Bill Text: TX HB3166 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to prohibiting a person from opening a line of credit in a minor's name without parental approval.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2019-03-13 - Referred to Pensions, Investments & Financial Services [HB3166 Detail]
Download: Texas-2019-HB3166-Introduced.html
86R7423 TSR-D | ||
By: Oliverson | H.B. No. 3166 |
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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. |