Texas Business and Commerce Code 302.304 – Action to Recover Against Security
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(a) A person injured by a seller’s bankruptcy or by a seller’s breach of an agreement entered into during a telephone solicitation may bring an action to recover against the security required under § 302.107.
(b) The liability of the surety on a bond provided under § 302.107 may not exceed the amount of the bond, regardless of the number of claims filed or the aggregate amount claimed. If the amount claimed exceeds the amount of the bond, the surety shall deposit the amount of the bond with the secretary of state for distribution to claimants entitled to recovery, and the surety is then relieved of all liability under the bond.
Terms Used In Texas Business and Commerce Code 302.304
- 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.
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005