reglab/statecodes huggingface dataset:
2023 Texas Statutes › Business and Commerce Code › Title 3 - Insolvency, Fraudulent Transfers, and Fraud › Chapter 23 - Assignments for the Benefit of Creditors › Subchapter D. Duties and Rights of Creditors › Section 23.31. Creditor's Proof and Assignee's Allowance of Claim

Sec. 23.31.  CREDITOR'S PROOF AND ASSIGNEE'S ALLOWANCE OF CLAIM.  (a)  Within six months after the first publication of notice of appointment required by Section 23.17 of this code, a consenting creditor must file with the assignee a statement, sworn to by the creditor, his agent, or attorney,
(1)  describing the nature and amount of the creditor's claim against the assigning debtor;  and
(2)  stating that
(A)  the claim is true;
(B)  the debt is just;  and
(C)  all proper credits or offsets have been allowed against the claim.
(b)  The assignee shall allow a claim filed under Subsection (a) of this section against the assigned estate unless he has good reason to believe the claim is not just and true.
(c)  If a creditor does not file a statement in the time required by Subsection (a) of this section, he is not entitled to receive any of the assigned estate.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1.
2023 Texas Statutes › Business and Commerce Code › Title 3 - Insolvency, Fraudulent Transfers, and Fraud › Chapter 23 - Assignments for the Benefit of Creditors › Subchapter D. Duties and Rights of Creditors › Section 23.32. Creditor's Suit on Disputed Claim

Sec. 23.32.  CREDITOR'S SUIT ON DISPUTED CLAIM.  (a)  The assignee shall give any creditor a copy of any statement of claim filed under Section 23.31(a) of this code if the creditor requests a copy.
(b)  Within eight months after the first publication of notice required by Section 23.17 of this code, an assigning debtor or creditor may sue to
(1)  set aside an allowance made on a claim by the assignee;  and
(2)  restrain payment of the claim by the assignee.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1.
2023 Texas Statutes › Business and Commerce Code › Title 3 - Insolvency, Fraudulent Transfers, and Fraud › Chapter 23 - Assignments for the Benefit of Creditors › Subchapter D. Duties and Rights of Creditors › Section 23.33. Nonconsenting Creditor's Right to Surplus

Sec. 23.33.  NONCONSENTING CREDITOR'S RIGHT TO SURPLUS.  If a creditor does not consent to an assignment, he may garnishee the assignee for the excess of the assigned estate remaining in the assignee's possession after the assignee has paid
(1)  each consenting creditor the amount of his claim allowed under Section 23.31(b) of this code;  and
(2)  the expense of carrying out the assignment.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1.
2023 Texas Statutes › Business and Commerce Code › Title 3 - Insolvency, Fraudulent Transfers, and Fraud › Chapter 24 - Uniform Fraudulent Transfer Act › Section 24.001. Short Title

Sec. 24.001.  SHORT TITLE.  This chapter may be cited as the Uniform Fraudulent Transfer Act.
Amended by Acts 1987, 70th Leg., ch. 1004, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Business and Commerce Code › Title 3 - Insolvency, Fraudulent Transfers, and Fraud › Chapter 24 - Uniform Fraudulent Transfer Act › Section 24.003. Insolvency

Sec. 24.003.  INSOLVENCY.  (a)  A debtor is insolvent if the sum of the debtor's debts is greater than all of the debtor's assets at a fair valuation.
(b)  A debtor who is generally not paying the debtor's debts as they become due is presumed to be insolvent.
(c)  Repealed by Acts 2013, 83rd Leg., R.S., Ch. 9, Sec. 11, eff. September 1, 2013.
(d)  Assets under this section do not include property that has been transferred, concealed, or removed with intent to hinder, delay, or defraud creditors or that has been transferred in a manner making the transfer voidable under this chapter.
(e)  Debts under this section do not include an obligation to the extent it is secured by a valid lien on property of the debtor not included as an asset.
Amended by Acts 1987, 70th Leg., ch. 1004, Sec. 1, eff. Sept. 1, 1987;  Acts 1993, 73rd Leg., ch. 570, Sec. 8, eff. Sept. 1, 1993.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 9 (S.B. 847), Sec. 11, eff. September 1, 2013.
2023 Texas Statutes › Business and Commerce Code › Title 3 - Insolvency, Fraudulent Transfers, and Fraud › Chapter 24 - Uniform Fraudulent Transfer Act › Section 24.004. Value

Sec. 24.004.  VALUE.  (a)  Value is given for a transfer or an obligation if, in exchange for the transfer or obligation, property is transferred or an antecedent debt is secured or satisfied, but value does not include an unperformed promise made otherwise than in the ordinary course of the promisor's business to furnish support to the debtor or another person.
(b)  For the purposes of Sections 24.005(a)(2) and 24.006 of this code, a person gives a reasonably equivalent value if the person acquires an interest of the debtor in an asset pursuant to a regularly conducted, noncollusive foreclosure sale or execution of a power of sale for the acquisition or disposition of the interest of the debtor upon default under a mortgage, deed of trust, or security agreement.
(c)  A transfer is made for present value if the exchange between the debtor and the transferee is intended by them to be contemporaneous and is in fact substantially contemporaneous.
(d)  "Reasonably equivalent value" includes without limitation, a transfer or obligation that is within the range of values for which the transferor would have sold the assets in an arm's length transaction.
Amended by Acts 1987, 70th Leg., ch. 1004, Sec. 1, eff. Sept. 1, 1987;  Acts 1993, 73rd Leg., ch. 570, Sec. 9, eff. Sept. 1, 1993.
2023 Texas Statutes › Business and Commerce Code › Title 3 - Insolvency, Fraudulent Transfers, and Fraud › Chapter 24 - Uniform Fraudulent Transfer Act › Section 24.005. Transfers Fraudulent as to Present and Future Creditors

