State Codes and Statutes

Statutes > Texas > Finance-code > Title-3-financial-institutions-and-businesses > Chapter-63-general-powers

FINANCE CODE

TITLE 3. FINANCIAL INSTITUTIONS AND BUSINESSES

SUBTITLE B. SAVINGS AND LOAN ASSOCIATIONS

CHAPTER 63. GENERAL POWERS

Sec. 63.001. GENERAL CORPORATE POWERS. (a) An association has

all the powers authorized by this subtitle and any other right,

privilege, or power incidental to or reasonably necessary to

accomplish the purposes of the association.

(b) With the commissioner's prior approval, an association may

engage in business as a savings and loan association in any state

of the United States to the extent permitted by the laws of that

state, either directly or through the ownership of an association

incorporated under the laws of another state.

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

Sec. 63.002. ENLARGEMENT OF POWERS. Notwithstanding any other

provision of this subtitle, an association may:

(1) perform a function or engage in an activity, including

making a loan or investment, to the same extent as a federal

association;

(2) raise capital in the same manner and form as a federal

association;

(3) issue a certificate in the same form as a federal

association; or

(4) pay a dividend, earnings, or interest on a certificate in

the same manner as a federal association.

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

Sec. 63.003. POWERS OF FEDERAL ASSOCIATION. A federal

association and its members have all the powers, privileges,

benefits, immunities, and exemptions provided by the law of this

state for an association and the association's members.

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

Sec. 63.004. POWER TO BORROW. (a) An association may:

(1) borrow from any nongovernmental source an aggregate amount

that does not exceed 25 percent of the amount of the

association's savings liability on the date of borrowing; and

(2) pledge the association's assets to secure repayment of the

borrowed money.

(b) Except as provided by Subsection (c), an association may

borrow from a nongovernmental source an amount exceeding the

amount described in Subsection (a)(1) only with the prior written

approval of the commissioner.

(c) An association that is a member of a Federal Home Loan Bank

may borrow or obtain an advance from that bank in an amount and

on terms prescribed by that bank.

(d) An association at any time through action of its board may

issue a capital note, debenture, or other capital obligation

authorized by rules adopted under Section 11.302.

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

Sec. 63.005. FISCAL AGENT. (a) An association may act as

fiscal agent of the United States. An association designated as

fiscal agent of the United States by the secretary of the

treasury shall act under regulations as required by the secretary

and may act as fiscal agent for an instrumentality of the United

States.

(b) An association may act as fiscal agent of this state or of a

governmental subdivision or instrumentality of this state.

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

Sec. 63.006. POWER TO ACT UNDER CERTAIN FEDERAL RETIREMENT

PLANS. An association or a federal association, to the extent

that its charter and applicable federal regulations permit, may:

(1) exercise any power necessary to qualify as a trustee or

custodian for:

(A) a retirement plan meeting the requirements of 26 U.S.C.

Section 401(d) or 408; or

(B) a similar plan permitted or recognized by federal law; and

(2) invest money the association holds as trustee or custodian

under Subdivision (1) in the association's savings accounts if

the plan does not prohibit that investment.

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

Sec. 63.007. RIGHT TO ACT TO AVOID LOSS. This subtitle or

another statute of this state does not deny an association the

right to invest its money, operate a business, manage or deal in

property, or take other action during any period that is

reasonably necessary to avoid loss on a prior loan or investment

or on an obligation created in good faith.

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

Sec. 63.008. CLOSING PLACE OF BUSINESS. An association or a

federal savings and loan association operating in this state may

close its place of business at any time its board determines.

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

Sec. 63.009. EMERGENCY CLOSING. (a) If the officers of an

association determine that an emergency that affects or may

affect the association's offices or operations exists or is

impending, the officers, as reasonable, may determine:

(1) not to conduct the involved operations or open the offices

on any business or banking day; or

(2) if the association is open, to close the offices or the

involved operations for the duration of the emergency.

(b) Subject to Subsection (c), a closed office or operation

under this section shall remain closed until the officers

determine that the emergency has ended and for any additional

time reasonably required to reopen.

