Amend CSHB 3621 by adding the following appropriately 
numbered SECTIONS to the bill and renumbering subsequent SECTIONS 
of the bill accordingly:
	SECTION __.  Section 15.303, Finance Code, is amended to 
read as follows:    
	Sec. 15.303.  DEPUTY COMMISSIONER.  (a)  The [Subject to the 
commission's approval, the] commissioner may appoint a deputy 
commissioner[, who must have the qualifications required of the 
commissioner].
	[(b)]  The deputy commissioner serves at the will of the 
commissioner and, at the commissioner's direction, may exercise the 
powers and prerogatives of the commissioner.
	(b) [(c)]  The deputy commissioner is an employee of the 
department [commission] and is subject to the commissioner's
[commission's] orders and directions.
	(c) [(d)]  During the commissioner's absence or inability to 
act, the deputy commissioner shall perform the commissioner's 
duties.
	(d)  The commissioner may appoint assistant deputy 
commissioners, whose powers shall be limited to the powers, duties, 
or functions set forth in the appointment.
	SECTION __.  Section 15.305, Finance Code, is amended to 
read as follows:    
	Sec. 15.305.  GENERAL COUNSEL.  A person who is required to 
register as a lobbyist under Chapter 305, Government Code, because 
of the person's activities for compensation on behalf of a 
profession related to the operation of the commission, may not 
serve as general counsel to the commission or the department.
	SECTION __.  Section 15.308, Finance Code, is amended to 
read as follows:    
	Sec. 15.308.  COMPENSATION OF EMPLOYEES.  (a)  The 
commission shall set the compensation of the commissioner [and 
deputy commissioner].  The compensation shall be paid according to 
the General Appropriations Act.
	(b)  Except for the commissioner [and deputy commissioner], 
Chapter 654, Government Code, applies to any department position.
	SECTION __.  Subsection (c), Section 15.402, Finance Code, 
is amended to read as follows:
	(c)  The commission by rule shall establish reasonable and 
necessary fees to recover the costs of maintaining and operating 
the department and enforcing [for the administration of] this 
chapter and Subtitle D, Title 3.
	SECTION __.  Section 15.408, Finance Code, is amended to 
read as follows:    
	Sec. 15.408.  COLLECTION OF MONEY.  The commissioner shall 
collect all fees, charges, and revenues required to be paid by a 
credit union under Section 15.402(c).  All money paid to the 
department under this chapter and Subtitle D, Title 3, is subject to 
Subchapter F, Chapter 404, Government Code.  A credit union is not 
entitled to a refund of any unused portion of the fee, charge, or 
revenue.
	SECTION __.  Subsection (a), Section 15.410, Finance Code, 
is amended to read as follows:
	(a)  The commission shall adopt, and the commissioner shall 
enforce, reasonable rules requiring a credit union, except a 
corporate central credit union, to provide share and deposit 
insurance protection for credit union members and depositors.
	SECTION __.  Subchapter E, Chapter 15, Finance Code, is 
amended by adding Section 15.4111 to read as follows:
	Sec. 15.4111.  REGULATORY COORDINATION.  (a)  To ensure 
effective coordination among and between the department and other 
state and federal agencies, the commissioner may enter into 
cooperative, coordinating, or information-sharing agreements with 
those agencies.
	(b)  To further the rapid restoration of credit union 
services after an emergency, the commissioner may enter into 
cooperative, coordinating, or information-sharing agreements with 
credit unions or credit union trade associations or other 
organizations affiliated with or representing one or more credit 
unions.
	(c)  Disclosure of information by or to the department under 
this section does not constitute a waiver of or otherwise affect or 
diminish any legal privilege to which the information is otherwise 
subject, even if the disclosure is not governed by a 
confidentiality agreement.  Notwithstanding other applicable law, 
a party to an agreement described by this section shall execute, 
honor, and comply with requirements to maintain confidentiality and 
oppose disclosure of information obtained from the department, and 
shall treat as confidential any information obtained from the 
department that is entitled to confidential treatment under 
applicable state or federal law.
