Texas Administrative Code
Title 7 - BANKING AND SECURITIES
Part 6 - CREDIT UNION DEPARTMENT
Chapter 91 - CHARTERING, OPERATIONS, MERGERS, LIQUIDATIONS
Subchapter I - RESERVES AND DIVIDENDS
Section 91.902 - Dividends
Universal Citation: 7 TX Admin Code ยง 91.902
Current through Reg. 49, No. 38; September 20, 2024
(a) Dividend eligibility shall be prescribed by written board policy.
(b) When a credit union is subject to a cease and desist order or is otherwise notified that it is deemed to be in a troubled condition or engaged in an unsafe practice, the credit union must obtain prior written approval of the commissioner before it declares or pays any dividend or interest refund. A request for approval to pay a dividend or interest refund under this section must be in writing and must include the following supporting information:
(1) the proposed dividend and/or
interest refund rate and the estimated total dollar amount of
payment;
(2) an analysis of the
credit union's ability to make the payment from current earnings without
incurring an operating loss for the period; and
(3) an explanation of the progress in
resolving the areas of concern detailed in the cease and desist order or the
examiner's findings schedule of the most recent report of
examination.
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