Sections
Subchapter A General Provisions 23.01 – 23.02
Subchapter B the Assignment 23.08 – 23.10
Subchapter C Duties and Rights of Assignee 23.16 – 23.24
Subchapter D Duties and Rights of Creditors 23.30 – 23.33

Terms Used In Texas Business and Commerce Code Chapter 23 - Assignments for the Benefit of Creditors

  • Account: means any deposit or credit account with a bank, including a demand, time, savings, passbook, share draft, or like account, other than an account evidenced by a certificate of deposit. See Texas Business and Commerce Code 4.104
  • Adjourn: A motion to adjourn a legislative chamber or a committee, if passed, ends that day's session.
  • Affidavit: means a statement in writing of a fact or facts signed by the party making it, sworn to before an officer authorized to administer oaths, and officially certified to by the officer under his seal of office. See Texas Government Code 312.011
  • Affidavit: A written statement of facts confirmed by the oath of the party making it, before a notary or officer having authority to administer oaths.
  • Affirmed: In the practice of the appellate courts, the decree or order is declared valid and will stand as rendered in the lower court.
  • Afternoon: means the period of a day between noon and midnight. See Texas Business and Commerce Code 4.104
  • Alcoholic beverage: means alcohol, or any beverage containing more than one-half of one percent of alcohol by volume, which is capable of use for beverage purposes, either alone or when diluted. See Texas Alcoholic Beverage Code 1.04
  • Alternating brewery proprietorship: means an arrangement in which two or more parties take turns using the physical premises of a brewery as permitted under this code and federal law. See Texas Alcoholic Beverage Code 1.04
  • Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
  • Answer: The formal written statement by a defendant responding to a civil complaint and setting forth the grounds for defense.
  • Appellate: About appeals; an appellate court has the power to review the judgement of another lower court or tribunal.
  • Applicant: means a person who submits or files an original or renewal application with the commission for a license or permit. See Texas Alcoholic Beverage Code 1.04
  • Appraisal: A determination of property value.
  • Arraignment: A proceeding in which an individual who is accused of committing a crime is brought into court, told of the charges, and asked to plead guilty or not guilty.
  • Arrest: Taking physical custody of a person by lawful authority.
  • Asset forfeiture: A procedure by which a person's property is seized to pay judgments levied by the court.
  • Attachment: A procedure by which a person's property is seized to pay judgments levied by the court.
  • Bail: Security given for the release of a criminal defendant or witness from legal custody (usually in the form of money) to secure his/her appearance on the day and time appointed.
  • Bailee: means a person that by a warehouse receipt, bill of lading, or other document of title acknowledges possession of goods and contracts to deliver them. See Texas Business and Commerce Code 7.102
  • Bailiff: a court officer who enforces the rules of behavior in courtrooms.
  • Banking day: means the part of a day on which a bank is open to the public for carrying on substantially all of its banking functions. See Texas Business and Commerce Code 4.104
  • 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.
  • Barrel: means , as a standard of measure, a quantity of malt beverages equal to 31 standard gallons. See Texas Alcoholic Beverage Code 1.04
  • Bequest: Property gifted by will.
  • Brewer: means a person engaged in the brewing of malt beverages, whether located inside or outside the state. See Texas Alcoholic Beverage Code 1.04
  • Buyer: means a person who buys or contracts to buy goods. See Texas Business and Commerce Code 2.103
  • Buyer in the ordinary course of business: means a person who in good faith and without knowledge that the sale to him or her is in violation of the ownership rights or security interest or leasehold interest of a third party in the goods buys in the ordinary course from a person in the business of selling goods of that kind but does not include a pawnbroker. See Texas Business and Commerce Code 2A.103
  • Carrier: means a person that issues a bill of lading. See Texas Business and Commerce Code 7.102
  • Case law: The law as laid down in cases that have been decided in the decisions of the courts.
  • Chief judge: The judge who has primary responsibility for the administration of a court but also decides cases; chief judges are determined by seniority.
  • Circumstantial evidence: All evidence except eyewitness testimony.
