TITLE 7.BANKING AND SECURITIES

Part 6. CREDIT UNION DEPARTMENT

Chapter 91. CHARTERING, OPERATIONS, MERGERS, LIQUIDATIONS

Subchapter D. POWERS OF CREDIT UNIONS

7 TAC §91.406

The Credit Union Commission adopts new §91.406, concerning credit union service contracts without changes to the text published in the January 2, 2004, issue of the Texas Register (29 TexReg 19).

The new rule replaces existing §91.401(c) which was repealed in the March 5, 2004, issue of the Texas Register (29 TexReg 2305) and makes one substantive change.

The new rule is adopted to provide greater clarity and ease of use of the rule. The new rule modifies the former rule to comply with a new provision enacted in the 78th Session of the Legislature that was contained within House Bill 1307. The provision added a new §15.4032, Texas Finance Code, limiting the scope of the rule to those contracts that deal with electronic data processing, electronic funds transfers, or other member services on behalf of the credit union.

No comments were received on the proposal.

The new rule is adopted under the provision of the Texas Finance Code, §15.402, which authorizes the Commission to adopt reasonable rules for administering Title 2, Chapter 15 and Title 3, Subchapter D of the Texas Finance Code.

The specific section affected by the new rule is Texas Finance Code, §15.4032.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 23, 2004.

TRD-200401335

Harold E. Feeney

Commissioner

Credit Union Department

Effective date: March 14, 2004

Proposal publication date: January 2, 2004

For further information, please call: (512) 837-9236


7 TAC §91.407

The Credit Union Commission adopts new §91.407 concerning electronic notification without changes to the text published in the January 2, 2004, issue of the Texas Register (29 TexReg 20).

The new rule replaces existing §91.401(d) which was repealed in the March 5, 2004, issue of the Texas Register and makes no substantive changes. The new rule will provide greater clarity and ease of use of the rule.

No comments were received on the proposal.

The new rule is adopted under the provision of the Texas Finance Code, §15.402, which authorizes the Commission to adopt reasonable rules for administering Title 2, Chapter 15 and Title 3, Subchapter D of the Texas Finance Code.

The specific sections affected by the rule are Texas Finance Code, §§122.011, 123.001, 123.002, 125.002, 125.003, 125.103, 125.504, 125.505, 125.507, and 125.510.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 23, 2004.

TRD-200401334

Harold E. Feeney

Commissioner

Credit Union Department

Effective date: March 14, 2004

Proposal publication date: January 2, 2004

For further information, please call: (512) 837-9236


7 TAC §91.408

The Credit Union Commission adopts new §91.408 concerning user fees for shared electronic terminals without changes to the text published in the January 2, 2004, issue of the Texas Register (29 TexReg 20).

The new rule will replace existing §91.401(e) which was repealed in the March 5, 2004, issue of the Texas Register and makes no substantive changes. The new rule will provide greater clarity and ease of use of the rule.

No comments were received on the proposal.

The new rule is adopted under the provision of the Texas Finance Code, §15.402, which authorizes the Commission to adopt reasonable rules for administering Title 2, Chapter 15 and Title 3, Subchapter D of the Texas Finance Code.

The specific sections affected by the proposed rule are Texas Finance Code, §§123.001, 123.002, 123.202, and 123.203.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 23, 2004.

TRD-200401333

Harold E. Feeney

Commissioner

Credit Union Department

Effective date: March 14, 2004

Proposal publication date: January 2, 2004

For further information, please call: (512) 837-9236


7 TAC §91.409

The Credit Union Commission adopts new §91.409 concerning the permanent closing of an office or operation without changes to the text published in the January 2, 2004, issue of the Texas Register (29 TexReg 21).

The new rule will replace existing §91.401(b) which was repealed in the March 5, 2004, issue of the Texas Register with no substantive changes. The new rule will provide greater clarity and ease of use of the rule.

No comments were received on the proposal.

The new rule is adopted under the provision of the Texas Finance Code, §15.402, which authorizes the Commission to adopt reasonable rules for administering Title 2, Chapter 15 and Title 3, Subchapter D of the Texas Finance Code.

The specific sections affected by the proposed rule are Texas Finance Code, §§122.012, 123.001, 123.002, and 123.106.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 23, 2004.

