| (8) if any director of the credit union is an employee
of the CUSO, or anticipates becoming an employee of the CUSO upon
its formation.
(f) Permissible activities and services. The commissioner
may, based upon supervisory, legal, or safety and soundness reasons,
limit any CUSO activities or services, or refuse to permit any CUSO
activities or services. Otherwise, a credit union may invest in or
loan to a CUSO that is engaged in providing products and services
that include, but are not limited to:
(1) operational services including credit and debit
card services, cash services, wire transfers, audits, ATM and other
EFT services, share draft and check processing and related services,
shared service center operations, electronic data processing, development,
sale, lease, or servicing of computer hardware and software, alternative
methods of financing and related services, other lending related services,
and other services or activity, including consulting, related to the
routine daily operations of credit unions;
(2) financial services including financial planning
and counseling, securities brokerage and dealer activities, estate
planning, tax services, insurance services, administering retirement,
or deferred compensation and other employee or business benefit plans;
(3) internet-based or related services including sale
and delivery of products to credit unions or members of credit unions;
(4) Property management services; or
(5) any other product, service or activity deemed economically
beneficial or attractive to credit unions or credit union members
if approved, in writing, by the commissioner.
(g) Compensation. A credit union director, senior management
employee, or committee member or immediate family member of any such
person may not receive any salary, commission, or other income or
compensation, either directly or indirectly, from a CUSO affiliated
with their credit union, unless received in accordance with a written
agreement between the CUSO and the credit union. The agreement shall
describe the services to be performed, the rate of compensation (or
a description of the method of determining the amount of compensation)
and any other provisions deemed desirable by the CUSO and the credit
union. The agreement, and any amendments, must be approved by the
board of directors of the credit union and the board of directors
(or equivalent governing body) of the CUSO prior to any performance
of service or payment and annually thereafter. For purposes of this
section, senior management employee shall include the chief executive
officer, any assistant chief executive officers (vice presidents and
above), and the chief financial officer. Immediate family shall include
a person's spouse or any other person living in the same household.
(h) Examination fee. If the commissioner requests a
CUSO to make its books and records available for inspection and examination,
the CUSO shall pay a supplemental examination fee as prescribed in §97.113(e)
of this title (relating to Supplemental examination fees). The commissioner
may waive the supplemental examination fee or reduce the fee.
(i) Exception. A credit union which has a net worth
ratio greater than six percent (6%) and is deemed adequately capitalized
by its insuring organization may make an investment in or make loans
to a CUSO that is not limited by the restriction set forth in subsection
(e)(4) of this section, provided the activities of the CUSO are limited
to activities which could be conducted directly by a credit union
or are incidental to the conduct of the business of a credit union.
Notwithstanding this exception, all other provisions of the act and
this chapter applicable to a CUSO apply. In the event a credit union's
net worth declines below the required thresholds, the credit union
may not renew, extend the maturity of, or restructure an existing
loan, advance additional funds, or increase the investment in the
CUSO without the prior written approval of the commissioner.
(j) Change in Valuation. If the limitations established
by this section are reached or exceeded solely because of the profitability
of the CUSO and the related GAAP valuation of the investment under
the equity method, divestiture is not required. A credit union may
continue to invest up to the limitation without regard to the increase
in the GAAP valuation resulting from a CUSO's profitability.
|
| Source Note: The provisions of this §91.801 adopted to be effective March 8, 1984, 9 TexReg 1155; amended to be effective August 7, 1984, 9 TexReg 4028; amended to be effective March 8, 1994, 19 TexReg 1327; amended to be effective May 13, 1999, 24 TexReg 3473; amended to be effective August 14, 2000, 25 TexReg 7635; amended to be effective January 7, 2004, 29 TexReg 83; amended to be effective July 11, 2004, 29 TexReg 6630; amended to be effective July 10, 2005, 30 TexReg 3863; amended to be effective November 11, 2007, 32 TexReg 7921; amended to be effective March 4, 2009, 34 TexReg 1400; amended to be effective March 8, 2012,37TexReg 1505; amended to be effective June 18, 2012, 37 TexReg 4410; amended to be effective November 24, 2019, 44 TexReg 7039 |
