Texas § FI.156.501 - RECOVERY FUND
Full text of Texas The Texas Constitution § FI.156.501 — RECOVERY FUND, with citation guidance and answers to common questions.
§ FI.156.501. RECOVERY FUND
RECOVERY FUND. (a) The commissioner shall establish, administer, and maintain a recovery fund as provided by Section 13.016 and this subchapter. The amounts received by the commissioner for deposit in the fund shall be held by the commissioner in trust for carrying out the purposes of the fund. (b) Subject to this subsection and Section 156.502 (b), the recovery fund shall be used to reimburse residential mortgage loan applicants for actual damages incurred because of acts committed by a residential mortgage loan originator who was licensed under Chapter 157 when the act was committed. The use of the fund is limited to reimbursement for out-of-pocket losses caused by an act by a residential mortgage loan originator licensed under Chapter 157 that constitutes a violation of Section 157.024 (a)(2), (3), (5), (7), (8), (9), (10), (13), (16), (17), or (18) or 156.304 (b). (b-1) Payments from the recovery fund may not be made to a lender who makes a residential mortgage loan originated by the residential mortgage loan originator or who acquires a residential mortgage loan originated by the residential mortgage loan originator. Text of subsection as amended by Acts 2021, 87th Leg., R.S., Ch. 929 (H.B. 3617 ), Sec. 5 (c) Amounts in the recovery fund may be invested and reinvested in accordance with Chapter 2256 , Government Code, and under the prudent person standard described in Section 11b , Article VII, Texas Constitution, and the interest from these investments shall be deposited to the credit of the fund. An investment may not be made under this subsection if the investment will impair the necessary liquidity required to satisfy claims awarded under this subchapter. Text of subsection as amended by Acts 2021, 87th Leg., R.S., Ch. 963 (S.B. 1900 ), Sec. 6 (c) Amounts in the recovery fund may be invested and reinvested in accordance with Chapter 2256 , Government Code, and under the prudent person standard described by Section 11b , Article VII, Texas Constitution, and the interest from these investments shall be deposited to the credit of the fund. An investment may not be made under this subsection if the investment will impair the necessary liquidity required to satisfy judgment payments awarded under this subchapter. (d) Repealed by Acts 2021, 87th Leg., R.S., Ch. 929 (H.B. 3617 ), Sec. 9, and Acts 2021, 87th Leg., R.S., Ch. 963 (S.B. 1900 ), Sec. 7(2), eff. September 1, 2021. (e) Payments from the recovery fund shall be reduced by the amount of any recovery from the residential mortgage loan originator or from any surety, insurer, or other person or entity making restitution to the applicant on behalf of the residential mortgage loan originator. (f) Repealed by Acts 2021, 87th Leg., R.S., Ch. 929 (H.B. 3617 ), Sec. 9, and Acts 2021, 87th Leg., R.S., Ch. 963 (S.B. 1900 ), Sec. 7(2), eff. September 1, 2021. Added by Acts 1999, 76th Leg., ch. 1254, Sec. 2, eff. Sept. 1, 1999. Amended by: Acts 2005, 79th Leg., Ch. 1018 (H.B. 955 ), Sec. 6.18, eff. September 1, 2005. Acts 2009, 81st Leg., R.S., Ch. 1317 (H.B. 2774 ), Sec. 19, eff. September 1, 2009. Acts 2011, 82nd Leg., R.S., Ch. 655 (S.B. 1124 ), Sec. 38, eff. September 1, 2011. Acts 2013, 83rd Leg., R.S., Ch. 160 (S.B. 1004 ), Sec. 40, eff. September 1, 2013. Acts 2021, 87th Leg., R.S., Ch. 929 (H.B. 3617 ), Sec. 5, eff. September 1, 2021. Acts 2021, 87th Leg., R.S., Ch. 929 (H.B. 3617 ), Sec. 9, eff. September 1, 2021. Acts 2021, 87th Leg., R.S., Ch. 963 (S.B. 1900 ), Sec. 6, eff. September 1, 2021. Acts 2021, 87th Leg., R.S., Ch. 963 (S.B. 1900 ), Sec. 7(2), eff. September 1, 2021. Text of section as amended by Acts 2021, 87th Leg., R.S., Ch. 929 (H.B. 3617 ), Sec. 6
Frequently Asked Questions About Texas § FI.156.501
What does The Texas Constitution § FI.156.501 cover?
Section FI.156.501 ("RECOVERY FUND") 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 § FI.156.501?
A common citation format is "The Texas Constitution § FI.156.501" (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 § FI.156.501 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.