Texas Finance Code - Section 32.402. Authority To Act As Disbursing Agent
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Texas Lawyer > Finance Code > Texas Finance Code - Section 32.402. Authority To Act As Disbursing Agent
§ 32.402. AUTHORITY TO ACT AS DISBURSING AGENT. (a) The
purchasing bank may hold the purchase price and any additional
money delivered to it by the selling institution in trust for, or as
a deposit to the credit of, the selling institution and may act as
agent of the selling institution in disbursing the money in trust or
on deposit by paying the depositors and creditors of the selling
institution.
(b) If the purchasing bank acts under written contract of
agency approved by the banking commissioner that specifically names
each depositor and creditor and the amount to be paid each, and if
the agency is limited to the purely ministerial act of paying those
depositors and creditors the amounts due them as determined by the
selling institution and reflected in the contract of agency and
does not involve discretionary duties or authority other than the
identification of the depositors and creditors named, the
purchasing bank:
(1) may rely on the contract of agency and the
instructions included in it; and
(2) is not responsible for:
(A) any error made by the selling institution in
determining its liabilities, the depositors and creditors to whom
the liabilities are due, or the amounts due the depositors and
creditors; or
(B) any preference that results from the payments
made under the contract of agency and the instructions included in
it.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
Section: 32.203 32.204 32.301 32.302 32.303 32.304 32.401 32.402 32.403 32.404 32.405 32.406 32.501 32.502 33.001
Last modified: August 10, 2007
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