	SECTION __.  Section 121.002, Finance Code, is amended by 
amending Subdivision (2) and adding Subdivision (10-a) to read as 
follows:
		(2)  "Credit union," unless the context relates to a 
federal credit union, means a voluntary, cooperative, nonprofit 
financial institution authorized to do business in this state under 
this subtitle for purposes of:
			(A)  encouraging thrift among its members;                                   
			(B)  creating a source of credit at fair and 
reasonable interest rates;    
			(C)  developing and providing to its members 
alternative methods of financing their purchases at reasonable 
costs;
			(D)  providing an opportunity for its members to 
use, protect, or [and] control their money or property to improve or 
maintain their economic or [and] social condition; and
			(E)  conducting any other business, engaging in 
any other activity, or providing any other service that may benefit 
its members.
		(10-a)  "Share-insuring organization" means a 
cooperative share insurance fund, guaranty corporation, or credit 
union that provides aid and financial assistance to credit unions 
that are in the process of liquidation or are incurring financial 
difficulty to protect or guarantee against loss the share and 
deposit accounts in the credit union up to a specified level for 
each account.
	SECTION __.  Chapter 121, Finance Code, is amended by adding 
Section 121.007 to read as follows:
	Sec. 121.007.  COST OF SUPERVISION AND REGULATION.  
(a)  Each credit union shall promptly pay the fees, charges, and 
revenues established by the commission under Section 15.402 to 
recover:
		(1)  the cost of examination;                                          
		(2)  the credit union's equitable or proportionate 
share of the costs of maintenance and operation of the department; 
and
		(3)  the costs of enforcement of this subtitle and 
Chapter 15.       
	(b)  The commission shall adjust those fees, charges, and 
revenues so that the amount collected during the fiscal year equals 
the total amount appropriated, including amounts appropriated for 
both direct and indirect costs for that fiscal year.
	SECTION __.  Subchapter A, Chapter 122, Finance Code, is 
amended by adding Section 122.0011 to read as follows:
	Sec. 122.0011.  EXPENSE FUND.  (a)  Before a credit union 
organized under this subtitle may be authorized to do business, the 
credit union shall create a fund from which operating expenses may 
be paid until earnings, together with net worth allocations and 
dividends that may be declared and credited, are sufficient to 
cover operating expenses.
	(b)  Except as provided by this section, the amounts 
contributed to the expense fund are not a liability of the credit 
union.
	(c)  The credit union may pay dividends to contributors to 
the expense fund on amounts contributed to the same extent the 
credit union pays dividends to a member.  Any amount contributed to 
the expense fund is considered a deposit of the credit union, which 
the credit union's board may reduce pro rata as operating expenses 
are paid from the fund.
	(d)  With the prior written consent of the commissioner, 
contributions to the expense fund may be repaid to the 
contributors, in accordance with this subsection, from the net 
earnings of the credit union after the credit union has attained a 
net worth ratio greater than six percent.  At the close of each 
dividend period, the board may pay or credit the accounts of the 
contributors an amount that is not more than one percent of the net 
earnings of the credit union during that period until the 
contributors have been repaid in full.
	(e)  If the credit union is liquidated before the 
contributions to the expense fund have been fully repaid, any 
portion of the contributions not needed for the payment of the 
expenses of liquidation and for the payment of depositors in full 
shall be paid to the contributors in proportion to their 
contributions until they have been repaid in full.
	(f)  The commission may adopt reasonable rules necessary to 
administer this section and to accomplish the purposes of this 
subchapter.
	SECTION __.  Subsection (b), Section 122.007, Finance Code, 
is amended to read as follows:
	(b)  The commissioner's order may be appealed to the 
commission not later than the 30th [60th] day after the date of the 
order.
