Texas Finance Code - Section 33.109. Transactions With Management And Affiliates
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Texas Lawyer > Finance Code > Texas Finance Code - Section 33.109. Transactions With Management And Affiliates
§ 33.109. TRANSACTIONS WITH MANAGEMENT AND
AFFILIATES. (a) Without the prior approval of a disinterested
majority of the board recorded in the minutes or, if a disinterested
majority cannot be obtained, the prior written approval of the
banking commissioner, a state bank may not directly or indirectly:
(1) sell or lease an asset of the bank to an officer,
director, manager, managing participant, or principal shareholder
or participant of the bank or an affiliate of the bank; or
(2) purchase or lease an asset in which an officer,
director, manager, managing participant, or principal shareholder
or participant of the bank or an affiliate of the bank has an
interest.
(b) An officer, director, manager, or managing participant
of the bank who knowingly participates in or permits a violation of
this section commits an offense. An offense under this subsection
is a felony of the third degree.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended
by Acts 2001, 77th Leg., ch. 412, § 2.11, eff. Sept. 1, 2001.
Section: 33.102 33.103 33.104 33.105 33.106 33.107 33.108 33.109 33.201 33.202 33.203 33.204 33.205 33.206 33.207
Last modified: August 10, 2007
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