FINANCE CODE
SUBTITLE B. SAVINGS AND LOAN ASSOCIATIONS
CHAPTER 61. GENERAL PROVISIONS
§ 61.001. SHORT TITLE. This subtitle may be cited as
the Texas Savings and Loan Act.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 61.002. DEFINITIONS. In this subtitle:
(1) "Association" means a savings and loan association
subject to this subtitle.
(2) "Board" means the board of directors of an
association.
(3) "Capital stock" means the units into which the
proprietary interest in a capital stock association is divided.
(4) "Capital stock association" means an association
authorized to issue capital stock.
(5) "Commissioner" means the savings and loan
commissioner.
(6) "Company" means a corporation, partnership,
trust, joint-stock company, association, unincorporated
organization, or other similar entity or a combination of any of
those entities acting together.
(7) "Domestic association" means a savings and loan
association organized under the laws of this state.
(8) "Earnings on savings accounts" means interest
contractually payable or dividends declared payable to holders of
savings accounts in an association.
(9) "Federal association" means a savings and loan
association incorporated under the Home Owners' Loan Act (12 U.S.C.
Section 1461 et seq.).
(10) "Finance commission" means the Finance
Commission of Texas.
(11) "Foreign association" means a savings and loan
association:
(A) organized under the laws of:
(i) a state or territory of the United
States other than this state; or
(ii) the United States; and
(B) the principal office of which is located
outside this state.
(12) "Loss reserves" means the aggregate amount of the
reserves allocated by an association solely to absorb losses.
(13) "Member" means, with respect to a mutual
association, a person:
(A) holding a savings account with the mutual
association;
(B) assuming or obligated on a loan in which the
mutual association has an interest; or
(C) owning property that secures a loan in which
the mutual association has an interest.
(14) "Mutual association" means an association not
authorized to issue capital stock.
(15) "Savings account" means the amount of money an
association owes an account holder as the result of the deposit of
funds in the association.
(16) "Savings and loan association" means an
association the primary purposes of which are to promote thrift and
home financing and the principal activity of which is the lending of
money secured by liens on homes and other improved real property.
(17) "Savings and loan holding company" means a
company that directly or indirectly controls a savings and loan
association or controls another company that directly or indirectly
controls a savings and loan association.
(18) "Savings liability" means the aggregate amount of
money shown by the books of the association to be owed to the
association's account holders.
(19) "Shareholder" means the owner of capital stock.
(20) "Surplus" means the aggregate amount of:
(A) the undistributed earnings of an association
held as undivided profits or unallocated reserves for general
corporate purposes; and
(B) paid-in surplus held by the association.
(21) "Unsafe and unsound practice" means an action or
inaction in the operation of an association that is likely to:
(A) cause insolvency or substantial dissipation
of assets or earnings; or
(B) reduce the ability of the association to
satisfy on time withdrawal requests of savings account holders.
(22) "Withdrawal value of a savings account" means the
net amount of money that may be withdrawn by an account holder from
a savings account.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended
by Acts 2001, 77th Leg., ch. 1420, § 6.101(a), eff. Sept. 1,
2001.
§ 61.003. CONTROL; SUBSIDIARY. (a) For the purposes
of this subtitle, a person controls an association if the person has
the power to direct or cause the direction of the management and
policies of the association directly or indirectly. A person is
considered to control an association if the person, individually or
acting with others, directly or indirectly holds with the power to
vote, owns, or controls, or holds irrevocable proxies representing,
at least 25 percent of the voting rights of the association.
(b) For the purposes of this subtitle, a company is a
subsidiary of an association if the association or another company
directly or indirectly controlled by the association controls the
company. An association is considered to control a company if the
association, directly or indirectly or acting with one or more
other individuals or entities or through one or more subsidiaries:
(1) holds with the power to vote, owns, or controls, or
holds proxies representing, more than 25 percent of the voting
shares of the company;
(2) controls in any manner the election of a majority
of the directors of the company;
(3) is a general partner in the company; or
(4) has contributed more than 25 percent of the equity
capital of the company.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 61.004. NOTICE OF HEARING; RIGHT TO
RESPOND. (a) Notice of a hearing under this subtitle shall be
given to each association and federal association in the county in
which the subject matter of the hearing is or will be located,
except that notice of a hearing held under an order under Chapter 66
shall be given to each party affected by the order.
(b) Each interested party is entitled to an opportunity to
respond and present evidence and argument on each issue involved in
a hearing under this subtitle.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 61.005. RECORD OF PROCEEDING. On written request by
an interested party, the commissioner shall keep a formal record of
the proceedings of a hearing under this subtitle.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 61.006. DECISION OR ORDER. (a) A decision or order
adverse to a party who has appeared and participated in a hearing
must be in writing and include separately stated findings of fact
and conclusions of law on the issues material to the decision or
order. Findings of fact that are stated in statutory language must
be accompanied by a concise and explicit statement of the
underlying facts supporting the findings.
(b) A decision or order entered after a hearing becomes
final and appealable 15 days after the date it is entered unless a
party files a motion for rehearing before that date. If the motion
for rehearing is overruled, the decision or order becomes final and
appealable on the date the order overruling the motion is entered.
(c) Each party to a hearing shall be promptly notified
personally or by mail of a decision, order, or other action taken in
respect to the subject matter of the hearing.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 61.007. FEES. The finance commission by rule shall:
(1) set the amount of fees the commissioner charges
for:
(A) supervision and examination of associations;
(B) filing an application or other documents;
and
(C) other services the commissioner performs;
and
(2) specify the time and manner of payment of the fees.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended
by Acts 2001, 77th Leg., ch. 867, § 22, eff. Sept. 1, 2001.
