Texas Property Code - Section 162.005. Definitions
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Texas Laws > Property Code > Texas Property Code - Section 162.005. Definitions
Section: 161.056 161.057 161.058 162.001 162.002 162.003 162.004 162.005 162.006 162.007 162.031 162.032 162.033 163.001 163.002
§ 162.005. DEFINITIONS. In this chapter:
(1) A trustee acts with "intent to defraud" when the
(A) retains, uses, disburses, or diverts trust
funds with the intent to deprive the beneficiaries of the trust
(B) retains, uses, disburses, or diverts trust
funds and fails to establish or maintain a construction account as
required by Section 162.006 or fails to establish or maintain an
account record for the construction account as required by Section
(C) uses, disburses, or diverts trust funds that
were paid to the trustee in reliance on an affidavit furnished by
the trustee under Section 53.085 if the affidavit contains false
information relating to the trustee's payment of current or past
(2) "Current or past due obligations" are those
obligations incurred or owed by the trustee for labor or materials
furnished in the direct prosecution of the work under the
construction contract prior to the receipt of the trust funds and
which are due and payable by the trustee no later than 30 days
following receipt of the trust funds.
(3) "Direct cost" means a cost included under a
construction contract that is specific to the construction of the
improvement that is the subject of the contract.
(4) "Indirect cost" means a cost included under a
construction contract that is not specific to the construction of
the improvement that is the subject of the contract.
(5) "Financial institution" means a bank, savings
association, savings bank, credit union, or savings and loan
association authorized to do business in the state.
(6) "Construction account" means an account in a
financial institution into which only trust funds and funds
deposited by the contractor that are necessary to pay charges
imposed on the account by the financial institution may be
Added by Acts 1987, 70th Leg., ch. 578, § 3, eff. Aug. 31, 1987.
Amended by Acts 1997, 75th Leg., ch. 1018, § 3, eff. Sept. 1,
Last modified: August 11, 2007