Texas § 276.003 USE OF PROCEEDS OF EXTENSION OF CREDIT FOR FINANCIAL INSTITUTION ACCOUNT.

Texas Statutes

§ 276.003 — USE OF PROCEEDS OF EXTENSION OF CREDIT FOR FINANCIAL INSTITUTION ACCOUNT.

Texas § 276.003

Code FIFinance Code

This text of Texas § 276.003 (USE OF PROCEEDS OF EXTENSION OF CREDIT FOR FINANCIAL INSTITUTION ACCOUNT.) is published on Counsel Stack Legal Research, covering Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Tex. Finance Code Code Ann. § 276.003 (2026).

Text

Sec. 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 no

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Sec. 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.

Legislative History

Added by Acts 2005, 79th Leg., Ch. 1319 (H.B. 3428 ), Sec. 1, eff. September 1, 2005.

Nearby Sections

3

§ 276.001

ACCOUNTS FOR CANDIDATES FOR PUBLIC OFFICE.

§ 276.002

GARNISHMENT OF FINANCIAL INSTITUTION ACCOUNT.

§ 276.003

USE OF PROCEEDS OF EXTENSION OF CREDIT FOR FINANCIAL INSTITUTION ACCOUNT.

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Bluebook (online)

Texas § 276.003, Counsel Stack Legal Research, https://law.counselstack.com/statute/tx/FI/276.003.