1. (a) The rates, terms, conditions, and availability of any loan or other extension of credit made to, or endorsed or guaranteed by, a director, employee, member of the credit committee or an immediate family member of any such individual shall not be more favorable than the rates, terms, conditions, and availability of comparable loans or credit to other credit union members.
2. (b) Before making a loan, extending credit, or becoming contractually liable to make a loan or extend credit to a director, employee, member of the credit committee, or an immediate family member of such individual, the board of directors must approve the transaction if the loan or the extension of credit or aggregate of outstanding loans and extensions of credit to any one person, the person's business interests, and the members of the person's immediate family is greater than 15% of the credit union's net worth. A loan fully secured by shares in the credit union or deposits in other financial institutions shall not be subject to, or included in the aggregate amounts included in this section.
3. (c) For purposes of this section, the term immediate family member includes the spouse of an individual, the individual's minor children, and any of the individual's children (including adults) residing in the individual's home.
4. (d) The aggregate of all outstanding loans or extensions of credit made to, or endorsed or guaranteed by all directors, credit committee members, senior executive staff, and immediate family members of all such individuals shall not exceed 20% of the credit union's total assets. The requirements described in this subsection shall apply unless waived in writing by the commissioner for good cause shown.

5. (e) At least semiannually, the president shall make a report to the board of directors on the outstanding indebtedness of all directors, credit committee members, senior executive staff, and immediate family members of such individuals. Each report must ordinarily be retained at the credit union for a period of three years and shall not be filed with the Department unless specifically requested. The report required by this section shall include the following information:

   1. (1) The amount of each indebtedness; and
   2. (2) A description of the terms and conditions (including the interest rate, the original amount and date, maturity date, payment terms, security, if any, and any other unusual term or condition) of each extension of credit.
6. (f) At the discretion of the Board, the reporting requirement of subsection (e) of this section may be waived if the aggregate of outstanding loans and extensions of credit to any one person, the person's business interests, and the members of the person's immediate family is less than $25,000.

Source Note:The provisions of this §91.719 adopted to be effective August 9, 1999, 24 TexReg 6023; amended to be effective August 10, 2003, 28 TexReg 6269.