By: Carona S.B. No. 1055
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the regulation and operations of credit unions.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Section 15.204(c), Finance Code, is amended to read as
1-4 follows:
1-5 Sec. 15.204. QUALIFICATIONS OF PUBLIC COMMISSION MEMBERS
1-6 (c) In this section, "financial institution" includes an
1-7 institution such as a credit union, bank, savings bank, or savings
1-8 and loan association.
1-9 SECTION 2. Chapter 121, Finance Code, is amended by adding Section
1-10 121.0015:
1-11 Sec. 121.0015. PURPOSES. The purposes of the legislature in
1-12 enacting this Act are to safeguard the public interest, to promote
1-13 public confidence in credit unions doing business in this state, to
1-14 provide for the protection of the interests, shares, and deposits
1-15 of credit unions, to delegate to the department rulemaking and
1-16 discretionary authority that may be necessary to assure that credit
1-17 unions operating under this Act may be sufficiently flexible and
1-18 readily responsive to changes in economic conditions and practices,
1-19 to maintain sound credit union growth and financial integrity,
1-20 fiscal responsibility, and independent judgment in the management
1-21 of the business affairs of credit unions, to permit Credit unions
1-22 to effectively provide a full array of financial and
2-1 financially-related services, to provide effective supervision and
2-2 regulation of credit unions and their fields of membership, and to
2-3 clarify and modernize the law governing the credit unions doing
2-4 business in this state. Therefore, this Act is declared to be the
2-5 public policy of this state and necessary to the public welfare.
2-6 SECTION 3. Section 123.003, Finance Code, is amended to read as
2-7 follows:
2-8 Sec. 123.003. ENLARGEMENT OF POWERS. [Notwithstanding any other
2-9 law, the commission by rule may authorize a] A credit union [to] may
2-10 engage in any activity in which it could engage, exercise any power
2-11 it could exercise, or make any loan or investment it could make, if
2-12 it were operating as a federal credit union.
2-13 SECTION 4. Section 125.301, Finance Code, is amended to read as
2-14 follows:
2-15 Sec. 125.301. FORM OF ACCOUNT. (a) A credit union may receive
2-16 payments on shares or accept deposits in the name of any trustee:
2-17 (1) for a revocable trust, if:
2-18 a person who established the trust is a member of the credit union;
2-19 or
2-20 a trustee or beneficiary is a member of the credit union; or
2-21 (2) for an irrevocable trust if a person who
2-22 established the trust, trustee, or beneficiary is a member of the
2-23 credit union.
2-24 (b) A credit union may rely on any information provided by the
2-25 trustee to determine whether a trust is revocable or irrevocable
2-26 [The name of each beneficiary must be disclosed to the credit union
3-1 when a trust account is opened.]
3-2 SECTION 5. Section 125.503, Finance Code, is amended as follows:
3-3 Sec. 125.503. ACCESS BY MORE THAN ONE PERSON[ JOINTLY HELD SAFE
3-4 DEPOSIT BOX.]
3-5 (a) In the absence of a contract to the contrary, a[A] credit
3-6 union shall allow each holder of a safe deposit box jointly held in
3-7 the name of two or more persons or a person other than the lessee
3-8 designated in the lease agreement:
3-9 (1) access to the box; and
3-10 (2) removal of its contents.
3-11 (b) A credit union is not responsible for damage arising
3-12 because a holder or other designated person had access to the box
3-13 or removed its contents.
3-14 (c) The death of a holder of a jointly held safe deposit box
3-15 does not affect the right of another holder or other designated
3-16 person [of the box] to have access to and remove contents from the
3-17 box.
3-18 SECTION 6. This Act takes effect September 1, 1999.
3-19 SECTION 7. The importance of this legislation and the crowded
3-20 condition of the calendars in both houses create an emergency and
3-21 an imperative public necessity that the constitutional rule
3-22 requiring bills to be read on three several days in each house be
3-23 suspended, and this rule is hereby suspended.