  • Clearing house: means an association of banks or other payors regularly clearing items. See Texas Business and Commerce Code 4.104
  • Commercial unit: means a unit of goods as by commercial usage is a single whole for purposes of lease and division of which materially impairs its character or value on the market or in use. See Texas Business and Commerce Code 2A.103
  • Commission: means the Texas Alcoholic Beverage Commission. See Texas Alcoholic Beverage Code 1.04
  • Complaint: A written statement by the plaintiff stating the wrongs allegedly committed by the defendant.
  • Consignee: means a person named in a bill of lading to which or to whose order the bill promises delivery. See Texas Business and Commerce Code 7.102
  • Consignment sale: means :
    (A) the delivery of alcoholic beverages under an agreement, arrangement, condition, or system by which the person receiving the beverages has the right at any time to relinquish possession to them or to return them to the shipper and in which title to the beverages remains in the shipper;
    (B) the delivery of alcoholic beverages under an agreement, arrangement, condition, or system by which the person designated as the receiver merely acts as an intermediary for the shipper or seller and the actual receiver;
    (C) the delivery of alcoholic beverages to a factor or broker;
    (D) any method employed by a shipper or seller by which a person designated as the purchaser of alcoholic beverages does not in fact purchase the beverages;
    (E) any method employed by a shipper or seller by which a person is placed in actual or constructive possession of an alcoholic beverage without acquiring title to the beverage; or
    (F) any other type of transaction which may legally be construed as a consignment sale. See Texas Alcoholic Beverage Code 1.04
  • Consignor: means a person named in a bill of lading as the person from which the goods have been received for shipment. See Texas Business and Commerce Code 7.102
  • Consumer lease: means a lease that a lessor regularly engaged in the business of leasing or selling makes to a lessee who is an individual and who takes under the lease primarily for a personal, family, or household purpose, if the total payments to be made under the lease contract, excluding payments for options to renew or buy, do not exceed $25,000. See Texas Business and Commerce Code 2A.103
  • Continuance: Putting off of a hearing ot trial until a later time.
  • Contract brewing arrangement: means an arrangement in which two breweries, each of which has a separate facility, contract for one brewery to brew malt beverages on behalf of the other brewery due to the limited capacity or other reasonable business necessity of one party to the arrangement. See Texas Alcoholic Beverage Code 1.04
  • Contract for sale: includes both a present sale of goods and a contract to sell goods at a future time. See Texas Business and Commerce Code 2.106
  • Counterclaim: A claim that a defendant makes against a plaintiff.
  • Court reporter: A person who makes a word-for-word record of what is said in court and produces a transcript of the proceedings upon request.
  • Criminal negligence: has the meaning assigned by § 6. See Texas Alcoholic Beverage Code 1.04
  • Customer: means a person having an account with a bank or for whom a bank has agreed to collect items, including a bank that maintains an account at another bank. See Texas Business and Commerce Code 4.104
  • Decedent: A deceased person.
  • Delivery order: means a record that contains an order to deliver goods directed to a warehouse, carrier, or other person that in the ordinary course of business issues warehouse receipts or bills of lading. See Texas Business and Commerce Code 7.102
  • Dependent: A person dependent for support upon another.
  • Deposition: An oral statement made before an officer authorized by law to administer oaths. Such statements are often taken to examine potential witnesses, to obtain discovery, or to be used later in trial.
  • Dismissal: The dropping of a case by the judge without further consideration or hearing. Source:
  • Distilled spirits: means alcohol, spirits of wine, whiskey, rum, brandy, gin, or any liquor produced in whole or in part by the process of distillation, including all dilutions or mixtures of them, and includes spirit coolers that may have an alcoholic content as low as four percent alcohol by volume and that contain plain, sparkling, or carbonated water and may also contain one or more natural or artificial blending or flavoring ingredients. See Texas Alcoholic Beverage Code 1.04
  • Docket: A log containing brief entries of court proceedings.
