Enrolled Bill Summary

Senate Bill 565 adds a chapter to the Government Code establishing provisions relating to the validity, perfection, ranking, and enforcement of public securities. The bill establishes that a security interest created by a governmental issuer by means of a security agreement is perfected from the time the security agreement is entered into or adopted until the termination of the security agreement or, in the case of a security interest in real property, when an instrument creating the security interest is recorded in the appropriate county. The bill further establishes that such a security interest is valid and effective according to the terms of the security agreement; is ranked as to priority in order of the time of perfection; and may be enforced as provided by the security agreement or the law that authorizes the security agreement.