Texas § FI.121.002 - DEFINITIONS

§ FI.121.002. DEFINITIONS

DEFINITIONS. In this subtitle: (1) "Board" means the board of directors of a credit union. (2) "Credit union," unless the context relates to a federal credit union, means a voluntary, cooperative, nonprofit financial institution authorized to do business in this state under this subtitle for purposes of: (A) encouraging thrift among its members; (B) creating a source of credit at fair and reasonable interest rates; (C) developing and providing to its members alternative methods of financing their purchases at reasonable costs; (D) providing an opportunity for its members to use and control their money to improve their economic and social condition; and (E) conducting any other business, engaging in any other activity, or providing any other service that may benefit its members. (3) "Commission" means the Credit Union Commission. (4) "Commissioner" means the credit union commissioner. (5) "Department" means the credit union department. (6) "Deputy commissioner" means the deputy credit union commissioner. (7) "Foreign credit union" means a credit union that is not organized under the laws of this state or the United States. (8) "Law enforcement agency" means the Department of Public Safety of the State of Texas, the Federal Bureau of Investigation, or any local police or sheriff department. (9) "Membership share" means a designated share account of a credit union consisting of the balance held by the credit union and established by a credit union member in accordance with the standards specified by the credit union. (10) "Organization" means a corporation, partnership, association, limited liability company, or other legal entity. (11) "Unsafe or unsound condition," with respect to a credit union, includes: (A) being insolvent; (B) having incurred or being likely to incur a loss that will deplete all or substantially all of the credit union's net worth; or (C) being in imminent danger of losing the credit union's share and deposit insurance or guarantee. (12) "Unsafe or unsound practice" means an action or inaction in the operation of a credit union that is contrary to generally accepted standards of prudent operation, the likely consequences of which, if continued, would be abnormal and material risk of loss or danger to a credit union, the credit union's members, or an organization insuring or guaranteeing the credit union's shares and deposits. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 157, Sec. 5, eff. Sept. 1, 1999; Acts 2003, 78th Leg., ch. 533, Sec. 6, eff. Sept. 1, 2003.