124.204 – PRIOR APPROVAL REQUIRED. The board must give its
Texas Finance Code § 124.204
Summary
This law requires credit unions to obtain board approval before allowing certain individuals, such as directors or senior management, to act as comakers or guarantors for loans exceeding a specified amount. This provision aims to prevent conflicts of interest and ensure financial oversight within the credit union.
Board approval is mandatory for certain loan guarantees.
Applies to directors, senior management, and credit committee members.
Threshold for approval is loans over $10,000 or a higher amount.
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In simple terms: Learn about Texas's PRIOR APPROVAL REQUIRED. The board must give its law, including definitions, penalties, and legal implications.. This means people must follow this rule, and breaking it can lead to criminal penalties.
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