(c) An association that closes an office or an operation under

this section shall notify the commissioner of its action by any

means available and as promptly as conditions permit. An office

or operation may not be closed for more than 48 consecutive

hours, excluding other legal holidays, without the commissioner's

approval.

(d) In this section, "emergency" means a condition or occurrence

that may interfere physically with the conduct of normal business

at the offices of an association or with the conduct of a

particular association operation or that poses an imminent or

existing threat to the safety or security of persons, property,

or both. The term includes a condition or occurrence arising

from:

(1) fire, flood, earthquake, hurricane, tornado, wind, rain, or

snowstorm;

(2) labor dispute and strike;

(3) power failure;

(4) transportation failure;

(5) interruption of communication facilities;

(6) shortage of fuel, housing, food, transportation, or labor;

(7) robbery, burglary, or attempted robbery or burglary;

(8) actual or threatened enemy attack;

(9) epidemic or other catastrophe;

(10) riot or civil commotion; or

(11) any other actual or threatened unlawful or violent act.

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

Sec. 63.010. EFFECT OF CLOSING. (a) A day on which an

association or one or more of its operations is closed under

Section 63.009 during all or part of its normal business hours is

considered to be a legal holiday to the extent the association

suspends operations.

(b) An association or a director, officer, or employee of the

association does not incur liability or loss of rights from a

closing authorized by this subtitle.

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

State Codes and Statutes

Statutes > Texas > Finance-code > Title-3-financial-institutions-and-businesses > Chapter-63-general-powers

FINANCE CODE

TITLE 3. FINANCIAL INSTITUTIONS AND BUSINESSES

SUBTITLE B. SAVINGS AND LOAN ASSOCIATIONS

CHAPTER 63. GENERAL POWERS

Sec. 63.001. GENERAL CORPORATE POWERS. (a) An association has

all the powers authorized by this subtitle and any other right,

privilege, or power incidental to or reasonably necessary to

accomplish the purposes of the association.

(b) With the commissioner's prior approval, an association may

engage in business as a savings and loan association in any state

of the United States to the extent permitted by the laws of that

state, either directly or through the ownership of an association

incorporated under the laws of another state.

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

Sec. 63.002. ENLARGEMENT OF POWERS. Notwithstanding any other

provision of this subtitle, an association may:

(1) perform a function or engage in an activity, including

making a loan or investment, to the same extent as a federal

association;

(2) raise capital in the same manner and form as a federal

association;

(3) issue a certificate in the same form as a federal

association; or

(4) pay a dividend, earnings, or interest on a certificate in

the same manner as a federal association.

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

Sec. 63.003. POWERS OF FEDERAL ASSOCIATION. A federal

association and its members have all the powers, privileges,

benefits, immunities, and exemptions provided by the law of this

state for an association and the association's members.

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

Sec. 63.004. POWER TO BORROW. (a) An association may:

(1) borrow from any nongovernmental source an aggregate amount

that does not exceed 25 percent of the amount of the

association's savings liability on the date of borrowing; and

(2) pledge the association's assets to secure repayment of the

borrowed money.

(b) Except as provided by Subsection (c), an association may

borrow from a nongovernmental source an amount exceeding the

amount described in Subsection (a)(1) only with the prior written

approval of the commissioner.

(c) An association that is a member of a Federal Home Loan Bank

may borrow or obtain an advance from that bank in an amount and

on terms prescribed by that bank.

(d) An association at any time through action of its board may

issue a capital note, debenture, or other capital obligation

authorized by rules adopted under Section 11.302.

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

Sec. 63.005. FISCAL AGENT. (a) An association may act as

fiscal agent of the United States. An association designated as

fiscal agent of the United States by the secretary of the

treasury shall act under regulations as required by the secretary

and may act as fiscal agent for an instrumentality of the United

States.

(b) An association may act as fiscal agent of this state or of a

governmental subdivision or instrumentality of this state.

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

Sec. 63.006. POWER TO ACT UNDER CERTAIN FEDERAL RETIREMENT

PLANS. An association or a federal association, to the extent

that its charter and applicable federal regulations permit, may:

(1) exercise any power necessary to qualify as a trustee or

custodian for:

(A) a retirement plan meeting the requirements of 26 U.S.C.

