Tex. Prop. Code Section 221.063
Alternative to Escrow or Trust Account: Financial Assurance

(a)

Instead of the deposit of funds in an escrow or trust account as provided by Section 221.061 (Escrow or Trust Account Required), the commission may accept from the developer a surety bond, irrevocable letter of credit, or other form of financial assurance, including financial assurance posted in another state or jurisdiction.

(b)

The amount of the financial assurance provided under this section must be an amount equal to or more than the amount of funds that would otherwise be placed in an escrow or trust account under Section 221.061 (Escrow or Trust Account Required)(a).

(c)

The amount of the financial assurance provided under this section for timeshare property under construction as provided by Section 221.061 (Escrow or Trust Account Required)(d) must be the lesser of:

(1)

an amount equal to or more than the amount of funds that would otherwise be placed in an escrow or trust account under that subsection; or

(2)

the amount necessary to assure completion of the building in which the timeshare interest is located.
Added by Acts 1987, 70th Leg., ch. 167, Sec. 6.03, eff. Sept. 1, 1987. Renumbered from Sec. 201.063 by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(b), eff. Aug. 28, 1989.
Amended by:
Acts 2005, 79th Leg., Ch. 539 (H.B. 1045), Sec. 10, eff. January 15, 2006.

Source: Section 221.063 — Alternative to Escrow or Trust Account: Financial Assurance, https://statutes.­capitol.­texas.­gov/Docs/PR/htm/PR.­221.­htm#221.­063 (accessed Jun. 5, 2024).

221.001
Short Title 221.002
Definitions 221.003
Applicability 221.004
Conflicts of Law 221.011
Declaration 221.012
Conveyance and Encumbrance 221.013
Common Ownership 221.014
Partition 221.021
Registration Required 221.022
Application for Registration 221.023
Amendment of Registration 221.024
Powers of Commission 221.025
Effect of Registration on Other Laws: Exemption from Certain Laws 221.026
Issuance and Renewal of Registration 221.027
Temporary Suspension 221.028
Denial of Registration Renewal 221.031
Advertisements and Promotions 221.032
Timeshare Disclosure Statement 221.033
Exchange Disclosure Statement 221.034
Exempt Offerings and Dispositions 221.035
Supervisory Duties of Developer 221.036
Developer Preparation and Completion of Documents 221.037
Alternative Terminology or Name 221.041
Purchaser’s Right to Cancel 221.042
Notice 221.043
Contract Requirements 221.051
Operation Requirement 221.052
Liability of Developer and Exchange Company 221.053
Exchange Company Liability 221.061
Escrow or Trust Account Required 221.062
Release of Escrow 221.063
Alternative to Escrow or Trust Account: Financial Assurance 221.064
Documentation Required 221.071
Deceptive Trade Practices 221.072
Insurance 221.073
Penalty 221.074
Annual Timeshare Fee and Expense Statement 221.075
Civil Penalty for Late Statement 221.076
Managing Entities that Manage More than One Timeshare Property 221.077
Availability of Books and Records 221.081
Applicability 221.082
Powers and Limitations of Board 221.083
Period of Developer Control 221.084
Election of Initial Board Members and Officers 221.085
Removal of Board Members 221.086
Quorum 221.087
Votes 221.088
Open Meetings 221.089
Notice 221.090
Duties 221.101
Transfer or Termination of Timeshare Interest 221.102
Applicability 221.103
General Disclosures Required 221.104
Disclosure of Authorized Use of Timeshare Interest 221.105
Disclosures Relating to Payment of Fees for Transfer Services 221.106
Required Notice for Transfer Services 221.107
Required Notice for Termination Services 221.108
Reliance 221.109
Duty of Good Faith Regarding Transfer or Termination Services 221.110
Deceptive Trade Practices 221.111
Supervisory Duties 221.0245
Complaint Investigation
Green check means up to date. Up to date

Accessed:
Jun. 5, 2024

§ 221.063’s source at texas​.gov