Texas § PR.162.001 - CONSTRUCTION PAYMENTS AND LOAN RECEIPTS AS TRUST FUNDS
Full text of Texas The Texas Constitution § PR.162.001 — CONSTRUCTION PAYMENTS AND LOAN RECEIPTS AS TRUST FUNDS, with citation guidance and answers to common questions.
§ PR.162.001. CONSTRUCTION PAYMENTS AND LOAN RECEIPTS AS TRUST FUNDS
CONSTRUCTION PAYMENTS AND LOAN RECEIPTS AS TRUST FUNDS. (a) Construction payments are trust funds under this chapter if the payments are made to a contractor or subcontractor or to an officer, director, or agent of a contractor or subcontractor, under a construction contract for the improvement of specific real property in this state. (b) Loan receipts are trust funds under this chapter if the funds are borrowed by a contractor, subcontractor, or owner or by an officer, director, or agent of a contractor, subcontractor, or owner for the purpose of improving specific real property in this state, and the loan is secured in whole or in part by a lien on the property. (c) A fee payable to a contractor is not considered trust funds if: (1) the contractor and property owner have entered into a written construction contract for the improvement of specific real property in this state before the commencement of construction of the improvement and the contract provides for the payment by the owner of the costs of construction and a reasonable fee specified in the contract payable to the contractor; and (2) the fee is earned as provided by the contract and paid to the contractor or disbursed from a construction account described by Section 162.006 , if applicable. (d) Trust funds paid to a creditor under this chapter are not property or an interest in property of a debtor who is a trustee described by Section 162.002 . Acts 1983, 68th Leg., p. 3720, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1997, 75th Leg., ch. 1018, Sec. 1, eff. Sept. 1, 1997. Amended by: Acts 2009, 81st Leg., R.S., Ch. 1277 (H.B. 1513 ), Sec. 1, eff. September 1, 2009. Acts 2009, 81st Leg., R.S., Ch. 1277 (H.B. 1513 ), Sec. 2, eff. September 1, 2009.
Source: official Texas text · Last verified 2026-08-27
Frequently Asked Questions About Texas § PR.162.001
What does The Texas Constitution § PR.162.001 cover?
Section PR.162.001 ("CONSTRUCTION PAYMENTS AND LOAN RECEIPTS AS TRUST FUNDS") 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 § PR.162.001?
A common citation format is "The Texas Constitution § PR.162.001" (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 § PR.162.001 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.