LOANS AND INVESTMENTS

Tex. FIN Code ch. 94
in effect

Tex. FIN Code § 94.001. LOANS TO ONE BORROWER.

(a) The finance commission by rule may limit loans to one borrower. Those limits may not be less restrictive than the limits imposed on savings associations under Section 5(u), Home Owners' Loan Act (12 U.S.C. Section 1464(u)). (b) A savings bank may not make loans to one borrower to a greater extent than: (1) permitted by rule adopted under Subsection (a); or (2) a savings association is permitted under Section 5(u), Home Owners' Loan Act (12 U.S.C. Section 1464(u)).

Tex. FIN Code § 94.002. COMMERCIAL LOANS.

(a) Subject to rules adopted by the finance commission, a savings bank may lend or invest not more than 40 percent of the savings bank's total assets in commercial loans. (b) In this section, "commercial loan" means a loan that: (1) is for business, commercial, corporate, or agricultural purposes; (2) is not a real property loan; and (3) is not a qualified thrift asset under Section 92.204 . Acts 2013, 83rd Leg., R.S., Ch. 464 (S.B. 1008 ), Sec. 10, eff. September 1, 2013. SUBCHAPTER B. LOAN EXPENSES

Tex. FIN Code § 94.051. BORROWER PAYMENT OF LOAN EXPENSES.

Subject to Section 94.052 , a savings bank may require a borrower to pay all reasonable expenses incurred in connection with making, closing, disbursing, extending, readjusting, or renewing a loan.

Tex. FIN Code § 94.052. CONSUMER LOANS.

In the case of a consumer loan: (1) a savings bank may charge a borrower the reasonable value of services rendered in connection with making the loan; and (2) an expense charged a borrower must be: (A) necessary and proper for the protection of the lender; and (B) actually incurred in connection with making the loan.

Tex. FIN Code § 94.053. COLLECTION OF LOAN EXPENSES.

An expense payment authorized by this subchapter may be: (1) collected by the savings bank from the borrower and: (A) retained by the savings bank; or (B) paid to a person rendering a service for which a charge was made, including an officer, director, or employee of the savings bank rendering the service; or (2) paid directly by the borrower to the person rendering the service.

Tex. FIN Code § 94.054. CHARACTER OF LOAN EXPENSE PAYMENTS.

An expense payment authorized by this subchapter is not interest or compensation charged by a savings bank for the loan of money. SUBCHAPTER C. LOAN PAYMENTS

Tex. FIN Code § 94.101. PENALTY FOR PREPAYMENT OR LATE PAYMENT.

A savings bank may charge a penalty for a prepayment of or late payment on a loan.

Tex. FIN Code § 94.102. APPLICATION OF PREPAYMENTS TO LOAN INSTALLMENTS.

Unless otherwise agreed in writing, a savings bank shall apply: (1) a prepayment of principal to the final installment of the obligation until the final installment is fully paid; and (2) additional prepayments to installments in the inverse order of their maturity. SUBCHAPTER D. CHARGES RELATING TO REAL PROPERTY LOANS

Tex. FIN Code § 94.151. ADVANCES PAID BY SAVINGS BANK.

(a) A savings bank may pay taxes, assessments, insurance premiums, and similar charges for the protection of the savings bank's interest in property that secures a real property loan of the savings bank. (b) A payment under Subsection (a) is an advance, and the savings bank may: (1) carry the payment on the savings bank's books as an asset of the savings bank for which the savings bank may charge interest; or (2) add the payment to the unpaid balance of the loan to which it applies as of the first day of the month in which the payment is made.

Tex. FIN Code § 94.152. ADVANCES ARE LIEN ON PROPERTY.

A payment under Section 94.151 is a lien against the real property that secures the loan for which it is made.

Tex. FIN Code § 94.153. PAYMENT OF ESTIMATED CHARGES BY BORROWER.

