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Texas Stat.
2025 Texas Statutes
Finance Code
Title 5 - Protection of Consumers of Financial Services
Chapter 398 - Commercial Sales-Based Financing
Subchapter B. Regulation and Disclosure Requirements
Section 398.056. Certain Automatic Debits Prohibited
Universal Citation:
TX Fin Code § 398.056 (2025)
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Sec. 398.056. CERTAIN AUTOMATIC DEBITS PROHIBITED. A provider or commercial sales-based financing broker may not establish a mechanism for automatically debiting a recipient's deposit account unless the provider or broker holds a validly perfected security interest in the recipient's account under Chapter 9, Business & Commerce Code, with a first priority against the claims of all other persons.
Added by Acts 2025, 89th Leg., R.S., Ch. 723 (H.B. 700), Sec. 1, eff. September 1, 2025.
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