reglab/statecodes huggingface dataset:
2023 Texas Statutes › Property Code › Title 10 - Miscellaneous Beneficial Property Interests › Subtitle B - Fiduciaries › Chapter 161 - Management and Control of Securities › Subchapter C. Deposit of Security With Federal Reserve Bank or Clearing Corporation › Section 161.058. Certification

Sec. 161.058.  CERTIFICATION.  (a)  On the demand of a fiduciary for whom a bank, trust company, or private banker is acting as custodian, the bank, trust company, or private banker shall identify in a written certification the securities deposited by the bank, trust company, or private banker with the federal reserve bank or in the clearing corporation for the account of the fiduciary.
(b)  On the demand of a party, or the attorney of a party, to an accounting by a fiduciary or by a bank, trust company, or private banker that is acting as a fiduciary, a custodian, a custodian for a fiduciary, or a managing agent, the fiduciary, bank, trust company, or private banker shall identify in a written certification to the party the securities deposited by the fiduciary, bank, trust company, or private banker with the federal reserve bank or the clearing corporation.
Acts 1983, 68th Leg., p. 3719, ch. 576, Sec. 1, eff. Jan. 1, 1984.
2023 Texas Statutes › Property Code › Title 10 - Miscellaneous Beneficial Property Interests › Subtitle B - Fiduciaries › Chapter 162 - Construction Payments, Loan Receipts, and Misapplication of Trust Funds › Subchapter A. Construction Payments and Loan Receipts › Section 162.001. Construction Payments and Loan Receipts as Trust Funds

Sec. 162.001.  CONSTRUCTION PAYMENTS AND LOAN RECEIPTS AS TRUST FUNDS.  (a)  Construction payments are trust funds under this chapter if the payments are made to a contractor or subcontractor or to an officer, director, or agent of a contractor or subcontractor, under a construction contract for the improvement of specific real property in this state.
(b)  Loan receipts are trust funds under this chapter if the funds are borrowed by a contractor, subcontractor, or owner or by an officer, director, or agent of a contractor, subcontractor, or owner for the purpose of improving specific real property in this state, and the loan is secured in whole or in part by a lien on the property.
(c)  A fee payable to a contractor is not considered trust funds if:
(1)  the contractor and property owner have entered into a written construction contract for the improvement of specific real property in this state before the commencement of construction of the improvement and the contract provides for the payment by the owner of the costs of construction and a reasonable fee specified in the contract payable to the contractor; and
(2)  the fee is earned as provided by the contract and paid to the contractor or disbursed from a construction account described by Section 162.006, if applicable.
(d)  Trust funds paid to a creditor under this chapter are not property or an interest in property of a debtor who is a trustee described by Section 162.002.
Acts 1983, 68th Leg., p. 3720, ch. 576, Sec. 1, eff. Jan. 1, 1984.  Amended by Acts 1997, 75th Leg., ch. 1018, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1277 (H.B. 1513), Sec. 1, eff. September 1, 2009.
Acts 2009, 81st Leg., R.S., Ch. 1277 (H.B. 1513), Sec. 2, eff. September 1, 2009.
2023 Texas Statutes › Property Code › Title 10 - Miscellaneous Beneficial Property Interests › Subtitle B - Fiduciaries › Chapter 162 - Construction Payments, Loan Receipts, and Misapplication of Trust Funds › Subchapter A. Construction Payments and Loan Receipts › Section 162.002. Contractors as Trustees

Sec. 162.002.  CONTRACTORS AS TRUSTEES.  A contractor, subcontractor, or owner or an officer, director, or agent of a contractor, subcontractor, or owner, who receives trust funds or who has control or direction of trust funds, is a trustee of the trust funds.
Acts 1983, 68th Leg., p. 3721, ch. 576, Sec. 1, eff. Jan. 1, 1984.
2023 Texas Statutes › Property Code › Title 10 - Miscellaneous Beneficial Property Interests › Subtitle B - Fiduciaries › Chapter 162 - Construction Payments, Loan Receipts, and Misapplication of Trust Funds › Subchapter A. Construction Payments and Loan Receipts › Section 162.003. Beneficiaries of Trust Funds

Sec. 162.003.  BENEFICIARIES OF TRUST FUNDS.  (a)  An artisan, laborer, mechanic, contractor, subcontractor, or materialman who labors or who furnishes labor or material for the construction or repair of an improvement on specific real property in this state is a beneficiary of any trust funds paid or received in connection with the improvement.
(b)  A property owner is a beneficiary of trust funds described by Section 162.001 in connection with a residential construction contract, including funds deposited into a construction account described by Section 162.006.
Acts 1983, 68th Leg., p. 3721, ch. 576, Sec. 1, eff. Jan. 1, 1984.  Amended by Acts 1997, 75th Leg., ch. 1018, Sec. 2, eff. Sept. 1, 1997.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1277 (H.B. 1513), Sec. 3, eff. September 1, 2009.
2023 Texas Statutes › Property Code › Title 10 - Miscellaneous Beneficial Property Interests › Subtitle B - Fiduciaries › Chapter 162 - Construction Payments, Loan Receipts, and Misapplication of Trust Funds › Subchapter A. Construction Payments and Loan Receipts › Section 162.004. Application

