Texas Finance Code
§ 398.056 — CERTAIN AUTOMATIC DEBITS PROHIBITED
FI § 398.056Title 5. PROTECTION OF CONSUMERS OF FINANCIAL SERVICES · Ch. 398. COMMERCIAL SALES-BASED FINANCING · Art. B. REGULATION AND DISCLOSURE REQUIREMENTS
Statute text
View on sourceA provider or commercial sales-based financing broker may not establish a mechanism for automatically debiting a recipient's deposit account unless the provider or broker holds a validly perfected security interest in the recipient's account under Chapter 9, Business & Commerce Code, with a first priority against the claims of all other persons.
Legislative history
Added by Acts 2025, 89th Leg., R.S., Ch. 723 (H.B. 700), Sec. 1, eff. September 1, 2025.