Tex.
Bus. Orgs. Code Section 23.068
Loan Limits
(a)
A loan limit shall be established at the $1,000 amount nearest to the amount computed in accordance with this section.(b)
The total amount outstanding on loans made to a corporation by a member at any one time, when added to the amount of the investment in the shares of the corporation then held by the member, may not exceed:(1)
20 percent of the total amount then outstanding on loans to the corporation by all members, including outstanding amounts validly called for a loan but not yet loaned; or(2)
the following limit, to be determined as of the time the member becomes a member of the corporation, or at any time requested by a member on the basis of the audited balance sheet of the member at the close of its fiscal year immediately preceding its application for membership or, in the case of an insurance company, its last annual statement to the Texas Department of Insurance:(A)
an amount equal to the lesser of $750,000 or two percent of the capital and surplus of a commercial bank or trust company;(B)
an amount equal to one percent of the total outstanding loans made by a savings and loan association;(C)
an amount equal to one percent of the capital and unassigned surplus of a stock insurance company other than a fire insurance company;(D)
an amount equal to one percent of the unassigned surplus of a mutual insurance company other than a fire insurance company;(E)
an amount equal to one-tenth of one percent of the assets of a fire insurance company; or(F)
the limits approved by the board of directors of the corporation for a government pension fund or other financial institution.(c)
Subject to Subsection (b), each call made by the corporation shall be prorated among the members of the corporation in substantially the same proportion that the adjusted loan limit of each member bears to the aggregate of the adjusted loan limits of all members.(d)
For purposes of Subsection (c), the adjusted loan limit of a member is the amount of the member’s loan limit, reduced by the balance of outstanding loans made by the member to the corporation and the investment in shares of the corporation held by the member at the time of the call.
Source:
Section 23.068 — Loan Limits, https://statutes.capitol.texas.gov/Docs/BO/htm/BO.23.htm#23.068 (accessed Apr. 20, 2024).
