Texas Business Organizations Code - Section 23.062. Financial Institution As Member Of Corporation
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§ 23.062. FINANCIAL INSTITUTION AS MEMBER OF
CORPORATION. (a) A financial institution may become a member of a
corporation and may make loans to the corporation as provided by
this chapter.
(b) A financial institution may request membership in the
corporation by applying to the corporation's board of directors in
the manner prescribed by the board. Membership in the corporation
takes effect on the board's acceptance of the application.
(c) A financial institution that is a member of a
corporation may acquire, purchase, hold, sell, assign, transfer,
mortgage, pledge, or otherwise dispose of a bond, security, or
other evidence of indebtedness created by, or a share of, the
corporation. As owner of shares of the corporation, a financial
institution may exercise any right, power, or privilege of that
ownership, including the right to vote. A member of a corporation
may not acquire shares of the corporation in an amount greater than
10 percent of the member's loan limit. The amount of shares of the
corporation that a member may acquire is in addition to the amount
of shares of corporations that the member may otherwise acquire.
(d) A financial institution that is not a member of the
corporation may not acquire any shares of the corporation.
Acts 2003, 78th Leg., ch. 182, § 1, eff. Jan. 1, 2006.
Section: 23.055 23.056 23.057 23.058 23.059 23.060 23.061 23.062 23.063 23.064 23.065 23.066 23.067 23.068 23.069
Last modified: August 11, 2007
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