1. (a) If the department pays a claim against a license holder, the license holder shall:

   1. (1) reimburse the fund immediately or agree in writing to reimburse the fund on a schedule to be determined by rule of the department; and
   2. (2) immediately pay the aggrieved party any amount due that party or agree in writing to pay the aggrieved party on a schedule to be determined by rule of the department.
2. (b) Payments made to the fund or to the aggrieved party under this section shall include interest at the rate of eight percent a year.
3. (c) If the license holder does not reimburse the fund or pay the aggrieved party, or does not agree to do so, in accordance with this section, the department shall issue an order canceling the license and may not issue a new license to that person for four years from the date of cancellation. If the license holder is a corporation, an officer or director of the corporation or a person owning more than 25 percent of the stock in the corporation may not be licensed under Chapter 101 during the four-year period in which the corporation is ineligible for licensing.
4. (d) This section does not apply to a license holder who is released by a final judgment of a bankruptcy court from the legal duty to satisfy the claim paid by the department.

Acts 1981, 67th Leg., p. 1276, ch. 388, Sec. 1, eff. Sept. 1, 1981.

Amended by Acts 1985, 69th Leg., ch. 917, Sec. 15, eff. Sept. 1, 1985;

Acts 1989, 71st Leg., ch. 230, Sec. 122, eff. Sept. 1, 1989;

Acts 1995, 74th Leg., ch. 269, Sec. 20, eff. Sept. 1, 1995;

Acts 1999, 76th Leg., ch. 358, Sec. 24, eff. Sept. 1, 1999.