Sec. 162.004.  APPLICATION.  (a)  This chapter does not apply to:
(1)  a bank, savings and loan, or other lender;
(2)  a title company or other closing agent;  or
(3)  a corporate surety who issues a payment bond covering the contract for the construction or repair of the improvement.
(b)  The Texas Trust Act (Chapters 111 through 115) does not apply to any trust created under this chapter, nor does this chapter affect any provision of the Texas Trust Act.
(c)  Regardless of whether a construction contract is covered by a statutory or common law payment bond, this chapter applies to a public or private construction contract for the improvement of specific real property in this state.
Acts 1983, 68th Leg., p. 3721, ch. 576, Sec. 1, eff. Jan. 1, 1984.  Amended by Acts 1987, 70th Leg., ch. 578, Sec. 2, eff. Aug. 31, 1987.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1277 (H.B. 1513), Sec. 4, eff. September 1, 2009.
2023 Texas Statutes › Property Code › Title 10 - Miscellaneous Beneficial Property Interests › Subtitle B - Fiduciaries › Chapter 162 - Construction Payments, Loan Receipts, and Misapplication of Trust Funds › Subchapter A. Construction Payments and Loan Receipts › Section 162.005. Definitions

Sec. 162.005.  DEFINITIONS.  In this chapter:
(1)  A trustee acts with "intent to defraud" when the trustee:
(A)  retains, uses, disburses, or diverts trust funds with the intent to deprive the beneficiaries of the trust funds;
(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 162.007;  or
(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 due obligations.
(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 maintained.
Added by Acts 1987, 70th Leg., ch. 578, Sec. 3, eff. Aug. 31, 1987.  Amended by Acts 1997, 75th Leg., ch. 1018, Sec. 3, eff. Sept. 1, 1997.
2023 Texas Statutes › Property Code › Title 10 - Miscellaneous Beneficial Property Interests › Subtitle B - Fiduciaries › Chapter 162 - Construction Payments, Loan Receipts, and Misapplication of Trust Funds › Subchapter A. Construction Payments and Loan Receipts › Section 162.006. Construction Account Required in Certain Circumstances

Sec. 162.006.  CONSTRUCTION ACCOUNT REQUIRED IN CERTAIN CIRCUMSTANCES.  (a)  A contractor who enters into a written contract with a property owner to construct improvements to a residential homestead for an amount exceeding $5,000 shall deposit the trust funds in a construction account in a financial institution.
(b)  The periodic statement received from the financial institution must refer to the account as a "construction account" to satisfy the requirements of this section.
Added by Acts 1997, 75th Leg., ch. 1018, Sec. 4, eff. Sept. 1, 1997.
2023 Texas Statutes › Property Code › Title 10 - Miscellaneous Beneficial Property Interests › Subtitle B - Fiduciaries › Chapter 162 - Construction Payments, Loan Receipts, and Misapplication of Trust Funds › Subchapter A. Construction Payments and Loan Receipts › Section 162.007. Management of Construction Accounts

Sec. 162.007.  MANAGEMENT OF CONSTRUCTION ACCOUNTS.  (a)  A contractor required to maintain a construction account under this subchapter shall maintain an account record for the construction account that provides information relating to:
(1)  the source and amount of the funds in the account and the date the funds were deposited;
(2)  the date and amount of each disbursement from the account and the person to whom the funds were disbursed;  and
(3)  the current balance of the account.
(b)  The contractor shall maintain an account record for each construction project that specifies the direct costs and indirect costs charged to the owner.
(c)  The contractor shall retain all invoices and other supporting documentation received relating to funds that were disbursed from the construction account.
(d)  The contractor shall ensure that all deposit and disbursement documentation includes the construction account number or information that provides a direct connection between the documentation and the account.
(e)  The contractor may not destroy information required to be maintained under this section before the first anniversary of the date the improvement that is the subject of the contract is completed.
Added by Acts 1997, 75th Leg., ch. 1018, Sec. 4, eff. Sept. 1, 1997.
2023 Texas Statutes › Property Code › Title 10 - Miscellaneous Beneficial Property Interests › Subtitle B - Fiduciaries › Chapter 162 - Construction Payments, Loan Receipts, and Misapplication of Trust Funds › Subchapter B. Misapplication of Trust Funds › Section 162.031. Misapplication of Trust Funds

Sec. 162.031.  MISAPPLICATION OF TRUST FUNDS.  (a)  A trustee who, intentionally or knowingly or with intent to defraud, directly or indirectly retains, uses, disburses, or otherwise diverts trust funds without first fully paying all current or past due obligations incurred by the trustee to the beneficiaries of the trust funds, has misapplied the trust funds.
(b)  It is an affirmative defense to prosecution or other action brought under Subsection (a) that the trust funds not paid to the beneficiaries of the trust were used by the trustee to pay the trustee's actual expenses directly related to the construction or repair of the improvement or have been retained by the trustee, after notice to the beneficiary who has made a request for payment, as a result of the trustee's reasonable belief that the beneficiary is not entitled to such funds or have been retained as authorized or required by Chapter 53.
(c)  It is also an affirmative defense to prosecution or other action brought under Subsection (a) that the trustee paid the beneficiaries all trust funds which they are entitled to receive no later than 30 days following written notice to the trustee of the filing of a criminal complaint or other notice of a pending criminal investigation.
(d)  A trustee who commingles trust funds with other funds in the trustee's possession does not defeat a trust created by this chapter.
Acts 1983, 68th Leg., p. 3721, ch. 576, Sec. 1, eff. Jan. 1, 1984.  Amended by Acts 1987, 70th Leg., ch. 578, Sec. 4, eff. Aug. 31, 1987.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1277 (H.B. 1513), Sec. 5, eff. September 1, 2009.
2023 Texas Statutes › Property Code › Title 10 - Miscellaneous Beneficial Property Interests › Subtitle B - Fiduciaries › Chapter 162 - Construction Payments, Loan Receipts, and Misapplication of Trust Funds › Subchapter B. Misapplication of Trust Funds › Section 162.032. Penalties

