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Texas Finance Code - Section 92.213. Use Of Expense Fund Contributions

Legal Research Home > Texas Lawyer > Finance Code > Texas Finance Code - Section 92.213. Use Of Expense Fund Contributions

§ 92.213. USE OF EXPENSE FUND CONTRIBUTIONS.  (a) The 
expense of organizing a savings bank, its operating expenses, and 
earnings on accounts declared and paid or credited to its deposit 
account holders may be paid out of the expense fund until the 
savings bank's earnings are sufficient to pay those amounts.
	(b)  The amounts contributed to the expense fund are not a 
liability of the savings bank except as provided by this 
subchapter.
	(c)  The savings bank shall pay to the contributor dividends 
on the amount contributed to the same extent the savings bank pays 
dividends on a deposit account.  An amount contributed to the 
expense fund is considered a deposit account of the savings bank.
	(d)  Contributions to the expense fund may be repaid to the 
contributors pro rata from the net earnings of the savings bank 
after provision for required loss reserve allocations and payment 
or credit of earnings declared on accounts.
	(e)  If the savings bank is liquidated before contributions 
to the expense fund are repaid, contributions to the expense fund 
that remain unspent after the payment of expenses of liquidation, 
creditors, and the withdrawal value of deposit accounts shall be 
repaid to the contributors pro rata.
	(f)  The savings bank's books must reflect the expense fund.                   

Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.                   

Last modified: August 10, 2007