Section 401(d) or 408; or

(B) a similar plan permitted or recognized by federal law; and

(2) invest money the association holds as trustee or custodian

under Subdivision (1) in the association's savings accounts if

the plan does not prohibit that investment.

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

Sec. 63.007. RIGHT TO ACT TO AVOID LOSS. This subtitle or

another statute of this state does not deny an association the

right to invest its money, operate a business, manage or deal in

property, or take other action during any period that is

reasonably necessary to avoid loss on a prior loan or investment

or on an obligation created in good faith.

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

Sec. 63.008. CLOSING PLACE OF BUSINESS. An association or a

federal savings and loan association operating in this state may

close its place of business at any time its board determines.

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

Sec. 63.009. EMERGENCY CLOSING. (a) If the officers of an

association determine that an emergency that affects or may

affect the association's offices or operations exists or is

impending, the officers, as reasonable, may determine:

(1) not to conduct the involved operations or open the offices

on any business or banking day; or

(2) if the association is open, to close the offices or the

involved operations for the duration of the emergency.

(b) Subject to Subsection (c), a closed office or operation

under this section shall remain closed until the officers

determine that the emergency has ended and for any additional

time reasonably required to reopen.

(c) An association that closes an office or an operation under

this section shall notify the commissioner of its action by any

means available and as promptly as conditions permit. An office

or operation may not be closed for more than 48 consecutive

hours, excluding other legal holidays, without the commissioner's

approval.

(d) In this section, "emergency" means a condition or occurrence

that may interfere physically with the conduct of normal business

at the offices of an association or with the conduct of a

particular association operation or that poses an imminent or

existing threat to the safety or security of persons, property,

or both. The term includes a condition or occurrence arising

from:

(1) fire, flood, earthquake, hurricane, tornado, wind, rain, or

snowstorm;

(2) labor dispute and strike;

(3) power failure;

(4) transportation failure;

(5) interruption of communication facilities;

(6) shortage of fuel, housing, food, transportation, or labor;

(7) robbery, burglary, or attempted robbery or burglary;

(8) actual or threatened enemy attack;

(9) epidemic or other catastrophe;

(10) riot or civil commotion; or

(11) any other actual or threatened unlawful or violent act.

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

Sec. 63.010. EFFECT OF CLOSING. (a) A day on which an

association or one or more of its operations is closed under

Section 63.009 during all or part of its normal business hours is

considered to be a legal holiday to the extent the association

suspends operations.

(b) An association or a director, officer, or employee of the

association does not incur liability or loss of rights from a

closing authorized by this subtitle.

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


State Codes and Statutes


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State Codes and Statutes

Statutes > Texas > Finance-code > Title-3-financial-institutions-and-businesses > Chapter-63-general-powers

FINANCE CODE

TITLE 3. FINANCIAL INSTITUTIONS AND BUSINESSES

SUBTITLE B. SAVINGS AND LOAN ASSOCIATIONS

CHAPTER 63. GENERAL POWERS

Sec. 63.001. GENERAL CORPORATE POWERS. (a) An association has

all the powers authorized by this subtitle and any other right,

privilege, or power incidental to or reasonably necessary to

accomplish the purposes of the association.

(b) With the commissioner's prior approval, an association may

engage in business as a savings and loan association in any state

of the United States to the extent permitted by the laws of that

state, either directly or through the ownership of an association

incorporated under the laws of another state.

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

Sec. 63.002. ENLARGEMENT OF POWERS. Notwithstanding any other

provision of this subtitle, an association may:

(1) perform a function or engage in an activity, including

making a loan or investment, to the same extent as a federal

association;

(2) raise capital in the same manner and form as a federal

association;

(3) issue a certificate in the same form as a federal

association; or

(4) pay a dividend, earnings, or interest on a certificate in

the same manner as a federal association.

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

Sec. 63.003. POWERS OF FEDERAL ASSOCIATION. A federal

association and its members have all the powers, privileges,

benefits, immunities, and exemptions provided by the law of this

state for an association and the association's members.

