Tex. Bus. & Com. Code Section 51.101
Bond, Trust Account, or Letter of Credit Required

(a)

Before a seller makes a representation described by Section 51.003 (Definition of Business Opportunity)(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: Section 51.101 — Bond, Trust Account, or Letter of Credit Required, https://statutes.­capitol.­texas.­gov/Docs/BC/htm/BC.­51.­htm#51.­101 (accessed Jun. 5, 2024).

51.001
Short Title 51.002
General Definitions 51.003
Definition of Business Opportunity 51.004
Liberal Construction and Application 51.005
Burden of Proof 51.006
Waiver 51.007
Maintenance of Records 51.008
Filing Fee 51.009
Rules 51.051
Filing of Disclosure Statements and List of Sellers 51.052
Updating of Information on File 51.053
Filing of Disclosure Document from Other Regulatory Agency 51.054
Filing of Copy of Bond or Notification of Account 51.101
Bond, Trust Account, or Letter of Credit Required 51.102
Action Against Bond, Trust Account, or Letter of Credit 51.151
Disclosure to Purchaser of Business Opportunity 51.152
Cover Sheet of Disclosure Statement 51.153
Contents: Names and Addresses 51.154
Contents: Sales Periods 51.155
Contents: Services Description 51.156
Contents: Updated Financial Statement 51.157
Contents: Training Description 51.158
Contents: Security Description 51.159
Contents: Delivery Date 51.160
Contents: Sales or Earnings Representation 51.161
Contents: Legal Action History 51.162
Contents: Bankruptcy or Reorganization 51.163
Contents: Contract Copy 51.164
Use of Disclosure Document from Other Regulatory Agency 51.201
Form of Business Opportunity Contract 51.202
Delivery of Copies of Documents to Purchaser 51.203
Effect of Assignment of Business Opportunity Contract 51.251
Voluntary Termination of Business Opportunity Registration 51.252
Involuntary Termination of Business Opportunity Registration 51.301
Prohibited Acts 51.302
Deceptive Trade Practice 51.303
Review and Suit by Attorney General
Green check means up to date. Up to date

Accessed:
Jun. 5, 2024

§ 51.101’s source at texas​.gov