Texas Business & Commerce Code - Section 41.101. Bond, Trust Account, Or Letter Of Credit Required
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§ 41.101. BOND, TRUST ACCOUNT, OR LETTER OF CREDIT
REQUIRED. (a) Before a seller makes a representation described by
Section 41.004(a)(1) or otherwise represents that the buyer is
assured of making a profit from a business opportunity, the
principal seller must:
(1) obtain a surety bond by a surety company
authorized to do 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:
(1) be in an amount of not less than $25,000; and
(2) be in favor of this state.
Added by Acts 1997, 75th Leg., ch. 1008, § 5, eff. Sept. 1, 1997.
Section: 41.007 41.008 41.009 41.051 41.052 41.053 41.054 41.101 41.102 41.151 41.152 41.153 41.154 41.155 41.156
Last modified: August 10, 2007
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