CHAPTER 277. BUSINESS CHECKING ACCOUNTS
FINANCE CODE
TITLE 3. FINANCIAL INSTITUTIONS AND BUSINESSES
SUBTITLE Z. MISCELLANEOUS PROVISIONS RELATING TO FINANCIAL
INSTITUTIONS AND BUSINESSES
CHAPTER 277. BUSINESS CHECKING ACCOUNTS
Sec. 277.001. DEFINITIONS. In this chapter:
(1) "Business" means a legal entity, including a corporation,
partnership, or sole proprietorship, that is formed for the
purpose of making a profit.
(2) "Business checking account" means an account at a financial
institution from which withdrawals may be made by a business by
check or draft. The term includes a money market account, a
negotiable order of withdrawal account, or other account at a
financial institution in which the account holder has check
writing privileges.
(3) "Financial institution" means a state or national bank,
state or federal savings and loan association, state or federal
savings bank, or state or federal credit union doing business in
this state.
Added by Acts 1999, 76th Leg., ch. 998, Sec. 1, eff. Sept. 1,
1999.
Sec. 277.002. ACCOUNT INFORMATION REQUIRED. (a) A financial
institution shall require, as a condition of opening or
maintaining a business checking account, that the applicant or
account holder provide:
(1) if the business is a sole proprietorship:
(A) the name of the business owner;
(B) the physical address of the business;
(C) the home address of the business owner; and
(D) the driver's license number of the business owner or the
personal identification card number issued to the business owner
by the Department of Public Safety; or
(2) if the business is a corporation or other legal entity, a
copy of the business's certificate of incorporation or a
comparable document and an assumed name certificate, if any.
(b) The financial institution shall request that the account
holder inform the institution at least annually of any changes in
the information the institution is required to obtain under
Subsection (a).
Added by Acts 1999, 76th Leg., ch. 998, Sec. 1, eff. Sept. 1,
1999.
Sec. 277.003. DISCLOSURE OF INFORMATION. (a) A financial
institution may not unreasonably withhold the information
described by Section 277.002 in response to a written request for
the information that:
(1) is made by a person to whom the financial institution has
returned a dishonored check or draft that was issued to the
person by a business that maintains a business checking account;
and
(2) includes a photocopy of the dishonored check or draft.
(b) A financial institution that assesses a reasonable research
fee in the regular course of business may assess the fee on a
person who requests information under this section.
(c) A financial institution is not liable to an account holder
or other person for the disclosure of information under this
section.
Added by Acts 1999, 76th Leg., ch. 998, Sec. 1, eff. Sept. 1,
1999.