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

Sec. 63.004. POWER TO BORROW. (a) An association may:

(1) borrow from any nongovernmental source an aggregate amount

that does not exceed 25 percent of the amount of the

association's savings liability on the date of borrowing; and

(2) pledge the association's assets to secure repayment of the

borrowed money.

(b) Except as provided by Subsection (c), an association may

borrow from a nongovernmental source an amount exceeding the

amount described in Subsection (a)(1) only with the prior written

approval of the commissioner.

(c) An association that is a member of a Federal Home Loan Bank

may borrow or obtain an advance from that bank in an amount and

on terms prescribed by that bank.

(d) An association at any time through action of its board may

issue a capital note, debenture, or other capital obligation

authorized by rules adopted under Section 11.302.

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

Sec. 63.005. FISCAL AGENT. (a) An association may act as

fiscal agent of the United States. An association designated as

fiscal agent of the United States by the secretary of the

treasury shall act under regulations as required by the secretary

and may act as fiscal agent for an instrumentality of the United

States.

(b) An association may act as fiscal agent of this state or of a

governmental subdivision or instrumentality of this state.

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

Sec. 63.006. POWER TO ACT UNDER CERTAIN FEDERAL RETIREMENT

PLANS. An association or a federal association, to the extent

that its charter and applicable federal regulations permit, may:

(1) exercise any power necessary to qualify as a trustee or

custodian for:

(A) a retirement plan meeting the requirements of 26 U.S.C.

Section 401(d) or 408; or

(B) a similar plan permitted or recognized by federal law; and

(2) invest money the association holds as trustee or custodian

under Subdivision (1) in the association's savings accounts if

the plan does not prohibit that investment.

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

Sec. 63.007. RIGHT TO ACT TO AVOID LOSS. This subtitle or

another statute of this state does not deny an association the

right to invest its money, operate a business, manage or deal in

property, or take other action during any period that is

reasonably necessary to avoid loss on a prior loan or investment

or on an obligation created in good faith.

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

Sec. 63.008. CLOSING PLACE OF BUSINESS. An association or a

federal savings and loan association operating in this state may

close its place of business at any time its board determines.

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

Sec. 63.009. EMERGENCY CLOSING. (a) If the officers of an

association determine that an emergency that affects or may

affect the association's offices or operations exists or is

impending, the officers, as reasonable, may determine:

(1) not to conduct the involved operations or open the offices

on any business or banking day; or

(2) if the association is open, to close the offices or the

involved operations for the duration of the emergency.

(b) Subject to Subsection (c), a closed office or operation

under this section shall remain closed until the officers

determine that the emergency has ended and for any additional

time reasonably required to reopen.

(c) An association that closes an office or an operation under

this section shall notify the commissioner of its action by any

means available and as promptly as conditions permit. An office

or operation may not be closed for more than 48 consecutive

hours, excluding other legal holidays, without the commissioner's

approval.

(d) In this section, "emergency" means a condition or occurrence

that may interfere physically with the conduct of normal business

at the offices of an association or with the conduct of a

particular association operation or that poses an imminent or

existing threat to the safety or security of persons, property,

or both. The term includes a condition or occurrence arising

from:

(1) fire, flood, earthquake, hurricane, tornado, wind, rain, or

snowstorm;

(2) labor dispute and strike;

(3) power failure;

(4) transportation failure;

(5) interruption of communication facilities;

(6) shortage of fuel, housing, food, transportation, or labor;

(7) robbery, burglary, or attempted robbery or burglary;

(8) actual or threatened enemy attack;

(9) epidemic or other catastrophe;

(10) riot or civil commotion; or

(11) any other actual or threatened unlawful or violent act.

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

Sec. 63.010. EFFECT OF CLOSING. (a) A day on which an

association or one or more of its operations is closed under

Section 63.009 during all or part of its normal business hours is

considered to be a legal holiday to the extent the association

suspends operations.

(b) An association or a director, officer, or employee of the

association does not incur liability or loss of rights from a

closing authorized by this subtitle.

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


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