	SECTION __.  Subsections (a) and (c), Section 122.013, 
Finance Code, are amended to read as follows:
	(a)  A foreign credit union may do business in this state if 
it is organized in a state or country that allows any [a] credit 
union organized under this subtitle to do business in that state or 
country.
	(c)  The commissioner may suspend or revoke a foreign credit 
union's authority to do business in this state if the commissioner 
finds that the foreign credit union:
		(1)  has failed to conduct its business in this state in 
a manner consistent with the laws of this state [violated a rule 
adopted under this subtitle];
		(2)  is in an unsafe or unsound condition;                                    
		(3)  refuses to comply with an order of the 
commissioner [is engaged in a pattern of unsafe or unsound 
practices]; [or]
		(4)  refuses to comply with a request by the 
commissioner to review the books and records of the credit union; or
		(5)  has not met or does not meet a [commission] 
requirement imposed by commission rules.
	SECTION __.  Subchapter A, Chapter 122, Finance Code, is 
amended by adding Section 122.0131 to read as follows:
	Sec. 122.0131.  TEMPORARY FOREIGN CREDIT UNION OFFICE.  If a 
state contiguous to this state experiences an emergency, on a 
request by that state's credit union regulatory agency, the 
commissioner may authorize one or more credit unions located in 
that state to open temporary offices in this state to more promptly 
restore credit union services to their members.  The commissioner 
shall issue an order permitting the temporary office and specifying 
the period of time the office may remain open.  On a finding that the 
conditions requiring the temporary office continue to exist, the 
commissioner may extend the period the office may remain open.  A 
credit union may convert a temporary office to a permanent location 
if it qualifies to do business in this state as a foreign credit 
union under Section 122.013 and commission rules.
	SECTION __.  Section 122.051, Finance Code, is amended by 
amending Subsections (a) and (d) and adding Subsection (d-1) to 
read as follows:
	(a)  A person may be a member of a credit union only if the 
person is an incorporator or other person who:
		(1)  shares a definable community of interest, in 
accordance with the credit union's articles of incorporation or 
bylaws, including a community of interest based on occupation, 
association, or residence;
		(2)  has done one or both of the following:                            
			(A)  paid an entrance fee or membership fee, or 
both, as required by the bylaws; or
			(B)  met [(3)  has complied with] the minimum 
share or deposit account[, including membership share,] 
requirements or complied with other qualifying [account] 
requirements that [established by] the board may establish; and
		(3) [(4)]  has complied with any other requirement of 
the articles of incorporation and bylaws.
	(d)  [In this subsection, "good cause" includes the act of 
physically or verbally abusing a credit union member or employee.]  
A person's membership in a credit union may be terminated, [or] 
suspended, or restricted [for good cause or for not maintaining 
membership requirements,] under the conditions and in accordance 
with the procedures provided in the bylaws for having done any of 
the following:
		(1)  violated the membership agreement or any policy 
adopted by the board;
		(2)  been physically or verbally abusive to credit 
union members or staff;
		(3)  caused a financial loss to the credit union;                      
		(4)  been involved in suspicious or unusual account 
activity; or     
		(5)  committed any other act or engaged in any activity 
proscribed by rules adopted by the commission.
	(d-1)  [A credit union may also discontinue providing any or 
all services to a member for good cause without terminating or 
suspending the person's membership.]  Termination or suspension of 
a person's membership in the credit union or discontinuing services 
does not relieve the person from any outstanding obligations owed 
to the credit union.
	SECTION __.  Section 122.053, Finance Code, is amended by 
amending Subsections (d), (e), and (f) and adding Subsections (g), 
(h), and (i) to read as follows:
	(d)  The bylaws shall prescribe the directors' terms and the 
board's duties.  A term may not exceed three years.  If the terms are 
longer than one year, the terms shall be staggered so that an 
approximately equal number expire each year.  A director may serve 
more than one term.
