  dissolution of a credit union with the assets being sold or collected,
				  liabilities paid, and shares/deposits distributed under the direction of the
				  board of directors.
(2) Liquidation
				  date means the date the membership votes to approve liquidation.
(3) Liquidating agent means the person or
				  persons appointed by the board of directors to take possession of, manage, and
				  liquidate the credit union.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 6 - CREDIT UNION DEPARTMENT › Chapter 91 - CHARTERING, OPERATIONS, MERGERS, LIQUIDATIONS › Subchapter K - CREDIT UNION DEVELOPMENT DISTRICTS › Section 91.2000 - Purpose and Scope

Current through Reg. 49, No. 28; July 12, 2024
(a) This
				  subchapter implements Tex. Fin. Code §279.001 et seq. regarding the
				  establishment of credit union development districts.
(b) This subchapter does not affect or
				  circumvent requirements under the Tax Increment Financing Act or the Property
				  Redevelopment and Tax Abatement Act (Tex. Tax Code, Chapters 311 and 312,
				  respectively), including requirements for designation of an area as a municipal
				  or county reinvestment zone or for authorization to enter into a tax abatement
				  agreement.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 6 - CREDIT UNION DEPARTMENT › Chapter 91 - CHARTERING, OPERATIONS, MERGERS, LIQUIDATIONS › Subchapter K - CREDIT UNION DEVELOPMENT DISTRICTS › Section 91.2001 - Definitions

Current through Reg. 49, No. 28; July 12, 2024
Unless the context clearly indicates otherwise, these words
					 and terms, when used in this subchapter, shall have the following
					 meanings:
(1) "Credit union" includes
				  state and federal credit unions.
(2) "District" means a credit union
				  development district approved under this subchapter.
(3) "Local government" means a municipality
				  or county.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 6 - CREDIT UNION DEPARTMENT › Chapter 91 - CHARTERING, OPERATIONS, MERGERS, LIQUIDATIONS › Subchapter K - CREDIT UNION DEVELOPMENT DISTRICTS › Section 91.2002 - Application Requirements to Establish a District

Current through Reg. 49, No. 28; July 12, 2024
(a) Basic application. A local government, in
				  conjunction with a credit union, may submit an application to the Commission
				  for the designation of a proposed credit union development district, as
				  provided by § 91.2003 of this subchapter (relating to Submission and
				  Processing of Application). The application shall contain the following items
				  to the extent available:
(1) the name of the
				  local government, the county in which it is located and evidence of the
				  approval of the application by its governing body;
(2) identification of the participating
				  credit union and the location of the proposed credit union or branch by street
				  address;
(3) a description of the
				  geographic area comprising the proposed district, including a map indicating
				  the borders of the proposed district;
(4) the location, number and proximity of
				  sites where credit union services are available in the proposed credit union
				  development district, including branches of other financial institutions and
				  deposit-taking ATMs other than those located at branches;
(5) a compilation and description of consumer
				  needs for credit union services in the proposed district, including population
				  demographics included within the proposed district;
(6) a compilation and description of the
				  economic viability and local credit needs of the community in the proposed
				  district, including economic indicators pertinent to the proposed
				  district;
(7) a compilation and
				  description of the existing commercial development in the proposed district,
				  including a description of the type and nature of commercial businesses located
				  in the proposed district; and
(8) a
				  compilation and description of the impact additional credit union services
				  would have on potential economic development in the proposed district,
				  including significant business developments within the past three years,
				  corporate restructurings, plant closings, other business closings, and recent
				  or proposed business openings or expansions.