Texas § 122.253 LOAN TO NONMEMBER.

Texas Statutes

§ 122.253 — LOAN TO NONMEMBER.

Texas § 122.253

Code FIFinance Code

This text of Texas § 122.253 (LOAN TO NONMEMBER.) is published on Counsel Stack Legal Research, covering Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Tex. Finance Code Code Ann. § 122.253 (2026).

Text

Sec. 122.253. 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 repo

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Sec. 122.253. 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.