By: Cain S.B. No. 1463 99S0683/1 A BILL TO BE ENTITLED AN ACT 1-1 relating to the duty of the transferee of a mortgage on real 1-2 property to file a transfer of lien with the county clerk within a 1-3 certain period; providing a penalty. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Chapter 12, Property Code, is amended by adding 1-6 Section 12.019 to read as follows: 1-7 Sec. 12.019. DUTY TO FILE TRANSFER OF LIEN; PENALTY. 1-8 (a) In this section: 1-9 (1) "Mortgagor" includes any subsequent purchaser of 1-10 mortgaged real estate. 1-11 (2) "Transferee" means any subsequent purchaser or 1-12 owner, holder, or assignee of the note secured by mortgaged real 1-13 estate. 1-14 (3) "Transfer of lien" means any instrument, including 1-15 an assignment of lien, that transfers partial or total control over 1-16 the note secured by mortgaged real estate. 1-17 (b) A transferee of a mortgage on real property that has 1-18 been transferred from one mortgagee to another mortgagee shall file 1-19 the transfer of lien within 20 days after the date of transfer. 1-20 The transferee shall file the transfer of lien with the county 1-21 clerk of the county in which the property is located. 1-22 (c) If at the end of the 20-day period the transferee has 1-23 failed to file the transfer of lien as prescribed by Subsection 1-24 (b), the mortgagor, or the title company which closed the 2-1 transaction, may at any time thereafter request in writing that the 2-2 transferee file the transfer of lien. 2-3 (d) A transferee who fails to file the transfer of lien 2-4 within 10 days after the date of receipt of the written request to 2-5 file the transfer of lien is liable to the mortgagor for a penalty 2-6 of $100 a day, plus court costs and reasonable attorney's fees, for 2-7 each day the transfer of lien goes unrecorded after the end of the 2-8 10-day period. The penalty shall be recovered in a civil action in 2-9 any court having jurisdiction. 2-10 SECTION 2. This Act takes effect September 1, 1999, and 2-11 applies to the transfer of a mortgage made on or after that date. 2-12 SECTION 3. The importance of this legislation and the 2-13 crowded condition of the calendars in both houses create an 2-14 emergency and an imperative public necessity that the 2-15 constitutional rule requiring bills to be read on three several 2-16 days in each house be suspended, and this rule is hereby suspended.