Texas Finance Code 126.303 – Priority of Claims
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Terms Used In Texas Finance Code 126.303
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
The liquidating agent shall use the credit union’s assets to pay, in the following order:
(1) secured creditors to the extent of the value of their collateral;
(2) liquidation expenses, including a surety bond if required;
(3) depositors;
(4) general creditors, including secured creditors to the extent that their claims exceed the value of their collateral; and
(5) distributions to members in proportion to the shares held by each member.