Tex. Fin. Code § 122.253 · Subchapter F. MISCONDUCT AND ENFORCEMENT
LOAN TO NONMEMBER.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) A person commits an offense if the person:
(1) is a director, honorary director, advisory director, committee member, officer, or employee of a credit union; and
(2) knowingly permits a loan to be made to a nonmember or participates in a loan to a nonmember.
(b) An offense under this section is a Class B misdemeanor.
(c) A person who commits an offense described by Subsection (a) is primarily liable to the credit union for the amount illegally loaned. The illegality of the loan is not a defense in an action by the credit union to recover on the loan.
(d) Extending credit to a nonmember as a comaker with a member or extending credit to a nonmember for the sale of property owned by the credit union or for the sale of assets acquired in liquidation or repossession is authorized and is not a loan to a nonmember. Acquiring a promissory note or other asset by a share and deposit guaranty corporation or credit union authorized under Section 15.410, on which a nonmember is liable, is not a loan to a nonmember.
Notes and commentary — not statutory text
History
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/FI/htm/FI.122.htm
- Text hash
- sha256 a1a7c0d241be519f922bdd5f6a4fe114d83dbff8c76abaf1da39745dea4b810c
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
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Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.