On Jun. 20, TX LEG enacted bill on use of trust funds for properties.
TX LEG enacted SB 841 (HB 2226) relating to the beneficiaries of trust funds paid or received in connection with an improvement on specific real property.
Amended TX FIN 10-B-162-A on construction payments and loan receipts.
Document dated Jun. 20, 2025, was received on Jul. 9, 2025, due to a fixed feed.
Bill Provisions
Provisions amended current law relating to the beneficiaries of trust funds paid or received in connection with an improvement on specific real property.
Additionally, established that an assignment by a beneficiary of the beneficiary's interest in unpaid trust funds may not be enforced unless provided conditions are met.
Assignment made in writing not earlier than date assignee has paid beneficiary and sufficient funds for assignment and is not made as part of the construction contract.
Assignee is a beneficiary, trustee, or property owner under contract for construction or repair of improvement on property in connection with payment of trust funds is made.
Written notice of assignment is provided to the property owner and the contractor on the project not later than the seventh day after the date the assignment is made.
Legislative History
On Feb. 13, 2025, bill was introduced in Senate; on Apr. 24, 2025, bill passed Senate.
On Apr. 28, 2025, bill introduced in House; on May 20, 2025, amended bill passed.
On May 22, 2025, Senate concurred; on Jun. 20, 2025, governor signed bill into law.
Effectiveness
Act takes effect Sep. 1, 2025.
Regulators
TX LEG
Entity Types
CNSM; Corp; Fiduciary
Reference
Act, Bill HB2226, SB841, 6/20/2025; Citation: TX FIN 10-B-162-A;