Sec. 24.005.  TRANSFERS FRAUDULENT AS TO PRESENT AND FUTURE CREDITORS.  (a)  A transfer made or obligation incurred by a debtor is fraudulent as to a creditor, whether the creditor's claim arose before or within a reasonable time after the transfer was made or the obligation was incurred, if the debtor made the transfer or incurred the obligation:
(1)  with actual intent to hinder, delay, or defraud any creditor of the debtor;  or
(2)  without receiving a reasonably equivalent value in exchange for the transfer or obligation, and the debtor:
(A)  was engaged or was about to engage in a business or a transaction for which the remaining assets of the debtor were unreasonably small in relation to the business or transaction;  or
(B)  intended to incur, or believed or reasonably should have believed that the debtor would incur, debts beyond the debtor's ability to pay as they became due.
(b)  In determining actual intent under Subsection (a)(1) of this section, consideration may be given, among other factors, to whether:
(1)  the transfer or obligation was to an insider;
(2)  the debtor retained possession or control of the property transferred after the transfer;
(3)  the transfer or obligation was concealed;
(4)  before the transfer was made or obligation was incurred, the debtor had been sued or threatened with suit;
(5)  the transfer was of substantially all the debtor's assets;
(6)  the debtor absconded;
(7)  the debtor removed or concealed assets;
(8)  the value of the consideration received by the debtor was reasonably equivalent to the value of the asset transferred or the amount of the obligation incurred;
(9)  the debtor was insolvent or became insolvent shortly after the transfer was made or the obligation was incurred;
(10)  the transfer occurred shortly before or shortly after a substantial debt was incurred;  and
(11)  the debtor transferred the essential assets of the business to a lienor who transferred the assets to an insider of the debtor.
Amended by Acts 1987, 70th Leg., ch. 1004, Sec. 1, eff. Sept. 1, 1987;  Acts 1993, 73rd Leg., ch. 570, Sec. 10, eff. Sept. 1, 1993.
2023 Texas Statutes › Business and Commerce Code › Title 3 - Insolvency, Fraudulent Transfers, and Fraud › Chapter 24 - Uniform Fraudulent Transfer Act › Section 24.006. Transfers Fraudulent as to Present Creditors

Sec. 24.006.  TRANSFERS FRAUDULENT AS TO PRESENT CREDITORS.  (a)  A transfer made or obligation incurred by a debtor is fraudulent as to a creditor whose claim arose before the transfer was made or the obligation was incurred if the debtor made the transfer or incurred the obligation without receiving a reasonably equivalent value in exchange for the transfer or obligation and the debtor was insolvent at that time or the debtor became insolvent as a result of the transfer or obligation.
(b)  A transfer made by a debtor is fraudulent as to a creditor whose claim arose before the transfer was made if the transfer was made to an insider for an antecedent debt, the debtor was insolvent at that time, and the insider had reasonable cause to believe that the debtor was insolvent.
Amended by Acts 1987, 70th Leg., ch. 1004, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Business and Commerce Code › Title 3 - Insolvency, Fraudulent Transfers, and Fraud › Chapter 24 - Uniform Fraudulent Transfer Act › Section 24.007. When Transfer Is Made or Obligation Is Incurred

Sec. 24.007.  WHEN TRANSFER IS MADE OR OBLIGATION IS INCURRED.  For the purposes of this chapter:
(1)  a transfer is made:
(A)  with respect to an asset that is real property other than a fixture, but including the interest of a seller or purchaser under a contract for the sale of the asset, when the transfer is so far perfected that a good faith purchaser of the asset from the debtor against whom applicable law permits the transfer to be perfected cannot acquire an interest in the asset that is superior to the interest of the transferee;  and
(B)  with respect to an asset that is not real property or that is a fixture, when the transfer is so far perfected that a creditor on a simple contract cannot acquire a judicial lien otherwise than under this chapter that is superior to the interest of the transferee;
(2)  if applicable law permits the transfer to be perfected as provided in Subdivision (1) of this section and the transfer is not so perfected before the commencement of an action for relief under this chapter, the transfer is deemed made immediately before the commencement of the action;
(3)  if applicable law does not permit the transfer to be perfected as provided in Subdivision (1) of this section, the transfer is made when it becomes effective between the debtor and the transferee;
(4)  a transfer is not made until the debtor has acquired rights in the asset transferred;  and
(5)  an obligation is incurred:
(A)  if oral, when it becomes effective between the parties;  or
(B)  if evidenced by a writing, when the writing executed by the obligor is delivered to or for the benefit of the obligee.
Amended by Acts 1987, 70th Leg., ch. 1004, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Business and Commerce Code › Title 3 - Insolvency, Fraudulent Transfers, and Fraud › Chapter 24 - Uniform Fraudulent Transfer Act › Section 24.008. Remedies of Creditors