	(e)  The board or its executive committee shall meet at least 
once each month.  The board may permit the executive committee to 
act on its behalf in all except one meeting per calendar quarter.  
The board shall have no fewer than four regularly scheduled 
meetings each year.
	(f)  To [If and to] the extent provided in the bylaws, a 
director may participate in and act at any meeting of the board by 
means of electronic communications equipment through which all 
persons participating in the meeting may simultaneously hear each 
other and [can] communicate during the meeting [with each other].  
Participation in a meeting in the manner authorized by this 
subsection constitutes attendance at a meeting.  However, each 
director must physically attend at least one meeting each calendar 
year.
	(g)  A director of a credit union who is present at a meeting 
of its board of directors at which action on any matter is taken is 
presumed to have assented to the action taken unless the minutes of 
the meeting specifically indicate otherwise.
	(h)  The directors, officers, and employees shall hold in 
confidence all matters presented to the board for deliberation and 
determination, except if disclosure of a matter is permitted by 
applicable law.
	(i)  The board shall adopt a code of ethics for all 
directors, officers, and honorary or advisory directors.  The code 
of ethics must include standards that are reasonably necessary to 
promote:
		(1)  honest and ethical conduct, including the ethical 
handling of actual and apparent conflicts of interest between 
personal and professional relationships; and
		(2)  compliance with applicable laws.                                  
	SECTION __.  Subchapter B, Chapter 122, Finance Code, is 
amended by adding Section 122.0531 to read as follows:
	Sec. 122.0531.  ACTION BY BOARD OF DIRECTORS WITHOUT 
MEETING.  (a)  Unless the articles of incorporation or bylaws 
provide otherwise, action required or permitted to be taken under 
this subtitle at a board meeting may be taken without a meeting if 
the action is consented to by all members of the board.  The action 
must be evidenced by one or more written consents describing the 
action taken, signed by each director, and included in the minutes 
or filed with the corporate records reflecting the action taken.
	(b)  Action taken under this section is effective when the 
last director signs the consent, unless the consent specifies a 
different effective date.
	(c)  A written consent signed under this section has the 
effect of a meeting vote and may be described as such in any 
document.
	SECTION __.  Subsections (a) and (c), Section 122.056, 
Finance Code, are amended to read as follows:
	(a)  The board may appoint [not more than three] individuals 
to serve at the board's pleasure as honorary or advisory directors 
to advise and consult with the board and otherwise aid the board in 
carrying out the board's duties and responsibilities.
	(c)  An honorary or advisory director may participate in any 
board deliberation.  An honorary or advisory director must hold in 
confidence all matters presented to the board.
	SECTION __.  Section 122.061, Finance Code, is amended by 
amending Subsection (a) and adding Subsection (c) to read as 
follows:
	(a)  While serving as a director, honorary director, 
advisory director, committee member, officer, or employee of a 
credit union, a person may not:
		(1)  participate, directly or indirectly, in the 
deliberation on or determination of a question affecting the 
person's pecuniary interest or the pecuniary interest of a member 
of the person's immediate family or of a partnership, association, 
or corporation, other than the credit union, in which the person is 
directly or indirectly interested; or
		(2)  become employed by, engage in, or own an interest 
in a business or professional activity that the person could 
reasonably expect to:
			(A)  require or induce the person to disclose 
confidential information acquired because of the person's office or 
employment in the credit union; or
			(B)  impair the person's independence or judgment 
in the performance of the person's duties or responsibilities to 
the credit union.
	(c)  In this section, "member of a person's immediate family" 
means a person's parents, spouse, children, or siblings.
	SECTION __.  Subchapter B, Chapter 122, Finance Code, is 
amended by adding Sections 122.065 and 122.066 to read as follows:
	Sec. 122.065.  FIDUCIARY RELATIONSHIP.  Directors and 
officers are considered to have a fiduciary relationship with the 
credit union, as an entity, and must discharge the duties of their 
respective positions:
		(1)  in good faith;                                                    
		(2)  with the care an ordinarily prudent person in a 
like position would exercise under similar circumstances; and
		(3)  in a manner the director or officer believes to be 
in the best interests of the credit union.
