FINANCE CODE
CHAPTER 65. SAVINGS ACCOUNTS
SUBCHAPTER A. GENERAL PROVISIONS
§ 65.001. LIMITATIONS ON ACCOUNTS. The board of
directors of an association may limit the number and value of
savings accounts the association may accept.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 65.002. INVESTMENT IN ACCOUNTS. (a) Any person may
be the holder of a savings account.
(b) An investment in a savings account may be made only in
cash.
(c) A person may invest in a savings account in the person's
own right or in a trust or other fiduciary capacity.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 65.003. SAVINGS CONTRACT. (a) Each holder of a
savings account must execute a savings contract. The contract must
specify:
(1) any special terms applicable to the account; and
(2) the conditions on which withdrawals may be made.
(b) The association shall hold a savings contract in the
records pertaining to the account.
(c) A savings contract pertaining to a savings account of a
public or governmental entity must provide that the holder of the
account may not become a member of the association.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 65.004. EVIDENCE OF ACCOUNT. An association shall
issue an account book or certificate to the holder of a savings
account as evidence of the account.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 65.005. ACCOUNT OWNERSHIP. Unless an association has
acknowledged in writing a pledge of a savings account, the
association may treat the holder of record of the account as the
owner of the account for all purposes and is unaffected by notice to
the contrary.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 65.006. TRANSFER OF ACCOUNT. (a) A savings account
may be transferred only on the books of an association on
presentation to the association of:
(1) evidence of transfer satisfactory to the
association; and
(2) an application for transfer by the transferee.
(b) A transferee accepts an account subject to the terms of
the:
(1) savings contract; and
(2) association's charter and bylaws.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 65.007. LOST OR DESTROYED ACCOUNT BOOK OR
CERTIFICATE. (a) An association may issue a new account book or
certificate in the name of the holder of record of a savings account
if:
(1) the holder or the holder's legal representative
requests; and
(2) proof is presented satisfactory to the association
that the original book or certificate is lost or destroyed.
(b) A new account book or certificate must expressly state
that:
(1) it is issued to replace a lost or destroyed account
book or certificate; and
(2) the association may not be held liable on the
original account book or certificate.
(c) An association may require indemnification against any
loss resulting from issuing a new account book or certificate.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 65.008. ACCOUNT WITHDRAWALS. (a) A savings account
holder at any time may present a written order for withdrawal of all
or part of the holder's account except to the extent the account is
pledged to the association or to another person on the
association's books.
(b) The association may:
(1) pay in full a withdrawal order as presented; and
(2) collect an early withdrawal penalty provided by
the certificate or contract applicable to the account.
(c) With the approval of the Finance Commission of Texas and
the governor, the commissioner may impose a uniform limitation on
amounts withdrawable from savings accounts of associations if that
limitation is necessary in the public interest.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 65.009. INTEREST OR DIVIDENDS PAID ON
ACCOUNTS. (a) An association whose bylaws contain the provision
authorized by Section 65.012 may contract to pay interest on
savings accounts.
(b) An association whose bylaws do not contain the provision
authorized by Section 65.012 may pay earnings on savings accounts
in the form of dividends declared by the association's board.
(c) An association shall compute and pay interest and
dividends according to rules of the finance commission.
(d) An association shall credit a dividend to a savings
account on the association's books unless the account holder
requests and the association has agreed that the association will
pay dividends on the account in cash.
(e) An association may pay a cash dividend by check or bank
draft.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended
by Acts 2001, 77th Leg., ch. 867, § 30, eff. Sept. 1, 2001.
§ 65.010. REDEMPTION OF SAVINGS ACCOUNT. (a) An
association may redeem in the manner the board determines all or
part of its savings accounts if the association:
(1) redeems the accounts on a dividend date;
(2) not later than the 31st day before the redemption
date, gives notice of the redemption by certified mail to each
affected account holder at the holder's last address as recorded on
the books of the association; and
(3) not later than the redemption date, sets aside the
amount necessary for the redemption and keeps the amount available
for redemption.
(b) The redemption price of a savings account is the
withdrawal value of the account.
(c) All rights, including the accrual of earnings, that
relate to a deposit account called for redemption, other than the
right of the account holder of record to receive the redemption
price, terminate as of the redemption date.
(d) An association may not redeem any of its savings
accounts if the association:
(1) is subject to supervisory control, a
conservatorship, or a receivership action under Chapter 66, unless
the commissioner directs the redemption; or
(2) has applications for withdrawal that have been on
file for more than 30 days and have not been paid.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 65.011. LIEN ON SAVINGS ACCOUNT. (a) Without
further agreement or pledge, an association or a federal
association doing business in this state has a lien on all savings
accounts owned by a member to whom or on whose behalf the
association has advanced money by loan or otherwise.
(b) On default in the payment or satisfaction of the
member's obligation, the association, without notice to or consent
of the member, may cancel on its books all or part of the member's
savings account and apply that amount to payment of the obligation.
(c) The association by written instrument may waive its lien
in whole or in part on a savings account.
(d) The association may take the pledge of a savings account
of the association that is owned by a member other than the borrower
as additional security for a:
(1) loan secured by an account;
(2) loan secured by an account and real property; or
(3) real property loan.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 65.012. PRIORITY OF ACCOUNTS; NOTICE OF
WITHDRAWAL. (a) An association's bylaws may provide that on
voluntary or involuntary liquidation, dissolution, or winding up of
the association, or in any other situation in which the priority of
savings accounts is in controversy, all savings accounts are, to
the extent of their withdrawal value, debts of the association
having the same priority as the claims of general creditors of the
association not having priority, other than a priority resulting
from consensual subordination, over claims of other general
creditors of the association.
