Texas Finance Code
§ 186.312 — PRIORITY OF CLAIMS AGAINST UNINSURED STATE TRUST COMPANY
FI § 186.312Title 3. FINANCIAL INSTITUTIONS AND BUSINESSES · Part F. TRUST COMPANIES · Ch. 186. DISSOLUTION AND RECEIVERSHIP · Art. D. CLAIMS AGAINST RECEIVERSHIP ESTATE
Statute text
View on source(a)The priority of distribution of assets from the estate of a state trust company the trust deposits of which are not insured by the Federal Deposit Insurance Corporation or its successor shall be in accordance with the order of each class as provided by this section. Every claim in each class shall be paid in full, or adequate money shall be retained for that payment, before a member of the next class may receive any payment. A subclass may not be established within a class, except for a preference or subordination within a class expressly created by contract or other instrument or in the certificate of formation.
(b)Assets shall be distributed in the following order of priority:
(1)administrative expenses;
(2)approved claims of secured trust deposits to the extent of the value of the security as provided by Section 186.304(a);
(3)approved claims of secured creditors to the extent of the value of the security as provided by Section 186.304(b);
(4)approved claims by beneficiaries of insufficient commingled fiduciary money or missing fiduciary property and approved claims of clients of the state trust company;
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Legislative history
Acts 2013, 83rd Leg., R.S., Ch. 575 (S.B. 804), Sec. 34, eff. June 14, 2013.