Texas · Through 89th 2nd Called Legislative Session, 2025

Tex. Finance Code § 398.056: CERTAIN AUTOMATIC DEBITS PROHIBITED.

Where this section sits in the code

FINANCE CODE
TITLE 5. PROTECTION OF CONSUMERS OF FINANCIAL SERVICES
CHAPTER 398. COMMERCIAL SALES-BASED FINANCING
SUBCHAPTER B. REGULATION AND DISCLOSURE REQUIREMENTS

A provider or commercial sales-based financing broker may not establish a mechanism for automatically debiting a recipient's deposit account unless the provider or broker holds a validly perfected security interest in the recipient's account under Chapter 9, Business & Commerce Code, with a first priority against the claims of all other persons.

Added by Acts 2025, 89th Leg., R.S., Ch. 723 (H.B. 700), Sec. 1, eff. September 1, 2025.

Collected 2026-08-27T01:47:13Z. Source file · JSON

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