Texas Finance Code 123.208 – Dividends and Interest
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(a) A credit union may:
(1) declare and pay a dividend on a share;
(2) contract for and pay interest on a deposit; or
(3) refund interest to a borrower.
(b) A dividend or interest may be paid at a rate and on the conditions that the board authorizes.
Terms Used In Texas Finance Code 123.208
- Contract: A legal written agreement that becomes binding when signed.
- Rule: includes regulation. See Texas Government Code 311.005
(c) The commissioner may restrict the payment of a dividend:
(1) if the commissioner issues a cease and desist order under Section 122.257; or
(2) as necessary to protect the member’s interests and preserve the solvency of the credit union as authorized by commission rule.