7 Tex. Admin. Code § 65.18 - [Repealed]
Notes
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An association may issue letters of credit in accordance with the terms and conditions of the Uniform Commercial Code of the State of Texas and the Uniform Customs and Practice for Documentary Credits, 2007 Revision, ICC Publication Number 600, and in conformity with the following conditions:
(1) the association shall maintain a letter of credit register containing name of customer, address, amount of credit extended and identifying number;
(2) each letter of credit shall conspicuously state that it is a letter of credit or shall be conspicuously entitled as such;
(3) unless otherwise approved in writing by the commissioner, or fully secured by accounts in the association, the association's undertaking shall be for a definite term, not to exceed 12 months from the date of issuance, and shall not be automatically renewable and shall be limited in dollar amount;
(4) the association's obligation to pay shall arise only upon presentation of a draft and other documents as specified in the letter of credit and there shall be no obligation on the part of the association to determine questions of fact or law at issue between the account party and the beneficiary;
(5) the association shall obtain an unqualified obligation from its customer to reimburse it for payments made under the letter of credit;
(6) the amount of each letter of credit shall be included in the aggregation of loans subject to the limitations of this chapter relating to loans to One Borrower;
(7) each letter of credit's terms shall be limited and its documentation shall be accomplished as though it were a loan under this chapter; and
(8) an appropriate fee may be collected for each letter of credit issued.