Sec. 162.032.  PENALTIES.  (a)  A trustee who misapplies trust funds amounting to $500 or more in violation of this chapter commits a Class A misdemeanor.
(b)  A trustee who misapplies trust funds amounting to $500 or more in violation of this chapter, with intent to defraud, commits a felony of the third degree.
(c)  A trustee who fails to establish or maintain a construction account in violation of Section 162.006 or fails to establish or maintain an account record for the construction account in violation of Section 162.007 commits a Class A misdemeanor.
Acts 1983, 68th Leg., p. 3722, ch. 576, Sec. 1, eff. Jan. 1, 1984.  Amended by Acts 1987, 70th Leg., ch. 578, Sec. 5, eff. Aug. 31, 1987;  Acts 1997, 75th Leg., ch. 1018, Sec. 5, eff. Sept. 1, 1997.
2023 Texas Statutes › Property Code › Title 10 - Miscellaneous Beneficial Property Interests › Subtitle B - Fiduciaries › Chapter 162 - Construction Payments, Loan Receipts, and Misapplication of Trust Funds › Subchapter B. Misapplication of Trust Funds › Section 162.033. Election of Offenses

Sec. 162.033.  ELECTION OF OFFENSES.  If the misapplication of trust funds by a trustee constitutes another offense punishable under the laws of this state, the state may elect the offense for which it will prosecute the trustee.
Acts 1983, 68th Leg., p. 3722, ch. 576, Sec. 1, eff. Jan. 1, 1984.
2023 Texas Statutes › Property Code › Title 10 - Miscellaneous Beneficial Property Interests › Subtitle B - Fiduciaries › Chapter 163 - Management, Investment, and Expenditure of Institutional Funds › Section 163.001. Short Title

Sec. 163.001.  SHORT TITLE.  This chapter may be cited as the Uniform Prudent Management of Institutional Funds Act.
Added by Acts 1989, 71st Leg., ch. 213, Sec. 1, eff. May 26, 1989.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 834 (H.B. 860), Sec. 1, eff. September 1, 2007.
2023 Texas Statutes › Property Code › Title 10 - Miscellaneous Beneficial Property Interests › Subtitle B - Fiduciaries › Chapter 163 - Management, Investment, and Expenditure of Institutional Funds › Section 163.002. Legislative Findings and Purpose

Sec. 163.002.  LEGISLATIVE FINDINGS AND PURPOSE.  (a)  The legislature finds that:
(1)  institutions organized and operated exclusively for a charitable purpose perform essential and needed services in the state;
(2)  uncertainty exists regarding the prudence standards for the management and investment of charitable funds and for endowment spending by institutions described by Subdivision (1); and
(3)  the institutions, their officers, directors, and trustees, and the citizens of this state will benefit from removal of the uncertainty regarding applicable prudence standards and by permitting endowment funds to be invested for the long-term goals of achieving growth and maintaining purchasing power without adversely affecting the availability of funds for current expenditure.
(b)  The purpose of this chapter is to provide guidance and authority through modern articulations of prudence standards for the management and investment of charitable funds and for endowment spending by institutions organized and operated exclusively for a charitable purpose in order to provide uniformity and remove uncertainty regarding those standards.
Added by Acts 1989, 71st Leg., ch. 213, Sec. 1, eff. May 26, 1989.  Amended by Acts 1993, 73rd Leg., ch. 240, Sec. 1, eff. May 22, 1993.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 834 (H.B. 860), Sec. 1, eff. September 1, 2007.
2023 Texas Statutes › Property Code › Title 10 - Miscellaneous Beneficial Property Interests › Subtitle B - Fiduciaries › Chapter 163 - Management, Investment, and Expenditure of Institutional Funds › Section 163.003. Definitions

