23.20 – DISCOUNT OF CLAIM NOT DUE AND ALLOWANCE OF SECURED
Texas Business and Commerce Code § 23.20
Summary
This law allows an assignee to discount a claim that is not yet due by applying the legal interest rate. Additionally, it provides a framework for creditors who hold collateral that is worth less than their claim, limiting their claim against the assigned estate to the difference in value.
Assignees can discount not-yet-due claims at the legal rate.
Creditors with insufficient collateral can only claim the value difference.
Affects creditors and assignees in bankruptcy or assignment scenarios.
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In simple terms: Learn about Texas's DISCOUNT OF CLAIM NOT DUE AND ALLOWANCE OF SECURED law, including definitions, penalties, and legal implications.. This means people must follow this rule, and breaking it can lead to criminal penalties.
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