Sec. 24.008.  REMEDIES OF CREDITORS.  (a)  In an action for relief against a transfer or obligation under this chapter, a creditor, subject to the limitations in Section 24.009 of this code, may obtain:
(1)  avoidance of the transfer or obligation to the extent necessary to satisfy the creditor's claim;
(2)  an attachment or other provisional remedy against the asset transferred or other property of the transferee in accordance with the applicable Texas Rules of Civil Procedure and the Civil Practice and Remedies Code relating to ancillary proceedings;  or
(3)  subject to applicable principles of equity and in accordance with applicable rules of civil procedure:
(A)  an injunction against further disposition by the debtor or a transferee, or both, of the asset transferred or of other property;
(B)  appointment of a receiver to take charge of the asset transferred or of other property of the transferee;  or
(C)  any other relief the circumstances may require.
(b)  If a creditor has obtained a judgment on a claim against the debtor, the creditor, if the court so orders, may levy execution on the asset transferred or its proceeds.
Amended by Acts 1987, 70th Leg., ch. 1004, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Business and Commerce Code › Title 3 - Insolvency, Fraudulent Transfers, and Fraud › Chapter 24 - Uniform Fraudulent Transfer Act › Section 24.010. Extinguishment of Cause of Action

Sec. 24.010.  EXTINGUISHMENT OF CAUSE OF ACTION.  (a)  Except as provided by Subsection (b) of this section, a cause of action with respect to a fraudulent transfer or obligation under this chapter is extinguished unless action is brought:
(1)  under Section 24.005(a)(1) of this code, within four years after the transfer was made or the obligation was incurred or, if later, within one year after the transfer or obligation was or could reasonably have been discovered by the claimant;
(2)  under Section 24.005(a)(2) or 24.006(a) of this code, within four years after the transfer was made or the obligation was incurred;  or
(3)  under Section 24.006(b) of this code, within one year after the transfer was made.
(b)  A cause of action on behalf of a spouse, minor, or ward with respect to a fraudulent transfer or obligation under this chapter is extinguished unless the action is brought:
(1)  under Section 24.005(a) or 24.006(a) of this code, within two years after the cause of action accrues, or if later, within one year after the transfer or obligation was or could reasonably have been discovered by the claimant;  or
(2)  under Section 24.006(b) of this code within one year after the date the transfer was made.
(c)  If a creditor entitled to bring an action under this chapter is under a legal disability when a time period prescribed by this section starts, the time of the disability is not included in the period.  A disability that arises after the period starts does not suspend the running of the period.  A creditor may not tack one legal disability to another to extend the period.  For the purposes of this subsection, a creditor is under a legal disability if the creditor is:
(1)  younger than 18 years of age, regardless of whether the person is married;  or
(2)  of unsound mind.
Amended by Acts 1987, 70th Leg., ch. 1004, Sec. 1, eff. Sept. 1, 1987;  Acts 1993, 73rd Leg., ch. 570, Sec. 12, eff. Sept. 1, 1993.
2023 Texas Statutes › Business and Commerce Code › Title 3 - Insolvency, Fraudulent Transfers, and Fraud › Chapter 24 - Uniform Fraudulent Transfer Act › Section 24.011. Supplementary Provisions

Sec. 24.011.  SUPPLEMENTARY PROVISIONS.  Unless displaced by the provisions of this chapter, the principles of law and equity, including the law merchant and the law relating to principal and agent, estoppel, laches, fraud, misrepresentation, duress, coercion, mistake, insolvency, or other validating or invalidating cause, supplement its provisions.
Amended by Acts 1987, 70th Leg., ch. 1004, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Business and Commerce Code › Title 3 - Insolvency, Fraudulent Transfers, and Fraud › Chapter 24 - Uniform Fraudulent Transfer Act › Section 24.012. Uniformity of Application and Construction

Sec. 24.012.  UNIFORMITY OF APPLICATION AND CONSTRUCTION.  This chapter shall be applied and construed to effectuate its general purpose to make uniform the law with respect to the subject of this chapter among states enacting it.
Amended by Acts 1987, 70th Leg., ch. 1004, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Business and Commerce Code › Title 3 - Insolvency, Fraudulent Transfers, and Fraud › Chapter 24 - Uniform Fraudulent Transfer Act › Section 24.013. Costs

Sec. 24.013.  COSTS.  In any proceeding under this chapter, the court may award costs and reasonable attorney's fees as are equitable and just.
Added by Acts 2003, 78th Leg., ch. 420, Sec. 1, eff. Sept. 1, 2003.
2023 Texas Statutes › Business and Commerce Code › Title 3 - Insolvency, Fraudulent Transfers, and Fraud › Chapter 26 - Statute of Frauds › Section 26.01. Promise or Agreement Must Be in Writing

Sec. 26.01.  PROMISE OR AGREEMENT MUST BE IN WRITING.  (a)  A promise or agreement described in Subsection (b) of this section is not enforceable unless the promise or agreement, or a memorandum of it, is
(1)  in writing;  and
(2)  signed by the person to be charged with the promise or agreement or by someone lawfully authorized to sign for him.
(b)  Subsection (a) of this section applies to:
(1)  a promise by an executor or administrator to answer out of his own estate for any debt or damage due from his testator or intestate;
(2)  a promise by one person to answer for the debt, default, or miscarriage of another person;
(3)  an agreement made on consideration of marriage or on consideration of nonmarital conjugal cohabitation;
(4)  a contract for the sale of real estate;
(5)  a lease of real estate for a term longer than one year;
(6)  an agreement which is not to be performed within one year from the date of making the agreement;
(7)  a promise or agreement to pay a commission for the sale or purchase of:
(A)  an oil or gas mining lease;
(B)  an oil or gas royalty;
(C)  minerals;  or
(D)  a mineral interest;  and
(8)  an agreement, promise, contract, or warranty of cure relating to medical care or results thereof made by a physician or health care provider as defined in Section 74.001, Civil Practice and Remedies Code.  This section shall not apply to pharmacists.
Acts 1967, 60th Leg., vol. 2, p. 2343, ch. 785, Sec. 1.  Amended by Acts 1977, 65th Leg., p. 2053, ch. 817, Sec. 21.01, eff. Aug. 29, 1977;  Acts 1987, 70th Leg., ch. 551, Sec. 1, eff. Aug. 31, 1987.
Amended by:
Acts 2005, 79th Leg., Ch. 187 (H.B. 735), Sec. 1, eff. September 1, 2005.
2023 Texas Statutes › Business and Commerce Code › Title 3 - Insolvency, Fraudulent Transfers, and Fraud › Chapter 27 - Fraud › Section 27.01. Fraud in Real Estate and Stock Transactions