Sec. 163.003.  DEFINITIONS.  In this chapter:
(1)  "Charitable purpose" means the promotion of a scientific, educational, philanthropic, or environmental purpose, social welfare, the arts and humanities, or another civic or public purpose described by Section 501(c)(3) of the Internal Revenue Code of 1986.
(2)  "Endowment fund" means an institutional fund or part thereof that, under the terms of a gift instrument, is not wholly expendable by the institution on a current basis.  The term does not include assets that an institution designates as an endowment fund for its own use.
(3)  "Gift instrument" means a record or records, including an institutional solicitation, under which property is granted to, transferred to, or held by an institution as an institutional fund.
(4)  "Institution" means:
(A)  a person, other than an individual, organized and operated exclusively for charitable purposes;
(B)  a government or governmental subdivision, agency, or instrumentality, to the extent that it holds funds exclusively for a charitable purpose; and
(C)  a trust that had both charitable and noncharitable interests, after all noncharitable interests have terminated.
(5)  "Institutional fund" means a fund held by an institution exclusively for charitable purposes. The term does not include:
(A)  program-related assets;
(B)  a fund held for an institution by a trustee that is not an institution; or
(C)  a fund in which a beneficiary that is not an institution has an interest, other than an interest that could arise upon violation or failure of the purposes of the fund.
(6)  "Person" means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, public corporation, government or governmental subdivision, agency, or instrumentality, or any other legal or commercial entity.
(7)  "Program-related asset" means an asset held by an institution primarily to accomplish a charitable purpose of the institution and not primarily for investment.
(8)  "Record" means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.
Added by Acts 1989, 71st Leg., ch. 213, Sec. 1, eff. May 26, 1989.  Amended by Acts 1993, 73rd Leg., ch. 240, Sec. 2, eff. May 22, 1993.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 834 (H.B. 860), Sec. 1, eff. September 1, 2007.
2023 Texas Statutes › Property Code › Title 10 - Miscellaneous Beneficial Property Interests › Subtitle B - Fiduciaries › Chapter 163 - Management, Investment, and Expenditure of Institutional Funds › Section 163.006. Delegation of Management and Investment Functions

Sec. 163.006.  DELEGATION OF MANAGEMENT AND INVESTMENT FUNCTIONS.  (a)  Subject to any specific limitation set forth in a gift instrument or in law other than this chapter, an institution may delegate to an external agent the management and investment of an institutional fund to the extent that an institution could prudently delegate under the circumstances. An institution shall act in good faith, with the care that an ordinarily prudent person in a like position would exercise under similar circumstances, in:
(1)  selecting an agent;
(2)  establishing the scope and terms of the delegation, consistent with the purposes of the institution and the institutional fund; and
(3)  periodically reviewing the agent's actions in order to monitor the agent's performance and compliance with the scope and terms of the delegation.
(b)  In performing a delegated function, an agent owes a duty to the institution to exercise reasonable care to comply with the scope and terms of the delegation.
(c)  An institution that complies with Subsection (a) is not liable for the decisions or actions of an agent to which the function was delegated.
(d)  By accepting delegation of a management or investment function from an institution that is subject to the laws of this state, an agent submits to the jurisdiction of the courts of this state in all proceedings arising from or related to the delegation or the performance of the delegated function.
(e)  An institution may delegate management and investment functions to its committees, officers, or employees as authorized by law of this state other than this chapter.
Added by Acts 1989, 71st Leg., ch. 213, Sec. 1, eff. May 26, 1989.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 834 (H.B. 860), Sec. 1, eff. September 1, 2007.
2023 Texas Statutes › Property Code › Title 10 - Miscellaneous Beneficial Property Interests › Subtitle B - Fiduciaries › Chapter 163 - Management, Investment, and Expenditure of Institutional Funds › Section 163.007. Release or Modification of Restrictions on Management, Investment, or Purpose

Sec. 163.007.  RELEASE OR MODIFICATION OF RESTRICTIONS ON MANAGEMENT, INVESTMENT, OR PURPOSE.  (a)  If the donor consents in a record, an institution may release or modify, in whole or in part, a restriction contained in a gift instrument on the management, investment, or purpose of an institutional fund. A release or modification may not allow a fund to be used for a purpose other than a charitable purpose of the institution.
(b)  The court, upon application of an institution, may modify a restriction contained in a gift instrument regarding the management or investment of an institutional fund if the restriction has become impracticable or wasteful, if it impairs the management or investment of the fund, or if, because of circumstances not anticipated by the donor, a modification of a restriction will further the purposes of the fund.  Chapter 123 applies to a proceeding under this subsection.  To the extent practicable, any modification must be made in accordance with the donor's probable intention.
(c)  If a particular charitable purpose or a restriction contained in a gift instrument on the use of an institutional fund becomes unlawful, impracticable, impossible to achieve, or wasteful, the court, upon application of an institution, may modify the purpose of the fund or the restriction on the use of the fund in a manner consistent with the charitable purposes expressed in the gift instrument.  Chapter 123 applies to a proceeding under this subsection.
(d)  If an institution determines that a restriction contained in a gift instrument on the management, investment, or purpose of an institutional fund is unlawful, impracticable, impossible to achieve, or wasteful, the institution, 60 days after receipt of notice by the attorney general, may release or modify the restriction, in whole or part, if:
(1)  the institutional fund subject to the restriction has a total value of less than $25,000;
(2)  more than 20 years have elapsed since the fund was established; and
(3)  the institution uses the property in a manner consistent with the charitable purposes expressed in the gift instrument.
(e)  The notification to the attorney general under Subsection (d) must be accompanied by a copy of the gift instrument and a statement of facts sufficient to evidence compliance with Subsections (d)(1), (2), and (3).
Added by Acts 1989, 71st Leg., ch. 213, Sec. 1, eff. May 26, 1989.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 834 (H.B. 860), Sec. 1, eff. September 1, 2007.
2023 Texas Statutes › Property Code › Title 10 - Miscellaneous Beneficial Property Interests › Subtitle B - Fiduciaries › Chapter 163 - Management, Investment, and Expenditure of Institutional Funds › Section 163.008. Reviewing Compliance

