Texas Business & Commerce Code - Section 24.002. Definitions
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§ 24.002. DEFINITIONS. In this chapter:
(1) "Affiliate" means:
(A) a person who directly or indirectly owns,
controls, or holds with power to vote, 20 percent or more of the
outstanding voting securities of the debtor, other than a person
who holds the securities:
(i) as a fiduciary or agent without sole
discretionary power to vote the securities; or
(ii) solely to secure a debt, if the person
has not exercised the power to vote;
(B) a corporation 20 percent or more of whose
outstanding voting securities are directly or indirectly owned,
controlled, or held with power to vote, by the debtor or a person
who directly or indirectly owns, controls, or holds, with power to
vote, 20 percent or more of the outstanding voting securities of the
debtor, other than a person who holds the securities:
(i) as a fiduciary or agent without sole
power to vote the securities; or
(ii) solely to secure a debt, if the person
has not in fact exercised the power to vote;
(C) a person whose business is operated by the
debtor under a lease or other agreement, or a person substantially
all of whose assets are controlled by the debtor; or
(D) a person who operates the debtor's business
under a lease or other agreement or controls substantially all of
the debtor's assets.
(2) "Asset" means property of a debtor, but the term
does not include:
(A) property to the extent it is encumbered by a
valid lien;
(B) property to the extent it is generally exempt
under nonbankruptcy law; or
(C) an interest in property held in tenancy by
the entireties to the extent it is not subject to process by a
creditor holding a claim against only one tenant, under the law of
another jurisdiction.
(3) "Claim" means a right to payment or property,
whether or not the right is reduced to judgment, liquidated,
unliquidated, fixed, contingent, matured, unmatured, disputed,
undisputed, legal, equitable, secured, or unsecured.
(4) "Creditor" means a person, including a spouse,
minor, person entitled to receive court or administratively ordered
child support for the benefit of a child, or ward, who has a claim.
(5) "Debt" means a liability on a claim.
(6) "Debtor" means a person who is liable on a claim.
(7) "Insider" includes:
(A) if the debtor is an individual:
(i) a relative of the debtor or of a general
partner of the debtor;
(ii) a partnership in which the debtor is a
general partner;
(iii) a general partner in a partnership
described in Subparagraph (ii) of this paragraph; or
(iv) a corporation of which the debtor is a
director, officer, or person in control;
(B) if the debtor is a corporation:
(i) a director of the debtor;
(ii) an officer of the debtor;
(iii) a person in control of the debtor;
(iv) a partnership in which the debtor is a
general partner;
(v) a general partner in a partnership
described in Subparagraph (iv) of this paragraph; or
(vi) a relative of a general partner,
director, officer, or person in control of the debtor;
(C) if the debtor is a partnership:
(i) a general partner in the debtor;
(ii) a relative of a general partner in, a
general partner of, or a person in control of the debtor;
(iii) another partnership in which the
debtor is a general partner;
(iv) a general partner in a partnership
described in Subparagraph (iii) of this paragraph; or
(v) a person in control of the debtor;
(D) an affiliate, or an insider of an affiliate
as if the affiliate were the debtor; and
(E) a managing agent of the debtor.
(8) "Lien" means a charge against or an interest in
property to secure payment of a debt or performance of an
obligation, and includes a security interest created by agreement,
a judicial lien obtained by legal or equitable process or
proceedings, a common-law lien, or a statutory lien.
(9) "Person" means an individual, partnership,
corporation, association, organization, government or governmental
subdivision or agency, business trust, estate, trust, or any other
legal or commercial entity.
(10) "Property" means anything that may be the subject
of ownership.
(11) "Relative" means an individual related by
consanguinity within the third degree as determined by the common
law, a spouse, or an individual related to a spouse within the third
degree as so determined, and includes an individual in an adoptive
relationship within the third degree.
(12) "Transfer" means every mode, direct or indirect,
absolute or conditional, voluntary or involuntary, of disposing of
or parting with an asset or an interest in an asset, and includes
payment of money, release, lease, and creation of a lien or other
encumbrance. The term does not include a transfer under a
disclaimer filed under Section 37A, Texas Probate Code, or Section
112.010, Property Code.
(13) "Valid lien" means a lien that is effective
against the holder of a judicial lien subsequently obtained by
legal or equitable process or proceedings.
Amended by Acts 1987, 70th Leg., ch. 1004, § 1, eff. Sept. 1,
1987; Acts 1993, 73rd Leg., ch. 846, § 2, eff. Sept. 1, 1993;
Acts 1997, 75th Leg., ch. 911, § 95, eff. Sept. 1, 1997.
Section: 23.23 23.24 23.30 23.31 23.32 23.33 24.001 24.002 24.003 24.004 24.005 24.006 24.007 24.008 24.009
Last modified: August 10, 2007
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