Texas § 2210.634 USE OF PROCEEDS.

Texas Statutes

§ 2210.634 — USE OF PROCEEDS.

Texas § 2210.634

Code INInsurance Code

This text of Texas § 2210.634 (USE OF PROCEEDS.) 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. Insurance Code Code Ann. § 2210.634 (2026).

Text

Sec. 2210.634. USE OF PROCEEDS.

(a)The proceeds of a financing arrangement, including investment income, shall be held in trust for the exclusive use and benefit of the association. The association may use the proceeds to:

(1)pay incurred claims and operating expenses of the association;

(2)pay the costs of issuing a financing arrangement and any financing arrangement administrative expenses;

(3)provide for debt service reserve funds;

(4)pay capitalized interest and principal on a financing arrangement for a period determined necessary by the association;

(5)pay private financial arrangements entered into by the association as temporary sources of payment of losses and operating expenses of the association; and

(6)reimburse the association for any cost described by this subsection p

Free access — add to your briefcase to read the full text and ask questions with AI

Sec. 2210.634. USE OF PROCEEDS. (a) The proceeds of a financing arrangement, including investment income, shall be held in trust for the exclusive use and benefit of the association. The association may use the proceeds to:
(1) pay incurred claims and operating expenses of the association;
(2) pay the costs of issuing a financing arrangement and any financing arrangement administrative expenses;
(3) provide for debt service reserve funds;
(4) pay capitalized interest and principal on a financing arrangement for a period determined necessary by the association;
(5) pay private financial arrangements entered into by the association as temporary sources of payment of losses and operating expenses of the association; and
(6) reimburse the association for any cost described by this subsection paid to the association before issuance of the financing arrangement.
(b) The association may use excess proceeds of a financing arrangement entered into under Section 2210.632 remaining after the purposes for which the financing arrangement was entered into are satisfied to repay any financing arrangement obligations or financing arrangement administrative expenses. If all outstanding financing arrangement obligations or financing arrangement administrative expenses are satisfied, the excess proceeds shall be transferred to the catastrophe reserve trust fund.