162.031 – MISAPPLICATION OF TRUST FUNDS. (a) A trustee
Texas Property Code § 162.031
Summary
This law addresses the misapplication of trust funds by trustees. It holds trustees accountable if they misuse trust funds without settling their obligations to beneficiaries, thereby protecting the beneficiaries' interests.
Trustees must settle obligations to beneficiaries before using trust funds.
Intent to defraud increases liability for misapplication.
Affirmative defense exists if funds were not owed to beneficiaries.
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In simple terms: Learn about Texas's MISAPPLICATION OF TRUST FUNDS. (a) A trustee 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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