Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 6 - CREDIT UNION DEPARTMENT › Chapter 95 - SHARE AND DEPOSITOR INSURANCE PROTECTION › Subchapter C - GUARANTY CREDIT UNION › Section 95.302 - Powers

Current through Reg. 49, No. 28; July 12, 2024
The guaranty credit union, pursuant to Texas Finance Code
					 §
										RSA
					 15.410(b) and to the powers
					 contained in Subtitle D, Title 3, Texas Finance Code, may:
(1) Purchase, hold, lease, receive, use,
				  encumber, sell, exchange, transfer, lend, advance, convey, assign, give, grant,
				  transmit, hypothecate, or dispose of property or funds of any description,
				  nature, or kind or of any interest, rights, title, or privileges therein from
				  or to any participating credit union or any corporation, association, or
				  person, provided that any gift, grant, or transfer of a similar nature shall be
				  made only with the approval of the commissioner;
(2) Declare and pay dividends on the
				  membership investment fund;
(3)
				  Make any type of investment authorized by law for a credit union chartered in
				  this state;
(4) Act under the order
				  or appointment of any court of record, without giving bond, as guardian,
				  receiver, trustee, executor, administrator, custodian, or as depository for any
				  money paid into the court for participating credit unions;
(5) Accept funds or money for deposit by
				  fiduciaries, trustees, or receivers if managing or holding funds on behalf of a
				  participating credit union;
(6)
				  Accept funds or money for deposit by financial institutions, trust companies,
				  or insurance companies, if membership or primary ownership of the institutions,
				  associations, or companies is confined or restricted to or for the benefit of
				  participating credit unions or organizations of participating credit unions, or
				  if the institutions, associations, or companies are designed to serve or
				  otherwise assist operations of participating credit unions;
(7) Act as custodian of individual retirement
				  accounts or of pension funds of participating credit unions, or as trustee
				  under pension and profit sharing plans of participating credit
				  unions;
(8) Make deposits, purchase
				  shares, and invest in legally chartered credit unions, trust companies, or
				  other financial institutions;
(9)
				  Impress a lien or exercise its right of setoff on the deposits, dividends, and
				  interest of any participating credit union to the extent of any loans or other
				  obligations due by the participating credit union;
(10) Make or issue, with the approval of the
				  commissioner, a guarantee or other form of written assurance to the appropriate
				  person, association, corporation, or other entity which is reasonably necessary
				  to facilitate the sale, conveyance, assignment, transfer, or other disposition
				  of all or any part of the property or assets of a participating credit union,
				  and otherwise assist in the merger, consolidation, conservation, suspension, or
				  liquidation of a participating credit union upon the request and under the
				  instruction of the commissioner;
(11) Advance funds, with or without interest,
				  in accordance with agreed terms and conditions, to aid participating credit
				  unions to continue to operate and to maintain solvency or to maintain account
				  balances with any financial institution in connection with the assumption of
				  receivables from a participating credit union, or to meet liquidity
				  requirements;
(12) Purchase from a
				  participating credit union any equitable or other interest in its assets at
				  book value or at some other value mutually agreed upon by such credit union and
				  the board of directors of the guaranty credit union, notwithstanding that
				  either of such values may exceed the market value of the assets so purchased,
				  and upon such terms and conditions as the board of directors of the guaranty
				  credit union may determine, provided, however, that all such terms, conditions,
				  agreements and values are approved in writing by the commissioner;
(13) Exercise any setoff or lien rights that
				  a participating credit union may have when the guaranty credit union is acting
				  as conservator or liquidating agent for such credit union;
(14) Exercise rights of subrogation to the
				  extent of all rights the depositors or shareholders may have against a
				  participating credit union to the extent of any payments made by the guaranty
				  credit union to the depositors or shareholders of such credit union, including
				  the right to receive the same dividends, as would have been payable to the
				  depositor or shareholder;
(15)
				  Raise any defense to the payment of a claim or an insured account which a
				  participating credit union could have raised, and when made, the actual payment
				  of an insured account to any person by the guaranty credit union shall
				  discharge the guaranty credit union to the same extent that payment to such
				  person by the participating credit union would have discharged it from
				  liability for the insured account;
(16) Acquire a promissory note or other asset
				  upon which a nonmember is liable, provided such acquisition is made, in the
				  discretion of the guaranty credit union, to protect an inferior lien held by
				  the guaranty credit union, a participating credit union, member of the guaranty
				  credit union or a member of a participating credit union member of the guaranty
				  credit union. Such acquisitions shall not be subject to the restrictions of
				  §91.701 et. seq. of this title (relating to Loans);
(17) Enter into contracts of insurance or
				  reinsurance, insuring in whole or in part its contractual guarantees to
				  participating credit unions and any other insurance or bonding company
				  contracts necessary or advisable in the conduct of its business, provided a
				  guaranty credit union shall not assume any risks from another insurer;
				  and
(18) Exercise the powers
				  granted corporations organized under the laws of this state and such other
				  additional incidental powers not inconsistent with these sections and Subtitle
				  D, Title 3, Texas Finance Code, as may be necessary to enable the guaranty
				  credit union to promote and carry out effectively its purposes.