1. (a) Purchase, Lease and Sale of Property.

   1. (1) Restrictions. A credit union shall not purchase real estate (land or buildings) for the principal purpose of engaging in real estate rentals or speculation.
   2. (2) Insurance. A credit union shall purchase insurance covering physical damages and personal liability sufficient to protect the credit union from loss relating to property owned or occupied by the credit union. The coverages shall be reviewed annually by the board of directors.

   3. (3) Investment or obligation of funds. Any investment or obligation of funds in a building or other fixed assets, by purchase or lease, which in an aggregate amount exceeds 5.0% of the credit union's total assets at the time of the investment shall require the prior written approval of the commissioner. Requests for the approval must be submitted to the commissioner prior to entering into any contracts to purchase, to build, or to lease, and shall be supported by the following information:

      1. (A) a current financial and statistical report of the credit union, including a delinquency report;
      2. (B) projections showing expected growth in assets, loans, savings and membership, for a five year period, which may be based upon a rate of growth for the previous five years;
      3. (C) a description, including current usage, of currently owned real estate;
      4. (D) a plan for financing the purchase of land or the construction of any building;
      5. (E) a brief statement of the economic advantage and disadvantages relating to the proposed investment;
      6. (F) modifications expected, if any, to the site or any improvements thereon and the estimated cost thereof; and
      7. (G) the commissioner may require any additional information regarding the economic impact on the credit union of the investment deemed necessary for an informed evaluation of the investment.

2. (b) Unmanned Teller Machine--User Safety.

   1. (1) Definitions. The definitions set out in Article 3d, §1, are incorporated and made a part of this rule as if actually set out herein. As used in this rule, "the Act" means Article 3d.
   2. (2) Safety requirements. Not later than September 1, 1996, and unless exempted under the Act, §6, a credit union owner or operator shall comply with the safety requirements of the Act. In complying with the minimum lighting requirements, candlefoot power shall be measured under normal, dry weather conditions (i.e., without complicating factors such as fog, rain, snow, sand or duststorm or any other complicating condition).
   3. (3) Leased premises. The Act, §3(c), provides that if an access area or defined parking area for an unmanned teller machine is not controlled by the owner or operator of the machine, then the landlord or owner of the property is required to comply with the safety procedures in §3. If a credit union owner or operator is unable to obtain compliance from such a person, then it shall notify, in writing, the Credit Union Department of such non-compliance.

   4. (4) Notice.

      1. (A) Existing accounts. No later than January 1, 1996, a credit union which issues access devices shall furnish its members with a notice of basic safety precautions that should be employed while using an unmanned teller machine. The notice may be included as a statement stuffer with any other mailing or may be delivered personally or be mailed in any other form to each member whose mailing address is in this state and who has been issued an access device.
      2. (B) New Access Devices. A credit union which issues access devices shall furnish its members to whom access devices are issued with the notice of basic safety precautions at the time the initial disclosure of terms and conditions is provided to such member in accordance with Regulation E (12 Code of Federal Regulations 205).
      3. (C) Notice. After January 1, 1996, each credit union issuer of access devices shall furnish its members with the notice of basic safety precautions when an access device is issued, renewed or replaced.

      4. (D) Content. The notice of basic safety precautions shall be provided in written form in a medium which can be retained by the customer and may include information such as the following:

         1. (i) recommendations regarding security at walk-up unmanned teller machines;
         2. (ii) protection of code or PIN;
         3. (iii) security at drive-up unmanned teller machines;
         4. (iv) procedures for lost or stolen access devices;
         5. (v) reaction to suspicious circumstances;
         6. (vi) taking receipt instead of leaving it at or near the unmanned teller machine;
         7. (vii) not giving out information about an access device over the telephone;
         8. (viii) treating an access device as if it were cash;
         9. (ix) checking receipts against monthly statements to detect fraud; or
         10. (x) any other recommendations which the credit union reasonably believes are appropriate to facilitate the security of its users.
   5. (5) Video surveillance equipment. After evaluating the usefulness and practicality of usage of video surveillance equipment, the Credit Union Commission has determined that such equipment need not be required at credit union unmanned teller machines.

Source Note:The provisions of this §91.401 adopted to be effective March 8, 1984, 9 TexReg 1151; amended to be effective June 29, 1988, 13 TexReg 3017; amended to be effective July 8, 1994, 19 TexReg 4929; amended to be effective February 27, 1996, 21 TexReg 1270.