Sec. 163.008.  REVIEWING COMPLIANCE.  Compliance with this chapter is determined in light of the facts and circumstances existing at the time a decision is made or action is taken, and not by hindsight.
Added by Acts 1989, 71st Leg., ch. 213, Sec. 1, eff. May 26, 1989.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 834 (H.B. 860), Sec. 1, eff. September 1, 2007.
2023 Texas Statutes › Property Code › Title 10 - Miscellaneous Beneficial Property Interests › Subtitle B - Fiduciaries › Chapter 163 - Management, Investment, and Expenditure of Institutional Funds › Section 163.009. Relation to Electronic Signatures in Global and National Commerce Act

Sec. 163.009.  RELATION TO ELECTRONIC SIGNATURES IN GLOBAL AND NATIONAL COMMERCE ACT.  This chapter modifies, limits, and supersedes the provisions of the Electronic Signatures in Global and National Commerce Act (15 U.S.C. Section 7001 et seq.) but does not modify, limit, or supersede Section 101 of that Act (15 U.S.C. Section 7001(a)) or authorize electronic delivery of any of the notices described in Section 103 of that Act (15 U.S.C. Section 7003(b)).
Added by Acts 1989, 71st Leg., ch. 213, Sec. 1, eff. May 26, 1989.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 834 (H.B. 860), Sec. 1, eff. September 1, 2007.
2023 Texas Statutes › Property Code › Title 10 - Miscellaneous Beneficial Property Interests › Subtitle B - Fiduciaries › Chapter 163 - Management, Investment, and Expenditure of Institutional Funds › Section 163.010. Uniformity of Application and Construction

Sec. 163.010.  UNIFORMITY OF APPLICATION AND CONSTRUCTION.  In applying and construing this chapter, consideration must be given to the need to promote uniformity of the law with respect to the subject matter of this chapter among states that enact a law substantially similar to this chapter.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 834 (H.B. 860), Sec. 1, eff. September 1, 2007.
2023 Texas Statutes › Property Code › Title 10 - Miscellaneous Beneficial Property Interests › Subtitle B - Fiduciaries › Chapter 163 - Management, Investment, and Expenditure of Institutional Funds › Section 163.011. Applicability of Other Parts of Code

Sec. 163.011.  APPLICABILITY OF OTHER PARTS OF CODE.  Chapters 116 and 117 do not apply to any institutional fund subject to this chapter.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 834 (H.B. 860), Sec. 1, eff. September 1, 2007.
Acts 2017, 85th Leg., R.S., Ch. 62 (S.B. 617), Sec. 14, eff. September 1, 2017.
2023 Texas Statutes › Property Code › Title 10 - Miscellaneous Beneficial Property Interests › Subtitle C - Powers of Appointment › Chapter 181 - Powers of Appointment › Subchapter A. General Provisions › Section 181.001. Definitions

Sec. 181.001.  DEFINITIONS.  In this chapter:
(1)  "Donee" means a person, whether or not a resident of this state, who, either alone or in conjunction with others, may exercise a power.
(1-a)  "Object of the power of appointment" means a person to whom the donee is given the power to appoint.
(2)  "Power" means the authority to appoint or designate the recipient of property, to invade or consume property, to alter, amend, or revoke an instrument under which an estate or trust is created or held, and to terminate a right or interest under an estate or trust, and any authority remaining after a partial release of a power.
(3)  "Property" means all property and interests in property, real or personal, including parts of property, partial interests, and all or any part of the income from property.
(4)  "Release" means a renunciation, relinquishment, surrender, refusal to accept, extinguishment, and any other form of release, including a covenant not to exercise all or part of a power.
Acts 1983, 68th Leg., p. 3723, ch. 576, Sec. 1, eff. Jan. 1, 1984.  Amended by Acts 2003, 78th Leg., ch. 551, Sec. 1, eff. Sept. 1, 2003.
2023 Texas Statutes › Property Code › Title 10 - Miscellaneous Beneficial Property Interests › Subtitle C - Powers of Appointment › Chapter 181 - Powers of Appointment › Subchapter A. General Provisions › Section 181.002. Application

Sec. 181.002.  APPLICATION.  (a)  Except as provided by Subsection (b), this chapter applies:
(1)  to a power or a release of a power, regardless of the date the power is created;
(2)  to a vested, contingent, or conditional power;  and
(3)  to a power classified as a power in gross, a power appurtenant, a power appendant, a collateral power, a general, limited, or special power, an exclusive or nonexclusive power, or any other power.
(b)  This chapter applies regardless of the time or manner a power is created or reserved or the release is made and regardless of the time, manner, or in whose favor a power may be exercised.
(c)  This chapter does not apply to a power in trust that is imperative.
Acts 1983, 68th Leg., p. 3723, ch. 576, Sec. 1, eff. Jan. 1, 1984.
2023 Texas Statutes › Property Code › Title 10 - Miscellaneous Beneficial Property Interests › Subtitle C - Powers of Appointment › Chapter 181 - Powers of Appointment › Subchapter A. General Provisions › Section 181.003. Chapter Not Exclusive

