Texas Finance Code

§ 125.404 — LIENS AND SETOFFS

FI § 125.404Title 3. FINANCIAL INSTITUTIONS AND BUSINESSES · Part D. CREDIT UNIONS · Ch. 125. CREDIT UNION ACCOUNTS AND SERVICES · Art. E. THIRD-PARTY CLAIMS AND OTHER RIGHTS RELATING TO ACCOUNTS

Statute text

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(a)To the extent of a member's direct or indirect indebtedness to a credit union, the credit union has:

(1)a lien, enforceable with or without judicial process, on the member's shares and deposits, accumulated dividends, and interest; and

(2)a right to set off against the member's shares, deposits, accumulated dividends, and interest.

(b)A credit union may allow a withdrawal to be made without affecting the credit union's right to a setoff or lien.

Legislative history

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.