Tex. Bus. & Com. Code § 56.053

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

Section 56.053 - Enforcement of Clause Prohibited If Existence of Sham Relationship

A contingent payor or its surety may not enforce a contingent payment clause if the contingent payor is in a sham relationship with the obligor, as described by the sham relationships in Section 53.026, Property Code.

Tex. Bus. and Comm. Code § 56.053

Added by Acts 2009, 81st Leg., R.S., Ch. 87, Sec. 4.001(a), eff. 9/1/2009.