	Sec. 122.066.  RELIANCE BY DIRECTORS OR OFFICERS.  
(a)  Unless the director or officer has knowledge that makes 
reliance unwarranted, a director or officer, in discharging the 
director's or officer's duties to the credit union, may rely on 
information, opinions, reports, or statements, including financial 
statements and other financial data, prepared or presented by:
		(1)  an officer or employee of the credit union whom the 
director or officer believes in good faith to be reliable and 
competent in the matters presented;
		(2)  legal counsel, a certified public accountant, or 
another person regarding a matter the director or officer believes 
in good faith is within the person's professional or expert 
competence; or
		(3)  in the case of reliance by a director, a committee 
of the board of directors of which the director is not a member if 
the director believes in good faith that the committee merits 
confidence.
	(b)  Information, opinions, reports, or statements on which 
a director or officer may rely under this section may be written or 
oral or formal or informal.
	SECTION __.  Subchapter D, Chapter 122, Finance Code, is 
amended by adding Section 122.1511 to read as follows:
	Sec. 122.1511.  AUTHORITY TO PURCHASE ASSETS.  (a)  A credit 
union, with the prior written approval of the commissioner, may 
purchase all or substantially all of the assets of another entity.
	(b)  Except as otherwise expressly provided by another 
statute, the purchase of all or part of the assets of the selling 
entity does not make the purchasing credit union responsible for 
any liability or obligation of the selling entity not expressly 
assumed by the purchasing credit union.
	SECTION __.  Subchapter E, Chapter 122, Finance Code, is 
amended by adding Section 122.204 to read as follows:
	Sec. 122.204.  CONVERSION OF MUTUAL SAVINGS INSTITUTION TO 
STATE CREDIT UNION.  (a)  A mutual savings institution may convert 
to a state credit union by complying with the laws of the original 
chartered authority and on the approval of the commissioner.
	(b)  Application for approval of the conversion to a state 
credit union must be submitted to the department in the form 
prescribed by the commissioner.
	(c)  The commissioner may cause an examination to be made of 
any converting mutual savings institution.  The converting mutual 
savings institution shall pay all fees and charges prescribed by 
the commission.
	SECTION __.  Subsection (a), Section 122.257, Finance Code, 
is amended to read as follows:
	(a)  If the commissioner finds that a credit union or any 
director, officer, employee, agent, or other person participating 
in the conduct of the affairs of the credit union has engaged, is 
engaging, or is about to engage in an act, practice, or transaction 
meeting any of the criteria [makes a finding] listed in Section 
122.255, the commissioner may issue [and determines that] an order 
directing the credit union or any director, officer, employee, 
agent, or other person participating in the conduct of the affairs 
of the credit union to cease and desist from engaging [is necessary 
and] in the act, practice, or transaction or from doing any act in 
furtherance [best interest] of the act, practice, or transaction
[credit union involved and its depositors, creditors, and members, 
the commissioner may serve on the credit union, its board, and each 
offending person an order to cease and desist from a violation or 
practice specified in the order] and to take appropriate
affirmative action within a reasonable period, as prescribed by
[that] the commissioner, [considers necessary] to correct the 
conditions [a condition] resulting from the act, [a violation or 
unsafe or unsound] practice, or transaction [found].
	SECTION __.  Section 123.003, Finance Code, is amended to 
read as follows:   
	Sec. 123.003.  ENLARGEMENT OF POWERS.  (a)  Notwithstanding 
any other law, and subject to Subsection (b), a  [A] credit union 
may engage in any activity [in which it could engage], exercise any 
power [it could exercise], or make any loan or investment 
permissible for [it could make, if it were operating as] a [federal] 
credit union organized under federal law or the law of another 
state.
