Texas Finance Code

§ 126.303 — PRIORITY OF CLAIMS

FI § 126.303Title 3. FINANCIAL INSTITUTIONS AND BUSINESSES · Part D. CREDIT UNIONS · Ch. 126. CREDIT UNION SUPERVISION AND REGULATION · Art. G. CLAIMS RELATING TO CREDIT UNION IN LIQUIDATION

Statute text

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The liquidating agent shall use the credit union's assets to pay, in the following order:

(1)secured creditors to the extent of the value of their collateral;

(2)liquidation expenses, including a surety bond if required;

(3)depositors;

(4)general creditors, including secured creditors to the extent that their claims exceed the value of their collateral; and

(5)distributions to members in proportion to the shares held by each member.

Legislative history

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.