Bill > HB3287

This bill modifies Texas law regarding construction contract trust funds by clarifying several key provisions. It specifies that funds reserved for construction projects are only considered trust funds under certain conditions, such as when lien claims have been perfected and the property is subject to a senior lender's lien. The bill also stipulates that trust funds are not considered as such until a lender disburses funds to the property owner, and funds released in good faith by an owner to a contractor before a specified period are not considered trust funds. Additionally, the bill provides protections for trustees, stating that they are not liable for misapplication of trust funds unless there is intent to defraud, and specifically exempts trustees from liability for failing to reserve funds for certain residential construction projects. The bill also mandates that courts must award costs and reasonable attorney's fees to the prevailing party in actions related to trust funds. These changes will apply only to construction contracts entered into on or after the bill's effective date of September 1, 2025, with the attorney's fees provision applying only to actions commenced after that date.

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https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB3287