Texas § BC.51.101 - BOND, TRUST ACCOUNT, OR LETTER OF CREDIT REQUIRED
Full text of Texas The Texas Constitution § BC.51.101 — BOND, TRUST ACCOUNT, OR LETTER OF CREDIT REQUIRED, with citation guidance and answers to common questions.
§ BC.51.101. BOND, TRUST ACCOUNT, OR LETTER OF CREDIT REQUIRED
BOND, TRUST ACCOUNT, OR LETTER OF CREDIT REQUIRED. (a) Before a seller makes a representation described by Section 51.003 (a)(1) or otherwise represents that the purchaser is assured of making a profit from a business opportunity, the principal seller must: (1) obtain a surety bond from a surety company authorized to transact business in this state; (2) establish a trust account; or (3) obtain an irrevocable letter of credit. (b) The bond, trust account, or irrevocable letter of credit must be: (1) in an amount of $25,000 or more; and (2) in favor of this state. Amended by: Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278 ), Sec. 2.01, eff. April 1, 2009.
Source: official Texas text · Last verified 2026-08-27
Frequently Asked Questions About Texas § BC.51.101
What does The Texas Constitution § BC.51.101 cover?
Section BC.51.101 ("BOND, TRUST ACCOUNT, OR LETTER OF CREDIT REQUIRED") 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 § BC.51.101?
A common citation format is "The Texas Constitution § BC.51.101" (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 § BC.51.101 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.