1. (a) The property of an association converted to a bank or savings bank immediately by operation of law vests in the bank or savings bank.

2. (b) The bank or savings bank:

   1. (1) holds the property in its own right to the extent it was held by the association that was converted; and
   2. (2) succeeds to the obligations and relations of the association that was converted on the date the conversion takes effect.
3. (c) A pending judicial proceeding to which the association that was converted is a party is not abated or discontinued by reason of the conversion and may be prosecuted to final judgment, order, or decree as if the conversion had not occurred.
4. (d) The bank or savings bank may continue a pending action in its own corporate name. A judgment, order, or decree that might have been rendered for or against the association that was converted may be rendered for or against the bank or savings bank.
5. (e) In this section, "property" has the meaning assigned by Section 62.259(e).

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.