SECTION 95.103. General Powers and Duties of an Insuring Organization

In carrying out its general purposes, an insuring organization may:

(1) guarantee to participating credit unions the payment of any deficiency in an individual member's share or deposit account(s) caused by credit union's insolvency or any other reason;

(2) issue share and deposit insurance contracts or otherwise effect credit union share guaranty, and enter into other contracts necessary or advisable in the conduct of its business;

(3) advance funds in accordance with agreed upon lending terms and conditions to aid participating credit unions to operate and to meet liquidity needs;

(4) upon the written order of the commissioner, and at such compensation as shall be agreed upon, the insuring organization may assume control of the property and business of any participating credit union and operate it at the direction of the commissioner until its financial stability has been reestablished to the satisfaction of the commissioner, or the credit union has been liquidated or merged into another credit union;

(5) assist in the merger, consolidation, or liquidation of participating credit unions;

(6) receive money or other property from participating credit unions;

(7) conduct investigation and audits of any applicant or participating credit union in order to determine the financial and operating condition of the applicant or participating credit union; and

(8) establish conditions for participation by credit unions, including the establishment of risk eligibility standards.

Source Note: The provisions of this §95.103 adopted to be effective March 7, 2007, 32 TexReg 1064