  • Documentary draft: means a draft to be presented for acceptance or payment if specified documents, certificated securities (Section Texas Business and Commerce Code 4.104
  • Donor: The person who makes a gift.
  • Draft: means a draft as defined in Section Texas Business and Commerce Code 4.104
  • Drawee: means a person ordered in a draft to make payment. See Texas Business and Commerce Code 4.104
  • En banc: In the bench or "full bench." Refers to court sessions with the entire membership of a court participating rather than the usual quorum. U.S. courts of appeals usually sit in panels of three judges, but may expand to a larger number in certain cases. They are then said to be sitting en banc.
  • Entitlement: A Federal program or provision of law that requires payments to any person or unit of government that meets the eligibility criteria established by law. Entitlements constitute a binding obligation on the part of the Federal Government, and eligible recipients have legal recourse if the obligation is not fulfilled. Social Security and veterans' compensation and pensions are examples of entitlement programs.
  • Escheat: Reversion of real or personal property to the state when 1) a person dies without leaving a will and has no heirs, or 2) when the property (such as a bank account) has been inactive for a certain period of time. Source: OCC
  • Ex officio: Literally, by virtue of one's office.
  • Executor: A male person named in a will to carry out the decedent
  • Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
  • Fault: means a wrongful act, omission, breach, or default. See Texas Business and Commerce Code 2A.103
  • Federal Reserve System: The central bank of the United States. The Fed, as it is commonly called, regulates the U.S. monetary and financial system. The Federal Reserve System is composed of a central governmental agency in Washington, D.C. (the Board of Governors) and twelve regional Federal Reserve Banks in major cities throughout the United States. Source: OCC
  • Finance lease: means a lease with respect to which:
    (A) the lessor does not select, manufacture, or supply the goods;
    (B) the lessor acquires the goods or the right to possession and use of the goods in connection with the lease; and
    (C) one of the following occurs:
    (i) the lessee receives a copy of the contract by which the lessor acquired the goods or the right to possession and use of the goods before signing the lease contract;
    (ii) the lessee's approval of the contract by which the lessor acquired the goods or the right to possession and use of the goods is a condition to effectiveness of the lease contract;
    (iii) the lessee, before signing the lease contract, receives an accurate and complete statement designating the promises and warranties, and any disclaimers of warranties, limitations or modifications of remedies, or liquidated damages, including those of a third party, such as the manufacturer of the goods, provided to the lessor by the person supplying the goods in connection with or as part of the contract by which the lessor acquired the goods or the right to possession and use of the goods; or
    (iv) if the lease is not a consumer lease, the lessor, before the lessee signs the lease contract, informs the lessee in writing (a) of the identity of the person supplying the goods to the lessor, unless the lessee has selected that person and directed the lessor to acquire the goods or the right to possession and use of the goods from that person, (b) that the lessee is entitled under this chapter to the promises and warranties, including those of any third party, provided to the lessor by the person supplying the goods in connection with or as part of the contract by which the lessor acquired the goods or the right to possession and use of the goods, and (c) that the lessee may communicate with the person supplying the goods to the lessor and receive an accurate and complete statement of those promises and warranties, including any disclaimers and limitations of them or of remedies. See Texas Business and Commerce Code 2A.103
  • Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
  • Forgery: The fraudulent signing or alteration of another's name to an instrument such as a deed, mortgage, or check. The intent of the forgery is to deceive or defraud. Source: OCC
  • Garnishment: Generally, garnishment is a court proceeding in which a creditor asks a court to order a third party who owes money to the debtor or otherwise holds assets belonging to the debtor to turn over to the creditor any of the debtor
  • Goods: means all things that are moveable at the time of identification to the lease contract, or are fixtures (Section Texas Business and Commerce Code 2A.103
  • Goods: means all things that are treated as movable for the purposes of a contract for storage or transportation. See Texas Business and Commerce Code 7.102
  • Guarantor: A party who agrees to be responsible for the payment of another party's debts should that party default. Source: OCC
  • Guestroom: means a sleeping room, including any adjacent private living area, in a hotel which is rented to guests for their use as an overnight accommodation. See Texas Alcoholic Beverage Code 1.04
  • Habeas corpus: A writ that is usually used to bring a prisoner before the court to determine the legality of his imprisonment. It may also be used to bring a person in custody before the court to give testimony, or to be prosecuted.