TRD-200401332

Harold E. Feeney

Commissioner

Credit Union Department

Effective date: March 14, 2004

Proposal publication date: January 2, 2004

For further information, please call: (512) 837-9236


Subchapter E. DIRECTION OF AFFAIRS

7 TAC §91.501

The Credit Union Commission adopts an amendment to §91.501 concerning eligibility to hold office without changes to the text published in the January 2, 2004, issue of the Texas Register (29 TexReg 21).

The amendment implements a new provision enacted in the 78th Session of the Legislature that was contained within HB 1307. The amended §122.055(a) of the Texas Finance Code requires the Commission to adopt a rule to prescribe the total number of absences that a director may have before his/her office becomes vacant. The proposed amendment utilizes the same criteria that the Commission adopted in its most recent version of the Standard Bylaws for State Chartered Credit Unions.

No comments were received on the proposal.

The amendment is adopted under the provision of the Texas Finance Code, §15.402, which authorizes the Commission to adopt reasonable rules for administering Title 2, Chapter 15 and Title 3, Subchapter D of the Texas Finance Code and under Texas Finance Code §122.055(a) which requires the Commission to adopt a rule to prescribe the total number of absences that a director may have before his/her office becomes vacant.

The specific section affected by the proposed amendment is Texas Finance Code, §122.055.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 23, 2004.

TRD-200401331

Harold E. Feeney

Commissioner

Credit Union Department

Effective date: March 14, 2004

Proposal publication date: January 2, 2004

For further information, please call: (512) 837-9236


7 TAC §91.515

The Credit Union Commission adopts an amendment to §91.515 concerning financial reporting without changes to the text published in the January 2, 2004, issue of the Texas Register (29 TexReg 22).

The amendment implements a new provision enacted in the 78th Session of the Legislature that was contained within HB 1307. The provision amended §122.101(a) of the Texas Finance Code requiring credit unions to submit call reports quarterly instead of semi-annually. The proposed amendment makes the rule conform to the new legislation.

No comments were received on the proposal.

The amendment is adopted under the provision of the Texas Finance Code, §15.402, which authorizes the Commission to adopt reasonable rules for administering Title 2, Chapter 15 and Title 3, Subchapter D of the Texas Finance Code.

The specific section affected by the proposed amendment is Texas Finance Code, §122.101.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 23, 2004.

TRD-200401330

Harold E. Feeney

Commissioner

Credit Union Department

Effective date: March 14, 2004

Proposal publication date: January 2, 2004

For further information, please call: (512) 837-9236


Subchapter G. LENDING POWERS

7 TAC §91.701

The Credit Union Commission adopts an amendment to §91.701, concerning lending powers without changes to the text published in the January 2, 2004, issue of the Texas Register (29 TexReg 22).

The amendment to the rule is adopted as a result of the passage of Proposition 16, which amended the Texas Constitution to allow credit unions to offer home equity lines of credit (HELOCs). In accordance with Article 16, Chapter 50 of the Texas Constitution, HELOCs are considered to be authorized home equity loans. The amendment clarifies that the amortization schedule for a HELOC shall not exceed 20 years.

No comments were received on the proposal.

The amendment is adopted under the provision of the Texas Finance Code, §15.402, which authorizes the Commission to adopt reasonable rules for administering Title 2, Chapter 15 and Title 3, Subchapter D of the Texas Finance Code.

The specific sections affected by the adopted amendment are Texas Finance Code, §124.052 and §124.201.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 23, 2004.

TRD-200401344

Harold E. Feeney

Commissioner

Credit Union Department

Effective date: March 14, 2004

Proposal publication date: January 2, 2004

For further information, please call: (512) 837-9236


7 TAC §91.719

The Credit Union Commission adopts the amendments to §91.719, concerning loans to officials and employees without changes to the text published in the January 2, 2004, issue of the Texas Register (29 TexReg 25).

The amendments implement a new provision enacted in the 78th Session of the Legislature that was contained within House Bill 1307. The provision amended §124.201 of the Texas Finance Code to make the current restrictions only applicable to senior management employees. The amendments makes conforming changes to the rule.

No comments were received on the proposal.