Sec. 181.003.  CHAPTER NOT EXCLUSIVE.  The provisions of this chapter concerning the release of a power are not exclusive.
Acts 1983, 68th Leg., p. 3724, ch. 576, Sec. 1, eff. Jan. 1, 1984.
2023 Texas Statutes › Property Code › Title 10 - Miscellaneous Beneficial Property Interests › Subtitle C - Powers of Appointment › Chapter 181 - Powers of Appointment › Subchapter A. General Provisions › Section 181.004. Construction

Sec. 181.004.  CONSTRUCTION.  This chapter is intended to be declarative of the common law of this state, and it shall be liberally construed to make all powers, except imperative powers in trust, releasable unless the instrument creating the trust expressly provides otherwise.
Acts 1983, 68th Leg., p. 3724, ch. 576, Sec. 1, eff. Jan. 1, 1984.
2023 Texas Statutes › Property Code › Title 10 - Miscellaneous Beneficial Property Interests › Subtitle C - Powers of Appointment › Chapter 181 - Powers of Appointment › Subchapter B. Release of Powers of Appointment › Section 181.051. Authority of Donee to Release Power

Sec. 181.051.  AUTHORITY OF DONEE TO RELEASE POWER.  Unless the instrument creating the power specifically provides to the contrary, a donee may at any time:
(1)  completely release the power;
(2)  release the power as to any property subject to the power;
(3)  release the power as to a person in whose favor a power may be exercised;  or
(4)  limit in any respect the extent to which the power may be exercised.
Acts 1983, 68th Leg., p. 3724, ch. 576, Sec. 1, eff. Jan. 1, 1984.
2023 Texas Statutes › Property Code › Title 10 - Miscellaneous Beneficial Property Interests › Subtitle C - Powers of Appointment › Chapter 181 - Powers of Appointment › Subchapter B. Release of Powers of Appointment › Section 181.052. Requisites of Release

Sec. 181.052.  REQUISITES OF RELEASE.  (a)  A partial or complete release of a power, with or without consideration, is valid if the donee executes and acknowledges, in the manner required by law for the execution and recordation of deeds, an instrument evidencing an intent to make the release, and the instrument is delivered:
(1)  to the person or in the manner specified in the instrument creating the power;
(2)  to an adult, other than the donee releasing the power, who may take any of the property subject to the power if the power is not exercised or in whose favor it may be exercised after the partial release;
(3)  to a trustee or cotrustee of the property subject to the power;  or
(4)  to an appropriate county clerk for recording.
(b)  An instrument releasing a power may be recorded in a county in this state in which:
(1)  property subject to the power is located;
(2)  a donee in control of the property resides;
(3)  a trustee in control of the property resides;
(4)  a corporate trustee in control of the property has its principal office;  or
(5)  the instrument creating the power is probated or recorded.
Acts 1983, 68th Leg., p. 3724, ch. 576, Sec. 1, eff. Jan. 1, 1984.
2023 Texas Statutes › Property Code › Title 10 - Miscellaneous Beneficial Property Interests › Subtitle C - Powers of Appointment › Chapter 181 - Powers of Appointment › Subchapter B. Release of Powers of Appointment › Section 181.053. Release by Guardian

Sec. 181.053.  RELEASE BY GUARDIAN.  If a person under a disability holds a power, the guardian of the person's estate may release the power in the manner provided in this chapter on the order of the court in this state in which the guardian was appointed or in which the guardianship proceeding is pending.
Acts 1983, 68th Leg., p. 3725, ch. 576, Sec. 1, eff. Jan. 1, 1984.
2023 Texas Statutes › Property Code › Title 10 - Miscellaneous Beneficial Property Interests › Subtitle C - Powers of Appointment › Chapter 181 - Powers of Appointment › Subchapter B. Release of Powers of Appointment › Section 181.054. Effect of Release on Multiple Donees

Sec. 181.054.  EFFECT OF RELEASE ON MULTIPLE DONEES.  Unless the instrument creating a power provides otherwise, the complete or partial release by one or more donees of a power that may be exercised by two or more donees, either as an individual or a fiduciary, together or successively, does not prevent or limit the exercise or participation in the exercise of the power by the other donee or donees.
Acts 1983, 68th Leg., p. 3725, ch. 576, Sec. 1, eff. Jan. 1, 1984.
2023 Texas Statutes › Property Code › Title 10 - Miscellaneous Beneficial Property Interests › Subtitle C - Powers of Appointment › Chapter 181 - Powers of Appointment › Subchapter B. Release of Powers of Appointment › Section 181.055. Notice of Release

Sec. 181.055.  NOTICE OF RELEASE.  (a)  A fiduciary or other person in possession or control of property subject to a power, other than the donee, does not have notice of a release of the power until the original release or a copy is delivered to the fiduciary or other person.
(b)  A purchaser, lessee, or mortgagee of real property subject to a power who has paid a valuable consideration and who is without actual notice does not have notice of a release of the power until the instrument releasing the power is filed for record with the county clerk of the county in which the real property is located.
Acts 1983, 68th Leg., p. 3725, ch. 576, Sec. 1, eff. Jan. 1, 1984.
2023 Texas Statutes › Property Code › Title 10 - Miscellaneous Beneficial Property Interests › Subtitle C - Powers of Appointment › Chapter 181 - Powers of Appointment › Subchapter B. Release of Powers of Appointment › Section 181.056. Recording