  • Hotel: means the premises of an establishment:
    (A) where, in consideration of payment, travelers are furnished food and lodging;
    (B) in which are located:
    (i) at least 10 adequately furnished completely separate rooms with adequate facilities so comfortably disposed that persons usually apply for and receive overnight accommodations in the establishment, either in the course of usual and regular travel or as a residence; or
    (ii) at least five rooms described by Subparagraph (i) if the building being used as a hotel is a historic structure as defined by § 442. See Texas Alcoholic Beverage Code 1.04
  • Illicit beverage: means an alcoholic beverage:
    (A) manufactured, distributed, bought, sold, bottled, rectified, blended, treated, fortified, mixed, processed, warehoused, stored, possessed, imported, or transported in violation of this code;
    (B) on which a tax imposed by the laws of this state has not been paid and to which the tax stamp, if required, has not been affixed; or
    (C) possessed, kept, stored, owned, or imported with intent to manufacture, sell, distribute, bottle, rectify, blend, treat, fortify, mix, process, warehouse, store, or transport in violation of this code. See Texas Alcoholic Beverage Code 1.04
  • Impeachment: (1) The process of calling something into question, as in "impeaching the testimony of a witness." (2) The constitutional process whereby the House of Representatives may "impeach" (accuse of misconduct) high officers of the federal government for trial in the Senate.
  • Installment lease contract: means a lease contract that authorizes or requires the delivery of goods in separate lots to be separately accepted, even though the lease contract contains the clause "each delivery is a separate lease" or its equivalent. See Texas Business and Commerce Code 2A.103
  • Inter vivos: Transfer of property from one living person to another living person.
  • Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
  • Intestate: Dying without leaving a will.
  • Issuer: means a bailee that issues a document of title or, in the case of an unaccepted delivery order, the person that orders the possessor of goods to deliver. See Texas Business and Commerce Code 7.102
  • Item: means an instrument or a promise or order to pay money handled by a bank for collection or payment. See Texas Business and Commerce Code 4.104
  • Jurisprudence: The study of law and the structure of the legal system.
  • Lawsuit: A legal action started by a plaintiff against a defendant based on a complaint that the defendant failed to perform a legal duty, resulting in harm to the plaintiff.
  • Lease: means a transfer of the right to possession and use of goods for a term in return for consideration, but a sale, including a sale on approval or a sale or return, or retention or creation of a security interest is not a lease. See Texas Business and Commerce Code 2A.103
  • Lease agreement: means the bargain, with respect to the lease, of the lessor and the lessee in fact as found in their language or by implication from other circumstances including course of dealing or usage of trade or course of performance as provided by this chapter. See Texas Business and Commerce Code 2A.103
  • Lease contract: means the total legal obligation that results from the lease agreement as affected by this chapter and any other applicable rules of law. See Texas Business and Commerce Code 2A.103
  • Leasehold interest: means the interest of the lessor or the lessee under a lease contract. See Texas Business and Commerce Code 2A.103
  • Legal tender: coins, dollar bills, or other currency issued by a government as official money. Source: U.S. Mint
  • Lessee: means a person who acquires the right to possession and use of goods under a lease. See Texas Business and Commerce Code 2A.103
  • Lessor: means a person who transfers the right to possession and use of goods under a lease. See Texas Business and Commerce Code 2A.103
  • Licensee: means a person who is the holder of a license provided in this code, or any agent, servant, or employee of that person. See Texas Alcoholic Beverage Code 1.04
  • Lien: means a charge against or interest in goods to secure payment of a debt or performance of an obligation, but the term does not include a security interest. See Texas Business and Commerce Code 2A.103
  • Liquor: means any alcoholic beverage, other than a malt beverage, containing alcohol in excess of five percent by volume, unless otherwise indicated. See Texas Alcoholic Beverage Code 1.04
  • Lot: means a parcel or a single article that is the subject matter of a separate lease or delivery, whether or not it is sufficient to perform the lease contract. See Texas Business and Commerce Code 2A.103
