Texas HB2226 amends the Property Code to regulate the assignment of trust fund interests by beneficiaries in construction projects.

Texas HB2226 modifies the Property Code to establish conditions under which an assignment by a beneficiary of their interest in unpaid trust funds can be enforced. The bill specifies that such assignments are not enforceable unless they are made in writing after the assignee has paid the beneficiary in full and are not part of the beneficiary's construction contract. Additionally, the assignee must be a beneficiary, trustee, or property owner under the contract for the construction or repair of an improvement on real property. This Act takes effect September 1, 2025.

Texas HB2226 amends the Property Code to regulate the assignment of trust fund interests by beneficiaries in construction projects.

Texas HB2226 modifies the Property Code to establish conditions under which an assignment by a beneficiary of their interest in unpaid trust funds can be enforced. The bill specifies that such assignments are not enforceable unless they are made in writing after the assignee has paid the beneficiary in full and are not part of the beneficiary's construction contract. Additionally, the assignee must be a beneficiary, trustee, or property owner under the contract for the construction or repair of an improvement on real property. This Act takes effect September 1, 2025.