CHAPTER 89. MISCELLANEOUS PROVISIONS APPLICABLE TO SAVINGS AND LOAN ASSOCIATIONS
FINANCE CODE
TITLE 3. FINANCIAL INSTITUTIONS AND BUSINESSES
SUBTITLE B. SAVINGS AND LOAN ASSOCIATIONS
CHAPTER 89. MISCELLANEOUS PROVISIONS APPLICABLE TO SAVINGS AND
LOAN ASSOCIATIONS
SUBCHAPTER A. GENERAL MISCELLANEOUS PROVISIONS
Sec. 89.001. APPLICABILITY OF CHAPTER 4, BUSINESS & COMMERCE
CODE. Chapter 4, Business & Commerce Code, applies to an
association with respect to an item paid, collected, settled,
negotiated, or otherwise handled by the association for a
customer.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Sec. 89.002. ACKNOWLEDGMENT OR PROOF TAKEN BY MEMBER,
STOCKHOLDER, OR EMPLOYEE OF ASSOCIATION. A public officer who is
qualified to take an acknowledgment or proof of a written
instrument and who is a member or employee of, or a shareholder
in, an association or federal association is not disqualified
because of that relationship to the association or federal
association from taking an acknowledgment or proof of a written
instrument in which an association or federal association is
interested.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Sec. 89.003. RENDITION OF CERTAIN PERSONAL PROPERTY FOR AD
VALOREM TAXATION. (a) Each association and each federal
association shall render for ad valorem taxation all of its
personal property, other than furniture, fixtures, equipment, and
automobiles, as a whole at the value remaining after deducting
the following from the total value of its entire assets:
(1) all debts that it owes;
(2) all tax-free securities that it owns;
(3) its loss reserves and surplus;
(4) its savings liability; and
(5) the appraised value of its furniture, fixtures, and real
property.
(b) The association or federal association shall render the
personal property, other than furniture, fixtures, equipment, and
automobiles, to the chief appraiser of the appraisal district in
the county in which its principal office is located.
(c) Furniture, fixtures, equipment, and automobiles of an
association or federal association shall be rendered and valued
for ad valorem taxation as provided by the Tax Code.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Sec. 89.004. INITIATION OF RULEMAKING BY ASSOCIATIONS. The
finance commission shall initiate rulemaking proceedings if at
least 20 percent of the associations petition the finance
commission in writing requesting the adoption, amendment, or
repeal of a rule.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by Acts 2001, 77th Leg., ch. 867, Sec. 32, eff. Sept. 1,
2001.
Sec. 89.005. EXEMPTION FROM SECURITIES LAWS. A savings account,
certificate, or other evidence of an interest in the savings
liability of an association or federal association is not
considered a security under The Securities Act (Article 581-1 et
seq., Vernon's Texas Civil Statutes). A security of these
associations, other than an interest in the savings liability of
an association, is not subject to the registration requirements
of that act. A person whose principal occupation is being an
officer of an association is exempt from the registration and
licensing provisions of that act with respect to that person's
participation in a sale or other transaction involving securities
of the association of which the person is an officer.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Sec. 89.006. LIABILITY OF COMMISSIONER AND OTHER COMMISSION
PERSONNEL; DEFENSE BY ATTORNEY GENERAL. (a) The commissioner, a
member of the finance commission, a deputy commissioner, an
examiner, or any other officer or employee of the Department of
Savings and Mortgage Lending is not personally liable for damages
arising from the person's official act or omission unless the act
or omission is corrupt or malicious.
(b) The attorney general shall defend an action brought against
a person described by Subsection (a) because of the person's
official act or omission without regard to whether the person is
an officer or employee of the department at the time the action
is instituted.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
921, Sec. 6.034, eff. September 1, 2007.
Sec. 89.007. ASSOCIATION AUTHORIZED TO CONDUCT SAVINGS AND LOAN
BUSINESS UNDER PRIOR LAW NOW SUBJECT TO SUBTITLE. (a) An
association or corporation that was authorized to conduct a
building and loan association, savings and loan association,
building society, or other similar business before January 1,
1964, and that has substantially the same purpose as a savings
and loan association is subject to this subtitle. The name,
rights, powers, privileges, and immunities of each of those
associations or corporations are governed, construed, extended,
and limited by this subtitle to the same extent and effect as if
the association or corporation had been incorporated under this
subtitle.
(b) Except as provided by Subsection (d) and notwithstanding
anything to the contrary in the entity's certificate of
incorporation, bylaws, constitution, or rules, each association
or corporation described by Subsection (a) has the rights,
powers, privileges, and immunities conferred by this subtitle and
is subject to the duties, liabilities, and restrictions imposed
by this subtitle.
(c) Except as provided by Subsection (d), the articles of
association, certificate of incorporation, or charter and the
bylaws, constitutions, or other rules of each of those
associations or corporations are:
(1) considered modified and amended to conform to this subtitle,
regardless of whether the commissioner has issued or approved a
conformed copy of the document; and
(2) void to the extent that the document is inconsistent with
this subtitle.
