Section 116.056 - Real Property(a) If approved by the commissioners court, improved and unencumbered real property, pledged directly by deed of trust to a trustee selected by the commissioners court, with the county judge as beneficiary, qualifies as security under this subchapter.(b) Before approving real property offered as security, the commissioners court shall require: (1) a written opinion by an attorney selected by the commissioners court showing that the lien is superior to any other claim to or right in the real property; and(2) insurance approved by the county judge covering the improvements on the pledged real property and providing that a loss is payable to the county judge.(c) An insurance policy required under Subsection (b) must be issued by a stock fire insurance company or mutual fire insurance company that has a $100,000 surplus in excess of all legal reserves and other liabilities.Tex. Loc. Gov't. Code § 116.056
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. 9/1/1987.