Texas Property Code
§ 53.258 — DISBURSEMENTS OF FUNDS
PR § 53.258Title 5. EXEMPT PROPERTY AND LIENS · Part B. LIENS · Ch. 53. MECHANIC'S, CONTRACTOR'S, OR MATERIALMAN'S LIEN · Art. K. RESIDENTIAL CONSTRUCTION PROJECTS
Statute text
View on source(a)At the time the original contractor requests payment from the owner or the owner's lender for the construction of improvements under a residential construction contract, the original contractor shall provide to the owner a disbursement statement. The statement may include any information agreed to by the owner and the original contractor and must include at least the name and address of each person who subcontracted directly with the original contractor and who the original contractor intends to pay from the requested funds. The original contractor shall provide the disbursement statement:
(1)in the manner agreed to in writing by the owner and original contractor; or
(2)if no agreement exists, by depositing the statement in the United States mail, first class, postage paid, and properly addressed to the owner or by hand delivering the statement to the owner before the original contractor receives the requested funds.
(b)If the owner finances the construction of improvements through a third party that advances loan proceeds directly to the original contractor, the lender shall:
(1)obtain from the original contractor the signed disbursement statement required by Subsection (a) that covers the funds for which the original contractor is requesting payment; and
(2)provide to the owner a statement of funds disbursed by the lender since the last statement was provided to the owner.
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Legislative history
Added by Acts 1997, 75th Leg., ch. 526, Sec. 23, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 889, Sec. 10, eff. Sept. 1, 1999.