(d) The obligations existing on January 1, 1964, of each
association or corporation described by Subsection (a), including
an obligation between the entity and one or more of its members
and between the entity and any other person, are not impaired by
this subtitle. Any valid contract existing on January 1, 1964,
either between the members of the entity or between the entity
and any other person, is not impaired by this subtitle. An
association is not required to change its name.
(e) An association or corporation described by Subsection (a)
may enforce in its name any contractual obligation of the
association or corporation incurred before January 1, 1964. A
demand, claim, or right of action against the association or
corporation may be enforced against the association or
corporation as fully and completely as it might have been
enforced before January 1, 1964.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Sec. 89.008. OFFICES OF FEDERAL ASSOCIATIONS. A federal
association that has been merged, consolidated, or converted into
a domestic or foreign savings bank or association is entitled to
retain any authorized office under the terms provided for a
foreign savings bank under Subchapter I, Chapter 92.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.31(a), eff. Sept.
1, 1999.
SUBCHAPTER B. ACCESS TO AND DISCLOSURE OF CERTAIN INFORMATION
Sec. 89.051. ACCESS TO BOOKS AND RECORDS OF ASSOCIATION. (a)
The books and records of an association may be examined only by:
(1) the commissioner or the commissioner's representative in
accordance with Sections 66.051, 66.053, and 66.054;
(2) a person authorized to act for the association;
(3) an agent of a governmental agency that has insured the
savings accounts of the association; or
(4) a borrower or savings account holder of the association, in
accordance with Subsection (b).
(b) A borrower or savings account holder of an association is
entitled to examine only the books and records of the association
that pertain to the person's loan or savings account.
(c) A person is entitled to a partial or complete list of the
stockholders of a stock association or of the members of a mutual
association only if expressly permitted by the association's
board.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Sec. 89.052. DISCLOSURE OF INFORMATION HELD BY DEPARTMENT ABOUT
AN ASSOCIATION; LIABILITY. (a) The commissioner and an
examiner, supervisor, conservator, liquidator, inspector, deputy,
assistant, clerk, or other employee of the Department of Savings
and Mortgage Lending who is appointed or acting under this
subtitle shall be removed from the person's position with the
department if the person:
(1) does not keep secret a fact or information about an
association obtained during an examination or because of the
person's official position, except when the public duty of the
person requires otherwise; or
(2) wilfully makes a false official report about the condition
of an association.
(b) A report of an examination made to the commissioner is
confidential and is not a public record or available for public
inspection, except:
(1) for good reason the commissioner may make the report public;
and
(2) a copy of the report may be furnished to the Federal Home
Loan Bank Board or to the Federal Home Loan Bank to meet the
requirements of the Federal Home Loan Bank Act (12 U.S.C. Section
1421 et seq.).
(c) When a supervisory order is issued under Chapter 66, the
commissioner shall report promptly to the finance commission and
in a closed meeting shall furnish any information about the
association or the person that is the subject of the order that
the commission members may require. Any information discussed in
the closed meeting is confidential.
(d) Unless this subtitle provides otherwise, this section does
not apply to any fact or information or to a report of an
investigation obtained or made by the commissioner or the
commissioner's staff in connection with an application for a
charter under this subtitle or with a hearing held by the
commissioner under this subtitle. The fact, information, or
report may be included in the record of the hearing.
(e) This section does not prevent the proper exchange of
information relating to associations with the representatives of
savings and loan departments of other states or any other
department, agency, or instrumentality of this or another state
or the United States if the commissioner determines the
disclosure of the information is necessary or proper to enforce
the laws of this or another state or the United States.
(f) An official who violates this section is liable to the
person injured by the disclosure of the secrets.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
921, Sec. 6.035, eff. September 1, 2007.
SUBCHAPTER C. OFFENSES AND PENALTIES
Sec. 89.101. CRIMINAL SLANDER. (a) A person commits an offense
if the person, with intent to injure an association or a federal
association in this state:
(1) knowingly makes, utters, circulates, or transmits to another
person a statement that is untrue and derogatory to the financial
condition of the association or federal association; or
(2) counsels, aids, procures, or induces another person to
originate, make, utter, transmit, or circulate a statement or
rumor that is untrue and derogatory to the financial condition of
the association or federal association.
(b) An offense under Subsection (a) is punishable by:
(1) a fine not to exceed $2,500;
(2) imprisonment in the Texas Department of Criminal Justice for
not more than two years; or
(3) both the fine and imprisonment.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 25.062, eff. September 1, 2009.
Sec. 89.102. GENERAL ADMINISTRATIVE PENALTY. (a) The
commissioner may require an association that knowingly violates
this subtitle or a rule adopted under this subtitle to pay to the
Department of Savings and Mortgage Lending an administrative
penalty not to exceed $1,000 for each day that the violation
occurs after notice of the violation is given by the
commissioner.
(b) On the commissioner's certification that an association has
not paid a penalty assessed under this section, the attorney
general may file suit to collect the penalty.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
921, Sec. 6.036, eff. September 1, 2007.