86R7423 TSR-D
By: Oliverson H.B. No. 3166
A BILL TO BE ENTITLED
AN ACT
relating to prohibiting a person from opening a line of credit in a
minor's name without parental approval.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 34.305, Finance Code, is amended by
adding Subsection (f) to read as follows:
(f) Subsection (a) does not authorize the bank to open a
line of credit in the name of the minor without the prior approval
of the minor's parent or legal guardian, unless the minor's
disabilities of minority have been removed for this purpose.
SECTION 2. Section 65.101, Finance Code, is amended by
adding Subsection (g) to read as follows:
(g) This section does not authorize the association to open
a line of credit in the name of the minor without the prior approval
of the minor's parent or legal guardian, unless the minor's
disabilities of minority have been removed for this purpose.
SECTION 3. Section 95.101, Finance Code, is amended by
adding Subsection (g) to read as follows:
(g) This section does not authorize the savings bank to open
a line of credit in the name of the minor without the prior approval
of the minor's parent or legal guardian, unless the minor's
disabilities of minority have been removed for this purpose.
SECTION 4. Section 125.201, Finance Code, is amended to
read as follows:
Sec. 125.201. POWERS OF CREDIT UNION RELATING TO ACCOUNT.
(a) A credit union may:
(1) open a share or deposit account in the name of a
minor;
(2) receive a payment on the account by or for the
minor;
(3) pay withdrawals;
(4) accept pledges to the credit union by or for the
minor; and
(5) act in any other matter with respect to an account
on the order of a minor.
(b) This section does not authorize the credit union to open
a line of credit in the name of the minor without the prior approval
of the minor's parent or legal guardian, unless the minor's
disabilities of minority have been removed for this purpose.
SECTION 5. Subtitle Z, Title 3, Finance Code, is amended by
adding Chapter 282 to read as follows:
CHAPTER 282. LINES OF CREDIT
Sec. 282.001. RESTRICTION ON LINE OF CREDIT FOR MINOR. (a)
In this section, "financial institution" has the meaning assigned
by Section 277.001.
(b) Notwithstanding any other law, a financial institution
or other person may not open a line of credit in the name of a minor
without the prior approval of the minor's parent or legal guardian,
unless the minor's disabilities of minority have been removed for
this purpose.
SECTION 6. The changes in law made by this Act apply only to
a line of credit opened on or after the effective date of this Act.
A line of credit opened before the effective date of this Act is
governed by the law in effect on the date the line of credit was
opened, and the former law is continued in effect for that purpose.
SECTION 7. This Act takes effect September 1, 2019.