Skip to main content

Texas Finance Code - FIN § 154.106. Transfer of Business Ownership

Welcome to FindLaw's Cases & Codes, a free source of state and federal court opinions, state laws, and the United States Code. For more information about the legal concepts addressed by these cases and statutes, visit FindLaw's Learn About the Law.

(a) A permit holder shall notify the department and either the depository of the money held under Subchapter F   1 or the issuer of insurance policy funding contracts under Subchapter E   2 of a transfer of ownership of the permit holder's business or a transfer of 25 percent or more of the stock or other ownership or membership interest of the business in a single transaction.  The notice must be given:

(1) in the case of a voluntary transfer, not later than the seventh day after the date the contract for transfer is executed;  or

(2) in the case of an involuntary transfer, not later than the first business day after the date the permit holder receives notice of the impending foreclosure or other involuntary transfer.

(b) If the proposed transferee will own 51 percent or more of the business and is not a permit holder, the proposed transferee shall file an application for a permit with the department in accordance with this subchapter.  If the application is complete, the commissioner shall approve or deny the application before the 16th day after the date the application was received.  The transfer of prepaid funeral benefits contracts of the permit holder that is the transferor may not occur until after the date a permit is issued to the applicant that is the transferee.

(c) If the commissioner denies the application, the applicant may request a hearing not later than the 15th day after the date on which notice of the determination is hand-delivered or the notice is mailed, whichever date is earlier.

1  V.T.C.A., Finance Code § 154.251 et seq.
2  V.T.C.A., Finance Code § 154.201 et seq.

Cite this article: - Texas Finance Code - FIN § 154.106. Transfer of Business Ownership - last updated April 14, 2021 |

FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.

Copied to clipboard