Tex. Finance Code § 123.201
POWER TO BORROW OR LEND
Texas · Texas Finance Code · Status: effective
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- Citation
- Tex. Finance Code § 123.201, POWER TO BORROW OR LEND, Texas, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/645951
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Full text
(a) A credit union may:
(1) lend its funds, or engage in any other type of financing transaction authorized by applicable law or rules adopted by the commission; and
(2) borrow money from any source, subject to Subsection (b).
(b) A credit union may not incur a debt without the commissioner's prior approval if the debt will cause the debt of the credit union, including a deposit of a nonmember financial institution, to exceed an amount equal to 500 percent of the credit union's unencumbered reserves and undivided earnings.
(c) The commissioner shall grant or deny a request for approval under Subsection (b) not later than the 10th day after the date on which the request is made.