Tex. Codes » Property Code · TITLE 10. MISCELLANEOUS BENEFICIAL PROPERTY INTERESTS · SUBTITLE B. FIDUCIARIES · CHAPTER 162. CONSTRUCTION PAYMENTS, LOAN RECEIPTS, AND MISAPPLICATION OF TRUST FUNDS
Texas Codes

Tex. Prop. Code § 162.004 (2026)

Application

✓ current as of May 2026
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Sec. 162.004. APPLICATION. (a) This chapter does not apply to:

(1) a bank, savings and loan, or other lender;

(2) a title company or other closing agent; or

(3) a corporate surety who issues a payment bond covering the contract for the construction or repair of the improvement.

(b) The Texas Trust Act (Chapters 111 through 115) does not apply to any trust created under this chapter, nor does this chapter affect any provision of the Texas Trust Act.

(c) Regardless of whether a construction contract is covered by a statutory or common law payment bond, this chapter applies to a public or private construction contract for the improvement of specific real property in this state.

Acts 1983, 68th Leg., p. 3721, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1987, 70th Leg., ch. 578, Sec. 2, eff. Aug. 31, 1987.

Amended by:

Acts 2009, 81st Leg., R.S., Ch. 1277 (H.B. 1513), Sec. 4, eff. September 1, 2009.

Notes of Decisions
Cited in 16 cases, 1987–2015 · leading case: J.P. Morgan Chase Bank, N.A. Ex Rel. Bank One, N.A. v. Texas Contract Carpet, Inc., 302 S.W.3d 515 (Tex. App. 2009).
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J.P. Morgan Chase Bank, N.A. Ex Rel. Bank One, N.A. v. Texas Contract Carpet, Inc., 302 S.W.3d 515 (Tex. App. 2009). · cites it 4× “” See Tex. Prop. Code Ann. § 162.004 (a)(1). The subcontractors argue that the removal of the clause from the statute considerably narrows the exemption.”
Dealers Elec. Supply Co. v. Scoggins Constr. Co., 292 S.W.3d 650 (Tex. 2009). · cites it 2× “Laws 3475 , 3721 (amended 1987) (current version at Tex. Prop.Code § 162.004) (emphasis added).”
Greco v. Nat'l Football League, 116 F. Supp. 3d 744 (N.D. Tex. 2015). “3d at 657 (noting the changes to Tex. Prop.Code § 162.004). .Plaintiffs also rely on two Texas Supreme Court cases that affirmed the award of attorneys’ fees against a-partnership and limited liability company.”
Econ. Forms Corp. v. Williams Bros. Const. Co. Inc., 754 S.W.2d 451 (Tex. App. 1988). “5472e, § 4 (Vernon 1967) (repealed, now Tex.Prop.Code Ann. § 162.004); Trucker’s, Inc.”
Cunningham v. T & R Demolition, Inc. (In Re ML & Assocs., Inc.), 301 B.R. 195 (Bankr. N.D. Tex. 2003). ““An artisan, laborer, mechanic, contractor, subcontractor, or materialman who labors or who furnishes labor or material for the construction or repair of an improvement on specific real property in this state is a beneficiary of any trust fund paid or received in connection with…”
Heritage Soc'y of Washington Cnty. v. Neumann, 771 S.W.2d 563 (Tex. App. 1989). · cites it 2× “5472e, (Vernon 1958) (now codified in part at Tex.Prop.Code Ann. § 162.004 (Vernon 1984)), the relevant portion of which stated: Section 4 This action shall have no application to any bank, savings and loan associations or other lender or to any title company or other closing…”
Scoggins Constr. Co. v. Dealers Elec. Supply Co., 292 S.W.3d 685 (Tex. App. 2008). “Laws 2283 (amended 1987) (current version at Tex. Prop.Code Ann. § 162.004). However, Dealers has not provided any support for its contention that the 1987 amendment to the Trust Fund Act allows suppliers and subcontractors to file suit against prime contractors despite the…”
Exchanger Contractors, Inc. v. Comerica Bank (In re Waterpoint Int'l, L.C.), 279 B.R. 209 (S.D. Tex. 2002). “Tex. Prop. Code § 162.004; see RepublicBank Dallas, N.”
Exchanger Contractors Inc. v. Comerica Bank-Texas, 330 F.3d 339 (5th Cir. 2003). “…corporate surety who issues a payment bond covering the contract for the construction or repair of the improvement. Tex. Prop.Code § 162.004.”
JP Morgan Chase Bank, N.A., Successor by Merger to Bank One, N.A. & Michael Bobinchuck v. Texas Contract Carpet, Inc. Gypsum Floors of Texas, Inc. & Agape Round Rock Hous., Inc., D/B/A Chandler Creek Apts. (Tex. App. 2009). · cites it 4× “" Tex. Prop. Code Ann. § 162.004 (a)(1). JP Morgan is a bank and was the entity loaning the money for the project.”
in Re Richard Scheller (Tex. App. 2009). · cites it 3× “” Tex. Prop. Code Ann. § 162.004 (a)(1). JP Morgan is a bank and was the entity loaning the money for the project.”
In Re Waterpoint Intern., LC, 279 B.R. 209 (S.D. Tex. 2002). “Tex. Prop.Code § 162.004; see RepublicBank Dallas, N.”
Show all 16 citing cases →
— Tex. Prop. Code § 162.004(a) — 1 case
J.P. Morgan Chase Bank, N.A. Ex Rel. Bank One, N.A. v. Texas Contract Carpet, Inc., 302 S.W.3d 515 (Tex. App. 2009). “” See Tex. Prop. Code Ann. § 162.004 (a)(1). The subcontractors argue that the removal of the clause from the statute considerably narrows the exemption.”
— Tex. Prop. Code § 162.004(a)(1) — 2 cases
J.P. Morgan Chase Bank, N.A. Ex Rel. Bank One, N.A. v. Texas Contract Carpet, Inc., 302 S.W.3d 515 (Tex. App. 2009). “” See Tex. Prop. Code Ann. § 162.004 (a)(1). The subcontractors argue that the removal of the clause from the statute considerably narrows the exemption.”
In Re Huber Contracting, Ltd., 347 B.R. 205 (Bankr. W.D. Tex. 2006).
— Tex. Prop. Code § 162.004(a)(3) — 1 case
Dealers Elec. Supply Co. v. Scoggins Constr. Co., 292 S.W.3d 650 (Tex. 2009). “Laws 3475 , 3721 (amended 1987) (current version at Tex. Prop.Code § 162.004) (emphasis added).”
— Tex. Prop. Code § 162.004(b) — 1 case
Alamo Plumbing Supply Co. v. Durst (In re Durst), 84 B.R. 83 (Bankr. W.D. Tex. 1987).
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