Texas § ES.1161.203 - LOAN REQUIREMENTS
Full text of Texas The Texas Constitution § ES.1161.203 — LOAN REQUIREMENTS, with citation guidance and answers to common questions.
§ ES.1161.203. LOAN REQUIREMENTS
LOAN REQUIREMENTS. (a) Except as provided by Subsection (b), the guardian of the estate shall take as collateral the borrower's note for the money that is loaned, secured by: (1) a mortgage with a power of sale on unencumbered real estate located in this state worth at least twice the amount of the note; or (2) collateral notes secured by vendor's lien notes. (b) The guardian may purchase vendor's lien notes if at least one-half has been paid in cash or its equivalent on the land for which the notes were given. (c) Except as provided by Subsection (d), a guardian of the estate who lends estate money may not pay or transfer any money to consummate the loan until the guardian: (1) submits to a reputable attorney for examination all bonds, notes, mortgages, abstracts, and other documents relating to the loan; and (2) receives a written opinion from the attorney stating that the documents under Subdivision (1) are regular and that the title to relevant bonds, notes, or real estate is clear. (d) A guardian of the estate may obtain a mortgagee's title insurance policy on any real estate loan instead of an abstract and attorney's opinion under Subsection (c). (e) The borrower shall pay attorney's fees for any legal services required by Subsection (c). Added by Acts 2011, 82nd Leg., R.S., Ch. 823 (H.B. 2759 ), Sec. 1.02, eff. January 1, 2014.
Frequently Asked Questions About Texas § ES.1161.203
What does The Texas Constitution § ES.1161.203 cover?
Section ES.1161.203 ("LOAN REQUIREMENTS") 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 § ES.1161.203?
A common citation format is "The Texas Constitution § ES.1161.203" (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 § ES.1161.203 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.