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Tex. Business & Commerce Code § 51.101

BOND, TRUST ACCOUNT, OR LETTER OF CREDIT REQUIRED

Texas · Texas Business & Commerce Code · Status: effective

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Tex. Business & Commerce Code § 51.101, BOND, TRUST ACCOUNT, OR LETTER OF CREDIT REQUIRED, Texas, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/630664
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(a) Before a seller makes a representation described by Section 51.003(a)(1) or otherwise represents that the purchaser is assured of making a profit from a business opportunity, the principal seller must: (1) obtain a surety bond from a surety company authorized to transact business in this state; (2) establish a trust account; or (3) obtain an irrevocable letter of credit. (b) The bond, trust account, or irrevocable letter of credit must be: (1) in an amount of $25,000 or more; and (2) in favor of this state. Amended by: