[matthew fuller]

One fact that might make a difference (in TX) is that there are State Banks, Federal Banks, and I think both State as well as Federal Credit Unions. One rule that I ran into that really irritated me was in a State Bank (Cibolo) where I happened to read the Contract that everybody must sign for a checking account. This "Contract" is hidden ON THE REVERSE SIDE OF What They Call A "SIGNATURE CARD". This rule basically states that, in case that you owe the bank money, They are allowed to steal the amount equal to your debt IF the bank deems you OR THEMSELVES to be financially insecure. This scheme is called "offsetting". I only use credit unions (and a brokerage account) now.

[PAR35]

I was going to make some comment about them still being around when a lot of Texas banks weren’t, but fortunately I checked first. Looks like Cibolo State Bank went away in 1989.

The language is ambiguous. They might be trying to say that even if you are solvent, they can do a setoff if the project becomes undersecured. But maybe they are saying something else.