Sec. 181.056.  RECORDING.  (a)  A county clerk shall record a release of a power in the county deed records, and the clerk shall index the release, with the name of the donee entered in the grantor index.
(b)  The county clerk shall charge the same fee for recording the release of a power as the clerk is authorized to charge for recording a deed.
Acts 1983, 68th Leg., p. 3726, ch. 576, Sec. 1, eff. Jan. 1, 1984.
2023 Texas Statutes › Property Code › Title 10 - Miscellaneous Beneficial Property Interests › Subtitle C - Powers of Appointment › Chapter 181 - Powers of Appointment › Subchapter B. Release of Powers of Appointment › Section 181.057. Effect of Failure to Deliver or File

Sec. 181.057.  EFFECT OF FAILURE TO DELIVER OR FILE.  Failure to deliver or file an instrument releasing a power under Sections 181.052 and 181.055 does not affect the validity of the release as to the donee, the person in whose favor the power may be exercised, or any other person except those expressly protected by Sections 181.052 and 181.055.
Acts 1983, 68th Leg., p. 3726, ch. 576, Sec. 1, eff. Jan. 1, 1984.
2023 Texas Statutes › Property Code › Title 10 - Miscellaneous Beneficial Property Interests › Subtitle C - Powers of Appointment › Chapter 181 - Powers of Appointment › Subchapter B. Release of Powers of Appointment › Section 181.058. Restraints on Alienation or Anticipation

Sec. 181.058.  RESTRAINTS ON ALIENATION OR ANTICIPATION.  The release of a power that otherwise may be released is not prevented merely by provisions of the instrument creating the power that restrain alienation or anticipation.
Acts 1983, 68th Leg., p. 3726, ch. 576, Sec. 1, eff. Jan. 1, 1984.
2023 Texas Statutes › Property Code › Title 10 - Miscellaneous Beneficial Property Interests › Subtitle C - Powers of Appointment › Chapter 181 - Powers of Appointment › Subchapter C. Exercise of Powers of Appointment › Section 181.081. Extent of Power

Sec. 181.081.  EXTENT OF POWER.  Unless an instrument creating a power expressly provides to the contrary, a donee may exercise a power in any manner consistent with this subchapter.
Added by Acts 2003, 78th Leg., ch. 551, Sec. 2, eff. Sept. 1, 2003.
2023 Texas Statutes › Property Code › Title 10 - Miscellaneous Beneficial Property Interests › Subtitle C - Powers of Appointment › Chapter 181 - Powers of Appointment › Subchapter C. Exercise of Powers of Appointment › Section 181.082. General Exercise

Sec. 181.082.  GENERAL EXERCISE.  In exercising a power, a donee may make an appointment:
(1)  of present, future, or present and future interests;
(2)  with conditions and limitations;
(3)  with restraints on alienation;
(4)  of interests to a trustee for the benefit of one or more objects of the power;  and
(5)  that creates any right existing under common law.
Added by Acts 2003, 78th Leg., ch. 551, Sec. 2, eff. Sept. 1, 2003.
2023 Texas Statutes › Property Code › Title 10 - Miscellaneous Beneficial Property Interests › Subtitle C - Powers of Appointment › Chapter 181 - Powers of Appointment › Subchapter C. Exercise of Powers of Appointment › Section 181.083. Creating Additional Powers

Sec. 181.083.  CREATING ADDITIONAL POWERS.  (a)  In exercising a power, a donee may make appointments that create in the objects of the power additional powers of appointment.  The additional powers of appointment must be exercisable in favor of objects of the power who would have been permissible objects under the original donee's power.
(b)  In exercising a power, a donee who may appoint outright to an object of the power may make appointments that create in the object of the power powers exercisable in favor of persons that the original donee may direct, even though the objects of the secondary power of appointment may not have been permissible objects of the original donee's power.
Added by Acts 2003, 78th Leg., ch. 551, Sec. 2, eff. Sept. 1, 2003.
2023 Texas Statutes › Property Code › Title 11 - Restrictive Covenants › Chapter 201 - Restrictive Covenants Applicable to Certain Subdivisions › Section 201.002. Findings and Purpose

Sec. 201.002.  FINDINGS AND PURPOSE.  (a)  The legislature finds that:
(1)  the pending expiration of property restrictions applicable to real estate subdivisions in municipalities and in the extraterritorial jurisdiction area of municipalities where there is no zoning creates uncertainty in living conditions and discourages investments in affected subdivisions;
(2)  owners of land in affected subdivisions are reluctant or unable to provide proper maintenance, upkeep, and repairs of structures because of the pending expiration of the restrictions;
(3)  financial institutions cannot or will not lend money for investments, maintenance, upkeep, or repairs in affected subdivisions;
(4)  these conditions cause dilapidation of housing and other structures and cause unhealthful and unsanitary conditions in affected subdivisions, contrary to the health, safety, and welfare of the citizens;  and
(5)  the existence of racial covenants in subdivisions, regardless of their unenforceability, is offensive, repugnant, and harmful to members of racial or ethnic minority groups, and public policy requires that these covenants be deleted.
(b)  The purpose of this chapter is to provide a procedure for extending the term of, creation of, additions to, or modification of restrictions and to provide for the removal of any restriction or other provision relating to race, religion, or national origin that is void and unenforceable under either the United States Constitution or Section 5.026.
Added by Acts 1985, 69th Leg., ch. 309, Sec. 1, eff. Sept. 1, 1985.
2023 Texas Statutes › Property Code › Title 11 - Restrictive Covenants › Chapter 201 - Restrictive Covenants Applicable to Certain Subdivisions › Section 201.003. Definitions

