Tex.
Fin. Code Section 92.155
Conflicts of Interest
(a)
Except as the finance commission by rule provides, a director or officer may not:(1)
receive directly or indirectly a commission on or benefit from a loan made by the savings bank;(2)
pay for services rendered to a borrower from the savings bank in connection with a loan;(3)
direct or require a borrower on a mortgage to negotiate an insurance policy on the mortgage property through a particular insurance company;(4)
attempt to divert to a particular insurance broker the business of borrowers from the savings bank;(5)
refuse to accept an insurance policy on the mortgaged property because the policy was not negotiated through a particular insurance broker;(6)
become an obligor, including an endorser, surety, or guarantor, on a loan made by the savings bank;(7)
borrow or use, individually or as agent or partner of another, directly or indirectly, money of the savings bank;(8)
become the owner of real property on which the savings bank holds a mortgage unless the loan is fully secured by:(A)
a first-lien mortgage on property that:(i)
is to be occupied as the director’s or officer’s primary residence; and(ii)
is specifically approved in writing by the board; or(B)
a deposit maintained by the officer or director with the savings bank; or(9)
engage in any other activity the finance commission by rule prohibits.(b)
Except as the finance commission by rule provides, a savings bank may not make a loan to a corporation in which:(1)
a director or officer of the savings bank holds stock, options, or warrants to purchase stock in the amount of five percent or more of the outstanding stock; or(2)
the directors of the savings bank together hold stock, options, or warrants to purchase stock in the amount of five percent or more of the outstanding stock.(c)
A deposit with a banking corporation is a loan for purposes of this section.(d)
This section does not prohibit a savings bank from:(1)
making a loan to a religious corporation, club, or other membership corporation of which one or more directors or officers are members but in which they have no financial interest; or(2)
making a loan to or purchasing a guaranteed mortgage from a stock corporation if:(A)
a director does not own more than 15 percent of the corporation’s capital stock; and(B)
the total amount of the corporation’s capital stock owned by all directors of the savings bank is less than 25 percent.
Source:
Section 92.155 — Conflicts of Interest, https://statutes.capitol.texas.gov/Docs/FI/htm/FI.92.htm#92.155 (accessed May 11, 2024).
