Texas § IN.2551.204 - USE OF DEPOSIT
Full text of Texas The Texas Constitution § IN.2551.204 — USE OF DEPOSIT, with citation guidance and answers to common questions.
§ IN.2551.204. USE OF DEPOSIT
USE OF DEPOSIT. (a) Except as otherwise provided by Subsection (e), a deposit made under this subchapter may be used only to pay an obligation connected with title insurance. (b) On the insolvency or dissolution of a title insurance company, the company's deposit shall be used to protect title insurance policyholders even if no accrued title insurance claims exist and other unpaid obligations do exist, except as permitted by Subsection (e). (c) A title insurance company's deposit must be applied to: (1) the complete payment of any obligations and liabilities of the company connected with title insurance business; and (2) the establishment of adequate reserves or reinsurance to protect any subsequently accruing or maturing title insurance obligations and liabilities. (d) The amount, handling, and distribution of any reserves required under Subsection (c)(2) are subject to the control and discretion of the department and are reviewable in judicial proceedings governed by rules applicable to review of rates under Subchapters D and E, Chapter 2703 . (e) Any deposit amount remaining after payments under Subsection (c) must be applied to: (1) payment of other obligations and liabilities of the title insurance company; or (2) distribution to shareholders. Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005. SUBCHAPTER F. RESERVES
Source: official Texas text · Last verified 2026-08-27
Frequently Asked Questions About Texas § IN.2551.204
What does The Texas Constitution § IN.2551.204 cover?
Section IN.2551.204 ("USE OF DEPOSIT") is part of the The Texas Constitution, the codified statutory law of Texas. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Texas § IN.2551.204?
A common citation format is "The Texas Constitution § IN.2551.204" (Texas). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Texas law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Texas official source linked on this page or consult a licensed Texas attorney.
How does Texas § IN.2551.204 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Texas can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Texas.