Texas Agriculture Code 59.026 – Transfer of Borrower’s Interest
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(a) The contract for a loan under this chapter must provide that transfer of ownership of the land without the board’s express written permission before the entire principal and interest due have been paid constitutes default under the contract.
(b) If the borrower dies or becomes financially incapacitated or if the borrower’s interest in land is involuntarily transferred by court order or other proceedings, including bankruptcy, sheriff or trustee sale, or divorce, the land may be conveyed by the borrower or the borrower’s heirs, administrators, executors, or successors in interest by complying with the rules adopted by the board and obtaining the board’s written permission.
Terms Used In Texas Agriculture Code 59.026
- Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
- Contract: A legal written agreement that becomes binding when signed.
- Trustee: A person or institution holding and administering property in trust.
- Written: includes any representation of words, letters, symbols, or figures. See Texas Government Code 311.005