Sec. 59.026. TRANSFER OF BORROWER'S INTEREST. (a) The contract for a loan under this chapter must provide that transfer of ownership of the land without the board's express written permission before the entire principal and interest due have been paid constitutes default under the contract.
(b) If the borrower dies or becomes financially incapacitated or if the borrower's interest in land is involuntarily transferred by court order or other proceedings, including bankruptcy, sheriff or trustee sale, or divorce, the land may be conveyed by the borrower or the borrower's heirs, administrators, executors, or successors in interest by complying with the rules adopted by the board and obtaining the board's written permission.
Added by Acts 1993, 73rd Leg., ch. 542, Sec. 1, eff. Sept. 1, 1993. Amended by Acts 1995, 74th Leg., ch. 1014, Sec. 15, eff. Jan. 1, 1996.
Structure Texas Statutes
Title 4 - Agricultural Organizations
Chapter 59 - Farm and Ranch Finance Program
Section 59.023. Powers of Board
Section 59.024. Application; Eligibility
Section 59.025. Maximum Amount of Loan or Guarantee
Section 59.026. Transfer of Borrower's Interest
Section 59.027. Changes in Use
Section 59.029. Payments to Board Under Certain Leases
Section 59.030. Term of Leases