Tex. Finance Code § 122.253
This is the official text of Tex. Finance Code § 122.253, part of Texas’s Finance Code — regulates banks and other financial institutions.
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§ 122.253. LOAN TO NONMEMBER.
Official statutory text
(a) A person commits an offense if the person:
(1) is a director, honorary director, advisory director, committee member, officer, or employee of a credit union; and
(2) knowingly permits a loan to be made to a nonmember or participates in a loan to a nonmember.
(b) An offense under this section is a Class B misdemeanor.
(c) A person who commits an offense described by Subsection (a) is primarily liable to the credit union for the amount illegally loaned. The illegality of the loan is not a defense in an action by the credit union to recover on the loan.
(d) Extending credit to a nonmember as a comaker with a member or extending credit to a nonmember for the sale of property owned by the credit union or for the sale of assets acquired in liquidation or repossession is authorized and is not a loan to a nonmember. Acquiring a promissory note or other asset by a share and deposit guaranty corporation or credit union authorized under Section 15.410, on which a nonmember is liable, is not a loan to a nonmember.
(1) is a director, honorary director, advisory director, committee member, officer, or employee of a credit union; and
(2) knowingly permits a loan to be made to a nonmember or participates in a loan to a nonmember.
(b) An offense under this section is a Class B misdemeanor.
(c) A person who commits an offense described by Subsection (a) is primarily liable to the credit union for the amount illegally loaned. The illegality of the loan is not a defense in an action by the credit union to recover on the loan.
(d) Extending credit to a nonmember as a comaker with a member or extending credit to a nonmember for the sale of property owned by the credit union or for the sale of assets acquired in liquidation or repossession is authorized and is not a loan to a nonmember. Acquiring a promissory note or other asset by a share and deposit guaranty corporation or credit union authorized under Section 15.410, on which a nonmember is liable, is not a loan to a nonmember.
Status: in_force · Read it on the official government site
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