Texas Finance Code

§ 66.401 — DERIVATIVE SUIT

FI § 66.401Title 3. FINANCIAL INSTITUTIONS AND BUSINESSES · Part B. SAVINGS AND LOAN ASSOCIATIONS · Ch. 66. ENFORCEMENT AND REGULATION · Art. I. MISCELLANEOUS PROVISIONS

Statute text

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(a)The commissioner may bring a derivative suit on behalf of an association on an unpursued cause of action if:

(1)the commissioner determines that the suit should be brought to protect the public interest or the interest of the association or the shareholders, members, or creditors of the association; and

(2)the association has not brought suit on the action before the 31st day after the date on which the commissioner gives notice to the association that suit should be brought.

(b)Except as provided by another statute that provides for mandatory venue, venue is in a district court of Travis County.

(c)The commissioner may employ legal counsel to bring and prosecute a derivative suit. The commissioner may:

(1)pay the counsel from funds appropriated for the operation of the Department of Savings and Mortgage Lending; or

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Legislative history

Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 6.033, eff. September 1, 2007.