FINANCE CODE
CHAPTER 95. DEPOSIT ACCOUNTS
SUBCHAPTER A. GENERAL PROVISIONS
§ 95.001. DEPOSITS. (a) A savings bank may receive a
deposit of money.
(b) Money deposited in a savings bank may be withdrawn or
paid on a check of the deposit account holder.
(c) Unless the deposit contract expressly provides
otherwise, a deposit must be payable on demand without notice.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 95.002. LIMITATIONS ON ACCOUNTS. The board may limit
the number and value of deposit accounts the savings bank may
accept.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 95.003. INVESTMENT IN ACCOUNTS. (a) Any person may
be the holder of a deposit account.
(b) An investment in a deposit account may be made only in
cash.
(c) A person may invest in a deposit account in the person's
own right or in a trust or other fiduciary capacity.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 95.004. DEPOSIT CONTRACT. (a) Each holder of a
deposit account must execute a deposit contract. The contract must
specify:
(1) any special terms applicable to the account; and
(2) the conditions on which withdrawals may be made.
(b) The savings bank shall hold the deposit contract in the
records pertaining to the account.
(c) A deposit contract pertaining to a deposit account of a
public or governmental entity must provide that the holder of the
account may not become a member of the savings bank.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 95.005. ACCOUNT OWNERSHIP. Unless a savings bank
acknowledges in writing a pledge of a deposit account, the savings
bank may treat the holder of record of the account as the owner of
the account for all purposes and is unaffected by notice to the
contrary.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 95.006. TRANSFER OF ACCOUNT. (a) A deposit account
may be transferred on the books of the savings bank only on
presentation to the savings bank of:
(1) evidence of transfer satisfactory to the savings
bank; and
(2) an application for transfer by the transferee.
(b) A transferee accepts an account subject to the terms of
the:
(1) deposit contract; and
(2) savings bank's charter and bylaws.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 95.007. INTEREST OR DIVIDENDS PAID ON
ACCOUNTS. (a) A savings bank may contract to pay interest on
deposit accounts or may pay earnings on deposit accounts in the form
of dividends declared by the savings bank's board.
(b) A savings bank shall compute and pay interest and
dividends according to rules adopted by the finance commission.
(c) A savings bank shall credit interest or a dividend to a
deposit account on the savings bank's books unless the account
holder requests and the savings bank agrees that the savings bank
will pay interest or dividends on the account in cash.
(d) A savings bank may pay a cash dividend by check or bank
draft.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended
by Acts 2001, 77th Leg., ch. 867, § 60, eff. Sept. 1, 2001.
§ 95.008. REDEMPTION OF DEPOSIT ACCOUNT. (a) If no
contractual prohibition exists, a savings bank may redeem in the
manner the board determines all or part of its deposit accounts if
the savings bank:
(1) not later than the 31st day before the redemption
date, gives notice of the redemption by certified mail to each
affected account holder at the holder's last address as recorded on
the books of the savings bank; and
(2) not later than the redemption date, sets aside the
amount necessary for the redemption and keeps the amount available
for redemption.
(b) Redemption of deposit accounts must be on a
nondiscriminatory basis.
(c) The redemption price of a deposit account is the
withdrawal value of the account.
(d) All rights, including the accrual of earnings, that
relate to a deposit account called for redemption, other than the
right of the account holder of record to receive the redemption
price, terminate as of the redemption date.
(e) A savings bank may not redeem any of its deposit
accounts if the savings bank is subject to a supervisory control or
conservatorship action under Chapter 96, unless the commissioner
directs the redemption.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 95.009. LIEN ON DEPOSIT ACCOUNT. (a) Without
further agreement or pledge, a savings bank or a federal savings
bank doing business in this state has a lien on all deposit accounts
owned by an account holder to whom or on whose behalf the savings
bank has advanced money by loan or otherwise.
(b) On default in the payment or satisfaction of the account
holder's obligation, the savings bank, without notice to or consent
of the account holder, may cancel on its books all or part of the
account holder's deposit account and apply that amount to payment
of the obligation.
(c) The savings bank by written instrument may waive its
lien in whole or in part on a deposit account.
