I am a little embarrassed to ask but can a minor in Texas open a deposit account or sign for a loan? What is the cut off age, if applicable?

Minor account? Yes. Finance Code 34.305.

Loan? No, except for necessities.

Age? You're a minor until you are 18 (there may be some exceptions under Texas law--court order, marriage--but I haven't looked them up.)

What about for credit cards? Marketing would like to set up a booth at a local university and hand out credit card applications. Can we do this?

Just be aware of the recent changes to the law on offering credit cards to college students. I haven't looked at it recently, but I think it curtailed the big credit card banks from inundating college campuses with free-flowing credit. Search BOL. I'm sure there was a lot written on it.

You also want to look at TX Business & Commerce Code Ch 761 which deals with state law and credit card marketing at postsecondary educational institutions.

Thank you both. After further research we will not be marketing credit cards at the local university.

That's understandable. I think the federal and state restrictions have really curtailed it.

Can anyone give me the Texas Statute that gives the age of termination?

age of termination? We normally don't terminate our minors in Texas.

Not unless we first try them as an adult.

Thanks! I needed a laugh.

No. This is the first I've heard of this terminology. It's the age a minor can take control of a custodial account. Ever heard of this? It's not the same as the age of majority.

The Texas Uniform Transfer to Minors Act provides:

Sec. 141.021. TERMINATION OF CUSTODIANSHIP. The custodian shall transfer in an appropriate manner the custodial property to the minor or to the minor's estate on the earlier of the date:

(1) the minor attains 21 years of age, with respect to custodial property transferred under Section 141.005 or 141.006;

(2) the minor attains the age of majority under the laws of this state other than this chapter, with respect to custodial property transferred under Section 141.007 or 141.008; or

(3) the minor's death.

Added by Acts 1995, 74th Leg., ch. 1043, Sec. 1, eff. Sept. 1, 1995. Renumbered from Property Code Sec. 21 by Acts 1997, 75th Leg., ch. 165, Sec. 31.01(72), eff. Sept. 1, 1997.

Thanks, Zi-bat-soo. You're always helpful.

Ah, shucks! I bet you say that to all the helpful lawyers...all three of us.

My bad. I thought you were a fellow banker, not a lawyer. I take it all back!

...all two of them then.

Please note that the statutes states the CUSTODIAN is responsible for the transfer, not the financial institution.

R Banker - That is a very important distinction. The Bank should never turn the money over directly to the minor (or ex-minor) in this case without a court order.