CHAPTER 61. GENERAL PROVISIONS
FINANCE CODE
TITLE 3. FINANCIAL INSTITUTIONS AND BUSINESSES
SUBTITLE B. SAVINGS AND LOAN ASSOCIATIONS
CHAPTER 61. GENERAL PROVISIONS
Sec. 61.001. SHORT TITLE. This subtitle may be cited as the
Texas Savings and Loan Act.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Sec. 61.002. DEFINITIONS. In this subtitle:
(1) "Association" means a savings and loan association subject
to this subtitle.
(2) "Board" means the board of directors of an association.
(3) "Capital stock" means the units into which the proprietary
interest in a capital stock association is divided.
(4) "Capital stock association" means an association authorized
to issue capital stock.
(5) "Commissioner" means the savings and mortgage lending
commissioner.
(6) "Company" means a corporation, partnership, trust,
joint-stock company, association, unincorporated organization, or
other similar entity or a combination of any of those entities
acting together.
(7) "Domestic association" means a savings and loan association
organized under the laws of this state.
(8) "Earnings on savings accounts" means interest contractually
payable or dividends declared payable to holders of savings
accounts in an association.
(9) "Federal association" means a savings and loan association
incorporated under the Home Owners' Loan Act (12 U.S.C. Section
1461 et seq.).
(10) "Finance commission" means the Finance Commission of Texas.
(11) "Foreign association" means a savings and loan association:
(A) organized under the laws of:
(i) a state or territory of the United States other than this
state; or
(ii) the United States; and
(B) the principal office of which is located outside this state.
(12) "Loss reserves" means the aggregate amount of the reserves
allocated by an association solely to absorb losses.
(13) "Member" means, with respect to a mutual association, a
person:
(A) holding a savings account with the mutual association;
(B) assuming or obligated on a loan in which the mutual
association has an interest; or
(C) owning property that secures a loan in which the mutual
association has an interest.
(14) "Mutual association" means an association not authorized to
issue capital stock.
(15) "Savings account" means the amount of money an association
owes an account holder as the result of the deposit of funds in
the association.
(16) "Savings and loan association" means an association the
primary purposes of which are to promote thrift and home
financing and the principal activity of which is the lending of
money secured by liens on homes and other improved real property.
(17) "Savings and loan holding company" means a company that
directly or indirectly controls a savings and loan association or
controls another company that directly or indirectly controls a
savings and loan association.
(18) "Savings liability" means the aggregate amount of money
shown by the books of the association to be owed to the
association's account holders.
(19) "Shareholder" means the owner of capital stock.
(20) "Surplus" means the aggregate amount of:
(A) the undistributed earnings of an association held as
undivided profits or unallocated reserves for general corporate
purposes; and
(B) paid-in surplus held by the association.
(21) "Unsafe and unsound practice" means an action or inaction
in the operation of an association that is likely to:
(A) cause insolvency or substantial dissipation of assets or
earnings; or
(B) reduce the ability of the association to satisfy on time
withdrawal requests of savings account holders.
(22) "Withdrawal value of a savings account" means the net
amount of money that may be withdrawn by an account holder from a
savings account.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 6.101(a), eff.
Sept. 1, 2001.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
921, Sec. 6.026, eff. September 1, 2007.
Sec. 61.003. CONTROL; SUBSIDIARY. (a) For the purposes of this
subtitle, a person controls an association if the person has the
power to direct or cause the direction of the management and
policies of the association directly or indirectly. A person is
considered to control an association if the person, individually
or acting with others, directly or indirectly holds with the
power to vote, owns, or controls, or holds irrevocable proxies
representing, at least 25 percent of the voting rights of the
association.
(b) For the purposes of this subtitle, a company is a subsidiary
of an association if the association or another company directly
or indirectly controlled by the association controls the company.
An association is considered to control a company if the
association, directly or indirectly or acting with one or more
other individuals or entities or through one or more
subsidiaries:
(1) holds with the power to vote, owns, or controls, or holds
proxies representing, more than 25 percent of the voting shares
of the company;
(2) controls in any manner the election of a majority of the
directors of the company;
(3) is a general partner in the company; or
(4) has contributed more than 25 percent of the equity capital
of the company.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Sec. 61.004. NOTICE OF HEARING; RIGHT TO RESPOND. (a) Notice
of a hearing under this subtitle shall be given to each
association and federal association in the county in which the
subject matter of the hearing is or will be located, except that
notice of a hearing held under an order under Chapter 66 shall be
given to each party affected by the order.
(b) Each interested party is entitled to an opportunity to
respond and present evidence and argument on each issue involved
in a hearing under this subtitle.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Sec. 61.005. RECORD OF PROCEEDING. On written request by an
interested party, the commissioner shall keep a formal record of
the proceedings of a hearing under this subtitle.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Sec. 61.006. DECISION OR ORDER. (a) A decision or order
adverse to a party who has appeared and participated in a hearing
must be in writing and include separately stated findings of fact
and conclusions of law on the issues material to the decision or
order. Findings of fact that are stated in statutory language
must be accompanied by a concise and explicit statement of the
underlying facts supporting the findings.
(b) A decision or order entered after a hearing becomes final
and appealable 15 days after the date it is entered unless a
party files a motion for rehearing before that date. If the
motion for rehearing is overruled, the decision or order becomes
final and appealable on the date the order overruling the motion
is entered.
(c) Each party to a hearing shall be promptly notified
personally or by mail of a decision, order, or other action taken
in respect to the subject matter of the hearing.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Sec. 61.007. FEES. The finance commission by rule shall:
(1) set the amount of fees the commissioner charges for:
(A) supervision and examination of associations;
(B) filing an application or other documents; and
(C) other services the commissioner performs; and
(2) specify the time and manner of payment of the fees.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by Acts 2001, 77th Leg., ch. 867, Sec. 22, eff. Sept. 1,
2001.