1-1     By:  Pitts (Senate Sponsor - Ellis)                   H.B. No. 2101
 1-2           (In the Senate - Received from the House May 11, 1999;
 1-3     May 12, 1999, read first time and referred to Committee on
 1-4     Jurisprudence; May 14, 1999, reported favorably by the following
 1-5     vote:  Yeas 4, Nays 0; May 14, 1999, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to compliance by financial institutions with requests
 1-9     relating to judgment debtors.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1.  Chapter 31, Civil Practice and Remedies Code, is
1-12     amended by adding Section 31.010 to read as follows:
1-13           Sec. 31.010.  TURNOVER BY FINANCIAL INSTITUTION.  (a)  A
1-14     financial institution that receives a request to turn over assets
1-15     or financial information of a judgment debtor to a judgment
1-16     creditor or a receiver under a turnover order or receivership under
1-17     Section 31.002 shall be provided and may rely on:
1-18                 (1)  a certified copy of the order or injunction of the
1-19     court; or
1-20                 (2)  a certified copy of the order of appointment of a
1-21     receiver under Section 64.001, including a certified copy of:
1-22                       (A)  any document establishing the qualification
1-23     of the receiver under Section 64.021;
1-24                       (B)  the sworn affidavit under Section 64.022;
1-25     and
1-26                       (C)  the bond under Section 64.023.
1-27           (b)  A financial institution that complies with this section
1-28     is not liable for compliance with a court order, injunction, or
1-29     receivership authorized by Section 31.002 to:
1-30                 (1)  the judgment debtor;
1-31                 (2)  a party claiming through the judgment debtor;
1-32                 (3)  a co-depositor with the judgment debtor; or
1-33                 (4)  a co-borrower with the judgment debtor.
1-34           (c)  A financial institution that complies with this section
1-35     is entitled to recover reasonable costs, including copying costs,
1-36     research costs, and, if there is a contest, reasonable attorney's
1-37     fees.
1-38           (d)  In this section, "financial institution" means a state
1-39     or national bank, state or federal savings and loan association,
1-40     state or federal savings bank, state or federal credit union,
1-41     foreign bank, foreign bank agency, or trust company.
1-42           SECTION 2.  This Act takes effect September 1, 1999, and
1-43     applies only to a court order, injunction, or receivership entered
1-44     or authorized on or after that date.
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.
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