SECTION 73.4. Operations

(a) The association shall obtain prior written approval of the commissioner for the establishment and location of the main office, and any branch office, agency office, or any other office or facility of the corporation.

(b) A verified copy of all contracts, instruments, joint ventures, and partnership agreements and financing arrangements of the subsidiary investments shall be furnished to the association within 30 days from date of execution.

(c) The corporation agrees to furnish, at the expense of the corporation or association, an independent appraiser's report or other expert opinion as determined to be necessary by the commissioner for the purpose of establishing the value of any investments made by the corporation.

(d) Each corporation shall maintain fidelity bond coverage with an acceptable bonding company in an amount that adequately protects the corporation from loss. Coverage as an additional insured entity under a fidelity bond of the parent association or its holding company may satisfy this requirement.

(e) All joint ventures and partnership agreements shall be reviewed by the attorney for the corporation who shall render their opinion to the commissioner stating the obligation and responsibility of the corporation, as well as the parent association.

(f) All directors of the association and corporation shall furnish affidavits fully disclosing any direct or indirect interest they may have in each investment made by the corporation.

(g) Each request for approval of an investment by a corporation shall include a projected cash flow statement and a projected profit and loss statement setting forth funding requirements of the parent association and/or other corporations.

Source Note: The provisions of this §73.4 adopted to be effective March 31, 1981, 6 TexReg 935; amended to be effective April 16, 1984, 9 TexReg 1885; amended to be effective October 12, 1984, 9 TexReg 5052; amended to be effective May 5, 2016, 41 TexReg 3113