Texas Finance Code 124.204 – Prior Approval Required
Current as of: 2024 | Check for updates
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Terms Used In Texas Finance Code 124.204
- Guarantor: A party who agrees to be responsible for the payment of another party's debts should that party default. Source: OCC
- Rule: includes regulation. See Texas Government Code 311.005
The board must give its approval before the credit union permits a director, senior management employee, or member of the credit committee to act as comaker, guarantor, or endorser of a loan to a member if the amount of the loan or aggregate of outstanding loans to the comaker, guarantor, or endorser is greater than the sum of:
(1) $10,000 or a higher amount established by commission rule; and
(2) the amount of the shares and deposits pledged for the loan.