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Texas Finance Code - Section 92.208. Common Stock

Legal Research Home > Texas Lawyer > Finance Code > Texas Finance Code - Section 92.208. Common Stock

§ 92.208. COMMON STOCK.  (a) A savings bank may not issue 
common stock before the common stock is fully paid for in cash.
	(b)  A savings bank may not make a loan against the shares of 
its outstanding common stock.
	(c)  A savings bank may not purchase, directly or indirectly, 
its own issued common stock, except under a stock repurchase plan 
approved in advance by the commissioner.
	(d)  A savings bank may not retire or redeem common stock 
until:             
		(1)  all liabilities of the savings bank are satisfied, 
including all amounts due to holders of deposit accounts, unless:
			(A)  prior written permission is obtained from the 
commissioner;  and      
			(B)  the retirement or redemption is authorized by 
a majority vote of the savings bank's shareholders at an annual 
meeting or a special meeting called for that purpose;
		(2)  the basis of the retirement or redemption is 
approved by the commissioner;  and
		(3)  the savings bank files written consent of the 
Federal Deposit Insurance Corporation with the commissioner.
	(e)  Subsections (b) and (c) apply to the securities of the 
savings bank's holding company and affiliates.

Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.  Amended 
by Acts 2005, 79th Leg., ch. 1018, § 5.09, eff. Sept. 1, 2005.

Last modified: August 10, 2007