Texas Finance Code 36.304 – Secured Claim
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(a) The owner of a secured claim against a bank in liquidation may:
(1) surrender the security and file a claim as a general creditor; or
(2) apply the security to the claim and discharge the claim.
(b) If the owner applies the security and discharges the claim, any deficiency shall be treated as a claim against the general assets of the bank on the same basis as a claim of an unsecured creditor. The amount of the deficiency shall be determined as provided by Section 36.305, except that if the amount of the deficiency has been adjudicated by a court in a proceeding in which the receiver has had notice and an opportunity to be heard, the court’s decision is conclusive as to the amount.
Terms Used In Texas Finance Code 36.304
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Litigation: A case, controversy, or lawsuit. Participants (plaintiffs and defendants) in lawsuits are called litigants.
(c) The value of security held by a secured creditor shall be determined under supervision of the court by:
(1) converting the security into money according to the terms of the agreement under which the security was delivered to the creditor; or
(2) agreement, arbitration, compromise, or litigation between the creditor and the receiver.