When loaning to an estate the loan file should include a copy of the Will and Letters Testamentary for the executor from the Texas Probate Court where the estate is pending, which give the executor the authority to borrow money, guaranty indebtedness and/or pledge the estate’s property as collateral.
NOTE: In the case of an intestacy (i.e., no will) consult Bank Counsel.
An estate which conducts business in Texas must file an Assumed Name Certificate in each county in which it conducts business.
CAUTION: UCC 9.503 provides that if collateral is being administered by the personal representative of a deceased debtor, the name of the debtor on the UCC financing statement is sufficient only if the financing statement provides, as the name of the debtor, the name of the deceased debtor and, in a separate part of the financing statement, indicates that the collateral is being administered by a personal representative. A safe harbor for determining the name of a deceased debtor is the name of the deceased debtor appearing on the order appointing his or her personal representative issued by the court having jurisdiction over the collateral.