Texas Administrative Code
Title 7 - BANKING AND SECURITIES
Part 4 - DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
Chapter 60 - SAVINGS ASSOCIATIONS
Subchapter D - LOANS, INVESTMENTS, SAVINGS, AND DEPOSITS
Division 1 - AUTHORIZED LOANS AND INVESTMENTS
Section 60.307 - Letters of Credit
Current through Reg. 49, No. 38; September 20, 2024
A savings association may issue letters of credit in accordance with the terms and conditions of the Uniform Commercial Code of the State of Texas and the Uniform Customs and Practice for Documentary Credits, subject to the following requirements:
(1) The savings association must maintain a letter of credit register containing name of customer, address, amount of credit extended, and identifying number.
(2) Each letter of credit must conspicuously state that it is a letter of credit or must be conspicuously entitled as such.
(3) The savings association's undertaking must contain a specified expiration date or be for a definite term and must be limited in amount.
(4) The savings association's obligation to pay arises only upon presentation of a draft and other documents as specified in the letter of credit and there is no obligation on the part of the savings association to determine questions of fact or law at issue between the account party and the beneficiary.
(5) The savings association must obtain an unqualified obligation from its customer to reimburse it for payments made under the letter of credit.
(6) Each letter of credit's terms is subject to the limitations and documentation requirements to the same extent as if it were a loan made under this chapter.
(7) An appropriate fee may be collected for each letter of credit issued.
