CHAPTER 89. MISCELLANEOUS PROVISIONS APPLICABLE TO SAVINGS AND LOAN ASSOCIATIONS

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Statutes > Texas > Finance-code > Title-3-financial-institutions-and-businesses > Chapter-89-miscellaneous-provisions-applicable-to-savings-and-loan-associations

FINANCE CODE

TITLE 3. FINANCIAL INSTITUTIONS AND BUSINESSES

SUBTITLE B. SAVINGS AND LOAN ASSOCIATIONS

CHAPTER 89. MISCELLANEOUS PROVISIONS APPLICABLE TO SAVINGS AND

LOAN ASSOCIATIONS

SUBCHAPTER A. GENERAL MISCELLANEOUS PROVISIONS

Sec. 89.001. APPLICABILITY OF CHAPTER 4, BUSINESS & COMMERCE

CODE. Chapter 4, Business & Commerce Code, applies to an

association with respect to an item paid, collected, settled,

negotiated, or otherwise handled by the association for a

customer.

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

Sec. 89.002. ACKNOWLEDGMENT OR PROOF TAKEN BY MEMBER,

STOCKHOLDER, OR EMPLOYEE OF ASSOCIATION. A public officer who is

qualified to take an acknowledgment or proof of a written

instrument and who is a member or employee of, or a shareholder

in, an association or federal association is not disqualified

because of that relationship to the association or federal

association from taking an acknowledgment or proof of a written

instrument in which an association or federal association is

interested.

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

Sec. 89.003. RENDITION OF CERTAIN PERSONAL PROPERTY FOR AD

VALOREM TAXATION. (a) Each association and each federal

association shall render for ad valorem taxation all of its

personal property, other than furniture, fixtures, equipment, and

automobiles, as a whole at the value remaining after deducting

the following from the total value of its entire assets:

(1) all debts that it owes;

(2) all tax-free securities that it owns;

(3) its loss reserves and surplus;

(4) its savings liability; and

(5) the appraised value of its furniture, fixtures, and real

property.

(b) The association or federal association shall render the

personal property, other than furniture, fixtures, equipment, and

automobiles, to the chief appraiser of the appraisal district in

the county in which its principal office is located.

association or federal association shall be rendered and valued

for ad valorem taxation as provided by the Tax Code.

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

Sec. 89.004. INITIATION OF RULEMAKING BY ASSOCIATIONS. The

finance commission shall initiate rulemaking proceedings if at

least 20 percent of the associations petition the finance

commission in writing requesting the adoption, amendment, or

repeal of a rule.

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

Amended by Acts 2001, 77th Leg., ch. 867, Sec. 32, eff. Sept. 1,

2001.

Sec. 89.005. EXEMPTION FROM SECURITIES LAWS. A savings account,

certificate, or other evidence of an interest in the savings

liability of an association or federal association is not

considered a security under The Securities Act (Article 581-1 et

seq., Vernon's Texas Civil Statutes). A security of these

associations, other than an interest in the savings liability of

an association, is not subject to the registration requirements

of that act. A person whose principal occupation is being an

officer of an association is exempt from the registration and

licensing provisions of that act with respect to that person's

participation in a sale or other transaction involving securities

of the association of which the person is an officer.

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

Sec. 89.006. LIABILITY OF COMMISSIONER AND OTHER COMMISSION

PERSONNEL; DEFENSE BY ATTORNEY GENERAL. (a) The commissioner, a

member of the finance commission, a deputy commissioner, an

examiner, or any other officer or employee of the Department of

Savings and Mortgage Lending is not personally liable for damages

arising from the person's official act or omission unless the act

or omission is corrupt or malicious.

(b) The attorney general shall defend an action brought against

a person described by Subsection (a) because of the person's

official act or omission without regard to whether the person is

an officer or employee of the department at the time the action

is instituted.

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

Amended by:

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

921, Sec. 6.034, eff. September 1, 2007.

Sec. 89.007. ASSOCIATION AUTHORIZED TO CONDUCT SAVINGS AND LOAN

BUSINESS UNDER PRIOR LAW NOW SUBJECT TO SUBTITLE. (a) An

association or corporation that was authorized to conduct a

building and loan association, savings and loan association,

building society, or other similar business before January 1,

1964, and that has substantially the same purpose as a savings

and loan association is subject to this subtitle. The name,

rights, powers, privileges, and immunities of each of those

associations or corporations are governed, construed, extended,

and limited by this subtitle to the same extent and effect as if

the association or corporation had been incorporated under this

subtitle.

(b) Except as provided by Subsection (d) and notwithstanding

anything to the contrary in the entity's certificate of

incorporation, bylaws, constitution, or rules, each association

or corporation described by Subsection (a) has the rights,

powers, privileges, and immunities conferred by this subtitle and

is subject to the duties, liabilities, and restrictions imposed

by this subtitle.

association, certificate of incorporation, or charter and the

bylaws, constitutions, or other rules of each of those

associations or corporations are:

(1) considered modified and amended to conform to this subtitle,

regardless of whether the commissioner has issued or approved a

conformed copy of the document; and

(2) void to the extent that the document is inconsistent with

this subtitle.

