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AN ACT
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relating to the Uniform Commercial Code provisions relating to |
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negotiable instruments. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subdivision (2), Subsection (a), Section 3.103, |
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Business & Commerce Code, is amended to read as follows: |
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(2) Reserved ["Consumer account" means an account
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established by an individual primarily for personal, family, or
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household purposes]. |
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SECTION 2. Subsection (b), Section 3.103, Business & |
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Commerce Code, is amended to read as follows: |
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(b) Other definitions applying to this chapter and the |
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sections in which they appear are: |
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"Acceptance" |
Section 3.409. |
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"Accommodated party" |
Section 3.419. |
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"Accommodation party" |
Section 3.419. |
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"Alteration" |
Section 3.407. |
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"Anomalous indorsement" |
Section 3.205. |
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"Blank indorsement" |
Section 3.205. |
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"Cashier's check" |
Section 3.104. |
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"Certificate of deposit" |
Section 3.104. |
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"Certified check" |
Section 3.409. |
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"Consideration" |
Section 3.303. |
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["Demand draft"
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Section 3.104.] |
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"Holder in due course" |
Section 3.302. |
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"Incomplete instrument" |
Section 3.115. |
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"Indorsement" |
Section 3.204. |
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"Indorser" |
Section 3.204. |
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"Instrument" |
Section 3.104. |
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"Negotiable instrument" |
Section 3.104. |
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"Negotiation" |
Section 3.201. |
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"Payable at a definite time" |
Section 3.108. |
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"Payable on demand" |
Section 3.108. |
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"Payable to bearer" |
Section 3.109. |
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"Payable to order" |
Section 3.109. |
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"Person entitled to enforce" |
Section 3.301. |
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"Presentment" |
Section 3.501. |
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"Reacquisition" |
Section 3.207. |
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"Special indorsement" |
Section 3.205. |
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"Teller's check" |
Section 3.104. |
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"Transfer of instrument" |
Section 3.203. |
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"Traveler's check" |
Section 3.104. |
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SECTION 3. Subsection (g), Section 3.605, Business & |
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Commerce Code, is amended to read as follows: |
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(g) A release or extension preserves a secondary obligor's |
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recourse if the terms of the release or extension provide that: |
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(1) the person entitled to enforce the instrument |
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retains the right to enforce the instrument against the secondary |
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obligor; and |
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(2) the[. The] recourse of the secondary obligor |
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continues as if [though] the release or extension had not been |
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granted. |
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SECTION 4. Subsection (k), Section 3.104, Business & |
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Commerce Code, is repealed. |
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SECTION 5. This Act takes effect September 1, 2007. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I hereby certify that S.B. No. 1541 passed the Senate on |
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April 19, 2007, by the following vote: Yeas 31, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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I hereby certify that S.B. No. 1541 passed the House on |
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May 17, 2007, by the following vote: Yeas 144, Nays 0, two |
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present not voting. |
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______________________________ |
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Chief Clerk of the House |
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Approved: |
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______________________________ |
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Date |
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______________________________ |
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Governor |