Sec. 201.003.  DEFINITIONS.  In this chapter:
(1)  "Restrictions" means one or more restrictive covenants contained or incorporated by reference in a properly recorded map, plat, replat, declaration, or other instrument filed in the county real property records, map records, or deed records.
(2)  "Residential real estate subdivision" or "subdivision" means:
(A)  all land encompassed within one or more maps or plats of land that is divided into two or more parts if the maps or plats cover land within a city, town, or village, or within the extraterritorial jurisdiction of a city, town, or village and are recorded in the deed, map, or real property records of a county, and the land encompassed within the maps or plats is or was burdened by restrictions limiting all or at least a majority of the land area covered by the map or plat, excluding streets and public areas, to residential use only;  or
(B)  all land located within a city, town, or village, or within the extraterritorial jurisdiction of a city, town, or village that has been divided into two or more parts and that is or was burdened by restrictions limiting at least a majority of the land area burdened by restrictions, excluding streets and public areas, to residential use only, if the instrument or instruments creating the restrictions are recorded in the deed or real property records of a county.
(3)  "Owner" means an individual, fiduciary, partnership, joint venture, corporation, association, or other entity that owns record title to real property in a subdivision, or the personal representative of an individual who owns record title to subdivision property.
(4)  "Petition" means one or more instruments, however designated or entitled, by which one or more of the purposes authorized by this chapter are sought to be accomplished.
(5)  "Real property records" means the applicable records of a county clerk in which conveyances of real property are recorded.
(6)  "Lienholder" means an individual, corporation, financial institution, or other entity that holds a vendor's or deed of trust lien secured by land within the subdivision.
(7)  "Petition committee" or "committee" means a group of three or more owners who file with the county clerk a notice as required by Section 201.005(a) and who prepare and circulate a petition as allowed under this chapter.
Added by Acts 1985, 69th Leg., ch. 309, Sec. 1, eff. Sept. 1, 1985.  Amended by Acts 1991, 72nd Leg., ch. 822, Sec. 2, eff. Sept. 1, 1991.
2023 Texas Statutes › Property Code › Title 11 - Restrictive Covenants › Chapter 201 - Restrictive Covenants Applicable to Certain Subdivisions › Section 201.004. Extension, Renewal, Creation, Modification Of, or Addition To, Restrictions

Sec. 201.004.  EXTENSION, RENEWAL, CREATION, MODIFICATION OF, OR ADDITION TO, RESTRICTIONS.  (a)  A petition may be filed under this chapter to:
(1)  extend or renew an unexpired restriction;
(2)  create a restriction;
(3)  add to or modify an existing restriction; or
(4)  modify an existing provision in an instrument creating a restriction that provides for extension of those restrictions.
(b)  A petition is not effective to extend, renew, create, add to, or modify a restriction unless the petition is filed with the county clerk's office in the county where the subdivision is located before the second anniversary of the date the committee files with the county clerk the notice required by Section 201.005(a).
(c)  If a petition meeting the requirements of this chapter is filed with the county clerk within the required period, the provisions of the petition extending, renewing, creating, adding to, or modifying a restriction apply to and burden all of the property in the subdivision except property excluded under Section 201.009.  If a petition contains provisions extending or renewing the term of a restriction, the petition may provide for an initial extension or renewal period of not more than 10 years and additional automatic extensions of the term for not more than 10 years each.  The extension, renewal, creation, or modification of, or addition to, a restriction takes effect on the later of the dates the petition is filed with the county clerk or a date specified in the petition.
(d)  If existing originally applicable restrictions provide a procedure for extension, that procedure may be used for successive extensions of the originally applicable restrictions unless the original restriction instrument expressly prohibits the procedure from being used for successive extensions.
Added by Acts 1985, 69th Leg., ch. 309, Sec. 1, eff. Sept. 1, 1985.  Amended by Acts 1991, 72nd Leg., ch. 822, Sec. 3, eff. Sept. 1, 1991.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 1367 (H.B. 3674), Sec. 4, eff. September 1, 2007.
Acts 2009, 81st Leg., R.S., Ch. 821 (S.B. 1672), Sec. 1, eff. June 19, 2009.
2023 Texas Statutes › Property Code › Title 11 - Restrictive Covenants › Chapter 201 - Restrictive Covenants Applicable to Certain Subdivisions › Section 201.0051. Special Petition Approval Required for Certain Restrictions

Sec. 201.0051.  SPECIAL PETITION APPROVAL REQUIRED FOR CERTAIN RESTRICTIONS.  A right created or an obligation imposed by an existing restriction that relates to the developer of the subdivision or an architectural control committee established by the instrument creating the restriction cannot be altered unless the person who has the right or obligation signs and acknowledges the petition.
Added by Acts 1997, 75th Leg., ch. 451, Sec. 3, eff. Sept. 1, 1997.