2005 Texas Finance Code CHAPTER 276. FINANCIAL INSTITUTION ACCOUNTS

FINANCE CODE

CHAPTER 276. FINANCIAL INSTITUTION ACCOUNTS


	§ 276.001. ACCOUNTS FOR CANDIDATES FOR PUBLIC 
OFFICE.  (a) A financial institution may not open an account in the 
name of a candidate without obtaining that candidate's consent and 
signature.  This subsection does not require that the candidate be a 
signatory to the account.
	(b)  In this section:                                                          
		(1)  "Candidate" has the meaning assigned by Section 
251.001, Election Code.
		(2)  "Financial institution" means a bank, savings and 
loan association, savings bank, or credit union.

Added by Acts 1999, 76th Leg., ch. 62, § 7.27(a), eff. Sept. 1, 
1999.    


	§ 276.002. GARNISHMENT OF FINANCIAL INSTITUTION 
ACCOUNT.  (a)  Notwithstanding the Texas Rules of Civil Procedure, 
if a financial institution fails to timely file an answer to a writ 
of garnishment issued before or after a judgment is rendered in the 
case, a court may enter a default judgment against the financial 
institution solely as to the existence of liability and not as to 
the amount of damages.
	(b)  A financial institution against which a default 
judgment is entered under Subsection (a) is not deemed to have in 
the financial institution's possession or to have knowledge of 
sufficient debts, assets, or personal effects of the debtor to 
satisfy the debtor's obligations to the garnishor.
	(c)  After a default judgment is entered against a financial 
institution as to the existence of liability as provided by 
Subsection (a), the garnishor has the burden to establish the 
amount of actual damages proximately caused to the garnishor by the 
financial institution's default.
	(d)  The court may award to the garnishor:                                     
		(1)  damages in the amount determined under Subsection 
(c);  and            
		(2)  for good cause shown, reasonable attorney's fees 
incurred by the garnishor in establishing damages under Subsection 
(c).
	(e)  Notwithstanding Section 22.004, Government Code, the 
supreme court may not amend or adopt rules in conflict with this 
section.

Added by Acts 2005, 79th Leg., ch. 1319, § 1, eff. Sept. 1, 2005.          


	§ 276.003. USE OF PROCEEDS OF EXTENSION OF CREDIT FOR 
FINANCIAL INSTITUTION ACCOUNT.  (a) An obligor may use proceeds of 
an extension of credit made by a financial institution for 
business, commercial, investment, or similar purposes to establish 
collateral for the extension of credit by:
		(1)  making deposits;                                                         
		(2)  purchasing certificates of deposit;  or                                  
		(3)  establishing other accounts at the financial 
institution.              
	(b)  The amount of the proceeds used as provided by 
Subsection (a) is not considered a reduction in the amount of the 
proceeds of the extension of credit for purposes of Title 4 or for 
any other purpose.
	(c)  A determination by the obligor that it is beneficial to 
use proceeds of an extension of credit in the manner described by 
Subsection (a) is conclusive.
	(d)  This section may not be construed to imply a contrary 
rule for transactions not covered by this section.

Added by Acts 2005, 79th Leg., ch. 1319, § 1, eff. Sept. 1, 2005.