  • Malt beverage: means a fermented beverage of any name or description containing one-half of one percent or more of alcohol by volume, brewed or produced from malt, in whole or in part, or from any malt substitute. See Texas Alcoholic Beverage Code 1.04
  • Merchant lessee: means a lessee that is a merchant with respect to goods of the kind subject to the lease. See Texas Business and Commerce Code 2A.103
  • Minibar: means a closed container in a hotel guestroom with access to the interior of the container restricted by a locking device which requires the use of a key, magnetic card, or similar device. See Texas Alcoholic Beverage Code 1.04
  • Minibar key: means the key, magnetic card, or similar device which permits access to the interior of a minibar. See Texas Alcoholic Beverage Code 1.04
  • Mixed beverage: means one or more servings of a beverage composed in whole or part of an alcoholic beverage in a sealed or unsealed container of any legal size for consumption on the premises where served or sold by the holder of a mixed beverage permit, the holder of certain nonprofit entity temporary event permits, the holder of a private club registration permit, or the holder of certain retailer late hours certificates. See Texas Alcoholic Beverage Code 1.04
  • Mortgagee: The person to whom property is mortgaged and who has loaned the money.
  • most recent federal census: means the United States decennial census immediately preceding the action in question. See Texas Government Code 312.011
  • National Bank: A bank that is subject to the supervision of the Comptroller of the Currency. The Office of the Comptroller of the Currency is a bureau of the U.S. Treasury Department. A national bank can be recognized because it must have "national" or "national association" in its name. Source: OCC
  • Operational area: means that area that joins the target area and is reasonably necessary to use in order to effectuate the purposes over the target area without affecting the land or landowners in the operational area. See Texas Agriculture Code 301.151
  • Oral argument: An opportunity for lawyers to summarize their position before the court and also to answer the judges' questions.
  • Oversight: Committee review of the activities of a Federal agency or program.
  • Permittee: means a person who is the holder of a permit provided for in this code, or an agent, servant, or employee of that person. See Texas Alcoholic Beverage Code 1.04
  • Plea: In a criminal case, the defendant's statement pleading "guilty" or "not guilty" in answer to the charges, a declaration made in open court.
  • Pleadings: Written statements of the parties in a civil case of their positions. In the federal courts, the principal pleadings are the complaint and the answer.
  • Precedent: A court decision in an earlier case with facts and law similar to a dispute currently before a court. Precedent will ordinarily govern the decision of a later similar case, unless a party can show that it was wrongly decided or that it differed in some significant way.
  • present sale: means a sale which is accomplished by the making of the contract. See Texas Business and Commerce Code 2.106
  • Present value: means the amount as of a date certain of one or more sums payable in the future, discounted to the date certain. See Texas Business and Commerce Code 2A.103
  • Probation: A sentencing alternative to imprisonment in which the court releases convicted defendants under supervision as long as certain conditions are observed.
  • Prosecute: To charge someone with a crime. A prosecutor tries a criminal case on behalf of the government.
  • Purchase: includes taking by sale, lease, mortgage, security interest, pledge, gift, or any other voluntary transaction creating an interest in goods. See Texas Business and Commerce Code 2A.103
  • Quorum: The number of legislators that must be present to do business.
  • Recourse: An arrangement in which a bank retains, in form or in substance, any credit risk directly or indirectly associated with an asset it has sold (in accordance with generally accepted accounting principles) that exceeds a pro rata share of the bank's claim on the asset. If a bank has no claim on an asset it has sold, then the retention of any credit risk is recourse. Source: FDIC
  • Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.
  • Remand: When an appellate court sends a case back to a lower court for further proceedings.
  • Reporter: Makes a record of court proceedings and prepares a transcript, and also publishes the court's opinions or decisions (in the courts of appeals).