The amendments are adopted under the provision of the Texas Finance Code, §15.402, which authorizes the Commission to adopt reasonable rules for administering Title 2, Chapter 15 and Title 3, Subchapter D of the Texas Finance Code.

The specific section affected by the adopted amendments is Texas Finance Code, §124.201.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 23, 2004.

TRD-200401343

Harold E. Feeney

Commissioner

Credit Union Department

Effective date: March 14, 2004

Proposal publication date: January 2, 2004

For further information, please call: (512) 837-9236


Subchapter P. OTHER FORMS OF EQUITY CAPITAL

7 TAC §91.7000

The Credit Union Commission adopts new §91.7000, concerning certificates of indebtedness without changes to the text published in the January 2, 2004, issue of the Texas Register (29 TexReg 26).

The new rule implements a new provision enacted in the 78th Session of the Legislature that was contained within House Bill 1307. The provision added a new §123.211 to the Texas Finance Code giving the Commission the authority to adopt rules for the issuance of certificates of indebtedness. The proposed new rule establishes the criteria a credit union must meet in order to issue certificates of indebtedness.

No comments were received on the proposal.

The new rule is adopted under the provision of the Texas Finance Code, §15.402, which authorizes the Commission to adopt reasonable rules for administering Title 2, Chapter 15 and Title 3, Subchapter D of the Texas Finance Code and under §123.211 of the Texas Finance Code which authorizes the Commission to adopt rules relating to the issuance of certificates of indebtedness.

The specific section affected by the new rule is Texas Finance Code, §123.211.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 23, 2004.

TRD-200401342

Harold E. Feeney

Commissioner

Credit Union Department

Effective date: March 14, 2004

Proposal publication date: January 2, 2004

For further information, please call: (512) 837-9236


Subchapter Q. ACCESS TO CONFIDENTIAL INFORMATION

7 TAC §91.8000

The Credit Union Commission adopts new §91.8000, concerning discovery of confidential information without changes to the text published in the January 2, 2004, issue of the Texas Register (29 TexReg 29).

The new rule implements a new provision enacted in the 78th Session of the Legislature that was contained within House Bill 1307. The provision added a new §126.002 to the Texas Finance Code requiring credit unions to comply with rules adopted by the Commission concerning discovery of confidential information under subpoena or other legal process. The proposed new rule restricts the release of confidential information to the portion directly relevant to the legal dispute at issue and requires a protective order be issued by a court before release of the confidential information.

No comments were received on the proposal.

The new rule is adopted under the provision of the Texas Finance Code, §15.402, which authorizes the Commission to adopt reasonable rules for administering Title 2, Chapter 15 and Title 3, Subchapter D of the Texas Finance Code and under §126.002 of the Texas Finance Code which authorizes the Commission to adopt rules restricting the release of confidential information to the portion directly relevant to the legal dispute at issue and requires a protective order be issued by a court before release of the confidential information.

The specific section affected by the new rule is Texas Finance Code, §126.002.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 23, 2004.

TRD-200401341

Harold E. Feeney

Commissioner

Credit Union Department

Effective date: March 14, 2004

Proposal publication date: January 2, 2004

For further information, please call: (512) 837-9236


Chapter 93. ADMINISTRATIVE PROCEEDINGS

Subchapter E. APPEALS OF ORDERS OF CONSERVATION

7 TAC §93.502

The Credit Union Commission adopts new §93.502, concerning retention of attorney without changes to the text published in the January 2, 2004, issue of the Texas Register (29 TexReg 30).

The new rule implements a new provision enacted in the 78th Session of the Legislature that was contained within House Bill 1307. The provision amended §126.159 of the Texas Finance Code to allow a credit union that has been placed into conservatorship to retain an attorney in contesting or satisfying the requirements of the order of conservatorship. The new rule establishes the criteria that a credit union must follow in order for the Commissioner to authorize the payment of reasonable fees and expenses for such attorney.

No comments were received on the proposal.

The new rule is adopted under the provision of the Texas Finance Code, §15.402, which authorizes the Commission to adopt reasonable rules for administering Title 2, Chapter 15 and Title 3, Subchapter D of the Texas Finance Code and under §126.159 of the Texas Finance Code which authorizes the Commissioner to authorize the payment of reasonable fees and expenses of the attorneys as expenses of the conservatorship.

