State Codes and Statutes
Statutes > Texas > Finance-code > Title-3-financial-institutions-and-businesses > Chapter-276-financial-institution-accounts
FINANCE CODE
TITLE 3. FINANCIAL INSTITUTIONS AND BUSINESSES
SUBTITLE Z. MISCELLANEOUS PROVISIONS RELATING TO FINANCIAL
INSTITUTIONS AND BUSINESSES
CHAPTER 276. FINANCIAL INSTITUTION ACCOUNTS
Sec. 276.001. ACCOUNTS FOR CANDIDATES FOR PUBLIC OFFICE. (a) A
financial institution may not open an account in the name of a
candidate without obtaining that candidate's consent and
signature. This subsection does not require that the candidate be
a signatory to the account.
(b) In this section:
(1) "Candidate" has the meaning assigned by Section 251.001,
Election Code.
(2) "Financial institution" means a bank, savings and loan
association, savings bank, or credit union.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.27(a), eff. Sept.
1, 1999.
Sec. 276.002. GARNISHMENT OF FINANCIAL INSTITUTION ACCOUNT. (a)
Notwithstanding the Texas Rules of Civil Procedure, if a
financial institution fails to timely file an answer to a writ of
garnishment issued before or after a judgment is rendered in the
case, a court may enter a default judgment against the financial
institution solely as to the existence of liability and not as to
the amount of damages.
(b) A financial institution against which a default judgment is
entered under Subsection (a) is not deemed to have in the
financial institution's possession or to have knowledge of
sufficient debts, assets, or personal effects of the debtor to
satisfy the debtor's obligations to the garnishor.
(c) After a default judgment is entered against a financial
institution as to the existence of liability as provided by
Subsection (a), the garnishor has the burden to establish the
amount of actual damages proximately caused to the garnishor by
the financial institution's default.
(d) The court may award to the garnishor:
(1) damages in the amount determined under Subsection (c); and
(2) for good cause shown, reasonable attorney's fees incurred by
the garnishor in establishing damages under Subsection (c).
(e) Notwithstanding Section 22.004, Government Code, the supreme
court may not amend or adopt rules in conflict with this section.
Added by Acts 2005, 79th Leg., Ch.
1319, Sec. 1, eff. September 1, 2005.
Sec. 276.003. USE OF PROCEEDS OF EXTENSION OF CREDIT FOR
FINANCIAL INSTITUTION ACCOUNT. (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.
Added by Acts 2005, 79th Leg., Ch.
1319, Sec. 1, eff. September 1, 2005.
State Codes and Statutes
Statutes > Texas > Finance-code > Title-3-financial-institutions-and-businesses > Chapter-276-financial-institution-accounts
FINANCE CODE
TITLE 3. FINANCIAL INSTITUTIONS AND BUSINESSES
SUBTITLE Z. MISCELLANEOUS PROVISIONS RELATING TO FINANCIAL
INSTITUTIONS AND BUSINESSES
CHAPTER 276. FINANCIAL INSTITUTION ACCOUNTS
Sec. 276.001. ACCOUNTS FOR CANDIDATES FOR PUBLIC OFFICE. (a) A
financial institution may not open an account in the name of a
candidate without obtaining that candidate's consent and
signature. This subsection does not require that the candidate be
a signatory to the account.
(b) In this section:
(1) "Candidate" has the meaning assigned by Section 251.001,
Election Code.
(2) "Financial institution" means a bank, savings and loan
association, savings bank, or credit union.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.27(a), eff. Sept.
1, 1999.
Sec. 276.002. GARNISHMENT OF FINANCIAL INSTITUTION ACCOUNT. (a)
Notwithstanding the Texas Rules of Civil Procedure, if a
financial institution fails to timely file an answer to a writ of
garnishment issued before or after a judgment is rendered in the
case, a court may enter a default judgment against the financial
institution solely as to the existence of liability and not as to
the amount of damages.
(b) A financial institution against which a default judgment is
entered under Subsection (a) is not deemed to have in the
financial institution's possession or to have knowledge of
sufficient debts, assets, or personal effects of the debtor to
satisfy the debtor's obligations to the garnishor.
(c) After a default judgment is entered against a financial
institution as to the existence of liability as provided by
Subsection (a), the garnishor has the burden to establish the
amount of actual damages proximately caused to the garnishor by
the financial institution's default.
(d) The court may award to the garnishor:
(1) damages in the amount determined under Subsection (c); and
(2) for good cause shown, reasonable attorney's fees incurred by
the garnishor in establishing damages under Subsection (c).
(e) Notwithstanding Section 22.004, Government Code, the supreme
court may not amend or adopt rules in conflict with this section.
Added by Acts 2005, 79th Leg., Ch.
1319, Sec. 1, eff. September 1, 2005.
Sec. 276.003. USE OF PROCEEDS OF EXTENSION OF CREDIT FOR
FINANCIAL INSTITUTION ACCOUNT. (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.
Added by Acts 2005, 79th Leg., Ch.
1319, Sec. 1, eff. September 1, 2005.
State Codes and Statutes
Statutes >
Texas >
Finance-code >
Title-3-financial-institutions-and-businesses >
Chapter-276-financial-institution-accounts FINANCE CODE
TITLE 3. FINANCIAL INSTITUTIONS AND BUSINESSES
SUBTITLE Z. MISCELLANEOUS PROVISIONS RELATING TO FINANCIAL
INSTITUTIONS AND BUSINESSES
CHAPTER 276. FINANCIAL INSTITUTION ACCOUNTS
Sec. 276.001. ACCOUNTS FOR CANDIDATES FOR PUBLIC OFFICE. (a) A
financial institution may not open an account in the name of a
candidate without obtaining that candidate's consent and
signature. This subsection does not require that the candidate be
a signatory to the account.
(b) In this section:
(1) "Candidate" has the meaning assigned by Section 251.001,
Election Code.
(2) "Financial institution" means a bank, savings and loan
association, savings bank, or credit union.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.27(a), eff. Sept.
1, 1999.
Sec. 276.002. GARNISHMENT OF FINANCIAL INSTITUTION ACCOUNT. (a)
Notwithstanding the Texas Rules of Civil Procedure, if a
financial institution fails to timely file an answer to a writ of
garnishment issued before or after a judgment is rendered in the
case, a court may enter a default judgment against the financial
institution solely as to the existence of liability and not as to
the amount of damages.
(b) A financial institution against which a default judgment is
entered under Subsection (a) is not deemed to have in the
financial institution's possession or to have knowledge of
sufficient debts, assets, or personal effects of the debtor to
satisfy the debtor's obligations to the garnishor.
(c) After a default judgment is entered against a financial
institution as to the existence of liability as provided by
Subsection (a), the garnishor has the burden to establish the
amount of actual damages proximately caused to the garnishor by
the financial institution's default.
(d) The court may award to the garnishor:
(1) damages in the amount determined under Subsection (c); and
(2) for good cause shown, reasonable attorney's fees incurred by
the garnishor in establishing damages under Subsection (c).
(e) Notwithstanding Section 22.004, Government Code, the supreme
court may not amend or adopt rules in conflict with this section.
Added by Acts 2005, 79th Leg., Ch.
1319, Sec. 1, eff. September 1, 2005.
Sec. 276.003. USE OF PROCEEDS OF EXTENSION OF CREDIT FOR
FINANCIAL INSTITUTION ACCOUNT. (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.
Added by Acts 2005, 79th Leg., Ch.
1319, Sec. 1, eff. September 1, 2005.
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