According to Texas law, where must auction funds be kept?

In Texas, auction funds must be kept in a separate escrow account. This requirement is put in place to ensure the security and proper handling of funds that are collected during an auction process. By using a separate escrow account, the auctioneer can clearly distinguish between their personal or business assets and the funds that belong to clients or bidders. This practice not only promotes ethical management of funds but also provides protection for buyers and sellers by ensuring that their money is safeguarded until the transaction is completed.

Maintaining auction funds in a separate account helps prevent misuse of these funds and ensures compliance with regulatory requirements, enhancing trust in the auction process. This practice is crucial for maintaining the integrity of the auction industry in Texas, aligning with laws designed to protect consumers.