Texas Business & Commerce Code - Section 38.304. Action To Recover Against Security
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Texas Lawyer > Business & Commerce Code > Texas Business & Commerce Code - Section 38.304. Action To Recover Against Security
§ 38.304. ACTION TO RECOVER AGAINST SECURITY. (a) A
person who is injured by the bankruptcy of a seller or the seller's
breach of an agreement entered into during a telephone solicitation
may bring an action to recover against the bond, letter of credit,
or certificate of deposit required under Section 38.107.
(b) The liability of the surety on a bond provided under
Section 38.107 does not exceed the amount of the bond, regardless of
the number of claims filed or the aggregate amount claimed. If the
amount claimed exceeds the amount of the bond, the surety shall
deposit the amount of the bond with the secretary of state for
distribution to claimants entitled to recovery, and the surety is
then relieved of all liability under the bond.
Added by Acts 1997, 75th Leg., ch. 1008, § 2, eff. Sept. 1, 1997.
Section: 38.203 38.251 38.252 38.253 38.301 38.302 38.303 38.304 38.305 39.001 39.002 39.003 39.004 39.005 39.006
Last modified: August 10, 2007
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