  • Rescission: The cancellation of budget authority previously provided by Congress. The Impoundment Control Act of 1974 specifies that the President may propose to Congress that funds be rescinded. If both Houses have not approved a rescission proposal (by passing legislation) within 45 days of continuous session, any funds being withheld must be made available for obligation.
  • Restaurant: means a business that:
    (A) operates its own permanent food service facility with commercial cooking equipment on its premises; and
    (B) prepares and offers to sell multiple entrees for consumption on or off the premises. See Texas Alcoholic Beverage Code 1.04
  • Restitution: The court-ordered payment of money by the defendant to the victim for damages caused by the criminal action.
  • Seller: means a person who sells or contracts to sell goods. See Texas Business and Commerce Code 2.103
  • Sequester: To separate. Sometimes juries are sequestered from outside influences during their deliberations.
  • Shipper: means a person that enters into a contract of transportation with a carrier. See Texas Business and Commerce Code 7.102
  • Statute of limitations: A law that sets the time within which parties must take action to enforce their rights.
  • Sublease: means a lease of goods the right to possession and use of which was acquired by the lessor as a lessee under an existing lease. See Texas Business and Commerce Code 2A.103
  • Subpoena: A command to a witness to appear and give testimony.
  • Succeeding: means immediately following. See Texas Government Code 312.011
  • Summons: Another word for subpoena used by the criminal justice system.
  • Supplier: means a person from whom a lessor buys or leases goods to be leased under a finance lease. See Texas Business and Commerce Code 2A.103
  • Supply contract: means a contract under which a lessor buys or leases goods to be leased. See Texas Business and Commerce Code 2A.103
  • Target area: means that area described by metes and bounds or other specific bounded description set out in the application for a permit. See Texas Agriculture Code 301.151
  • Testator: A male person who leaves a will at death.
  • Testify: Answer questions in court.
  • Transcript: A written, word-for-word record of what was said, either in a proceeding such as a trial or during some other conversation, as in a transcript of a hearing or oral deposition.
  • True bill: Another word for indictment.
  • Trustee: A person or institution holding and administering property in trust.
  • Uniform Commercial Code: A set of statutes enacted by the various states to provide consistency among the states' commercial laws. It includes negotiable instruments, sales, stock transfers, trust and warehouse receipts, and bills of lading. Source: OCC
  • Variable Rate: Having a "variable" rate means that the APR changes from time to time based on fluctuations in an external rate, normally the Prime Rate. This external rate is known as the "index." If the index changes, the variable rate normally changes. Also see Fixed Rate.
  • Verdict: The decision of a petit jury or a judge.
  • Vintage distilled spirits: means distilled spirits that:
    (A) are in the original manufacturer's sealed container, including a bottle or case of bottles;
    (B) are not owned by the holder of a distiller's and rectifier's permit or the holder of a nonresident seller's permit;
    (C) are not otherwise available for purchase from the holder of a wholesaler's permit;
    (D) have not been offered for sale by the holder of a wholesaler's permit within the preceding five years; and
    (E) are possessed by a person in this state. See Texas Alcoholic Beverage Code 1.04
  • Vintage distilled spirits seller: means a person who:
    (A) is at least 21 years of age;
    (B) does not hold a license or permit under this code; and
    (C) is:
    (i) an administrator, executor, receiver, or other fiduciary who receives and sells vintage distilled spirits in execution of the person's fiduciary capacity;
    (ii) a creditor who receives or takes possession of vintage distilled spirits as security for, or in payment of, debt, in whole or in part;
    (iii) a public officer or court official who levies on vintage distilled spirits under order or process of any court or magistrate to sell the vintage distilled spirits in satisfaction of the order or process; or
    (iv) any other person who does not hold or have an interest in a permit or a license or in the business of a permit or license holder under this code and is not engaged in the business of selling alcoholic beverages. See Texas Alcoholic Beverage Code 1.04
  • Warehouse: means a person engaged in the business of storing goods for hire. See Texas Business and Commerce Code 7.102
  • Writ: A formal written command, issued from the court, requiring the performance of a specific act.