(a) To enable the savings bank to pay charges as they become due, a savings bank may require a borrower to pay monthly in advance, in addition to interest and principal, an amount equal to one-twelfth of the estimated annual taxes, assessments, insurance premiums, and other charges on the real property that secures a loan. (b) A savings bank may increase or decrease the amount of the loan payment as necessary to meet the charges. (c) A savings bank may: (1) carry the payments in trust in an account; or (2) credit the payments to the indebtedness and advance the money for charges as the charges become due.

Tex. FIN Code § 94.154. RECORD OF CHARGES.

A savings bank shall keep a record of the status of taxes, assessments, insurance premiums, and other charges on real property that secures the savings bank's loans. SUBCHAPTER F. INVESTMENT IN EQUITY SECURITIES

Tex. FIN Code § 94.251. LIMITATIONS ON INVESTMENT IN EQUITY SECURITIES.

(a) A savings bank or a subsidiary may not invest in an equity security unless the security qualifies as an investment grade security under rules adopted by the finance commission. (b) A savings bank may not invest in an equity security unless the security is an eligible investment for a federal savings and loan association.

Tex. FIN Code § 94.252. INAPPLICABILITY OF LIMITATIONS.

The limitations under Section 94.251 do not apply to an equity security issued by: (1) a United States government-sponsored corporation, including the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, and the Student Loan Marketing Association; or (2) a service corporation, an operating subsidiary, or a finance subsidiary of the savings bank.

Tex. FIN Code § 94.253. RULES.

The finance commission may adopt rules necessary to implement this subchapter, including rules relating to eligible investment criteria, investment diversification, and resource management requirements. SUBCHAPTER G. INVESTMENT IN SUBSIDIARIES

Tex. FIN Code § 94.301. AUTHORIZATION.

With the prior consent of the commissioner and subject to rules adopted by the finance commission, a savings bank may invest in a subsidiary corporation created under general corporation law.

Tex. FIN Code § 94.302. LIMITATION ON INVESTMENT IN SUBSIDIARIES.

(a) A savings bank may not invest in a subsidiary corporation if the investment would cause the savings bank's aggregate investments in subsidiaries to exceed an amount equal to 10 percent of the savings bank's total assets. (b) For the purposes of Subsection (a), a savings bank's aggregate investment in subsidiaries does not include amounts invested in a subsidiary corporation the activities of which are limited to activities that could be conducted directly by the parent savings bank.

Tex. FIN Code § 94.303. REGULATION AND EXAMINATION OF SUBSIDIARY.

(a) The commissioner may regulate and examine a subsidiary corporation in which a savings bank invests under Section 94.301 . (b) The subsidiary corporation shall pay the cost of the regulation and examination.

Tex. FIN Code § 94.304. RULES.

The finance commission shall adopt rules on permitted activities of a subsidiary corporation in which a savings bank invests under Section 94.301 . SUBCHAPTER H. PROPERTY OF SAVINGS BANK

Tex. FIN Code § 94.351. INVESTMENT IN BANKING PREMISES.

Without prior approval of the commissioner, a savings bank may invest not more than an amount equal to the savings bank's regulatory capital in real property, including a building or related facility, a parking facility, or leasehold improvements for a rented facility, for use by the savings bank as its banking premises.

Tex. FIN Code § 94.352. FORM OF SAVINGS BANK FACILITY.

The finance commission by rule adopted under Section 93.002 may approve a new form of savings bank facility or authorize the commissioner to approve a new form of savings bank facility if the commissioner does not have a significant supervisory or regulatory concern regarding the proposed facility.

Tex. FIN Code § 94.353. RECORD OF CHARGES ON REAL AND PERSONAL PROPERTY.

A savings bank shall keep a record of the status of taxes, assessments, insurance premiums, and other charges on all real and personal property owned by the savings bank.
Source: TX Statutes (Official Site)URL: https://statutes.capitol.texas.gov/Fetched: 6/29/2026