(d) A savings bank may take the pledge of a deposit account
of the savings bank that is owned by an account holder other than
the borrower as additional security for a loan secured by:
(1) a deposit account;
(2) real property; or
(3) both a deposit account and real property.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 95.010. ACCOUNT AS LEGAL INVESTMENT. (a) Each of the
following persons may invest money held by the person in a deposit
account of a savings bank doing business in this state:
(1) any fiduciary, including an administrator,
executor, guardian, or trustee;
(2) a political subdivision or instrumentality of this
state;
(3) a business or nonprofit corporation;
(4) a charitable or educational corporation or
association; and
(5) a financial institution, including a bank, savings
and loan association, or credit union.
(b) An investment by an insurance company in a deposit
account is eligible for tax reducing purposes under Articles 4.10
and 4.11, Insurance Code.
(c) An investment by a school district in a deposit account
insured by the Federal Deposit Insurance Corporation meets the
requirements of Sections 45.102 and 45.208, Education Code.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 95.011. APPLICABILITY OF PROBATE CODE. The
applicable provisions of Chapter XI, Texas Probate Code, govern
deposit accounts held in a savings bank.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
SUBCHAPTER B. PROVISIONS APPLICABLE TO SPECIFIC TYPES OF ACCOUNTS
§ 95.101. ACCOUNT HELD BY MINOR. (a) A savings bank or
a federal savings bank may accept a deposit account from a minor as
the sole and absolute owner of the account.
(b) On the minor's order, the savings bank may:
(1) pay withdrawals;
(2) accept pledges to the savings bank; and
(3) act in any other manner with respect to the
account.
(c) Subject to Subsection (e), a payment or delivery of
rights to a minor, or an acquittance signed by a minor who holds a
deposit account, is a discharge of the savings bank for that payment
or delivery.
(d) If the savings bank requires a minor to furnish an
acquittance or pledge or take other action with respect to the
minor's deposit account, that action is binding on the minor as if
the minor had the capacity of an adult.
(e) If a parent or guardian of a minor informs the savings
bank in writing that the minor is not to have the authority to
control the minor's deposit account, the minor may not control the
account during the minority without the joinder of the parent or
guardian.
(f) If a minor dies, the acquittance of a parent or guardian
of the minor discharges the savings bank for amounts that in the
aggregate do not exceed $1,000.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 95.102. PLEDGE OF JOINT ACCOUNT. (a) Unless the
terms of the account provide otherwise, a person on whose signature
money may be withdrawn from a deposit account in the names of two or
more persons may, by a signed pledge, pledge and transfer to the
savings bank or federal savings bank all or part of the account.
(b) A pledge made under Subsection (a) does not sever or
terminate the joint and survivorship ownership of the account.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 95.103. ACCOUNT HELD BY FIDUCIARY. (a) A savings
bank or federal savings bank doing business in this state may accept
a deposit account in the name of a fiduciary, including an
administrator, executor, custodian, guardian, or trustee, for a
named beneficiary.
(b) A fiduciary may:
(1) vote as a member as if the membership were held
absolutely; and
(2) open, add to, or withdraw money from the account.
(c) Except as otherwise provided by law, a payment to a
fiduciary or an acquittance signed by the fiduciary to whom a
payment is made is a discharge of the savings bank for the payment.
(d) After a person holding a deposit account in a fiduciary
capacity dies, the savings bank may pay or deliver to the
beneficiary the withdrawal value of the account, plus earnings on
the account, or other rights relating to the account, in whole or in
part, if the savings bank has no written notice or order of the
probate court of:
(1) the revocation or termination of the fiduciary
relationship; or
(2) any other disposition of the beneficial estate.
(e) A savings bank has no further liability for a payment
made or right delivered under Subsection (d).
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 95.104. TRUST ACCOUNT: UNDISCLOSED TRUST
INSTRUMENT. (a) If a savings bank opens a deposit account for a
person claiming to be the trustee for another and the savings bank
has no other notice of the existence or terms of a trust other than a
written claim against the account:
(1) the person claiming to be the trustee may, on the
person's signature, withdraw money from the account; and
(2) if that person dies, the savings bank may pay the
withdrawal value of all or part of the account, plus earnings on the
account, to the person for whom the account was opened.
(b) A savings bank has no further liability for a payment
made under Subsection (a).
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 95.105. POWER OF ATTORNEY ACCOUNT. (a) A savings
bank doing business in this state may continue to recognize the
authority of an attorney-in-fact authorized in writing to manage or
withdraw money from a deposit account of a member until the savings
bank receives written or actual notice of the revocation of that
authority.
(b) For purposes of this section, written notice of the
death or adjudication of incompetency of a member is considered to
be written notice of revocation of the authority of the member's
attorney-in-fact.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
