SRC-SLL S.B. 309 75(R)    BILL ANALYSIS


Senate Research CenterS.B. 309
By: Wentworth
Jurisprudence
4-22-97
As Filed


DIGEST 

Currently, Texas law allows a creditor to obtain a judgment 
against a debtor for unpaid or delinquent 
payments.  After obtaining a judgment, creditors follow the 
common practice of abstracting and 
filing the judgment to establish priority and to inform the 
public.  In certain circumstances, debtors 
who have refused to pay, or become delinquent on loan payments, 
have sued their creditors for 
obtaining, abstracting, and filing judgments.  This bill will 
prohibit recovery of damages in a suit for 
slander of title to real property alleging that a lien filed 
against the property creates a cloud on the 
title.

PURPOSE

As proposed, S.B. 309 prohibits recovery of damages in certain 
suits for slander of title to real 
property.

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a 
state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Title 4, Property Code, by adding Chapter 30, as 
follows:

CHAPTER 30.  SLANDER OF TITLE

Sec.  30.001.  UNENFORCEABLE LIEN.  Prohibits a person from 
recovering damages in a suit for 
slander of title to real property alleging that a lien filed 
against the property creates a cloud on the 
title to the property if the lien is not enforceable against the 
property.

SECTION 2. Effective date: September 1, 1997.
  Makes application of this Act prospective.