1. (a) Except as provided by Subsection (b) of this section, a trustee may not lend trust funds to:

   1. (1) the trustee or an affiliate;
   2. (2) a director, officer, or employee of the trustee or an affiliate;
   3. (3) a relative of the trustee; or
   4. (4) the trustee's employer, employee, partner, or other business associate.

2. (b) This section does not prohibit:

   1. (1) a loan by a trustee to a beneficiary of the trust if the loan is expressly authorized or directed by the instrument or transaction establishing the trust; or
   2. (2) a deposit by a corporate trustee with itself under Section 113.057 of this Act.

Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.