Texas Finance Code Title 3, Chapter 124 - Loans And Investments

SUBCHAPTER A GENERAL PROVISIONS CONCERNING LOANS TO MEMBERS

• Texas Section 124.001 - Authorization
  A credit union may make a loan to a member: (1) in accordance with rules adopted by the commission; (2) for a purpose the credit...
• Texas Section 124.002 - Limitations On Interest Rates
  The interest rate on a loan to a member may not exceed: (1) 1-1/2 percent per month on the unpaid balance; (2) 28 percent a...
• Texas Section 124.003 - Limitations On Loans
  A credit union may not make a loan to a member or a business interest of the member if the loan would cause the aggregate...
• Texas Section 124.004 - Written Instrument Required
  A credit union loan must be evidenced by a written instrument. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

SUBCHAPTER B OPEN-END CREDIT PLAN OR LINE OF CREDIT

• Texas Section 124.005 - Applicability Of Other Law
  Subtitle B, Title 4, does not apply to a credit union loan or extension of credit unless the agreement that evidences the transaction specifically provides...
• Texas Section 124.051 - Open-end Credit Plan
  A credit union may enter into a written agreement with a member under which: (1) the member is allowed to borrow money from time to...
• Texas Section 124.052 - Line Of Credit
  A credit union may approve in advance a line of credit and grant advances to a member within the limit of the extension of credit....

SUBCHAPTER C LOAN EXPENSES

• Texas Section 124.053 - Additional Loan Application Not Required
  An additional loan application is not required under an open-end credit plan under Section 124.051 or line of credit under Section 124.052 if the aggregate...
• Texas Section 124.101 - Borrower Payment Of Loan Expenses
  A credit union may require a member to pay all reasonable expenses and fees incurred in connection with making, closing, disbursing, extending, readjusting, or renewing...
• Texas Section 124.102 - Collection Of Loan Expenses
  A payment authorized by Section 124.101 may be: (1) collected by the credit union and: (A) retained by the credit union; or (B) paid to...

SUBCHAPTER D LOAN PAYMENTS

• Texas Section 124.103 - Character Of Expense Or Fee
  An expense or fee authorized by Section 124.101 is not interest. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
• Texas Section 124.151 - Prepayment Privilege
  A loan may be prepaid in whole or in part, without penalty, during regular working hours on any day on which the credit union is...
• Texas Section 124.152 - Conditions For Prepayment Of Loan Secured By Real Property
  A credit union may require a partial prepayment that is made on a loan secured by a lien or mortgage on or other type of...

SUBCHAPTER E LOANS TO DIRECTORS, EMPLOYEES, AND CREDIT COMMITTEE MEMBERS

• Texas Section 124.153 - Penalty For Late Payment
  (a) A credit union, in accordance with its bylaws, may charge a member a penalty when a loan payment is past due. (b) A credit...
• Texas Section 124.201 - Authorization
  Only if done in accordance with limitations imposed by Section 124.202, a credit union may make a loan or extend a line of credit to:...
• Texas Section 124.202 - Conditions Of Loans
  A loan or extension of a line of credit under Section 124.201: (1) must comply with this subtitle and rules adopted under this subtitle with...
• Texas Section 124.203 - Authorization To Act As Comaker, Guarantor, Or Endorser
  A credit union may permit a director, senior management employee, or member of the credit committee to act as comaker, guarantor, or endorser of a...

SUBCHAPTER F ILLEGAL LOANS

• Texas Section 124.204 - Prior Approval Required
  The board must give its approval before the credit union permits a director, senior management employee, or member of the credit committee to act as...
• Texas Section 124.251 - Illegality Of Loan Not A Defense
  The illegality of a loan is not a defense in a credit union's action to recover on the loan. Acts 1997, 75th Leg., ch. 1008,...

SUBCHAPTER G LOAN PROGRAMS

• Texas Section 124.252 - Illegality Of Loan Not A Bar To Enforcement Or Collection
  The illegality of a loan does not prevent enforcement of the loan agreement against or collection of the loan from a person who is otherwise...
• Texas Section 124.301 - Participation Loans
  A credit union may market and sell participations in loans to members originated by the credit union to another credit union, corporation, or financial organization....

SUBCHAPTER H INVESTMENT OF MONEY

• Texas Section 124.302 - Government Loan Programs
  A credit union may participate in: (1) a guaranteed loan program of the United States government or a state government; and (2) another government loan...
• Texas Section 124.351 - Permitted Investments
  (a) A credit union may invest money not used in loans to members in: (1) capital shares, obligations, participation certificates, or common or preferred stock...
• Texas Section 124.352 - Limitations On Investments
  (a) An investment under Section 124.351(a)(1) may be made only if: (1) the membership or ownership of the agency, association, or company is restricted to...

Last modified: September 28, 2016