Sec. 36.304. SECURED CLAIM. (a) The owner of a secured claim against a bank in liquidation may:
(1) surrender the security and file a claim as a general creditor; or
(2) apply the security to the claim and discharge the claim.
(b) If the owner applies the security and discharges the claim, any deficiency shall be treated as a claim against the general assets of the bank on the same basis as a claim of an unsecured creditor. The amount of the deficiency shall be determined as provided by Section 36.305, except that if the amount of the deficiency has been adjudicated by a court in a proceeding in which the receiver has had notice and an opportunity to be heard, the court's decision is conclusive as to the amount.
(c) The value of security held by a secured creditor shall be determined under supervision of the court by:
(1) converting the security into money according to the terms of the agreement under which the security was delivered to the creditor; or
(2) agreement, arbitration, compromise, or litigation between the creditor and the receiver.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Section: Previous 36.224 36.225 36.226 36.227 36.301 36.302 36.303 36.304 36.305 36.306 36.307 36.308 36.309 36.310 36.311 NextLast modified: September 28, 2016