Texas Business Organizations Code - Section 23.068. Loan Limits
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§ 23.068. LOAN LIMITS. (a) A loan limit shall be
established at the $1,000 amount nearest to the amount computed in
accordance with this section.
(b) The total amount outstanding on loans made to a
corporation by a member at any one time, when added to the amount of
the investment in the shares of the corporation then held by the
member, may not exceed:
(1) 20 percent of the total amount then outstanding on
loans to the corporation by all members, including outstanding
amounts validly called for a loan but not yet loaned; or
(2) the following limit, to be determined as of the
time the member becomes a member of the corporation, or at any time
requested by a member on the basis of the audited balance sheet of
the member at the close of its fiscal year immediately preceding its
application for membership or, in the case of an insurance company,
its last annual statement to the Texas Department of Insurance:
(A) an amount equal to the lesser of $750,000 or
two percent of the capital and surplus of a commercial bank or trust
company;
(B) an amount equal to one percent of the total
outstanding loans made by a savings and loan association;
(C) an amount equal to one percent of the capital
and unassigned surplus of a stock insurance company other than a
fire insurance company;
(D) an amount equal to one percent of the
unassigned surplus of a mutual insurance company other than a fire
insurance company;
(E) an amount equal to one-tenth of one percent
of the assets of a fire insurance company; or
(F) the limits approved by the board of directors
of the corporation for a government pension fund or other financial
institution.
(c) Subject to Subsection (b), each call made by the
corporation shall be prorated among the members of the corporation
in substantially the same proportion that the adjusted loan limit
of each member bears to the aggregate of the adjusted loan limits of
all members.
(d) For purposes of Subsection (c), the adjusted loan limit
of a member is the amount of the member's loan limit, reduced by the
balance of outstanding loans made by the member to the corporation
and the investment in shares of the corporation held by the member
at the time of the call.
Acts 2003, 78th Leg., ch. 182, § 1, eff. Jan. 1, 2006.
Section: 23.061 23.062 23.063 23.064 23.065 23.066 23.067 23.068 23.069 23.070 23.071 23.101 23.102 23.103 23.104
Last modified: August 11, 2007
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