Sec. 27.01.  FRAUD IN REAL ESTATE AND STOCK TRANSACTIONS.  (a)  Fraud in a transaction involving real estate or stock in a corporation or joint stock company consists of a
(1)  false representation of a past or existing material fact, when the false representation is
(A)  made to a person for the purpose of inducing that person to enter into a contract;  and
(B)  relied on by that person in entering into that contract;  or
(2)  false promise to do an act, when the false promise is
(A)  material;
(B)  made with the intention of not fulfilling it;
(C)  made to a person for the purpose of inducing that person to enter into a contract;  and
(D)  relied on by that person in entering into that contract.
(b)  A person who makes a false representation or false promise commits the fraud described in Subsection (a) of this section and is liable to the person defrauded for actual damages.
(c)  A person who makes a false representation or false promise with actual awareness of the falsity thereof commits the fraud described in Subsection (a) of this section and is liable to the person defrauded for exemplary damages.  Actual awareness may be inferred where objective manifestations indicate that a person acted with actual awareness.
(d)  A person who (1) has actual awareness of the falsity of a representation or promise made by another person and (2) fails to disclose the falsity of the representation or promise to the person defrauded, and (3) benefits from the false representation or promise commits the fraud described in Subsection (a) of this section and is liable to the person defrauded for exemplary damages.  Actual awareness may be inferred where objective manifestations indicate that a person acted with actual awareness.
(e)  Any person who violates the provisions of this section shall be liable to the person defrauded for reasonable and necessary attorney's fees, expert witness fees, costs for copies of depositions, and costs of court.
Acts 1967, 60th Leg., vol. 2, p. 2343, ch. 785, Sec. 1.  Amended by Acts 1983, 68th Leg., p. 5208, ch. 949, Sec. 1, 2, eff. Sept. 1, 1983.
2023 Texas Statutes › Business and Commerce Code › Title 3 - Insolvency, Fraudulent Transfers, and Fraud › Chapter 27 - Fraud › Section 27.015. Deceptive Trade Practice; Public Remedy

Sec. 27.015.  DECEPTIVE TRADE PRACTICE; PUBLIC REMEDY.  (a)  In this section, "consumer protection division" has the meaning assigned by Section 17.45.
(b)  A violation of Section 27.01 that relates to the transfer of title to real estate is a false, misleading, or deceptive act or practice as defined by Section 17.46(b), and any public remedy under Subchapter E, Chapter 17, is available for a violation of that section.
(c)  It is the duty of city attorneys to lend the consumer protection division any reasonable assistance requested in the commencement and prosecution of actions under this section.
(d)  To the same extent and in the same manner a district or county attorney may institute or prosecute an action under this section, a city attorney may institute or prosecute an action under this section.
(e)  If a district, county, or city attorney brings an action under this section, 75 percent of any penalty recovered shall be deposited in the general fund of the county or municipality in which the violation occurred.
(f)  This section does not apply to an action to recover damages that is subject to Chapter 27, Property Code.
Added by Acts 2015, 84th Leg., R.S., Ch. 1083 (H.B. 2590), Sec. 1, eff. September 1, 2015.
2023 Texas Statutes › Business and Commerce Code › Title 3 - Insolvency, Fraudulent Transfers, and Fraud › Chapter 27 - Fraud › Section 27.02. Goods or Services Paid for by Insurance Proceeds: Payment of Deductible Required

