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Texas Finance Code - FIN § 122.253. Loan to Nonmember

Current as of January 01, 2024 | Updated by Findlaw Staff

(a) A person commits an offense if the person:

(1) is a director, honorary director, advisory director, committee member, officer, or employee of a credit union;  and

(2) knowingly permits a loan to be made to a nonmember or participates in a loan to a nonmember.

(b) An offense under this section is a Class B misdemeanor.

(c) A person who commits an offense described by Subsection (a) is primarily liable to the credit union for the amount illegally loaned.  The illegality of the loan is not a defense in an action by the credit union to recover on the loan.

(d) Extending credit to a nonmember as a comaker with a member or extending credit to a nonmember for the sale of property owned by the credit union or for the sale of assets acquired in liquidation or repossession is authorized and is not a loan to a nonmember.  Acquiring a promissory note or other asset by a share and deposit guaranty corporation or credit union authorized under Section 15.410, on which a nonmember is liable, is not a loan to a nonmember.

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Cite this article: FindLaw.com - Texas Finance Code - FIN § 122.253. Loan to Nonmember - last updated January 01, 2024 | https://codes.findlaw.com/tx/finance-code/fin-sect-122-253/

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