Priority of Claims

Sec. 126.303. PRIORITY OF CLAIMS. The liquidating agent shall use the credit union's assets to pay, in the following order: (1) secured creditors to the extent of the value of their collateral; (2) liquidation expenses, including a surety bond if required; (3) depositors; (4) general creditors, including secured creditors to the extent that their claims exceed the value of their collateral; and (5) distributions to members in proportion to the shares held by each member. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.