Texas Finance Code 63.004 – Power to Borrow
Current as of: 2024 | Check for updates
|
Other versions
(a) An association may:
(1) borrow from any nongovernmental source an aggregate amount that does not exceed 25 percent of the amount of the association’s savings liability on the date of borrowing; and
(2) pledge the association’s assets to secure repayment of the borrowed money.
(b) Except as provided by Subsection (c), an association may borrow from a nongovernmental source an amount exceeding the amount described in Subsection (a)(1) only with the prior written approval of the commissioner.
Terms Used In Texas Finance Code 63.004
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Written: includes any representation of words, letters, symbols, or figures. See Texas Government Code 311.005
(c) An association that is a member of a Federal Home Loan Bank may borrow or obtain an advance from that bank in an amount and on terms prescribed by that bank.
(d) An association at any time through action of its board may issue a capital note, debenture, or other capital obligation authorized by rules adopted under Section 11.302.