Texas Finance Code - Section 126.101. Conservatorship Order; Appointment Of Conservator
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Texas Laws > Finance Code > Texas Finance Code - Section 126.101. Conservatorship Order; Appointment Of Conservator
§ 126.101. CONSERVATORSHIP ORDER; APPOINTMENT OF
CONSERVATOR. (a) The commissioner may immediately issue a
conservatorship order and appoint a conservator to manage a credit
union's affairs if:
(1) the commissioner, in performing the duties under
this subtitle, finds that:
(A) the credit union is insolvent or in imminent
danger of insolvency; or
(B) the credit union or an employee, officer, or
director of a credit union, including an honorary or advisory
director has:
(i) violated this subtitle, a rule adopted
under this subtitle, or another law that applies to credit unions;
(ii) violated or neglected a final order of
the commissioner or commission;
(iii) refused to submit to examination
under oath;
(iv) refused to permit the commissioner or
the commissioner's representative to examine the credit union's
records and affairs, including books, papers, and accounts;
(v) conducted the credit union's business
in an unsafe, unauthorized, or unlawful manner; or
(vi) failed or refused to authorize and
direct another person to permit the commissioner or the
commissioner's representative to examine the credit union's records
in the other person's custody or control, including books, papers,
and accounts, following the commissioner's request for the granting
of that authority and direction; and
(2) the commissioner determines that the finding under
Subdivision (1) is sufficiently severe to require immediate
affirmative action to prevent further dissipation of the credit
union's assets.
(b) The order must clearly state the grounds for
conservatorship.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
Section: 126.002 126.003 126.051 126.052 126.053 126.054 126.055 126.101 126.102 126.103 126.104 126.105 126.106 126.107 126.108
Last modified: August 11, 2007
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