Texas Estates Code

§ 1161.203 — LOAN REQUIREMENTS

ES § 1161.203Title 3. GUARDIANSHIP AND RELATED PROCEDURES · Part E. ADMINISTRATION OF GUARDIANSHIP · Ch. 1161. INVESTMENTS AND LOANS OF ESTATES OF WARDS · Art. E. LOANS AND SECURITY FOR LOANS

Statute text

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(a)Except as provided by Subsection (b), the guardian of the estate shall take as collateral the borrower's note for the money that is loaned, secured by:

(1)a mortgage with a power of sale on unencumbered real estate located in this state worth at least twice the amount of the note; or

(2)collateral notes secured by vendor's lien notes.

(b)The guardian may purchase vendor's lien notes if at least one-half has been paid in cash or its equivalent on the land for which the notes were given.

(c)Except as provided by Subsection (d), a guardian of the estate who lends estate money may not pay or transfer any money to consummate the loan until the guardian:

(1)submits to a reputable attorney for examination all bonds, notes, mortgages, abstracts, and other documents relating to the loan; and

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Legislative history

Added by Acts 2011, 82nd Leg., R.S., Ch. 823 (H.B. 2759), Sec. 1.02, eff. January 1, 2014.