Texas Finance Code

§ 92.209 — PREFERRED STOCK

FI § 92.209Title 3. FINANCIAL INSTITUTIONS AND BUSINESSES · Part C. SAVINGS BANKS · Ch. 92. ORGANIZATIONAL AND FINANCIAL REQUIREMENTS · Art. E. OPERATIONS AND FINANCES

Statute text

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(a)A savings bank may not issue preferred stock before the preferred stock is fully paid for in cash.

(b)A savings bank may not make a loan against the shares of its outstanding preferred stock.

(c)A savings bank may retire or redeem preferred stock in the manner provided by:

(1)the articles of incorporation; or

(2)a resolution of the board of the savings bank establishing the rights and preferences relating to the stock.

(d)The extent to which preferred stock may be included as regulatory capital of a savings bank is subject to the rules adopted by the finance commission.

Legislative history

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997. Amended by Acts 2001, 77th Leg., ch. 867, Sec. 46, eff. Sept. 1, 2001.