Texas Register, Volume 29, Number 28, Pages 6463-6834, July 09, 2004 Page: 6,483
6463-6834 p. ; 28 cm.View a full description of this periodical.
Extracted Text
The following text was automatically extracted from the image on this page using optical character recognition software:
(31) Secured credit--a loan made or extension of credit
given upon an assignment of an interest in collateral pursuant to
applicable state laws so as to make the enforcement or promise more
certain than the mere personal obligation of the debtor or promisor.
Any assignment may include an interest in personal property or real
property or a combination thereof.
(32) Title--Title 7, Part VI of the Texas Administrative
Code (TAC), Banking and Securities, which contains all of the
department's rules.
(33) Underserved area--a geographic area, which could
be described as one or more contiguous metropolitan statistical areas
(MSA) or one or more contiguous political subdivisions, including
counties, cities, and towns, that satisfy any one of the following
criteria:
(A) A majority of the residents earn less than 80 percent
of the average for all wage earners as established by the u. S. Bureau
of labor statistics;
(B) The annual household income for a majority of the
residents falls at or below 80 percent of the median household income
for the nation; or
(C) The commission makes a determination that the
lack of available or adequate financial services has adversely effected
economic development within the specified area.
(34) Uninsured membership share--funds paid into a credit
union by a member that constitute uninsured capital under conditions
established by the credit union and agreed to by the member includ-
ing possible reduction under section 122.105 of the act, risk of loss
through operations, or other forfeiture. Such funds shall be considered
an interest in the capital of the credit union upon liquidation, merger,
or conversion.
(35) Unsecured credit--a loan or extension of credit based
solely upon the general credit financial standing of the borrower. The
term shall include loans or other extensions of credit supported by the
signature of a co-maker, guarantor, or endorser.
(b) (No change.)
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal author-
ity to adopt.
Filed with the Office of the Secretary of State on June 22, 2004.
TRD-200404092
Harold E. Feeney
Commissioner
Credit Union Department
Earliest possible date of adoption: August 8, 2004
For further information, please call: (512) 837-9236
SUBCHAPTER B. ORGANIZATION
PROCEDURES
7 TAC 91.201
The Credit Union Commission proposes an amendment to rule
91.201 relating to incorporation procedures.The Credit Union Commission has completed its review of Texas
Administrative Code Title 7, Chapter 91, 91.201 relating to in-
corporation procedures. The Commission believes that the rea-
sons for initially adopting this rule continue to exist; however,
it has determined from its review that modifications need to be
made to itemize the details needed in the business plan required
by Texas Finance Code Section 122.001.
The proposed amendment sets out the items that need to be in-
cluded in the three year business plan submitted with an applica-
tion to incorporate. Specifically, the business plan must describe
the credit union's business, including the products, member ser-
vices, and other activities; provide pro forma financial informa-
tion for the three years of operation, including annual totals for
the income statement; describe in detail all of the assumptions
used to prepare the projected financial information; discuss the
capital goals and the means to achieve them; discuss the overall
marketing/advertising strategy to reach potential members; and
describe the economic forecast for the three years of the plan.
Kerri T. Galvin, General Counsel, has determined that for each
year of the first five years the proposed amended rule is in effect,
there will be no fiscal implications for state or local government
as a result of enforcing or administering the proposed rule.
Ms. Galvin has also determined that for each year of the first five
years the proposed amended rule is in effect, the public benefits
anticipated as a result of enforcing the rule will be clarification of
the charter application requirements and a more in depth analy-
sis of charter applications increasing the safety and soundness
of newly chartered credit unions. There is no anticipated effect
on small businesses as a result of adopting the amended rule.
There is no economic cost anticipated to credit unions for com-
plying with the amendments if adopted.
Written comments on the proposal must be submitted within 30
days after its publication in the Texas Register to Kerri T. Galvin,
General Counsel, Credit Union Department, 914 East Anderson
Lane, Austin, Texas 78752-1699.
The amendments are proposed under the provision of the Texas
Finance Code, Section 15.402, which authorizes the commis-
sion to adopt reasonable rules for administering Title 2, Chap-
ter 15 and Title 3, Subchapter D of the Texas Finance Code
and Texas Finance Code Section 122.001, which authorizes the
Commission to prescribe the form of charter applications.
The specific section affected by the proposed amendments is
Texas Finance Code, Sections 122.001.
91.201. Incorporation Procedures.
(a) An application to incorporate a credit union shall be in writ-
ing and supported by such information and data as the commissioner
may require to make the findings necessary for the issuance of a cer-
tificate of incorporation.
(b) Business Plan. The application must include a business
plan that covers three years and provides detailed explanations of ac-
tions that are proposed to accomplish the primary functions of the credit
union. The description should provide enough detail to demonstrate
that the institution has a reasonable chance for success, will operate in
a safe and sound manner, and will maintain adequate capital to support
its operations. Specifically the plan must:
(1) Describe the credit union's business, including the
products, member services, and other activities;
(2) Provide pro forma financial information for the three
years of operation, including annual totals for the Income Statement;PROPOSED RULES July 9, 2004 29 TexReg 6483
Upcoming Pages
Here’s what’s next.
Search Inside
This issue can be searched. Note: Results may vary based on the legibility of text within the document.
Tools / Downloads
Get a copy of this page or view the extracted text.
Citing and Sharing
Basic information for referencing this web page. We also provide extended guidance on usage rights, references, copying or embedding.
Reference the current page of this Periodical.
Texas. Secretary of State. Texas Register, Volume 29, Number 28, Pages 6463-6834, July 09, 2004, periodical, July 9, 2004; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth101131/m1/20/: accessed July 17, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.