Texas Finance Code
§ 122.253 — LOAN TO NONMEMBER
FI § 122.253Title 3. FINANCIAL INSTITUTIONS AND BUSINESSES · Part D. CREDIT UNIONS · Ch. 122. ORGANIZATIONAL AND FINANCIAL REQUIREMENTS · Art. F. MISCONDUCT AND ENFORCEMENT
Statute text
View on source(a)A person commits an offense if the person:
(1)is a director, honorary director, advisory director, committee member, officer, or employee of a credit union; and
(2)knowingly permits a loan to be made to a nonmember or participates in a loan to a nonmember.
(b)An offense under this section is a Class B misdemeanor.
(c)A person who commits an offense described by Subsection (a) is primarily liable to the credit union for the amount illegally loaned. The illegality of the loan is not a defense in an action by the credit union to recover on the loan.
(d)Extending credit to a nonmember as a comaker with a member or extending credit to a nonmember for the sale of property owned by the credit union or for the sale of assets acquired in liquidation or repossession is authorized and is not a loan to a nonmember. Acquiring a promissory note or other asset by a share and deposit guaranty corporation or credit union authorized under Section 15.410, on which a nonmember is liable, is not a loan to a nonmember.
Legislative history
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.