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A BILL TO BE ENTITLED
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AN ACT
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relating to prohibiting a person from opening a line of credit in a |
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minor's name without parental approval. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 34.305, Finance Code, is amended by |
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adding Subsection (f) to read as follows: |
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(f) Subsection (a) does not authorize the bank to open a |
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line of credit in the name of the minor without the prior approval |
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of the minor's parent or legal guardian, unless the minor's |
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disabilities of minority have been removed for this purpose. |
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SECTION 2. Section 65.101, Finance Code, is amended by |
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adding Subsection (g) to read as follows: |
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(g) This section does not authorize the association to open |
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a line of credit in the name of the minor without the prior approval |
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of the minor's parent or legal guardian, unless the minor's |
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disabilities of minority have been removed for this purpose. |
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SECTION 3. Section 95.101, Finance Code, is amended by |
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adding Subsection (g) to read as follows: |
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(g) This section does not authorize the savings bank to open |
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a line of credit in the name of the minor without the prior approval |
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of the minor's parent or legal guardian, unless the minor's |
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disabilities of minority have been removed for this purpose. |
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SECTION 4. Section 125.201, Finance Code, is amended to |
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read as follows: |
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Sec. 125.201. POWERS OF CREDIT UNION RELATING TO ACCOUNT. |
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(a) A credit union may: |
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(1) open a share or deposit account in the name of a |
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minor; |
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(2) receive a payment on the account by or for the |
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minor; |
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(3) pay withdrawals; |
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(4) accept pledges to the credit union by or for the |
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minor; and |
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(5) act in any other matter with respect to an account |
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on the order of a minor. |
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(b) This section does not authorize the credit union to open |
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a line of credit in the name of the minor without the prior approval |
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of the minor's parent or legal guardian, unless the minor's |
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disabilities of minority have been removed for this purpose. |
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SECTION 5. Subtitle Z, Title 3, Finance Code, is amended by |
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adding Chapter 282 to read as follows: |
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CHAPTER 282. LINES OF CREDIT |
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Sec. 282.001. RESTRICTION ON LINE OF CREDIT FOR MINOR. (a) |
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In this section, "financial institution" has the meaning assigned |
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by Section 277.001. |
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(b) Notwithstanding any other law, a financial institution |
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or other person may not open a line of credit in the name of a minor |
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without the prior approval of the minor's parent or legal guardian, |
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unless the minor's disabilities of minority have been removed for |
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this purpose. |
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SECTION 6. The changes in law made by this Act apply only to |
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a line of credit opened on or after the effective date of this Act. |
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A line of credit opened before the effective date of this Act is |
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governed by the law in effect on the date the line of credit was |
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opened, and the former law is continued in effect for that purpose. |
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SECTION 7. This Act takes effect September 1, 2019. |