7 Tex. Admin. Code § 65.3 - [Repealed]
Notes
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The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.
(1) Acquisition, development, and construction loans (ADC loans)--Loans that finance the acquisition of unimproved land and its development by the installation of utilities, streets, and other similar infrastructure necessary for commercial or residential development; or loans to finance not only the acquisition and development of land but also the building of residential or commercial structures thereon. This term does not include any funds advanced in a transaction which is properly classifiable as an investment under generally accepted accounting principles.
(2) Affiliated person--A director, officer, or controlling person of an association; a spouse of a director, officer, or controlling person of an association; a member of the immediate family of a director, officer, or controlling person of such association; any corporation or organization (other than the association or a subsidiary of the association) of which a director, officer, or controlling person of such association is chief executive officer, chief financial officer, or a person performing similar functions, is a general partner, is a limited partner who, directly or indirectly either alone or with their spouse and the members of their immediate family, owns an interest of 10% or more in the partnership (based on the value of their contribution) or who, directly or indirectly with other directors, officers, and controlling persons of such association and their spouses and their immediate family members, owns an interest of 25% or more in the partnership; or directly or indirectly either alone or with their spouse and the members of their immediate family, owns or controls 10% or more of any class of equity securities or owns or controls, with other directors, officers, and controlling persons of such association, and their spouses and their immediate family members, 25% or more of any class of equity securities; any trust or other estate in which a director, officer, or controlling person of such association or a member of their immediate family has such association or a member of their immediate family has a substantial beneficial interest or as to which such person or their spouse serves as trustee or in a similar fiduciary capacity; a holding company affiliate; and any officer, director, or controlling person of a holding company affiliate.
(3) Break-even income--Any excess of gross income generated by the security property over operating expenses incurred (including, but not limited to, debt service but excluding depreciation), determined on an accrual basis, in accordance with generally accepted accounting principles, for any six consecutive months after execution of the loan. Debt service shall be calculated on the basis of the interest rate contracted for in the loan, whether paid or accrued, whichever is higher.
(4) Commercial real estate--Land improved by structures primarily used for commercial purposes .
(5) Controlling person--Any person or entity which, either directly or indirectly, or acting in concert with one or more other persons or entities, owns, controls, or holds with power to vote, or holds proxies representing 25% or more of the voting shares or rights of an association; or controls in any manner the election or appointment of a majority of the directors of an association. A director of an insured institution will not deemed to be a controlling person of such institution based upon their voting, or acting in concert with other directors in voting, proxies obtained in connection with an annual solicitation of proxies or obtained from savings account holders and borrowers if such proxies are voted as directed by a majority vote of the entire board of directors, an association, or of a committee of such directors if such committee's composition and authority are controlled by a majority vote of the entire board and if its authority is revocable by such a majority.
(6) Holding company affiliate--A corporation of which an association is a subsidiary and any other subsidiary of such corporation other than a subsidiary of the association.
(7) Home--A structure designed and used as a residence by one family, or a structure designed and used for occupancy for one to four family units. The term also includes common areas, around townhouses or condominium units, which are incidental to ownership of the residence.
(8) Home improvement loan--Any loan made for the improvement, maintenance, repair, modernization, or equipment of a home.
(9) Immediate family--The spouse of an individual, the individual's minor children, and any of the individual's children (including adults) residing in the individual's home.
(10) Interim construction loans--Loans made to finance the construction or improvement of residential or commercial structures on developed building sites, and may include the acquisition of such developed building sites. This term does not include home improvement loans allowed under § RSA 65.14 of this title.
(11) Loans--For purposes of limitations on loans to One Borrower, the total amounts of funds advanced under a loan agreement or commitment plus any interest due and unpaid, less repayments. The term also includes credit extended in the form of finance leases; potential liabilities under standby letters of credit, lines of credit, and guarantee or suretyship obligations, except to the extent the institution has recourse to cash or a segregated deposit account of its customer to indemnify it against such liabilities; undisbursed loan proceeds, unless the loan is subject to an overline purchase commitment of another financial institution; investments in commercial paper and corporate debt obligations; funds which the association is unconditionally committed to advance in the future under any type of commitment; and the amount of funds advanced on a wrap-around loan, plus the unpaid balances of any prior liens the association is allowed to pay under the loan agreement. The term does not include a loan or participation interest the association has sold without recourse, a loan secured by a first lien on real estate subject to an annual contributions contract under former §23 of the United States Housing Act of 1937, a loan on the security of the institution's deposit accounts, or a deposit or a loan of unsecured day(s) funds (i.e., federal funds or similar unsecured loans) with a commercial bank or a savings association.
(12) Manufactured home--A structure, transportable in one or more sections which, when configured for travel, measures eight body feet or more in width or forty body feet or more in length, or when erected on site, measures three hundred twenty or more square feet, and which is built on a permanent chassis and designed to be used as a dwelling with or without a permanent foundation when connected to required utilities, and includes the plumbing, heating, air conditioning, and electrical systems of such structure.
(13) Manufactured home chattel paper--A document evidencing an installment sales contract or a loan or interest in a loan secured by a lien on one or more manufactured homes and equipment installed or to be installed therein.
(14) Officer--The president, any vice president (but not an assistant vice president, second vice president, or other vice president having authority similar to an assistant or second vice president) the secretary, the treasurer, the comptroller, and any other person performing similar functions with respect to any organization, whether incorporated or unincorporated. The term "officer" shall also mean the chairman of the board of directors if the association's certificate of formation or bylaws authorize the chairman to participate in the operating management of the association or the chairman actually participates in such management.
(15) One Borrower --Any person or entity that is, or that upon the making of a loan will become, obligor on a loan or guarantor of a loan; nominees of such obligor; all persons, trusts, syndicates, partnerships, and corporations of which such obligor is a nominee, a beneficiary, a member, a general partner, a limited partner owning an interest of 10% or more (based on the value of their contribution), or a record or beneficial stockholder owning 10% or more of the capital stock; and if such obligor is a trust, syndicate, partnership, or corporation, all trusts, syndicates, partnerships, and corporations of which any beneficiary, member, general partner, limited partner owning an interest of 10% or more, or record or beneficial stockholder owning 10% or more of the capital stock, is also a beneficiary, member, general partner, limited partner owning an interest of 10% or more, or record or beneficial stockholder owning 10% or more of the capital stock of such obligor. In the case of a loan that has been assumed by a third party with the consent of the lending institution, the former debtor shall not be deemed an obligor.
(16) Personal property--Tangible and intangible property which is not real property, including the following items as defined in the Business and Commerce Code: consumer goods, equipment, farm products, inventory, accounts, instruments, chattel paper, documents, general intangibles, cash proceeds, and non-cash proceeds.
(17) Recourse--For the purposes of §§ RSA 65.6, RSA 65.7, RSA 65.15, and RSA 65.16 of this title, a contract by a borrower or guarantor to repay at least 25% of the principal balance outstanding from time to time, together with 100% of all interest accrued on the loan and all expenses and costs incurred in connection with the loan. For all other sections, a contract by a borrower or guarantor to repay 100% of all amounts due and owing under the loan.
(18) Residential real estate--Land improved by a house, a home, or an apartment house.
(19) Subsidiary--A subsidiary of an association shall have the meaning prescribed in § RSA 73.1 of this title .
(20) Unimproved real estate--Land which has no substantial improvements or utilities. All other real estate shall be considered residential real estate or commercial real estate.
(21) Wrap-around real estate loan--A financing arrangement whereby a junior mortgage lien secures a liability consisting of the amount of senior debt, plus any additional funds advanced to the borrower.