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Texas Business & Commerce Code

§ 51.101 — BOND, TRUST ACCOUNT, OR LETTER OF CREDIT REQUIRED

BC § 51.101Title 4. BUSINESS OPPORTUNITIES AND AGREEMENTS · Ch. 51. BUSINESS OPPORTUNITIES · Art. C. BOND, TRUST ACCOUNT, OR LETTER OF CREDIT

Statute text

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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

Legislative history

Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 2.01, eff. April 1, 2009.

Source: Texas Business & Commerce Code § 51.101 from the Texas Constitution and Statutes (Texas Legislature) (public record). DecisionDepot is for informational use only and is not legal advice — verify against the official source before relying on this text.