(a) A trustee commits an offense if the trustee, knowingly or with intent to defraud, directly or indirectly retains, uses, disperses, or otherwise diverts more than $500 of trust money without first fully paying all of the beneficiaries the purchase price for the timber.
(b) A trustee acts with intent to defraud if the trustee retains, uses, disperses, or diverts trust money with the intent to deprive a beneficiary of trust money.

Attorney's Note

Under the Texas Codes, punishments for crimes depend on the classification. In the case of this section:
ClassPrisonFine
State jail felonybetween 180 days and 2 yearsup to $10,000
For details, see Texas Penal Code § 12.35

Terms Used In Texas Natural Resources Code 151.105

  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • Trial: A hearing that takes place when the defendant pleads "not guilty" and witnesses are required to come to court to give evidence.
  • Trustee: A person or institution holding and administering property in trust.

(c) A trustee is presumed to have acted with intent to defraud if the trustee does not pay all of the beneficiaries the purchase price for the timber not later than the 45th day after the date the trustee collects money for the timber.
(d) An offense under this section is:
(1) a state jail felony if it is shown on the trial of the offense that the value of the timber sold is at least $500 but less than $20,000;
(2) a felony of the third degree if it is shown on the trial of the offense that the value of the timber sold is at least $20,000 but less than $100,000;
(3) a felony of the second degree if it is shown on the trial of the offense that the value of the timber sold is at least $100,000 but less than $200,000; or
(4) a felony of the first degree if it is shown on the trial of the offense that the value of the timber sold is at least $200,000.

  Previous section
Next section  
 Subchapter C Contents