Sec. 62.103. QUALIFICATION OF DIRECTORS

(a) To be qualified for election as a director, a person must own, in good faith, in the person's own right, and as shown on the books of the association, a savings account, capital stock, or a combination of both that has a value of at least $1,000. The ownership interest may not be reduced to an amount less than that required by this subsection by withdrawal or pledge for a loan by the association while the person is a director. The bylaws of an association may prescribe other qualifications for a director.

(b) A director whose ownership interest falls below the amount required by Subsection (a) ceases to be a director. An action of the board is not invalidated by the participation of the director who ceases to be a director.

(c) A director who does not satisfy the qualifications prescribed by this section because the association exercises its right of redemption of savings accounts under Section 65.010 remains in office until the expiration of the director's term or the director otherwise is disqualified from serving, whichever occurs first.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.