Texas Finance Code 122.061 – Conflicts of Interest
(a) While serving as a director, honorary director, advisory director, committee member, officer, or employee of a credit union, a person may not:
(1) participate, directly or indirectly, in the deliberation on or determination of a question affecting the person’s pecuniary interest or the pecuniary interest of a member of the person’s immediate family or of a partnership, association, or corporation, other than the credit union, in which the person is directly or indirectly interested; or
(2) become employed by, engage in, or own an interest in a business or professional activity that the person could reasonably expect to:
(A) require or induce the person to disclose confidential information acquired because of the person’s office or employment in the credit union; or
(B) impair the person’s independence or judgment in the performance of the person’s duties or responsibilities to the credit union.
(b) An interest only as a member of the credit union that is shared in common with all other members is not a pecuniary interest within the meaning of Subsection (a)(1).
Terms Used In Texas Finance Code 122.061
- 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.
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- 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) In this section, “member of a person’s immediate family” means a person’s spouse or another person living in the person’s household.