Right To Act To Avoid Loss

Sec. 93.009. RIGHT TO ACT TO AVOID LOSS. (a) This subtitle does not deny a savings bank the right to invest its money, operate a business, manage or deal in property, or take other action during any period that is reasonably necessary to avoid loss on a loan or on an investment made or obligation created in good faith in the usual course of the bank's business, as authorized by this subtitle or a rule adopted under this subtitle. (b) This subtitle does not prohibit a savings bank from: (1) developing or building on land it has acquired under this section; or (2) completing the construction of a building under a construction loan contract in which the borrower has not complied with the contract. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.