	(a-1)  A credit union that intends to engage in an activity, 
exercise a power, or make a loan or investment authorized under 
Subsection (a) shall submit written notice to the commissioner 
describing the activity, power, loan, or investment and the 
specific federal or state authority on which the credit union is 
relying.  The credit union may proceed as described in the notice on 
or after the 30th day following submission of the notice, unless the 
commissioner extends the period in accordance with this subsection, 
or prohibits the activity, power, loan, or investment.
	(a-2)  The commissioner may prohibit the credit union from 
engaging in an activity, exercising a power, or making a loan or 
investment as described in the notice under Subsection (a-1) only 
if the commissioner finds that:
		(1)  specific authority does not exist; or                             
		(2)  the engagement, exercise, or making would 
adversely affect the safety and soundness of the credit union.
	(a-3)  The commissioner may extend the 30-day period if the 
commissioner determines that the credit union's notice under 
Subsection (a-1) raises issues requiring additional information or 
additional time for analysis.  If the 30-day period is extended, the 
credit union may not proceed without the commissioner's prior 
written approval.  The commissioner must issue either an approval 
or prohibition letter not later than the 60th day after the date the 
notice is submitted.
	(b)  The commission may adopt rules relating to the exercise 
of [Notwithstanding any other law, and in addition to the powers and 
authorities conferred under Subsection (a), a credit union has the] 
powers or authorities granted under this section [of a foreign 
credit union operating a branch in this state if the commissioner 
finds that exercise of those powers or authorities is convenient 
for and affords an advantage to the credit union's members and 
maintains the fairness of competition and parity between the credit 
union and any foreign credit union.  A credit union does not have 
the field of membership powers or authorities of a foreign credit 
union operating a branch in this state].
	SECTION __.  Section 123.104, Finance Code, is amended to 
read as follows:   
	Sec. 123.104.  MEMBERSHIP IN OTHER ORGANIZATION; OPERATION 
AS CORPORATE CENTRAL CREDIT UNION.  A credit union may:
		(1)  be a member of:                                                          
			(A)  another credit union organized under this 
subtitle or other law; and  
			(B)  another organization approved by the board; 
or                        
		(2)  operate, with the commissioner's approval, as a 
corporate central credit union.
	SECTION __.  Subchapter B, Chapter 123, Finance Code, is 
amended by adding Section 123.1041 to read as follows:
	Sec. 123.1041.  CORPORATE CENTRAL CREDIT UNION.  (a)  Any 
number of credit unions may apply to organize a corporate central 
credit union to engage exclusively in corporate financial and 
operational activities that are part of or incidental to the credit 
union business.
	(b)  Membership in the corporate central credit union 
consists of and is limited to:
		(1)  credit unions incorporated under this subtitle, 
the Federal Credit Union Act (12 U.S.C. Section 1751 et seq.), or 
any other law applicable to credit unions; and
		(2)  organizations owned by credit unions.                             
	(c)  A corporate central credit union has the powers and 
privileges of any other credit union incorporated under this 
subtitle and, subject to rules adopted by the commission, may have 
the power to:
		(1)  provide access for its members on a mutual basis to 
financial systems and the services and products of financial 
institutions;
		(2)  provide its members with research and consulting 
services concerning financial matters, institutions, and products;
		(3)  provide financial system support services and 
facilities;       
		(4)  establish and execute financial programs to assist 
its members in meeting the members' needs;
		(5)  provide safekeeping or trustee services to or on 
behalf of its members; and
		(6)  issue uninsured share investments or classes of 
share investments in amounts in excess of $250,000 with terms and 
conditions that may vary from other shares authorized by this 
subtitle as approved by the department.
