CHAPTER 95. DEPOSIT ACCOUNTS

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FINANCE CODE

TITLE 3. FINANCIAL INSTITUTIONS AND BUSINESSES

SUBTITLE C. SAVINGS BANKS

CHAPTER 95. DEPOSIT ACCOUNTS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 95.001. DEPOSITS. (a) A savings bank may receive a

deposit of money.

(b) Money deposited in a savings bank may be withdrawn or paid

on a check of the deposit account holder.

deposit must be payable on demand without notice.

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

Sec. 95.002. LIMITATIONS ON ACCOUNTS. The board may limit the

number and value of deposit accounts the savings bank may accept.

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

Sec. 95.003. INVESTMENT IN ACCOUNTS. (a) Any person may be the

holder of a deposit account.

(b) An investment in a deposit account may be made only in cash.

right or in a trust or other fiduciary capacity.

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

Sec. 95.004. DEPOSIT CONTRACT. (a) Each holder of a deposit

account must execute a deposit contract. The contract must

specify:

(1) any special terms applicable to the account; and

(2) the conditions on which withdrawals may be made.

(b) The savings bank shall hold the deposit contract in the

records pertaining to the account.

public or governmental entity must provide that the holder of the

account may not become a member of the savings bank.

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

Sec. 95.005. ACCOUNT OWNERSHIP. Unless a savings bank

acknowledges in writing a pledge of a deposit account, the

savings bank may treat the holder of record of the account as the

owner of the account for all purposes and is unaffected by notice

to the contrary.

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

Sec. 95.006. TRANSFER OF ACCOUNT. (a) A deposit account may be

transferred on the books of the savings bank only on presentation

to the savings bank of:

(1) evidence of transfer satisfactory to the savings bank; and

(2) an application for transfer by the transferee.

(b) A transferee accepts an account subject to the terms of the:

(1) deposit contract; and

(2) savings bank's charter and bylaws.

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

Sec. 95.007. INTEREST OR DIVIDENDS PAID ON ACCOUNTS. (a) A

savings bank may contract to pay interest on deposit accounts or

may pay earnings on deposit accounts in the form of dividends

declared by the savings bank's board.

(b) A savings bank shall compute and pay interest and dividends

according to rules adopted by the finance commission.

deposit account on the savings bank's books unless the account

holder requests and the savings bank agrees that the savings bank

will pay interest or dividends on the account in cash.

(d) A savings bank may pay a cash dividend by check or bank

draft.

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

Amended by Acts 2001, 77th Leg., ch. 867, Sec. 60, eff. Sept. 1,

2001.

Sec. 95.008. REDEMPTION OF DEPOSIT ACCOUNT. (a) If no

contractual prohibition exists, a savings bank may redeem in the

manner the board determines all or part of its deposit accounts

if the savings bank:

(1) not later than the 31st day before the redemption date,

gives notice of the redemption by certified mail to each affected

account holder at the holder's last address as recorded on the

books of the savings bank; and

(2) not later than the redemption date, sets aside the amount

necessary for the redemption and keeps the amount available for

redemption.

(b) Redemption of deposit accounts must be on a

nondiscriminatory basis.

value of the account.

(d) All rights, including the accrual of earnings, that relate

to a deposit account called for redemption, other than the right

of the account holder of record to receive the redemption price,

terminate as of the redemption date.

(e) A savings bank may not redeem any of its deposit accounts if

the savings bank is subject to a supervisory control or

conservatorship action under Chapter 96, unless the commissioner

directs the redemption.

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

Sec. 95.009. LIEN ON DEPOSIT ACCOUNT. (a) Without further

agreement or pledge, a savings bank or a federal savings bank

doing business in this state has a lien on all deposit accounts

owned by an account holder to whom or on whose behalf the savings

bank has advanced money by loan or otherwise.

(b) On default in the payment or satisfaction of the account

holder's obligation, the savings bank, without notice to or

consent of the account holder, may cancel on its books all or

part of the account holder's deposit account and apply that

amount to payment of the obligation.

whole or in part on a deposit account.

(d) A savings bank may take the pledge of a deposit account of

the savings bank that is owned by an account holder other than

the borrower as additional security for a loan secured by:

(1) a deposit account;

(2) real property; or

(3) both a deposit account and real property.

