Tex.
Fin. Code Section 186.304
Secured Claim
(a)
The owner of a secured deposit may file a claim as a creditor against a state trust company in liquidation. The value of security shall be determined under supervision of the court by converting the security into money.(b)
The owner of a secured claim against a state trust company in liquidation may:(1)
surrender the security and file a claim as a general creditor; or(2)
apply the security to the claim and discharge the claim.(c)
If the owner applies the security and discharges the claim under Subsection (b), any deficiency shall be treated as a claim against the general assets of the state trust company on the same basis as a claim of an unsecured creditor. The amount of the deficiency shall be determined as provided by Section 186.305 (Unliquidated or Undetermined Claim), except that if the amount of the deficiency has been adjudicated by a court in a proceeding in which the receiver has had notice and an opportunity to be heard, the court’s decision is conclusive as to the amount.(d)
The value of security held by a secured creditor shall be determined under supervision of the court by:(1)
converting the security into money according to the terms of the agreement under which the security was delivered to the creditor; or(2)
agreement, arbitration, compromise, or litigation between the creditor and the receiver.
Source:
Section 186.304 — Secured Claim, https://statutes.capitol.texas.gov/Docs/FI/htm/FI.186.htm#186.304 (accessed Jun. 5, 2024).