	SECTION 26.  Subsection (c), Section 123.208, Finance Code, 
is amended to read as follows:
	(c)  The commissioner may restrict or prohibit the payment of 
a dividend:
		(1)  if the commissioner issues a cease and desist 
order under Section 122.257; or
		(2)  as necessary to protect the member's interests and 
preserve the solvency of the credit union as authorized by 
commission rule.
	SECTION __.  Subchapter A, Chapter 124, Finance Code, is 
amended by adding Section 124.006 to read as follows:
	Sec. 124.006.  ADVANCES PAID BY CREDIT UNION.  (a)  A credit 
union may pay taxes, assessments, insurance premiums, and similar 
charges for the protection of the credit union's interest in 
property that secures a loan of the credit union.
	(b)  A payment under Subsection (a) is an advance, and the 
credit union may:
		(1)  carry the payment on the credit union's books as an 
asset of the credit union for which the credit union may charge 
interest; or
		(2)  add the payment to the unpaid balance of the loan 
to which it applies as of the first day of the month in which the 
payment is made.
	(c)  With the exception of a loan secured by an encumbrance 
against the equity in a homestead property, a payment under 
Subsection (a) is a lien against the property that secures the loan 
for which it is made.  For an extension of credit as defined and 
authorized by Section 50(a)(6), Article XVI, Texas Constitution, 
additional terms and conditions apply as provided by that section 
for the payment to become a lien against the property.
	SECTION __.  Section 124.051, Finance Code, is amended to 
read as follows:   
	Sec. 124.051.  OPEN-END CREDIT PLAN.  (a)  A credit union 
may enter into a written agreement with a member under which:
		(1)  the member is allowed to borrow money from time to 
time; and           
		(2)  interest may from time to time be computed on the 
unpaid balance.      
	(b)  If, at any time, application of the contract interest 
rate to the outstanding unpaid balance results in a charge of less 
than $1, the lawful interest charge shall be $1.
	SECTION __.  Section 124.151, Finance Code, is amended to 
read as follows:   
	Sec. 124.151.  PREPAYMENT PRIVILEGE.  (a)  A loan may be 
prepaid in whole or in part, without penalty, during regular 
working hours on any day on which the credit union is open for 
business, except as provided by Subsection (b) or Section 124.152.
	(b)  A prepayment penalty may be charged on a business loan.            
	(c)  In this section, "business loan" means a loan other than 
a loan made primarily for personal, family, or household purposes.
	SECTION __.  Subsection (a), Section 124.351, Finance Code, 
is amended to read as follows:
	(a)  A credit union may invest money not used in loans to 
members in:        
		(1)  capital shares, obligations, participation 
certificates, or common or preferred stock of an agency, 
association, or company, subject to Section 124.352(a);
		(2)  loans to a national or state credit union 
association or corporation of which the credit union is a member;
		(3)  obligations, bonds, notes, or other evidences of 
indebtedness of a state or political subdivision of a state;
		(4)  certificates of deposit or other accounts issued 
by a state or national bank, savings and loan association, savings 
association, or mutual savings bank;
		(5)  securities, obligations, participations, or other 
instruments of or issued by the United States, or in a trust 
established for investing directly or collectively in those 
investments;
		(6)  loans to, shares of, or deposits in another credit 
union, a corporate central credit union, a corporate credit union, 
a central liquidity facility established under state or federal 
law, a trust, or an organization established for lending directly 
or collectively to credit unions;
		(7)  securities, obligations, participations, or other 
instruments fully or partially guaranteed as to principal, 
interest, or both by the United States, or in a trust established 
for investing directly or collectively in those investments;
		(8)  participation loans with another credit union, 
corporation, credit organization, or financial organization;
		(9)  notes receivable, loans to members, or other 
assets of a credit union operating under this subtitle or the 
Federal Credit Union Act (12 U.S.C. Section 1751 et seq.); and
		(10)  other investments authorized by rules adopted by 
the commission that satisfy Subsection (b).
