Texas Property Code 113.052 – Loan of Trust Funds to Trustee
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(a) Except as provided by Subsection (b) of this section, a trustee may not lend trust funds to:
(1) the trustee or an affiliate;
(2) a director, officer, or employee of the trustee or an affiliate;
(3) a relative of the trustee; or
(4) the trustee’s employer, employee, partner, or other business associate.
(b) This section does not prohibit:
(1) a loan by a trustee to a beneficiary of the trust if the loan is expressly authorized or directed by the instrument or transaction establishing the trust; or
(2) a deposit by a corporate trustee with itself under Section 113.057 of this Act.
Terms Used In Texas Property Code 113.052
- 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
- Trustee: A person or institution holding and administering property in trust.