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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Institution of Higher Education Provisions
Assignment, Pledge, or Transfer of Salary or Wages as Security for Indebtedness

Institutions of higher education may not charge an employee for establishing an assignment, pledge or transfer of any interest in the employee’s salary or wages as security for indebtedness.

The employee must obtain written approval from the institution according to its established policy before or at the time the assignment, pledge or transfer is used to secure the indebtedness.

Definitions

Employee
Any person employed by an institution of higher education in an executive, administrative or clerical capacity or as a professor or instructor or in any similar capacity.
Indebtedness
An obligation to pay money to another party.

Sources

Texas Education Code, Sections 51.934(a) – (c) (Vernon 2004); Texas Attorney General Opinion No. MW-566 (1983); Texas Attorney General Letter Opinion No. 96-051 (1996).

Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
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