	SECTION __.  Subchapter H, Chapter 124, Finance Code, is 
amended by adding Section 124.353 to read as follows:
	Sec. 124.353.  PASSIVE INVESTMENT IN MINERAL INTERESTS.  
(a)  A credit union may hold a nonworking mineral or royalty 
interest if:
		(1)  the credit union acquires the interest incidental 
to a lawful investment or to avoid or minimize a loss on a loan or 
investment previously made in good faith;
		(2)  the interest is not subject to expenses of 
exploration, development, production, operation, maintenance, or 
abandonment, or any other expense associated with extracting and 
marketing the minerals subject to the rights or interest;
		(3)  the interest is reasonably valued on the books of 
the credit union for not more than a nominal amount, and the 
aggregate amount of earnings from those interests is separately 
disclosed in the financial statements of the credit union;
		(4)  the credit union does not make any new investments 
relating to the rights or interests without the approval of the 
commissioner; and
		(5)  the commissioner determines that the possession of 
the rights or interests is not inconsistent with the safety and 
soundness of the credit union.
	(b)  The commissioner may order a credit union that holds a 
nonworking mineral or royalty interest to divest the interest at 
any time if the commissioner determines that continued ownership of 
the interest is detrimental to the credit union.
	(c)  Subject to compliance with this section, nonworking 
mineral or royalty interests are not considered to be real property 
for purposes of this subtitle.
	SECTION __.  Section 125.402, Finance Code, is amended to 
read as follows:   
	Sec. 125.402.  DISCLOSURE OF RECORDS OF MEMBER; 
CONFIDENTIALITY.  (a)  The directors, officers, committee members, 
and employees and any honorary or advisory directors of a credit 
union shall hold in confidence all information regarding 
transactions of the credit union, including information concerning 
transactions with the credit union's members and the members' 
personal affairs, except to the extent necessary in connection with 
making, extending, or collecting a loan or extension of credit, or 
as otherwise authorized by commission rules adopted under 
Subsection (d) or other applicable law.
	(b)  A credit union is not required to disclose or produce to 
a third party or permit a third party to examine a record pertaining 
to the affairs of a credit union member unless:
		(1)  the request is made in connection with an 
examination or audit by a government agency authorized by law to 
examine credit unions;
		(2)  the member consents to the disclosure or 
production of the record; or  
		(3)  the request is made by the department or is made in 
response to:       
			(A)  a subpoena or other court order; or                                     
			(B)  an administrative subpoena or summons issued 
by a state or federal agency as authorized by law.
	(c) [(b)]  The commission may authorize the disclosure of 
information relating to a credit union member under circumstances 
and conditions that the commission determines are appropriate or 
required in the daily operation of the credit union's business.
	(d) [(c)]  The commission may adopt reasonable rules 
relating to the:
		(1)  permissible disclosure of nonpublic personal 
information about [confidentiality of] the accounts of credit union 
members; and
		(2)  duties of the credit union to maintain [that] 
confidentiality.
	SECTION __.  Subsection (c), Section 126.002, Finance Code, 
is amended to read as follows:
	(c)  The commissioner may disclose the information described 
by Subsection (a) to a law enforcement agency, a share-insuring 
organization, or another department, agency, or instrumentality of 
this state, another state, or the United States if the commissioner 
determines that disclosure is necessary or proper to enforce the 
laws of this state applicable to credit unions.

	SECTION __.  Subsection (a), Section 126.051, Finance Code, 
is amended to read as follows:
	(a)  The department, through examiners it appoints and in 
accordance with commission rules, shall [periodically] examine the 
condition and affairs [books and records] of each credit union, and 
may examine the condition and affairs of any subsidiary wholly 
owned or controlled by a credit union, at least once during each 
24-month period.  The department may examine a credit union or its 
subsidiaries more frequently if the commissioner considers it 
necessary or advisable to safeguard the interest of depositors, 
creditors, and members or to efficiently enforce applicable law.
	SECTION __.  This Act takes effect September 1, 2009.