Tex. Bus. & Com. Code § 56.053 · Subchapter B. CONTINGENT PAYMENT CLAUSE
ENFORCEMENT OF CLAUSE PROHIBITED IF EXISTENCE OF SHAM RELATIONSHIP.
Verbatim from the official edition
Text — Current through the 89th 2nd Called Legislative Session, 2025
A contingent payor or its surety may not enforce a contingent payment clause if the contingent payor is in a sham relationship with the obligor, as described by the sham relationships in Section 53.026, Property Code.
Notes and commentary — not statutory text
History
Added by Acts 2009, 81st Leg., R.S., Ch. 87 (S.B. 1969), Sec. 4.001(a), eff. September 1, 2009.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/BC/htm/BC.56.htm
- Text hash
- sha256 68880e40dc8318ebc449c03a536ee4d0dbb2c4866f84f50754667238c103348f
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
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