By: Ellis S.B. No. 1791
(Farrar)
A BILL TO BE ENTITLED
AN ACT
relating to disclosures on selection or modification of an account
by a customer of a financial institution.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 113.053, Estates Code, is amended to
read as follows:
Sec. 113.053. REQUIRED DISCLOSURE; USE OF FORM[;
DISCLOSURE]. (a) A financial institution shall disclose the
information provided in this subchapter to a customer at the time
the customer selects or modifies an account. A financial
institution is considered to have [adequately] disclosed the
information provided in this subchapter if:
(1) the financial institution uses the form provided
by Section 113.052; and
(2) the customer places the customer's initials to the
right of each paragraph of the form.
(b) If a financial institution varies the format of the form
provided by Section 113.052, the financial institution may make
disclosures in the account agreement or in any other form that
[adequately] discloses the information provided by this
subchapter. Disclosures under this subsection must:
(1) be given separately from other account
information;
(2) be provided before account selection or
modification;
(3) be printed in 14-point boldfaced type; and
(4) if the discussions that precede the account
opening or modification are conducted primarily in a language other
than English, be in that language.
(c) The financial institution shall notify the customer of
the type of account the customer selected [If the customer receives
adequate disclosure of the ownership rights to an account and the
names of the parties are appropriately indicated, a financial
institution may combine any of the provisions in, and vary the
format of, the form and notices described in Section 113.052 in:
[(1) a universal account form with options listed for
selection and additional disclosures provided in the account
agreement; or
[(2) any other manner that adequately discloses the
information provided by this subchapter].
(d) This section does not apply to a credit union.
SECTION 2. Subchapter B, Chapter 113, Estates Code, is
amended by adding Section 113.0531 to read as follows:
Sec. 113.0531. USE OF FORM AND DISCLOSURE BY CREDIT UNIONS.
(a) A credit union is considered to have disclosed the information
provided by this subchapter if the credit union uses the form
provided by Section 113.052.
(b) If a credit union varies the format of the form provided
by Section 113.052, the credit union may make disclosures in the
account agreement or in any other form that discloses the
information provided by this subchapter.
(c) If the customer receives disclosure of the ownership
rights to an account and the names of the parties are indicated, a
credit union may combine any of the provisions in, and vary the
format of, the form and notices described in Section 113.052 in:
(1) a universal account form with options listed for
selection and additional disclosures provided in the account
agreement; or
(2) any other manner that adequately discloses the
information provided by this subchapter.
SECTION 3. This Act applies only to an account created or
modified on or after the effective date of this Act. An account
created or modified before the effective date of this Act is
governed by the law in effect when the account was created or
modified, and the former law is continued in effect for that
purpose.
SECTION 4. This Act takes effect September 1, 2015.