Sec. 884.251. DEPOSIT OF COMPANY'S FUNDS. (a) A director, member of a committee, officer, or clerk of a stipulated premium company who has the duty of handling or investing the company's funds shall deposit or invest those funds in the corporate name of the company.
(b) An individual described by Subsection (a) may not:
(1) borrow the funds of the stipulated premium company;
(2) have an interest in any way in a loan, pledge, security, or property of the company, except as shareholder; or
(3) take or receive for the individual's use a fee, brokerage, commission, gift, or other consideration for, or on account of, a loan made by or on behalf of the company.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Structure Texas Statutes
Title 6 - Organization of Insurers and Related Entities
Subtitle E - Mutual and Fraternal Companies and Related Entities
Chapter 884 - Stipulated Premium Insurance Companies
Subchapter F. General Powers and Duties of Stipulated Premium Company
Section 884.251. Deposit of Company's Funds
Section 884.252. Payments to Officers, Directors, and Employees
Section 884.254. Transfer of Stock