Our Guaranty Agreements include Right of Setoff language. I have been told that certain states consider this "right of setoff" as taking a security interest in the guarantor's accounts as collateral, thereby making it subject to Reg. Z 228.18 (18m) (7) which would require it be disclosed in the Borrower's TIL. I cannot find anyone who will tell me if TX law requires this or not. Does anyone know? Thanks.

P.S. I am no longer Anonymous!

If the deposit is with your bank as is the loan, the deposit agreement itself likely allows for this as will the loan without that be disclosed as collateral. I never cited possible deposits as additional collateral for this cite.