1. (a) A credit union by itself, or with other parties, may invest in or make loans to a CUSO only after giving at least 15 days advance written notice to the commissioner of its intention to make such investment or loans. The credit union shall provide any additional information reasonably requested by the commissioner.
2. (b) An investment in any one CUSO shall not exceed the lesser of 5.0% of the credit union's total assets or the total amount of its reserves and undivided earnings. Loans to any one CUSO shall not exceed the aggregate limit for loans to one member specified by the Act, §7.02, or a rule adopted under that section. The total aggregate amount of all investments in all CUSOs by any one credit union shall not exceed 10% of the total assets of the credit union, unless the credit union receives the prior written approval of the commissioner.

3. (c) No credit union may invest in or make loans to a CUSO:

   1. (1) if any officer, director, committee member, or employee of such credit union or any member of the immediate family of such persons owns or makes an investment in the CUSO;
   2. (2) unless the organization is structured as a corporation, limited liability company, or limited partnership;
   3. (3) if the CUSO provides services or engages in activities not described in this rule or which have not been approved by the commissioner in writing; or
   4. (4) unless prior to investing in or making a loan to a CUSO the credit union obtains a written agreement which requires the CUSO to follow GAAP, render financial statements to the credit union at least quarterly, and provide the department, or its representatives, complete access to the CUSO's books and records at reasonable times without undue interference with the business affairs of the CUSO.

4. (d) Permissive activities and services of a CUSO include, but are not limited to:

   1. (1) operational services such as credit and debit card services, cash services, wire transfers, audits, ATM and other EFT services, share draft and check processing and related services, shared service center operations, electronic data processing, development, sale, lease, or servicing of computer hardware and software, loan ;related services, and a;ny other services or activity related to the operations of credit unions;
   2. (2) financial services such as financial planning and counseling, securities brokerage and dealer activities, estate planning, tax services, insurance services, administering retirement, deferred compensation, and other employee or business benefit plans, or any other service deemed economically beneficial or attractive to the members of the participating credit union or credit unions; or
   3. (3) any ;other service or activity approved by the commissioner.
5. (e) The requirements of this section apply only to investments or loans made after the effective date of this section.

Source Note:The provisions of this §91.801 adopted to be effective March 8, 1984, 9 TexReg 1155; amended to be effective August 7, 1984, 9 TexReg 4028; amended to be effective March 8, 1994, 19 TexReg 1327.