Tex. Fin. Code § 276.003 · Chapter 276. FINANCIAL INSTITUTION ACCOUNTS
USE OF PROCEEDS OF EXTENSION OF CREDIT FOR FINANCIAL INSTITUTION ACCOUNT.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) An obligor may use proceeds of an extension of credit made by a financial institution for business, commercial, investment, or similar purposes to establish collateral for the extension of credit by:
(1) making deposits;
(2) purchasing certificates of deposit; or
(3) establishing other accounts at the financial institution.
(b) The amount of the proceeds used as provided by Subsection (a) is not considered a reduction in the amount of the proceeds of the extension of credit for purposes of Title 4 or for any other purpose.
(c) A determination by the obligor that it is beneficial to use proceeds of an extension of credit in the manner described by Subsection (a) is conclusive.
(d) This section may not be construed to imply a contrary rule for transactions not covered by this section.
Notes and commentary — not statutory text
History
Added by Acts 2005, 79th Leg., Ch. 1319 (H.B. 3428), Sec. 1, eff. September 1, 2005.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/FI/htm/FI.276.htm
- Text hash
- sha256 6186c77f7472d7a8dacece39b55df1190413e8778f20e52cbc89ddba966bf8db
- 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
This section cites
Provisions in this library that the text above cites, as it prints each citation. A range cited as “ss. 61.13-61.16” links its first and last provisions.
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.