Sec. 27.02.  GOODS OR SERVICES PAID FOR BY INSURANCE PROCEEDS: PAYMENT OF DEDUCTIBLE REQUIRED.  (a)  In this section, "property insurance policy" has the meaning assigned by Section 707.001, Insurance Code.
(b)  A contract to provide a good or service that is reasonably expected to be paid wholly or partly from the proceeds of a claim under a property insurance policy and that has a contract price of $1,000 or more must contain the following notice in at least 12-point boldfaced type:  "Texas law requires a person insured under a property insurance policy to pay any deductible applicable to a claim made under the policy.  It is a violation of Texas law for a seller of goods or services who reasonably expects to be paid wholly or partly from the proceeds of a property insurance claim to knowingly allow the insured person to fail to pay, or assist the insured person's failure to pay, the applicable insurance deductible."
(c)  A person who sells goods or services commits an offense if the person:
(1)  advertises or promises to provide a good or service to an insured under a property insurance policy in a transaction in which:
(A)  the good or service will be paid for by the insured from the proceeds of a property insurance claim; and
(B)  the person selling the good or service will, without the insurer's consent:
(i)  pay, waive, absorb, or otherwise decline to charge or collect the amount of the insured's deductible;
(ii)  provide a rebate or credit in connection with the sale of the good or service that will offset all or part of the amount paid by the insured as a deductible; or
(iii)  in any other manner assist the insured in avoiding monetary payment of the required insurance deductible; or
(2)  provides a good or service to an insured under a property insurance policy knowing that the insured will pay for the good or service with the proceeds of a claim under the policy and, without the insurer's consent:
(A)  pays, waives, absorbs, or otherwise declines to charge or collect the amount of the insured's deductible;
(B)  provides a rebate or credit in connection with the sale of the good or service that offsets all or part of the amount paid by the insured as a deductible; or
(C)  in any other manner assists the insured in avoiding monetary payment of the required insurance deductible.
(d)  An offense under this section is a Class B misdemeanor.
Added by Acts 1989, 71st Leg., ch. 898, Sec. 1, eff. Sept. 1, 1989.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 1099 (H.B. 2102), Sec. 2, eff. September 1, 2019.
2023 Texas Statutes › Business and Commerce Code › Title 4 - Business Opportunities and Agreements › Chapter 51 - Business Opportunities › Subchapter A. General Provisions › Section 51.001. Short Title

Sec. 51.001.  SHORT TITLE.  This chapter may be cited as the Business Opportunity Act.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 2.01, eff. April 1, 2009.
2023 Texas Statutes › Business and Commerce Code › Title 4 - Business Opportunities and Agreements › Chapter 51 - Business Opportunities › Subchapter A. General Provisions › Section 51.002. General Definitions

Sec. 51.002.  GENERAL DEFINITIONS.  In this chapter:
(1)  "Business opportunity contract" means an agreement that obligates or is intended to obligate a purchaser to a seller.
(2)  "Buy-back" or "secured investment" means a representation that implies a purchaser's payment is protected from loss.
(3)  "Equipment" includes electrical devices, video and audio devices, molds, display units, including display racks, and machines, including coin-operated game machines and vending and other machines that dispense products.
(4)  "Initial consideration" means the total amount a purchaser is obligated to pay under a business opportunity contract before or at the time products, equipment, supplies, or services are delivered or within six months after the date the purchaser begins operation of the business opportunity plan.  The term means the total sale price if the contract states a specific total sale price for purchase of the business opportunity plan and the total sale price is to be paid as a down payment and one or more additional payments.  The term does not include the not-for-profit sale of sales demonstration materials, samples, or equipment for not more than $500.
(5)  "Marketing program" means advice or training that a seller or a person recommended by a seller gives to a purchaser regarding the sale of products, equipment, supplies, or services.  The term includes the preparation or provision of:
(A)  a brochure, pamphlet, or advertising material, including promotional literature;
(B)  training regarding the promotion, operation, or management of a business opportunity; or
(C)  operational, managerial, technical, or financial guidelines or assistance.
(6)  "Product" includes tangible personal property.
(7)  "Purchaser" means a person who becomes or is solicited to become obligated under a business opportunity contract.
(8)  "Seller" means a principal or agent who sells or leases or offers to sell or lease a business opportunity.
(9)  "Services" includes any assistance, guidance, direction, work, labor, or other services provided by a seller to initiate or maintain a business opportunity.
(10)  "Supplies" includes materials used to make, produce, grow, or breed a product or item.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 2.01, eff. April 1, 2009.
2023 Texas Statutes › Business and Commerce Code › Title 4 - Business Opportunities and Agreements › Chapter 51 - Business Opportunities › Subchapter A. General Provisions › Section 51.004. Liberal Construction and Application

Sec. 51.004.  LIBERAL CONSTRUCTION AND APPLICATION.  (a)  This chapter shall be liberally construed and applied to:
(1)  protect persons against false, misleading, or deceptive practices in the advertising, offering for sale or lease, or sale or lease of business opportunities; and
(2)  provide efficient and economical procedures to secure that protection.
(b)  In construing this chapter, a court to the extent possible shall follow the interpretations given by the Federal Trade Commission and the federal courts to Section 5(a)(1), Federal Trade Commission Act (15 U.S.C. Section 45(a)(1)), and 16 C.F.R. Part 436 and their subsequent amendments.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 2.01, eff. April 1, 2009.
2023 Texas Statutes › Business and Commerce Code › Title 4 - Business Opportunities and Agreements › Chapter 51 - Business Opportunities › Subchapter A. General Provisions › Section 51.005. Burden of Proof

Sec. 51.005.  BURDEN OF PROOF.  A person who claims to be exempt from this chapter has the burden of proving the exemption.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 2.01, eff. April 1, 2009.
2023 Texas Statutes › Business and Commerce Code › Title 4 - Business Opportunities and Agreements › Chapter 51 - Business Opportunities › Subchapter A. General Provisions › Section 51.006. Waiver

Sec. 51.006.  WAIVER.  A waiver of this chapter is contrary to public policy and void.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 2.01, eff. April 1, 2009.
2023 Texas Statutes › Business and Commerce Code › Title 4 - Business Opportunities and Agreements › Chapter 51 - Business Opportunities › Subchapter A. General Provisions › Section 51.007. Maintenance of Records

