Texas House Bill HB1113

Texas 2013 - 83rd Regular

Caption

Relating to service of citation on a financial institution.

Impact

This bill is expected to create a more streamlined process for serving legal documents to financial institutions, which may improve efficiency in legal proceedings involving these entities. The update is particularly relevant given the increasing complexity and volume of financial transactions, which often lead to legal disputes requiring timely service of citation. By clarifying the means by which these legal documents can be served, HB1113 aims to reduce potential delays and disputes that stem from improper servicing.

Summary

House Bill 1113 addresses the service of citation on financial institutions and updates existing legal procedures regarding how legal documents can be delivered to these entities. The bill amends Section 17.028 of the Civil Practice and Remedies Code, specifying that citations can be served either to the registered agent of a financial institution or, if there is none, to its president or branch manager. Additionally, the bill outlines specific procedures for serving citations to credit unions in Texas, reinforcing the requirement that these actions maintain clarity and efficiency.

Contention

While the bill appears to support the operational efficiency of financial institutions, notable points of contention may arise regarding the impact on customers and their rights. Proponents argue that clearer procedures strengthen the legal framework and support businesses by ensuring swift resolution of disputes. However, concerns may emerge about the implications for customers and their ability to contest claims, especially in instances where they may not have sufficient knowledge or recourse if citations are improperly served. As such, discussions among stakeholders may center on how these changes affect customer rights in the context of financial disputes.