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Texas Business and Commerce Code - BUS & COM § 51.101. Bond, Trust Account, or Letter of Credit Required

Current as of January 01, 2024 | Updated by Findlaw Staff

(a) Before a seller makes a representation described by Section 51.003(a)(1) or otherwise represents that the purchaser is assured of making a profit from a business opportunity, the principal seller must:

(1) obtain a surety bond from a surety company authorized to transact business in this state;

(2) establish a trust account; or

(3) obtain an irrevocable letter of credit.

(b) The bond, trust account, or irrevocable letter of credit must be:

(1) in an amount of $25,000 or more; and

(2) in favor of this state.

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Cite this article: FindLaw.com - Texas Business and Commerce Code - BUS & COM § 51.101. Bond, Trust Account, or Letter of Credit Required - last updated January 01, 2024 | https://codes.findlaw.com/tx/business-and-commerce-code/bus-com-sect-51-101/

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