Texas Finance Code 351.002 – Definitions
Terms Used In Texas Finance Code 351.002
- Contract: A legal written agreement that becomes binding when signed.
- Deed: The legal instrument used to transfer title in real property from one person to another.
- Lien: A claim against real or personal property in satisfaction of a debt.
- 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
- Property: means real and personal property. See Texas Government Code 311.005
- Written: includes any representation of words, letters, symbols, or figures. See Texas Government Code 311.005
In this chapter:
(1) “Property tax lender” means a person that engages in activity requiring a license under § 351.051. The term does not include:
(A) a person who is sponsored by a licensed property tax lender to assist with or perform the acts of a property tax lender; or
(B) a person who performs only clerical functions such as delivering a loan application to a property tax lender, gathering or requesting information related to a property tax loan application on behalf of the prospective borrower or property tax lender, word processing, sending correspondence, or assembling files.
(2) “Property tax loan” means an advance of money:
(A) in connection with a transfer of lien under § 32.06, Tax Code, or a contract under § 32.065, Tax Code;
(B) in connection with which the person making the transfer arranges for the payment, with a property owner’s written consent, of property taxes and related closing costs on behalf of the property owner in accordance with § 32.06, Tax Code; and
(C) that is secured by a special lien against property transferred from a taxing unit to the property tax lender and which may be further secured by the lien or security interest created by a deed of trust, security deed, or other security instrument.