CHAPTER 61. GENERAL PROVISIONS

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FINANCE CODE

TITLE 3. FINANCIAL INSTITUTIONS AND BUSINESSES

SUBTITLE B. SAVINGS AND LOAN ASSOCIATIONS

CHAPTER 61. GENERAL PROVISIONS

Sec. 61.001. SHORT TITLE. This subtitle may be cited as the

Texas Savings and Loan Act.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 61.002. DEFINITIONS. In this subtitle:

(1) "Association" means a savings and loan association subject

to this subtitle.

(2) "Board" means the board of directors of an association.

(3) "Capital stock" means the units into which the proprietary

interest in a capital stock association is divided.

(4) "Capital stock association" means an association authorized

to issue capital stock.

(5) "Commissioner" means the savings and mortgage lending

commissioner.

(6) "Company" means a corporation, partnership, trust,

joint-stock company, association, unincorporated organization, or

other similar entity or a combination of any of those entities

acting together.

(7) "Domestic association" means a savings and loan association

organized under the laws of this state.

(8) "Earnings on savings accounts" means interest contractually

payable or dividends declared payable to holders of savings

accounts in an association.

(9) "Federal association" means a savings and loan association

incorporated under the Home Owners' Loan Act (12 U.S.C. Section

1461 et seq.).

(10) "Finance commission" means the Finance Commission of Texas.

(11) "Foreign association" means a savings and loan association:

(A) organized under the laws of:

(i) a state or territory of the United States other than this

state; or

(ii) the United States; and

(B) the principal office of which is located outside this state.

(12) "Loss reserves" means the aggregate amount of the reserves

allocated by an association solely to absorb losses.

(13) "Member" means, with respect to a mutual association, a

person:

(A) holding a savings account with the mutual association;

(B) assuming or obligated on a loan in which the mutual

association has an interest; or

association has an interest.

(14) "Mutual association" means an association not authorized to

issue capital stock.

(15) "Savings account" means the amount of money an association

owes an account holder as the result of the deposit of funds in

the association.

(16) "Savings and loan association" means an association the

primary purposes of which are to promote thrift and home

financing and the principal activity of which is the lending of

money secured by liens on homes and other improved real property.

(17) "Savings and loan holding company" means a company that

directly or indirectly controls a savings and loan association or

controls another company that directly or indirectly controls a

savings and loan association.

(18) "Savings liability" means the aggregate amount of money

shown by the books of the association to be owed to the

association's account holders.

(19) "Shareholder" means the owner of capital stock.

(20) "Surplus" means the aggregate amount of:

(A) the undistributed earnings of an association held as

undivided profits or unallocated reserves for general corporate

purposes; and

(B) paid-in surplus held by the association.

(21) "Unsafe and unsound practice" means an action or inaction

in the operation of an association that is likely to:

(A) cause insolvency or substantial dissipation of assets or

earnings; or

(B) reduce the ability of the association to satisfy on time

withdrawal requests of savings account holders.

(22) "Withdrawal value of a savings account" means the net

amount of money that may be withdrawn by an account holder from a

savings account.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 6.101(a), eff.

Sept. 1, 2001.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

921, Sec. 6.026, eff. September 1, 2007.

Sec. 61.003. CONTROL; SUBSIDIARY. (a) For the purposes of this

subtitle, a person controls an association if the person has the

power to direct or cause the direction of the management and

policies of the association directly or indirectly. A person is

considered to control an association if the person, individually

or acting with others, directly or indirectly holds with the

power to vote, owns, or controls, or holds irrevocable proxies

representing, at least 25 percent of the voting rights of the

association.

(b) For the purposes of this subtitle, a company is a subsidiary

of an association if the association or another company directly

or indirectly controlled by the association controls the company.

An association is considered to control a company if the

association, directly or indirectly or acting with one or more

other individuals or entities or through one or more

subsidiaries:

(1) holds with the power to vote, owns, or controls, or holds

proxies representing, more than 25 percent of the voting shares

of the company;

(2) controls in any manner the election of a majority of the

directors of the company;

(3) is a general partner in the company; or

(4) has contributed more than 25 percent of the equity capital

of the company.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 61.004. NOTICE OF HEARING; RIGHT TO RESPOND. (a) Notice

of a hearing under this subtitle shall be given to each

association and federal association in the county in which the

subject matter of the hearing is or will be located, except that

notice of a hearing held under an order under Chapter 66 shall be

given to each party affected by the order.

(b) Each interested party is entitled to an opportunity to

respond and present evidence and argument on each issue involved

in a hearing under this subtitle.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 61.005. RECORD OF PROCEEDING. On written request by an

interested party, the commissioner shall keep a formal record of

the proceedings of a hearing under this subtitle.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 61.006. DECISION OR ORDER. (a) A decision or order

adverse to a party who has appeared and participated in a hearing

must be in writing and include separately stated findings of fact

and conclusions of law on the issues material to the decision or

order. Findings of fact that are stated in statutory language

must be accompanied by a concise and explicit statement of the

underlying facts supporting the findings.

(b) A decision or order entered after a hearing becomes final

and appealable 15 days after the date it is entered unless a

party files a motion for rehearing before that date. If the

motion for rehearing is overruled, the decision or order becomes

final and appealable on the date the order overruling the motion

is entered.

personally or by mail of a decision, order, or other action taken

in respect to the subject matter of the hearing.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Sec. 61.007. FEES. The finance commission by rule shall:

(1) set the amount of fees the commissioner charges for:

(A) supervision and examination of associations;

(B) filing an application or other documents; and

(2) specify the time and manner of payment of the fees.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

Amended by Acts 2001, 77th Leg., ch. 867, Sec. 22, eff. Sept. 1,

2001.

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

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