What type of account is managed by one party for the benefit of another, specifically in a banking institution authorized in Texas?

A trust account is specifically designed to allow one party to manage funds on behalf of another party, often in a fiduciary capacity. In the context of banking institutions authorized in Texas, a trust account serves to hold and manage funds that are not the account holder's own, ensuring that the funds are used according to the terms of the trust for the benefit of its intended beneficiary.

This type of account is heavily regulated to ensure that the fiduciary duties are upheld and that the beneficiaries’ interests are protected. Trust accounts are common in various scenarios, including real estate, where brokers hold clients' earnest money or other client funds in a trusted manner.

The other options do not fulfill this definition. A commission account typically pertains to amounts set aside for commissions related to sales or services rendered, while a general fund refers to a pool of resources that may fund various operational costs without the specific beneficiary structure. An operating account is usually utilized for managing day-to-day expenses and transactions of a business, without bearing the fiduciary responsibility typical of a trust account.