By Marchant H.B. No. 3512
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the regulation and operations of credit unions.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 15.204(c), Finance Code, is amended to
1-5 read as follows:
1-6 Sec. 15.204. QUALIFICATIONS OF PUBLIC COMMISSION MEMBERS
1-7 (c) In this section, "financial institutions" includes an
1-8 institution such as a credit union, bank, savings bank, or savings
1-9 and loan association.
1-10 SECTION 2. Chapter 121, Finance Code, is amended by adding
1-11 Section 121.0015:
1-12 Sec. 121.0015 PURPOSES. The purposes of the legislation
1-13 enacting this Act are to safeguard the public interest, to promote
1-14 public confidence in credit unions doing business in this state, to
1-15 provide for the protection of the interests, shares, and deposits
1-16 of credit unions, to delegate to the department rulemaking and
1-17 discretionary authority that may be necessary to assure that credit
1-18 unions operating under this Act may be sufficiently flexible and
1-19 readily responsive to changes in economic conditions and practices,
1-20 to maintain sound credit union growth and financial integrity,
1-21 fiscal responsibility, and independent judgment in the management
2-1 of the business affairs of credit unions, to permit credit unions
2-2 to effectively provide a full array of financial and
2-3 financially-related services, to provide effective supervision and
2-4 regulation of credit unions and their fields of membership, and to
2-5 clarify and modernize the law governing the credit unions doing
2-6 business in this state. Therefore, this Act is declared to be the
2-7 public policy of this state and necessary to the public welfare.
2-8 SECTION 3. Section 123.003, Finance Code, is amended to read
2-9 as follows:
2-10 Sec. 123.003. ENLARGEMENT OF POWERS. [Notwithstanding any
2-11 other law, the commission by rule may authorize a] A credit union
2-12 [to] may engage in any activity in which it could engage, exercise
2-13 any power it could exercise, or make any loan or investment it
2-14 could make, if it were operating as a federal credit union.
2-15 SECTION 4. Section 125.301, Finance Code, is amended to read
2-16 as follows:
2-17 Sec. 125.301. FORM OF PAYMENT. (a) A credit union may
2-18 receive payments on shares or accept deposits in the name of any
2-19 trustee:
2-20 (1) for a revocable trust, if:
2-21 a person who established the trust is a member of the credit
2-22 union; or
2-23 a trustee or beneficiary is a member of the credit union; or
2-24 (2) for an irrevocable trust if a person who
2-25 established the trust, trustee, or beneficiary is a member of the
3-1 credit union.
3-2 (b) A credit union may rely on any information provided by
3-3 the trustee to determine whether a trust is revocable or
3-4 irrevocable [The name of each beneficiary must be disclosed to the
3-5 credit union when a trust account is opened].
3-6 SECTION 5. Section 125.503, Finance Code, is amended as
3-7 follows:
3-8 Sec. 125.503. ACCESS BY MORE THAN ONE PERSON [JOINTLY HELD
3-9 SAFE DEPOSIT BOX]. (a) In the absence of a contract to the
3-10 contract, a [A] credit union shall allow each holder of a safe
3-11 deposit box jointly held in the name of two or more persons or a
3-12 person other than the lessee designated in the lease agreement:
3-13 (1) access to the box; and
3-14 (2) removal of its contents.
3-15 (b) A credit union is not responsible for damage arising
3-16 because a holder or other designated person had access to the box
3-17 or removed its content.
3-18 (c) The death of a holder of a jointly held safe deposit box
3-19 does not affect the right of another holder or other designated
3-20 person [of the box] to have access to and remove contents from the
3-21 box.
3-22 SECTION 6. This Act takes effect September 1, 1999.
3-23 SECTION 7. The importance of this legislation and the
3-24 crowded condition of the calendars in both houses create an
3-25 emergency and an imperative that the constitutional rule requiring
4-1 bills to be read on three several days in each house be suspended,
4-2 and this rule is hereby suspended.