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Tex. Agriculture Code § 44.009

STATE LIABILITY PROHIBITED

Texas · Texas Agriculture Code · Status: effective

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Tex. Agriculture Code § 44.009, STATE LIABILITY PROHIBITED, Texas, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/626686
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The state is not liable to an eligible lending institution for payment of the principal, interest, or any late charges on a loan made to an eligible borrower. A delay in payment or default on a loan by an eligible borrower does not affect the validity of the deposit agreement. Linked deposits are not an extension of the state's credit within the meaning of any state constitutional prohibition.