Sec. 51.007.  MAINTENANCE OF RECORDS.  (a)  A seller shall maintain a complete set of books, records, and accounts of business opportunity sales made by the seller.
(b)  A document relating to a business opportunity sold or leased shall be maintained until the fourth anniversary of the date of the business opportunity contract.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 2.01, eff. April 1, 2009.
2023 Texas Statutes › Business and Commerce Code › Title 4 - Business Opportunities and Agreements › Chapter 51 - Business Opportunities › Subchapter A. General Provisions › Section 51.008. Filing Fee

Sec. 51.008.  FILING FEE. The secretary of state may charge a reasonable fee to cover the costs incurred as a result of a filing required by Subchapter B or Section 51.003 or 51.251.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 2.01, eff. April 1, 2009.
2023 Texas Statutes › Business and Commerce Code › Title 4 - Business Opportunities and Agreements › Chapter 51 - Business Opportunities › Subchapter A. General Provisions › Section 51.009. Rules

Sec. 51.009.  RULES. The secretary of state may adopt rules to administer and enforce this chapter.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 2.01, eff. April 1, 2009.
2023 Texas Statutes › Business and Commerce Code › Title 4 - Business Opportunities and Agreements › Chapter 51 - Business Opportunities › Subchapter B. Registration of Business Opportunity › Section 51.051. Filing of Disclosure Statements and List of Sellers

Sec. 51.051.  FILING OF DISCLOSURE STATEMENTS AND LIST OF SELLERS.  Before a sale or offer for sale, including advertising, of a business opportunity, the principal seller must register the business opportunity with the secretary of state by filing:
(1)  a copy of the disclosure statement required by Subchapter D, except as provided by Section 51.053; and
(2)  a list of the name and resident address of any individual who sells or will sell the business opportunity for the principal seller.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 2.01, eff. April 1, 2009.
2023 Texas Statutes › Business and Commerce Code › Title 4 - Business Opportunities and Agreements › Chapter 51 - Business Opportunities › Subchapter B. Registration of Business Opportunity › Section 51.052. Updating of Information on File

Sec. 51.052.  UPDATING OF INFORMATION ON FILE.  (a)  A copy of a disclosure statement filed under Section 51.051 must be updated through a new filing:
(1)  annually; and
(2)  when a material change occurs.
(b)  The list filed under Section 51.051(2) must be updated through a new filing every six months.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 2.01, eff. April 1, 2009.
2023 Texas Statutes › Business and Commerce Code › Title 4 - Business Opportunities and Agreements › Chapter 51 - Business Opportunities › Subchapter B. Registration of Business Opportunity › Section 51.053. Filing of Disclosure Document From Other Regulatory Agency

Sec. 51.053.  FILING OF DISCLOSURE DOCUMENT FROM OTHER REGULATORY AGENCY.  Instead of filing with the secretary of state a copy of a disclosure statement, a seller may file a copy of a similar document required by the State Securities Board, Securities and Exchange Commission, or Federal Trade Commission that contains all the information required to be disclosed by this chapter.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 2.01, eff. April 1, 2009.
2023 Texas Statutes › Business and Commerce Code › Title 4 - Business Opportunities and Agreements › Chapter 51 - Business Opportunities › Subchapter B. Registration of Business Opportunity › Section 51.054. Filing of Copy of Bond or Notification of Account

Sec. 51.054.  FILING OF COPY OF BOND OR NOTIFICATION OF ACCOUNT.  A principal seller who is required to obtain a bond or establish a trust account under Subchapter C shall contemporaneously file with the secretary of state a copy of:
(1)  the bond; or
(2)  the formal notification by the depository that the trust account is established.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 2.01, eff. April 1, 2009.
2023 Texas Statutes › Business and Commerce Code › Title 4 - Business Opportunities and Agreements › Chapter 51 - Business Opportunities › Subchapter C. Bond, Trust Account, or Letter of Credit › Section 51.101. Bond, Trust Account, or Letter of Credit Required

Sec. 51.101.  BOND, TRUST ACCOUNT, OR LETTER OF CREDIT REQUIRED.  (a)  Before a seller makes a representation described by Section 51.003(a)(1) or otherwise represents that the purchaser is assured of making a profit from a business opportunity, the principal seller must:
(1)  obtain a surety bond from a surety company authorized to transact 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 be:
(1)  in an amount of $25,000 or more; and
(2)  in favor of this state.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 2.01, eff. April 1, 2009.
2023 Texas Statutes › Business and Commerce Code › Title 4 - Business Opportunities and Agreements › Chapter 51 - Business Opportunities › Subchapter C. Bond, Trust Account, or Letter of Credit › Section 51.102. Action Against Bond, Trust Account, or Letter of Credit

Sec. 51.102.  ACTION AGAINST BOND, TRUST ACCOUNT, OR LETTER OF CREDIT.  (a)  A person may bring an action against the bond, trust account, or irrevocable letter of credit obtained or established under Section 51.101 to recover actual damages for:
(1)  a violation of this chapter; or
(2)  the seller's breach of:
(A)  the business opportunity contract; or
(B)  an obligation arising from a business opportunity sale.
(b)  The aggregate liability of the surety, trustee, or issuer in an action under Subsection (a) may not exceed the amount of the bond, trust account, or irrevocable letter of credit.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 2.01, eff. April 1, 2009.
2023 Texas Statutes › Business and Commerce Code › Title 4 - Business Opportunities and Agreements › Chapter 51 - Business Opportunities › Subchapter D. Disclosure Statement › Section 51.151. Disclosure to Purchaser of Business Opportunity