(d) The obligations existing on January 1, 1964, of each

association or corporation described by Subsection (a), including

an obligation between the entity and one or more of its members

and between the entity and any other person, are not impaired by

this subtitle. Any valid contract existing on January 1, 1964,

either between the members of the entity or between the entity

and any other person, is not impaired by this subtitle. An

association is not required to change its name.

(e) An association or corporation described by Subsection (a)

may enforce in its name any contractual obligation of the

association or corporation incurred before January 1, 1964. A

demand, claim, or right of action against the association or

corporation may be enforced against the association or

corporation as fully and completely as it might have been

enforced before January 1, 1964.

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

Sec. 89.008. OFFICES OF FEDERAL ASSOCIATIONS. A federal

association that has been merged, consolidated, or converted into

a domestic or foreign savings bank or association is entitled to

retain any authorized office under the terms provided for a

foreign savings bank under Subchapter I, Chapter 92.

Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.31(a), eff. Sept.

1, 1999.

SUBCHAPTER B. ACCESS TO AND DISCLOSURE OF CERTAIN INFORMATION

Sec. 89.051. ACCESS TO BOOKS AND RECORDS OF ASSOCIATION. (a)

The books and records of an association may be examined only by:

(1) the commissioner or the commissioner's representative in

accordance with Sections 66.051, 66.053, and 66.054;

(2) a person authorized to act for the association;

(3) an agent of a governmental agency that has insured the

savings accounts of the association; or

(4) a borrower or savings account holder of the association, in

accordance with Subsection (b).

(b) A borrower or savings account holder of an association is

entitled to examine only the books and records of the association

that pertain to the person's loan or savings account.

stockholders of a stock association or of the members of a mutual

association only if expressly permitted by the association's

board.

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

Sec. 89.052. DISCLOSURE OF INFORMATION HELD BY DEPARTMENT ABOUT

AN ASSOCIATION; LIABILITY. (a) The commissioner and an

examiner, supervisor, conservator, liquidator, inspector, deputy,

assistant, clerk, or other employee of the Department of Savings

and Mortgage Lending who is appointed or acting under this

subtitle shall be removed from the person's position with the

department if the person:

(1) does not keep secret a fact or information about an

association obtained during an examination or because of the

person's official position, except when the public duty of the

person requires otherwise; or

(2) wilfully makes a false official report about the condition

of an association.

(b) A report of an examination made to the commissioner is

confidential and is not a public record or available for public

inspection, except:

(1) for good reason the commissioner may make the report public;

and

(2) a copy of the report may be furnished to the Federal Home

Loan Bank Board or to the Federal Home Loan Bank to meet the

requirements of the Federal Home Loan Bank Act (12 U.S.C. Section

1421 et seq.).

commissioner shall report promptly to the finance commission and

in a closed meeting shall furnish any information about the

association or the person that is the subject of the order that

the commission members may require. Any information discussed in

the closed meeting is confidential.

(d) Unless this subtitle provides otherwise, this section does

not apply to any fact or information or to a report of an

investigation obtained or made by the commissioner or the

commissioner's staff in connection with an application for a

charter under this subtitle or with a hearing held by the

commissioner under this subtitle. The fact, information, or

report may be included in the record of the hearing.

(e) This section does not prevent the proper exchange of

information relating to associations with the representatives of

savings and loan departments of other states or any other

department, agency, or instrumentality of this or another state

or the United States if the commissioner determines the

disclosure of the information is necessary or proper to enforce

the laws of this or another state or the United States.

(f) An official who violates this section is liable to the

person injured by the disclosure of the secrets.

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

Amended by:

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

921, Sec. 6.035, eff. September 1, 2007.

SUBCHAPTER C. OFFENSES AND PENALTIES

Sec. 89.101. CRIMINAL SLANDER. (a) A person commits an offense

if the person, with intent to injure an association or a federal

association in this state:

(1) knowingly makes, utters, circulates, or transmits to another

person a statement that is untrue and derogatory to the financial

condition of the association or federal association; or

(2) counsels, aids, procures, or induces another person to

originate, make, utter, transmit, or circulate a statement or

rumor that is untrue and derogatory to the financial condition of

the association or federal association.

(b) An offense under Subsection (a) is punishable by:

(1) a fine not to exceed $2,500;

(2) imprisonment in the Texas Department of Criminal Justice for

not more than two years; or

(3) both the fine and imprisonment.

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

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

87, Sec. 25.062, eff. September 1, 2009.

Sec. 89.102. GENERAL ADMINISTRATIVE PENALTY. (a) The

commissioner may require an association that knowingly violates

this subtitle or a rule adopted under this subtitle to pay to the

Department of Savings and Mortgage Lending an administrative

penalty not to exceed $1,000 for each day that the violation

occurs after notice of the violation is given by the

commissioner.

(b) On the commissioner's certification that an association has

not paid a penalty assessed under this section, the attorney

general may file suit to collect the penalty.

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

Amended by:

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

921, Sec. 6.036, eff. September 1, 2007.

State Codes and Statutes

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