(a) An association may issue a new account book or certificate in the name of the holder of record of a savings account if:
(1) the holder or the holder’s legal representative requests; and
(2) proof is presented satisfactory to the association that the original book or certificate is lost or destroyed.
(b) A new account book or certificate must expressly state that:
(1) it is issued to replace a lost or destroyed account book or certificate; and
(2) the association may not be held liable on the original account book or certificate.

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Terms Used In Texas Finance Code 65.007

  • Indemnification: In general, a collateral contract or assurance under which one person agrees to secure another person against either anticipated financial losses or potential adverse legal consequences. Source: FDIC

(c) An association may require indemnification against any loss resulting from issuing a new account book or certificate.