The specific section affected by the new rule is Texas Finance Code, §126.159.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 23, 2004.

TRD-200401340

Harold E. Feeney

Commissioner

Credit Union Department

Effective date: March 14, 2004

Proposal publication date: January 2, 2004

For further information, please call: (512) 837-9236


Chapter 97. COMMISSION POLICIES AND ADMINISTRATIVE RULES

Subchapter A. GENERAL PROVISIONS

7 TAC §97.107

The Credit Union Commission adopts new §97.107, concerning examination of related entities without changes to the text published in the January 2, 2004, issue of the Texas Register (29 TexReg 31).

The new rule implements a new provision enacted in the 78th Session of the Legislature that was contained within House Bill 1307. The provision added a new §15.4032 to the Texas Finance Code allowing the Department to examine certain credit union related entities. The new rule establishes the criteria that will be used in the examination of these related entities.

No comments were received on the proposal.

The new rule is adopted under the provision of the Texas Finance Code, §15.402, which authorizes the Commission to adopt reasonable rules for administering Title 2, Chapter 15 and Title 3, Subchapter D of the Texas Finance Code and under §15.4032 of the Texas Finance Code which authorizes the Commission to adopt rules regarding the examination of credit union related entities.

The specific section affected by the rule is Texas Finance Code, §15.4032.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 23, 2004.

TRD-200401339

Harold E. Feeney

Commissioner

Credit Union Department

Effective date: March 14, 2004

Proposal publication date: January 2, 2004

For further information, please call: (512) 837-9236


Subchapter C. DEPARTMENT OPERATIONS

7 TAC §97.207

The Credit Union Commission adopts new §97.207, concerning authority to contract for professional or personal service without changes to the text published in the January 2, 2004, issue of the Texas Register (29 TexReg 31).

The new rule implements a new provision enacted in the 78th Session of the Legislature that was contained within House Bill 1307. The provision added a new §15.414 to the Texas Finance Code authorizing the Commissioner to negotiate, contract or enter into agreements for professional or personal services to carry out the powers and duties of the Department. In addition, the Commission by rule is required to adopt policies and procedures consistent with applicable state procurement practices for soliciting and awarding contracts under this section. The new rule establishes the applicable procedures.

No comments were received on the proposal.

The new rule is adopted under the provision of the Texas Finance Code, §15.402, which authorizes the Commission to adopt reasonable rules for administering Title 2, Chapter 15 and Title 3, Subchapter D of the Texas Finance Code and under §15.414 of the Texas Finance Code which authorizes the Commission to adopt rules regarding the solicitation and award of contracts for professional or personal services.

The specific section affected by the rule is Texas Finance Code, §15.414.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 23, 2004.

TRD-200401338

Harold E. Feeney

Commissioner

Credit Union Department

Effective date: March 14, 2004

Proposal publication date: January 2, 2004

For further information, please call: (512) 837-9236


Subchapter D. GIFTS AND BEQUESTS

7 TAC §97.300

The Credit Union Commission adopts new §97.300, concerning gifts of money or property without changes to the text published in the January 2, 2004, issue of the Texas Register (29 TexReg 32).

The new rule implements a new provision enacted in the 78th Session of the Legislature that was contained within House Bill 1307. The provision added a new §15.413 to the Texas Finance Code authorizing the Department, subject to the Commission's approval, to accept money or property by gift, bequest, devise, or otherwise for any department purpose. The new rule establishes the pertinent criteria that a person must follow before the Commission will consider approval of the gift.

No comments were received on the proposal.

The new rule is adopted under the provision of the Texas Finance Code, §15.402, which authorizes the Commission to adopt reasonable rules for administering Title 2, Chapter 15 and Title 3, Subchapter D of the Texas Finance Code and under §15.413 of the Texas Finance Code which authorizes the Commission to accept gifts of money or property.

The specific section affected by the rule is Texas Finance Code, §15.413.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 23, 2004.

TRD-200401337

Harold E. Feeney

Commissioner

Credit Union Department

Effective date: March 14, 2004

Proposal publication date: January 2, 2004

For further information, please call: (512) 837-9236