(b) An association's bylaws may require not more than 60
days' notice before the date a withdrawal application may be paid.
(c) An association that requires notice of withdrawal and
does not pay a withdrawal application by the end of the notice
period is considered to be subject to supervisory control, a
conservatorship, or a receivership proceeding under Chapter 66.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 65.013. ACCOUNT AS LEGAL INVESTMENT. (a) Each of the
following persons may invest money held by the person in a savings
account of an association or a federal association:
(1) any fiduciary, including an administrator,
executor, guardian, or trustee;
(2) a political subdivision or instrumentality of this
state;
(3) an insurance company doing business in this state;
(4) a business or nonprofit corporation;
(5) a charitable or educational corporation or
association; and
(6) a financial institution, including a bank or
credit union.
(b) An investment by an insurance company in a savings
account is eligible for tax reducing purposes under Article 4.10,
Insurance Code.
(c) An investment by a school district in a savings account
insured by the Federal Deposit Insurance Corporation is considered
to meet the requirements of Section 45.102, Education Code.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
SUBCHAPTER B. PROVISIONS APPLICABLE TO SPECIFIC TYPES OF ACCOUNTS
§ 65.101. ACCOUNT HELD BY MINOR. (a) An association or
a federal savings and loan association doing business in this state
may accept a savings account from a minor as the sole and absolute
owner of the account.
(b) On the minor's order the association may:
(1) pay withdrawals;
(2) accept pledges to the association; and
(3) act in any other manner with respect to the
account.
(c) Subject to Subsection (e), a payment or delivery of
rights to a minor, or an acquittance signed by a minor who holds a
savings account, is a discharge of the association for that payment
or delivery.
(d) If the association requires a minor to furnish an
acquittance or pledge or take other action with respect to the
minor's savings account, that action is binding on the minor as if
the minor had the capacity of an adult.
(e) If a parent or guardian of a minor informs the
association in writing that the minor is not to have the authority
to control the minor's savings account, the minor may not control
the account during the minority without the joinder of the parent or
guardian.
(f) If a minor dies, the acquittance of a parent or guardian
of the minor discharges the association for amounts that in the
aggregate do not exceed $1,000.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 65.102. ACCOUNT HELD BY MORE THAN ONE PERSON. (a) If
a savings account is opened in an association or a federal savings
and loan association doing business in this state in the names of
more than one person, whether the persons are minors or adults, and
the savings contract specifies that money in the account may be paid
to or on the order of any one of the account holders, the
association may pay the money in the account to or on the order of
any one of the account holders before or after the death of any of
the other account holders. An association has no further liability
for a payment made under this subsection.
(b) If a savings contract specifies that a check, receipt,
or withdrawal order requires the signature of more than one of the
account holders or of more than one of the surviving account holders
after the death of an account holder, the association shall pay the
money in the account according to the terms of the savings contract.
(c) If a savings account holder gives written notification
to the association not to permit withdrawals according to the terms
of the savings contract, the association may refuse, without
liability, to honor any check, receipt, or withdrawal request on
the account pending a determination of the rights of the account
holders.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 65.103. JOINT TENANCY ACCOUNT HELD BY HUSBAND AND
WIFE. (a) A husband and wife may enter into a savings contract
that creates a joint tenancy with right of survivorship with
respect to community property deposited in a savings account and
any future additions or dividends made or credited to the account.
(b) An agreement under Subsection (a) must be in writing and
subscribed to by the husband and wife but is not required to be
acknowledged.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 65.104. PLEDGE OF JOINT ACCOUNT. (a) Unless the
terms of the savings account provide otherwise, a person on whose
signature money may be withdrawn from an account in the names of two
or more persons may, by a signed pledge, pledge and transfer to the
association or federal association all or part of the account.
(b) A pledge made under Subsection (a) does not sever or
terminate the joint and survivorship ownership of the account.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 65.105. ACCOUNT HELD BY FIDUCIARY. (a) An
association or a federal savings and loan association doing
business in this state may accept a savings account in the name of a
fiduciary, including an administrator, executor, custodian,
guardian, or trustee, for one or more named beneficiaries.
(b) A fiduciary may:
(1) vote as a member as if the membership were held
absolutely; and
(2) open, add to, or withdraw money from the account.
(c) Except as otherwise provided by law, a payment to a
fiduciary or an acquittance signed by the fiduciary to whom a
payment is made is a discharge of the association for the payment.
(d) After a person holding a savings account in a fiduciary
capacity dies, the association may pay or deliver to the
beneficiary the withdrawal value of the account, plus dividends on
the account, or other rights relating to the account, in whole or in
part, if the association has no written notice or order of the
probate court of:
(1) the revocation or termination of the fiduciary
relationship; or
(2) any other disposition of the beneficial estate.
(e) An association has no further liability for a payment
made or right delivered under Subsection (d).
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 65.106. TRUST ACCOUNT; UNDISCLOSED TRUST
INSTRUMENT. (a) If an association opens a savings account for a
person claiming to be the trustee for another and the association
has no other written notice of the existence or terms of a trust:
(1) the person claiming to be the trustee may, on the
person's signature, withdraw money from the account; and
(2) if that person dies, an association may pay the
withdrawal value of all or part of the account, plus dividends on
the account, to the person for whom the account was opened.
(b) An association has no further liability for a payment
made under Subsection (a).
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 65.107. POWER OF ATTORNEY ACCOUNT. (a) An
association or a federal association doing business in this state
may continue to recognize the authority of an attorney-in-fact
authorized in writing to manage or withdraw money from a savings
account of a member until the association receives written or
actual notice of the revocation of that authority.
(b) For purposes of this section, written notice of the
death or adjudication of incompetency of a member is considered to
be written notice of revocation of the authority of the member's
attorney-in-fact.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