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

Sec. 95.010. ACCOUNT AS LEGAL INVESTMENT. (a) Each of the

following persons may invest money held by the person in a

deposit account of a savings bank doing business in this state:

(1) any fiduciary, including an administrator, executor,

guardian, or trustee;

(2) a political subdivision or instrumentality of this state;

(3) a business or nonprofit corporation;

(4) a charitable or educational corporation or association; and

(5) a financial institution, including a bank, savings and loan

association, or credit union.

(b) An investment by an insurance company in a deposit account

is eligible for tax reducing purposes under Chapters 221 and 222,

Insurance Code.

insured by the Federal Deposit Insurance Corporation meets the

requirements of Sections 45.102 and 45.208, Education Code.

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

Amended by:

Acts 2005, 79th Leg., Ch.

728, Sec. 11.110, eff. September 1, 2005.

Sec. 95.011. APPLICABILITY OF PROBATE CODE. The applicable

provisions of Chapter XI, Texas Probate Code, govern deposit

accounts held in a savings bank.

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

SUBCHAPTER B. PROVISIONS APPLICABLE TO SPECIFIC TYPES OF ACCOUNTS

Sec. 95.101. ACCOUNT HELD BY MINOR. (a) A savings bank or a

federal savings bank may accept a deposit account from a minor as

the sole and absolute owner of the account.

(b) On the minor's order, the savings bank may:

(1) pay withdrawals;

(2) accept pledges to the savings bank; and

(3) act in any other manner with respect to the account.

to a minor, or an acquittance signed by a minor who holds a

deposit account, is a discharge of the savings bank for that

payment or delivery.

(d) If the savings bank requires a minor to furnish an

acquittance or pledge or take other action with respect to the

minor's deposit account, that action is binding on the minor as

if the minor had the capacity of an adult.

(e) If a parent or guardian of a minor informs the savings bank

in writing that the minor is not to have the authority to control

the minor's deposit account, the minor may not control the

account during the minority without the joinder of the parent or

guardian.

(f) If a minor dies, the acquittance of a parent or guardian of

the minor discharges the savings bank for amounts that in the

aggregate do not exceed $1,000.

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

Sec. 95.102. PLEDGE OF JOINT ACCOUNT. (a) Unless the terms of

the account provide otherwise, a person on whose signature money

may be withdrawn from a deposit account in the names of two or

more persons may, by a signed pledge, pledge and transfer to the

savings bank or federal savings bank all or part of the account.

(b) A pledge made under Subsection (a) does not sever or

terminate the joint and survivorship ownership of the account.

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

Sec. 95.103. ACCOUNT HELD BY FIDUCIARY. (a) A savings bank or

federal savings bank doing business in this state may accept a

deposit account in the name of a fiduciary, including an

administrator, executor, custodian, guardian, or trustee, for a

named beneficiary.

(b) A fiduciary may:

(1) vote as a member as if the membership were held absolutely;

and

(2) open, add to, or withdraw money from the account.

fiduciary or an acquittance signed by the fiduciary to whom a

payment is made is a discharge of the savings bank for the

payment.

(d) After a person holding a deposit account in a fiduciary

capacity dies, the savings bank may pay or deliver to the

beneficiary the withdrawal value of the account, plus earnings on

the account, or other rights relating to the account, in whole or

in part, if the savings bank has no written notice or order of

the probate court of:

(1) the revocation or termination of the fiduciary relationship;

(2) any other disposition of the beneficial estate.

(e) A savings bank has no further liability for a payment made

or right delivered under Subsection (d).

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

Sec. 95.104. TRUST ACCOUNT: UNDISCLOSED TRUST INSTRUMENT. (a)

If a savings bank opens a deposit account for a person claiming

to be the trustee for another and the savings bank has no other

notice of the existence or terms of a trust other than a written

claim against the account:

(1) the person claiming to be the trustee may, on the person's

signature, withdraw money from the account; and

(2) if that person dies, the savings bank may pay the withdrawal

value of all or part of the account, plus earnings on the

account, to the person for whom the account was opened.

(b) A savings bank has no further liability for a payment made

under Subsection (a).

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

Sec. 95.105. POWER OF ATTORNEY ACCOUNT. (a) A savings bank

doing business in this state may continue to recognize the

authority of an attorney-in-fact authorized in writing to manage

or withdraw money from a deposit account of a member until the

savings bank receives written or actual notice of the revocation

of that authority.

(b) For purposes of this section, written notice of the death or

adjudication of incompetency of a member is considered to be

written notice of revocation of the authority of the member's

attorney-in-fact.

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

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

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