Sec. 51.151.  DISCLOSURE TO PURCHASER OF BUSINESS OPPORTUNITY.  (a)  Except as provided by Section 51.164, a seller must provide a purchaser with a written disclosure statement that meets the requirements of this subchapter.
(b)  The seller must provide the disclosure statement at least 10 business days before the earlier of the date:
(1)  the purchaser signs a business opportunity contract; or
(2)  the seller receives any consideration.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 2.01, eff. April 1, 2009.
2023 Texas Statutes › Business and Commerce Code › Title 4 - Business Opportunities and Agreements › Chapter 51 - Business Opportunities › Subchapter D. Disclosure Statement › Section 51.152. Cover Sheet of Disclosure Statement

Sec. 51.152.  COVER SHEET OF DISCLOSURE STATEMENT.  (a)  A disclosure statement must have a cover sheet titled, in at least 12-point boldface capital letters, "DISCLOSURES REQUIRED BY TEXAS LAW."  The following statement must appear below the title in at least 10-point boldface type:  "The State of Texas has not reviewed and does not endorse, approve, recommend, or sponsor any business opportunity.  The information contained in this disclosure has not been verified by the state.  If you have any questions about this investment, see an attorney before you sign a contract or agreement."
(b)  Only the title and required statement may appear on the cover sheet.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 2.01, eff. April 1, 2009.
2023 Texas Statutes › Business and Commerce Code › Title 4 - Business Opportunities and Agreements › Chapter 51 - Business Opportunities › Subchapter D. Disclosure Statement › Section 51.153. Contents: Names and Addresses

Sec. 51.153.  CONTENTS:  NAMES AND ADDRESSES.  A disclosure statement must contain:
(1)  the name of the seller;
(2)  each name under which the seller has transacted, is transacting, or intends to transact business;
(3)  the name of any parent or affiliated company that will engage in a business transaction with the purchaser or that takes responsibility for statements made by the seller; and
(4)  the names, addresses, and titles of:
(A)  the seller's officers, directors, trustees, general partners, general managers, and principal executives;
(B)  shareholders owning more than 20 percent of the shares of the seller; and
(C)  any other persons responsible for the seller's business activities relating to the sale of business opportunities.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 2.01, eff. April 1, 2009.
2023 Texas Statutes › Business and Commerce Code › Title 4 - Business Opportunities and Agreements › Chapter 51 - Business Opportunities › Subchapter D. Disclosure Statement › Section 51.154. Contents: Sales Periods

Sec. 51.154.  CONTENTS:  SALES PERIODS.  A disclosure statement must:
(1)  specify the period during which the seller has sold business opportunities; and
(2)  specify the period during which the seller has sold business opportunities involving the products, equipment, supplies, or services the seller is offering to the purchaser.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 2.01, eff. April 1, 2009.
2023 Texas Statutes › Business and Commerce Code › Title 4 - Business Opportunities and Agreements › Chapter 51 - Business Opportunities › Subchapter D. Disclosure Statement › Section 51.155. Contents: Services Description

Sec. 51.155.  CONTENTS:  SERVICES DESCRIPTION.  A disclosure statement must contain:
(1)  a detailed description of the actual services the seller undertakes to perform for the purchaser; and
(2)  if the seller promises to perform services in connection with the placement of products, equipment, or supplies at a location:
(A)  the full nature of those services; and
(B)  the nature of any agreements to be made with the owners or managers of that location.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 2.01, eff. April 1, 2009.
2023 Texas Statutes › Business and Commerce Code › Title 4 - Business Opportunities and Agreements › Chapter 51 - Business Opportunities › Subchapter D. Disclosure Statement › Section 51.156. Contents: Updated Financial Statement

Sec. 51.156.  CONTENTS:  UPDATED FINANCIAL STATEMENT.  A disclosure statement must contain a copy of a financial statement of the seller that:
(1)  was prepared according to generally accepted accounting principles within the previous 13 months; and
(2)  has been updated to reflect any material change in the seller's financial condition.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 2.01, eff. April 1, 2009.
2023 Texas Statutes › Business and Commerce Code › Title 4 - Business Opportunities and Agreements › Chapter 51 - Business Opportunities › Subchapter D. Disclosure Statement › Section 51.157. Contents: Training Description

Sec. 51.157.  CONTENTS:  TRAINING DESCRIPTION.  If the seller promises training, the disclosure statement must contain a complete description of the training, including:
(1)  the length of the training; and
(2)  any costs of the training that the purchaser will be required to incur, including travel and lodging expenses.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 2.01, eff. April 1, 2009.
2023 Texas Statutes › Business and Commerce Code › Title 4 - Business Opportunities and Agreements › Chapter 51 - Business Opportunities › Subchapter D. Disclosure Statement › Section 51.158. Contents: Security Description

Sec. 51.158.  CONTENTS:  SECURITY DESCRIPTION.  If the seller is required to obtain a bond or establish a trust account, the disclosure statement must contain one of the following statements, as applicable:
(1)  "As required by Texas law, the seller has secured a bond issued by ______, a surety company authorized to do business in this state.  Before signing a contract to purchase this business opportunity, you should confirm the bond's status with the surety company."; or
(2)  "As required by Texas law, the seller has established a trust account with ______. Before signing a contract to purchase this business opportunity, you should confirm with the bank or savings institution the current status of the trust account."
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 2.01, eff. April 1, 2009.
2023 Texas Statutes › Business and Commerce Code › Title 4 - Business Opportunities and Agreements › Chapter 51 - Business Opportunities › Subchapter D. Disclosure Statement › Section 51.159. Contents: Delivery Date; Cancellation of Contract

