Texas Finance Code

§ 31.006 — LIABILITY OF DEPOSITORY INSTITUTION DIRECTORS AND PERSONNEL

FI § 31.006Title 3. FINANCIAL INSTITUTIONS AND BUSINESSES · Part A. BANKS · Ch. 31. GENERAL PROVISIONS · Art. A. GENERAL PROVISIONS

Statute text

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(a)The provisions of the Business Organizations Code regarding liability, defenses, and indemnification of a director, officer, agent, or employee of a corporation apply to a director, officer, agent, or employee of a depository institution in this state. Except as limited by those provisions, a disinterested director, officer, or employee of a depository institution may not be held personally liable in an action seeking monetary damages arising from the conduct of the depository institution's affairs unless the damages resulted from the gross negligence or wilful or intentional misconduct of the person during the person's term of office or service with the depository institution.

(b)A director, officer, or employee of a depository institution is disinterested with respect to a decision or transaction if:

(1)the person fully discloses any interest in the decision or transaction and does not participate in the decision or transaction; or

(2)the decision or transaction does not involve any of the following:

(A)personal profit for the person through dealing with the depository institution or usurping an opportunity of the depository institution;

(B)buying or selling an asset of the depository institution in a transaction in which the person has a direct or indirect pecuniary interest;

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Legislative history

Acts 2007, 80th Leg., R.S., Ch. 237 (H.B. 1962), Sec. 3, eff. September 1, 2007.