1-1 By: Harris S.B. No. 505 1-2 (In the Senate - Filed February 10, 1997; February 12, 1997, 1-3 read first time and referred to Committee on Jurisprudence; 1-4 February 26, 1997, reported favorably, as amended, by the following 1-5 vote: Yeas 6, Nays 0; February 26, 1997, sent to printer.) 1-6 COMMITTEE AMENDMENT NO. 1 By: Harris 1-7 Amend S.B. No. 505 as follows: 1-8 (1) Strike the section heading of SECTION 1 (page 1, lines 1-9 34-35) and substitute the following: 1-10 "SECTION 1. Section 9.102, Business & Commerce Code, is 1-11 amended by amending Subsection (a) and adding Subsection (d) to 1-12 read as follows:" 1-13 (2) In SECTION 1, Section 9.102 (page 1, line 36), add 1-14 Subsection (a) to read as follows: 1-15 "(a) Except as otherwise provided in Section 9.104 on 1-16 excluded transactions, this chapter applies 1-17 (1) to any transaction (regardless of its form) which 1-18 is intended to create a security interest in personal property or 1-19 fixtures including goods, documents, instruments, general 1-20 intangibles, chattel paper or accounts; and also 1-21 (2) to any sale of accounts or chattel paper, provided 1-22 that the application of this chapter to the sale of accounts or 1-23 chattel paper is not to recharacterize the sale of accounts or 1-24 chattel paper as a secured transaction but to protect purchasers of 1-25 accounts or chattel paper by providing a notice filing system." 1-26 (3) In SECTION 1, Subsection (d), Section 9.102 (page 1, 1-27 line 39), strike "the title" and substitute "title, legal and 1-28 equitable," 1-29 A BILL TO BE ENTITLED 1-30 AN ACT 1-31 relating to the characterization of a transaction as a sale of 1-32 accounts or chattel paper. 1-33 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-34 SECTION 1. Section 9.102, Business & Commerce Code, is 1-35 amended by adding Subsection (d) to read as follows: 1-36 (d) For all purposes, the parties' characterization of a 1-37 transaction as a sale of accounts or chattel paper shall be 1-38 conclusive that the transaction is a sale and is not a secured 1-39 transaction and that the title has passed to the party 1-40 characterized as the purchaser of the accounts or chattel paper, 1-41 regardless of whether the secured party has any recourse against 1-42 the debtor, whether the debtor is entitled to any surplus, or any 1-43 other term of the parties' agreement. 1-44 SECTION 2. This Act takes effect September 1, 1997. 1-45 SECTION 3. The importance of this legislation and the 1-46 crowded condition of the calendars in both houses create an 1-47 emergency and an imperative public necessity that the 1-48 constitutional rule requiring bills to be read on three several 1-49 days in each house be suspended, and this rule is hereby suspended. 1-50 * * * * *