CHAPTER 63. GENERAL POWERS
FINANCE CODE
TITLE 3. FINANCIAL INSTITUTIONS AND BUSINESSES
SUBTITLE B. SAVINGS AND LOAN ASSOCIATIONS
CHAPTER 63. GENERAL POWERS
Sec. 63.001. GENERAL CORPORATE POWERS. (a) An association has
all the powers authorized by this subtitle and any other right,
privilege, or power incidental to or reasonably necessary to
accomplish the purposes of the association.
(b) With the commissioner's prior approval, an association may
engage in business as a savings and loan association in any state
of the United States to the extent permitted by the laws of that
state, either directly or through the ownership of an association
incorporated under the laws of another state.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Sec. 63.002. ENLARGEMENT OF POWERS. Notwithstanding any other
provision of this subtitle, an association may:
(1) perform a function or engage in an activity, including
making a loan or investment, to the same extent as a federal
association;
(2) raise capital in the same manner and form as a federal
association;
(3) issue a certificate in the same form as a federal
association; or
(4) pay a dividend, earnings, or interest on a certificate in
the same manner as a federal association.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Sec. 63.003. POWERS OF FEDERAL ASSOCIATION. A federal
association and its members have all the powers, privileges,
benefits, immunities, and exemptions provided by the law of this
state for an association and the association's members.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Sec. 63.004. POWER TO BORROW. (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.
(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.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Sec. 63.005. FISCAL AGENT. (a) An association may act as
fiscal agent of the United States. An association designated as
fiscal agent of the United States by the secretary of the
treasury shall act under regulations as required by the secretary
and may act as fiscal agent for an instrumentality of the United
States.
(b) An association may act as fiscal agent of this state or of a
governmental subdivision or instrumentality of this state.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Sec. 63.006. POWER TO ACT UNDER CERTAIN FEDERAL RETIREMENT
PLANS. An association or a federal association, to the extent
that its charter and applicable federal regulations permit, may:
(1) exercise any power necessary to qualify as a trustee or
custodian for:
(A) a retirement plan meeting the requirements of 26 U.S.C.
Section 401(d) or 408; or
(B) a similar plan permitted or recognized by federal law; and
(2) invest money the association holds as trustee or custodian
under Subdivision (1) in the association's savings accounts if
the plan does not prohibit that investment.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Sec. 63.007. RIGHT TO ACT TO AVOID LOSS. This subtitle or
another statute of this state does not deny an association the
right to invest its money, operate a business, manage or deal in
property, or take other action during any period that is
reasonably necessary to avoid loss on a prior loan or investment
or on an obligation created in good faith.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Sec. 63.008. CLOSING PLACE OF BUSINESS. An association or a
federal savings and loan association operating in this state may
close its place of business at any time its board determines.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Sec. 63.009. EMERGENCY CLOSING. (a) If the officers of an
association determine that an emergency that affects or may
affect the association's offices or operations exists or is
impending, the officers, as reasonable, may determine:
(1) not to conduct the involved operations or open the offices
on any business or banking day; or
(2) if the association is open, to close the offices or the
involved operations for the duration of the emergency.
(b) Subject to Subsection (c), a closed office or operation
under this section shall remain closed until the officers
determine that the emergency has ended and for any additional
time reasonably required to reopen.
(c) An association that closes an office or an operation under
this section shall notify the commissioner of its action by any
means available and as promptly as conditions permit. An office
or operation may not be closed for more than 48 consecutive
hours, excluding other legal holidays, without the commissioner's
approval.
(d) In this section, "emergency" means a condition or occurrence
that may interfere physically with the conduct of normal business
at the offices of an association or with the conduct of a
particular association operation or that poses an imminent or
existing threat to the safety or security of persons, property,
or both. The term includes a condition or occurrence arising
from:
(1) fire, flood, earthquake, hurricane, tornado, wind, rain, or
snowstorm;
(2) labor dispute and strike;
(3) power failure;
(4) transportation failure;
(5) interruption of communication facilities;
(6) shortage of fuel, housing, food, transportation, or labor;
(7) robbery, burglary, or attempted robbery or burglary;
(8) actual or threatened enemy attack;
(9) epidemic or other catastrophe;
(10) riot or civil commotion; or
(11) any other actual or threatened unlawful or violent act.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Sec. 63.010. EFFECT OF CLOSING. (a) A day on which an
association or one or more of its operations is closed under
Section 63.009 during all or part of its normal business hours is
considered to be a legal holiday to the extent the association
suspends operations.
(b) An association or a director, officer, or employee of the
association does not incur liability or loss of rights from a
closing authorized by this subtitle.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.