Tex. Local Government Code § 116.056
This is the official text of Tex. Local Government Code § 116.056, part of Texas’s Local Government Code — governs the powers and operations of Texas cities and counties.
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§ 116.056. REAL PROPERTY.
Official statutory text
(a) If approved by the commissioners court, improved and unencumbered real property, pledged directly by deed of trust to a trustee selected by the commissioners court, with the county judge as beneficiary, qualifies as security under this subchapter.
(b) Before approving real property offered as security, the commissioners court shall require:
(1) a written opinion by an attorney selected by the commissioners court showing that the lien is superior to any other claim to or right in the real property; and
(2) insurance approved by the county judge covering the improvements on the pledged real property and providing that a loss is payable to the county judge.
(c) An insurance policy required under Subsection (b) must be issued by a stock fire insurance company or mutual fire insurance company that has a $100,000 surplus in excess of all legal reserves and other liabilities.
(b) Before approving real property offered as security, the commissioners court shall require:
(1) a written opinion by an attorney selected by the commissioners court showing that the lien is superior to any other claim to or right in the real property; and
(2) insurance approved by the county judge covering the improvements on the pledged real property and providing that a loss is payable to the county judge.
(c) An insurance policy required under Subsection (b) must be issued by a stock fire insurance company or mutual fire insurance company that has a $100,000 surplus in excess of all legal reserves and other liabilities.
Status: in_force · Read it on the official government site
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