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A BILL TO BE ENTITLED
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AN ACT
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relating to the transfer of an ad valorem tax lien. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 351.003, Finance Code, is amended to |
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read as follows: |
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Sec. 351.003. SECONDARY MARKET TRANSACTIONS. (a) Except as |
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provided by Subsection (b), this [This] chapter does not prohibit a |
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property tax lender from receiving compensation from a party other |
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than the property tax loan applicant for the sale, transfer, |
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assignment, or release of rights on the closing of a property tax |
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loan transaction. |
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(b) A property tax lender may not sell, transfer, assign, or |
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release rights related to a property tax loan to a person who is not |
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licensed under this chapter. |
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SECTION 2. Section 32.06(c), Tax Code, is amended to read as |
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follows: |
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(c) Except as otherwise provided by this section, the |
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transferee of a tax lien and any successor in interest licensed |
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under Chapter 351, Finance Code, is entitled to foreclose the |
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lien[:
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[(1)] in the manner provided by law for foreclosure of |
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tax liens[; or
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[(2)
in the manner specified in Section 51.002,
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Property Code, and Section 32.065, after the transferee or a
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successor in interest obtains a court order for foreclosure under
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Rule 736, Texas Rules of Civil Procedure, except as provided by
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Subsection (c-1) of this section, if the property owner and the
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transferee enter into a contract that is secured by a lien on the
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property]. |
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SECTION 3. Section 32.065(b), Tax Code, is amended to read |
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as follows: |
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(b) Notwithstanding any agreement to the contrary, a |
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contract entered into under Subsection (a) between a transferee and |
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the property owner under Section 32.06 that is secured by a priority |
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lien on the property shall provide for [a power of sale and] |
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foreclosure in the manner provided by Section 32.06(c) |
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[32.06(c)(2)] and: |
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(1) an event of default; |
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(2) notice of acceleration; |
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(3) recording of the deed of trust or other instrument |
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securing the contract entered into under Subsection (a) in each |
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county in which the property is located; |
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(4) recording of the sworn document and affidavit |
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attesting to the transfer of the tax lien; |
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(5) requiring the transferee to serve foreclosure |
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notices on the property owner at the property owner's last known |
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address [in the manner provided by Section 32.06(c)(2) or] by a |
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commercially reasonable delivery service that maintains verifiable |
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records of deliveries for at least five years from the date of |
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delivery; and |
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(6) requiring, at the time the foreclosure notices |
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required by Subdivision (5) are served on the property owner, the |
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transferee to serve a copy of the notice of sale in the same manner |
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on the mortgage servicer or the holder of all recorded real property |
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liens encumbering the property that includes on the first page, in |
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14-point boldfaced type or 14-point uppercase typewritten letters, |
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a statement that reads substantially as follows: "PURSUANT TO |
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TEXAS TAX CODE SECTION 32.06, THE FORECLOSURE SALE REFERRED TO IN |
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THIS DOCUMENT IS A SUPERIOR TRANSFER TAX LIEN SUBJECT TO RIGHT OF |
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REDEMPTION UNDER CERTAIN CONDITIONS. THE FORECLOSURE IS SCHEDULED |
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TO OCCUR ON THE (DATE)." |
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SECTION 4. Section 32.06(c-1), Tax Code, is repealed. |
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SECTION 5. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2013. |