Texas Business Organizations Code

§ 23.068 — LOAN LIMITS

BO § 23.068Title 2. CORPORATIONS · Ch. 23. SPECIAL-PURPOSE CORPORATIONS · Art. B. BUSINESS DEVELOPMENT CORPORATIONS

Statute text

(a)A loan limit shall be established at the $1,000 amount nearest to the amount computed in accordance with this section.

(b)The total amount outstanding on loans made to a corporation by a member at any one time, when added to the amount of the investment in the shares of the corporation then held by the member, may not exceed:

(1)20 percent of the total amount then outstanding on loans to the corporation by all members, including outstanding amounts validly called for a loan but not yet loaned; or

(2)the following limit, to be determined as of the time the member becomes a member of the corporation, or at any time requested by a member on the basis of the audited balance sheet of the member at the close of its fiscal year immediately preceding its application for membership or, in the case of an insurance company, its last annual statement to the Texas Department of Insurance:

(A)an amount equal to the lesser of $750,000 or two percent of the capital and surplus of a commercial bank or trust company;

(B)an amount equal to one percent of the total outstanding loans made by a savings and loan association;

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Legislative history

Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.