Texas § FI.122.253 - LOAN TO NONMEMBER
Full text of Texas The Texas Constitution § FI.122.253 — LOAN TO NONMEMBER, with citation guidance and answers to common questions.
§ FI.122.253. LOAN TO NONMEMBER
LOAN TO NONMEMBER. (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. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Source: official Texas text · Last verified 2026-08-27
Frequently Asked Questions About Texas § FI.122.253
What does The Texas Constitution § FI.122.253 cover?
Section FI.122.253 ("LOAN TO NONMEMBER") is part of the The Texas Constitution, the codified statutory law of Texas. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Texas § FI.122.253?
A common citation format is "The Texas Constitution § FI.122.253" (Texas). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Texas law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Texas official source linked on this page or consult a licensed Texas attorney.
How does Texas § FI.122.253 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Texas can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Texas.