Finance Code § 183.201

Most participants, participant-transferees, and managers of a limited trust association are not liable for the association’s debts or obligations, and are generally not proper parties to proceedings against it. A full liability participant remains liable for certain debts that accrued during participation before a with

Jurisdiction: United States — Texas
Instrument: Code
Version: Undated source snapshot
Language: en
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manager liability participant liability proceedings

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Provisions of Finance Code § 183.201

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183.201
Finance Code § 183.201
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Most participants, participant-transferees, and managers of a limited trust association are not liable for the association’s debts or obligations, and are generally not proper parties to proceedings against it. A full liability participant remains liable for certain debts that accrued during participation before a withdrawal notice was filed with the banking commissioner.

Sec. 183.201. LIABILITY OF PARTICIPANTS AND MANAGERS. (a) Except as provided by Subsection (b), a participant, participant-transferee, or manager of a limited trust association is not liable for a debt, obligation, or liability of the limited trust association, including a debt, obligation, or liability under a judgment, decree, or order of court. A participant, other than a full liability participant, or a manager of a limited trust association is not a proper party to a proceeding by or against a limited trust association unless the object of the proceeding is to enforce the participant's or manager's right against or liability to a limited trust association. (b) A full liability participant of a limited trust association is liable under a judgment, decree, or order of court for a debt, obligation, or liability of the limited trust association that accrued during the participation of the full liability participant in the limited trust association and before the full liability participant or a successor in interest filed with the banking commissioner a notice of withdrawal as a full liability participant from the limited trust association. The filed notice of withdrawal is a public record. Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.

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Finance Code § 183.201

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Provisions of Finance Code § 183.201

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