Texas § 394.211 TRUST ACCOUNT.

Texas Statutes

§ 394.211 — TRUST ACCOUNT.

Texas § 394.211

Code FIFinance Code

This text of Texas § 394.211 (TRUST 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. § 394.211 (2026).

Text

Sec. 394.211. TRUST ACCOUNT.

(a)A provider must use a trust account for the management of all money paid by or on behalf of a consumer and received by the provider for disbursement to the consumer's creditor. A provider may not commingle the money in a trust account established for the benefit of consumers with any operating funds of the provider. A provider shall exercise due care to appropriately manage the funds in the trust account.

(b)The trust account must at all times be materially in balance with and reconciled to the consumers' accounts. Failure to maintain that balance is cause for a summary suspension of registration under Section 394.204 .

(c)If a trust account does not contain sufficient money to cover the aggregate consumer balances, and the provider has not corrected the

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Sec. 394.211. TRUST ACCOUNT. (a) A provider must use a trust account for the management of all money paid by or on behalf of a consumer and received by the provider for disbursement to the consumer's creditor. A provider may not commingle the money in a trust account established for the benefit of consumers with any operating funds of the provider. A provider shall exercise due care to appropriately manage the funds in the trust account.
(b) The trust account must at all times be materially in balance with and reconciled to the consumers' accounts. Failure to maintain that balance is cause for a summary suspension of registration under Section 394.204 .
(c) If a trust account does not contain sufficient money to cover the aggregate consumer balances, and the provider has not corrected the deficiency within 48 hours of discovery, the provider shall notify the commissioner by telephone, facsimile, electronic mail, or other method approved by the commissioner, and provide written notice including a description of the remedial action taken.

Legislative History

Added by Acts 2005, 79th Leg., Ch. 336 (S.B. 1112 ), Sec. 1, eff. September 1, 2005. Amended by: Acts 2011, 82nd Leg., R.S., Ch. 368 (S.B. 141 ), Sec. 9, eff. September 1, 2011.