Texas Finance Code 122.003 – Corporate Name; Criminal Penalty
Current as of: 2024 | Check for updates
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(a) The name of a credit union must include the words “credit union” or the abbreviation “CU” and an appropriate descriptive word or words, or an acronym made up of initials of the appropriate descriptive word or words and ending in “CU,” approved by the commissioner.
(b) Unless a credit union is formed by merger or consolidation, the commissioner may not issue a certificate of incorporation to the credit union or approve the change of the name of the credit union if it would have the same name as another credit union or a name so nearly resembling the name of another credit union as to be calculated to deceive.
Attorney's Note
Under the Texas Codes, punishments for crimes depend on the classification. In the case of this section:| Class | Prison | Fine |
|---|---|---|
| Class A misdemeanor | up to 1 year | up to $4,000 |
Terms Used In Texas Finance Code 122.003
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
(c) A person who is not a credit union authorized to do business in this state under this subtitle or the Federal Credit Union Act (12 U.S.C. § 1751 et seq.), or an organization, corporation, or association the membership or ownership of which is primarily confined to credit unions or credit union organizations, may not do business under or use a name or title containing the words “credit union” or any derivation of that term that:
(1) indicates or reasonably implies that the person carries on or transacts the kind of business carried on or transacted by a credit union; or
(2) is calculated to lead a person to believe that the business being conducted is the type of business carried on or transacted by a credit union.
(d) A person who violates Subsection (c) commits a Class A misdemeanor.
(e) The commissioner may petition a court to enjoin a violation of this section.