Texas Government Code 4005.056 – Secured Debt
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Terms Used In Texas Government Code 4005.056
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Lien: A claim against real or personal property in satisfaction of a debt.
- Trustee: A person or institution holding and administering property in trust.
The exemption provided by § 4005.051 applies to notes, bonds, or other evidence of indebtedness or certificates of ownership that:
(1) are equally and proportionately secured without reference of priority of one over another; and
(2) by the terms of the instrument creating the lien, continue to be secured by the deposit with a trustee of recognized responsibility approved by the commissioner of any of the securities specified in:
(A) § 4005.017, if the deposited securities have an aggregate par value of not less than 110 percent of the par value of the securities being secured; or
(B) § 4005.052, if the deposited securities have an aggregate par value of not less than 125 percent of the par value of the securities being secured.