Sec. 51.159.  CONTENTS:  DELIVERY DATE; CANCELLATION OF CONTRACT.  If the seller is required to deliver to the purchaser the product, equipment, or supplies necessary to begin substantial operation of the business and states a definite or approximate delivery date for the product, equipment, or supplies, the disclosure statement must contain the following statement:  "If the seller fails to deliver the product, equipment, or supplies necessary to begin substantial operation of the business within 45 days of the delivery date stated in your contract, you may notify the seller in writing and cancel your contract."
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 2.01, eff. April 1, 2009.
2023 Texas Statutes › Business and Commerce Code › Title 4 - Business Opportunities and Agreements › Chapter 51 - Business Opportunities › Subchapter D. Disclosure Statement › Section 51.160. Contents: Sales or Earnings Representation

Sec. 51.160.  CONTENTS:  SALES OR EARNINGS REPRESENTATION.  If the seller makes a statement concerning sales or earnings that may be made through the business opportunity, the disclosure statement must contain a statement disclosing:
(1)  the total number of purchasers of business opportunities involving the product, equipment, supplies, or services being offered who to the seller's knowledge have, not earlier than the third year before the date of the disclosure statement, actually achieved sales of or received earnings in the amount or range specified; and
(2)  the total number of purchasers who, not earlier than the third year before the date of the disclosure statement, purchased business opportunities involving the product, equipment, supplies, or services being offered.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 2.01, eff. April 1, 2009.
2023 Texas Statutes › Business and Commerce Code › Title 4 - Business Opportunities and Agreements › Chapter 51 - Business Opportunities › Subchapter D. Disclosure Statement › Section 51.161. Contents: Legal Action History

Sec. 51.161.  CONTENTS:  LEGAL ACTION HISTORY.  (a)  A disclosure statement must contain a statement disclosing any person described by Section 51.153 who:
(1)  has, during the previous seven fiscal years:
(A)  been convicted of a felony, or pleaded nolo contendere to a felony charge, involving fraud, embezzlement, fraudulent conversion, or misappropriation of property; or
(B)  been held liable in a civil action resulting in a final judgment, or has settled out of court a civil action, involving:
(i)  allegations of fraud, embezzlement, fraudulent conversion, or misappropriation of property;
(ii)  the use of untrue or misleading representations in an attempt to sell or dispose of property; or
(iii)  the use of unfair, unlawful, or deceptive business practices;
(2)  is a party to a civil action involving:
(A)  allegations of fraud, embezzlement, fraudulent conversion, or misappropriation of property;
(B)  the use of untrue or misleading representations in an attempt to sell or dispose of property; or
(C)  the use of unfair, unlawful, or deceptive business practices; or
(3)  is subject to an injunction or restrictive order relating to business activity as a result of an action brought by a public agency or department.
(b)  A statement required by Subsection (a) must include:
(1)  the identity and location of any court or agency;
(2)  the date of any entry of a plea of nolo contendere, conviction, judgment, or decision;
(3)  any penalty imposed;
(4)  any damages assessed;
(5)  the terms of any settlement or order; and
(6)  the date, nature, and issuer of any order or ruling.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 2.01, eff. April 1, 2009.
2023 Texas Statutes › Business and Commerce Code › Title 4 - Business Opportunities and Agreements › Chapter 51 - Business Opportunities › Subchapter D. Disclosure Statement › Section 51.162. Contents: Bankruptcy or Reorganization

Sec. 51.162.  CONTENTS:  BANKRUPTCY OR REORGANIZATION.  (a)  A disclosure statement must contain a statement disclosing any person described by Section 51.153 who has, during the previous seven fiscal years:
(1)  filed in bankruptcy;
(2)  been adjudged bankrupt;
(3)  been reorganized because of insolvency; or
(4)  been a principal, director, executive officer, or partner of any other person that, during or not later than the first anniversary of the end of the period the person held the position in relation to the other person, filed in bankruptcy, was adjudged bankrupt, or was reorganized because of insolvency.
(b)  A statement required by Subsection (a)(4) must include:
(1)  the name and location of the person who filed in bankruptcy, was adjudged bankrupt, or was reorganized;
(2)  the date of the filing, adjudication, or reorganization; and
(3)  any other material fact relating to the filing, adjudication, or reorganization.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 2.01, eff. April 1, 2009.
2023 Texas Statutes › Business and Commerce Code › Title 4 - Business Opportunities and Agreements › Chapter 51 - Business Opportunities › Subchapter D. Disclosure Statement › Section 51.163. Contents: Contract Copy

Sec. 51.163.  CONTENTS:  CONTRACT COPY.  A disclosure statement must contain a copy of the business opportunity contract that the seller uses as a matter of course and that will be presented to the purchaser at closing.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 2.01, eff. April 1, 2009.
2023 Texas Statutes › Business and Commerce Code › Title 4 - Business Opportunities and Agreements › Chapter 51 - Business Opportunities › Subchapter D. Disclosure Statement › Section 51.164. Use of Disclosure Document From Other Regulatory Agency

Sec. 51.164.  USE OF DISCLOSURE DOCUMENT FROM OTHER REGULATORY AGENCY.  Instead of providing a disclosure statement to a purchaser under this subchapter, a seller may provide a copy of a similar document required by the State Securities Board, Securities and Exchange Commission, or Federal Trade Commission that contains all the information required to be disclosed by this chapter.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 2.01, eff. April 1, 2009.