FINANCE CODE
CHAPTER 63. GENERAL POWERS
§ 63.001. GENERAL CORPORATE POWERS. (a) An
association has all the powers authorized by this subtitle and any
other right, privilege, or power incidental to or reasonably
necessary to accomplish the purposes of the association.
(b) With the commissioner's prior approval, an association
may engage in business as a savings and loan association in any
state of the United States to the extent permitted by the laws of
that state, either directly or through the ownership of an
association incorporated under the laws of another state.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 63.002. ENLARGEMENT OF POWERS. Notwithstanding any
other provision of this subtitle, an association may:
(1) perform a function or engage in an activity,
including making a loan or investment, to the same extent as a
federal association;
(2) raise capital in the same manner and form as a
federal association;
(3) issue a certificate in the same form as a federal
association; or
(4) pay a dividend, earnings, or interest on a
certificate in the same manner as a federal association.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 63.003. POWERS OF FEDERAL ASSOCIATION. A federal
association and its members have all the powers, privileges,
benefits, immunities, and exemptions provided by the law of this
state for an association and the association's members.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 63.004. POWER TO BORROW. (a) An association may:
(1) borrow from any nongovernmental source an
aggregate amount that does not exceed 25 percent of the amount of
the association's savings liability on the date of borrowing; and
(2) pledge the association's assets to secure
repayment of the borrowed money.
(b) Except as provided by Subsection (c), an association may
borrow from a nongovernmental source an amount exceeding the amount
described in Subsection (a)(1) only with the prior written approval
of the commissioner.
(c) An association that is a member of a Federal Home Loan
Bank may borrow or obtain an advance from that bank in an amount and
on terms prescribed by that bank.
(d) An association at any time through action of its board
may issue a capital note, debenture, or other capital obligation
authorized by rules adopted under Section 11.302.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 63.005. FISCAL AGENT. (a) An association may act as
fiscal agent of the United States. An association designated as
fiscal agent of the United States by the secretary of the treasury
shall act under regulations as required by the secretary and may act
as fiscal agent for an instrumentality of the United States.
(b) An association may act as fiscal agent of this state or
of a governmental subdivision or instrumentality of this state.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 63.006. POWER TO ACT UNDER CERTAIN FEDERAL RETIREMENT
PLANS. An association or a federal association, to the extent that
its charter and applicable federal regulations permit, may:
(1) exercise any power necessary to qualify as a
trustee or custodian for:
(A) a retirement plan meeting the requirements of
26 U.S.C. Section 401(d) or 408; or
(B) a similar plan permitted or recognized by
federal law; and
(2) invest money the association holds as trustee or
custodian under Subdivision (1) in the association's savings
accounts if the plan does not prohibit that investment.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 63.007. RIGHT TO ACT TO AVOID LOSS. This subtitle or
another statute of this state does not deny an association the right
to invest its money, operate a business, manage or deal in property,
or take other action during any period that is reasonably necessary
to avoid loss on a prior loan or investment or on an obligation
created in good faith.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 63.008. CLOSING PLACE OF BUSINESS. An association or
a federal savings and loan association operating in this state may
close its place of business at any time its board determines.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 63.009. EMERGENCY CLOSING. (a) If the officers of an
association determine that an emergency that affects or may affect
the association's offices or operations exists or is impending, the
officers, as reasonable, may determine:
(1) not to conduct the involved operations or open the
offices on any business or banking day; or
(2) if the association is open, to close the offices or
the involved operations for the duration of the emergency.
(b) Subject to Subsection (c), a closed office or operation
under this section shall remain closed until the officers determine
that the emergency has ended and for any additional time reasonably
required to reopen.
(c) An association that closes an office or an operation
under this section shall notify the commissioner of its action by
any means available and as promptly as conditions permit. An office
or operation may not be closed for more than 48 consecutive hours,
excluding other legal holidays, without the commissioner's
approval.
(d) In this section, "emergency" means a condition or
occurrence that may interfere physically with the conduct of normal
business at the offices of an association or with the conduct of a
particular association operation or that poses an imminent or
existing threat to the safety or security of persons, property, or
both. The term includes a condition or occurrence arising from:
(1) fire, flood, earthquake, hurricane, tornado,
wind, rain, or snowstorm;
(2) labor dispute and strike;
(3) power failure;
(4) transportation failure;
(5) interruption of communication facilities;
(6) shortage of fuel, housing, food, transportation,
or labor;
(7) robbery, burglary, or attempted robbery or
burglary;
(8) actual or threatened enemy attack;
(9) epidemic or other catastrophe;
(10) riot or civil commotion; or
(11) any other actual or threatened unlawful or
violent act.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 63.010. EFFECT OF CLOSING. (a) A day on which an
association or one or more of its operations is closed under Section
63.009 during all or part of its normal business hours is considered
to be a legal holiday to the extent the association suspends
operations.
(b) An association or a director, officer, or employee of
the association does not incur liability or loss of rights from a
closing authorized by this subtitle.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
