Texas Local Government Code

§ 116.056 — REAL PROPERTY

LG § 116.056Title 4. FINANCES · Part B. COUNTY FINANCES · Ch. 116. DEPOSITORIES FOR COUNTY PUBLIC FUNDS · Art. C. SECURITY FOR FUNDS HELD BY DEPOSITORY

Statute text

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(a)If approved by the commissioners court, improved and unencumbered real property, pledged directly by deed of trust to a trustee selected by the commissioners court, with the county judge as beneficiary, qualifies as security under this subchapter.

(b)Before approving real property offered as security, the commissioners court shall require:

(1)a written opinion by an attorney selected by the commissioners court showing that the lien is superior to any other claim to or right in the real property; and

(2)insurance approved by the county judge covering the improvements on the pledged real property and providing that a loss is payable to the county judge.

(c)An insurance policy required under Subsection (b) must be issued by a stock fire insurance company or mutual fire insurance company that has a $100,000 surplus in excess of all legal reserves and other liabilities.

Legislative history

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.