Texas Finance Code

§ 186.216 — PREFERENCES

FI § 186.216Title 3. FINANCIAL INSTITUTIONS AND BUSINESSES · Part F. TRUST COMPANIES · Ch. 186. DISSOLUTION AND RECEIVERSHIP · Art. C. INVOLUNTARY DISSOLUTION AND LIQUIDATION

Statute text

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(a)A transfer of or lien on the property or assets of a state trust company is voidable by the receiver if the transfer or lien:

(1)was made or created after:

(A)four months before the date the state trust company is closed for liquidation; or

(B)one year before the date the state trust company is closed for liquidation if the receiving creditor was at the time an affiliate, officer, director, manager, managing participant, principal shareholder, or participant of the state trust company or an affiliate of the trust company;

(2)was made or created with the intent of giving to a creditor or depositor, or enabling a creditor or depositor to obtain, a greater percentage of the claimant's debt than is given or obtained by another claimant of the same class; and

(3)is accepted by a creditor or depositor having reasonable cause to believe that a preference will occur.

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Legislative history

Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.