SECTION 73.5. Investment in Debt Limitation

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(a) Investment in corporations shall include investment in its capital stock, paid-in capital, subordinated debentures, unsecured loans, advances, contingencies, and other obligations (excluding secured conforming loans), and shall not, in the aggregate, exceed 10% of the association's total assets without prior approval. The commissioner may grant approval to exceed the 10% limitation if the commissioner determines that such investment is in the association's best interest.
(b) The corporation may incur debt in a ratio of 20:1 of the corporation's consolidated net worth.

Source Note: The provisions of this §73.5 adopted to be effective March 31, 1981, 6 TexReg 935; amended to be effective November 18, 1981, 6 TexReg 4113; amended to be effective May 9, 1983, 8 TexReg 1405; amended to be effective October 12, 1984, 9 TexReg 5052; amended to be effective January 17, 1989, 14 TexReg 55.

                    
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