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AN ACT
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relating to disclosures on selection or modification of an account |
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by a customer of a financial institution. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 113.053, Estates Code, is amended to |
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read as follows: |
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Sec. 113.053. REQUIRED DISCLOSURE; USE OF FORM[;
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DISCLOSURE]. (a) A financial institution shall disclose the |
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information provided in this subchapter to a customer at the time |
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the customer selects or modifies an account. A financial |
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institution is considered to have [adequately] disclosed the |
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information provided in this subchapter if: |
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(1) the financial institution uses the form provided |
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by Section 113.052; and |
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(2) the customer places the customer's initials to the |
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right of each paragraph of the form. |
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(b) If a financial institution varies the format of the form |
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provided by Section 113.052, the financial institution may make |
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disclosures in the account agreement or in any other form that |
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[adequately] discloses the information provided by this |
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subchapter. Disclosures under this subsection must: |
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(1) be given separately from other account |
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information; |
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(2) be provided before account selection or |
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modification; |
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(3) be printed in 14-point boldfaced type; and |
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(4) if the discussions that precede the account |
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opening or modification are conducted primarily in a language other |
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than English, be in that language. |
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(c) The financial institution shall notify the customer of |
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the type of account the customer selected [If the customer receives
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adequate disclosure of the ownership rights to an account and the
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names of the parties are appropriately indicated, a financial
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institution may combine any of the provisions in, and vary the
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format of, the form and notices described in Section 113.052 in:
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[(1)
a universal account form with options listed for
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selection and additional disclosures provided in the account
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agreement; or
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[(2)
any other manner that adequately discloses the
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information provided by this subchapter]. |
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(d) This section does not apply to a credit union. |
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SECTION 2. Subchapter B, Chapter 113, Estates Code, is |
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amended by adding Section 113.0531 to read as follows: |
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Sec. 113.0531. USE OF FORM AND DISCLOSURE BY CREDIT UNIONS. |
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(a) A credit union is considered to have disclosed the information |
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provided by this subchapter if the credit union uses the form |
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provided by Section 113.052. |
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(b) If a credit union varies the format of the form provided |
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by Section 113.052, the credit union may make disclosures in the |
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account agreement or in any other form that discloses the |
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information provided by this subchapter. |
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(c) If the customer receives disclosure of the ownership |
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rights to an account and the names of the parties are indicated, a |
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credit union may combine any of the provisions in, and vary the |
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format of, the form and notices described in Section 113.052 in: |
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(1) a universal account form with options listed for |
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selection and additional disclosures provided in the account |
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agreement; or |
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(2) any other manner that adequately discloses the |
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information provided by this subchapter. |
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SECTION 3. This Act applies only to an account created or |
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modified on or after the effective date of this Act. An account |
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created or modified before the effective date of this Act is |
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governed by the law in effect when the account was created or |
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modified, and the former law is continued in effect for that |
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purpose. |
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SECTION 4. This Act takes effect September 1, 2015. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I hereby certify that S.B. No. 1791 passed the Senate on |
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April 20, 2015, by the following vote: Yeas 29, Nays 1. |
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______________________________ |
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Secretary of the Senate |
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I hereby certify that S.B. No. 1791 passed the House on |
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May 11, 2015, by the following vote: Yeas 118, Nays 7, one |
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present not voting. |
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______________________________ |
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Chief Clerk of the House |
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Approved: |
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______________________________ |
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Date |
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______________________________ |
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Governor |