Sec. 123.208. DIVIDENDS AND INTEREST. (a) A credit union may:
(1) declare and pay a dividend on a share;
(2) contract for and pay interest on a deposit; or
(3) refund interest to a borrower.
(b) A dividend or interest may be paid at a rate and on the conditions that the board authorizes.
(c) The commissioner may restrict the payment of a dividend:
(1) if the commissioner issues a cease and desist order under Section 122.257; or
(2) as necessary to protect the member's interests and preserve the solvency of the credit union as authorized by commission rule.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
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