Tex. Bus. & Com. Code § 51.101

Current with legislation from the 2023 Regular and Special Sessions signed by the Governor as of November 21, 2023.

Section 51.101 - Bond, Trust Account, or Letter of Credit Required

(a) Before a seller makes a representation described by Section 51.003(a)(1) or otherwise represents that the purchaser is assured of making a profit from a business opportunity, the principal seller must:

(1) obtain a surety bond from a surety company authorized to transact business in this state;

(2) establish a trust account; or

(3) obtain an irrevocable letter of credit.

(b) The bond, trust account, or irrevocable letter of credit must be:

(1) in an amount of $25,000 or more; and

(2) in favor of this state.

Tex. Bus. and Comm. Code § 51.101

Amended By Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. 4/1/2009.