78R7990 RCJ-F
By: Solomons H.B. No. 2201
A BILL TO BE ENTITLED
AN ACT
relating to certain changes to the uniform law on secured
transactions.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 9.102(a)(5), Business & Commerce Code,
is amended to read as follows:
(5) "Agricultural lien" means an interest[, other than
a security interest,] in farm products:
(A) that secures payment or performance of an
obligation for:
(i) goods or services furnished in
connection with a debtor's farming operation; or
(ii) rent on real property leased by a
debtor in connection with its farming operation;
(B) that is created by statute in favor of a
person that:
(i) in the ordinary course of its business
furnished goods or services to a debtor in connection with a
debtor's farming operation; or
(ii) leased real property to a debtor in
connection with the debtor's farming operation; and
(C) whose effectiveness does not depend on the
person's possession of the personal property.
SECTION 2. Section 9.102(a)(46), Business & Commerce Code,
is amended to read as follows:
(46) "Health care insurance receivable" means an
interest in or claim under a policy of insurance that is a right to
payment of a monetary obligation for health care goods or services
provided or to be provided.
SECTION 3. Section 9.304(b), Business & Commerce Code, is
amended to read as follows:
(b) The following rules determine a bank's jurisdiction for
purposes of this subchapter:
(1) If an agreement between the bank and its customer
[the debtor] governing the deposit account expressly provides that
a particular jurisdiction is the bank's jurisdiction for purposes
of this subchapter, this chapter, or this title, that jurisdiction
is the bank's jurisdiction.
(2) If Subdivision (1) does not apply and an agreement
between the bank and its customer governing the deposit account
expressly provides that the agreement is governed by the law of a
particular jurisdiction, that jurisdiction is the bank's
jurisdiction.
(3) If neither Subdivision (1) nor Subdivision (2)
applies and an agreement between the bank and its customer
governing the deposit account expressly provides that the deposit
account is maintained at an office in a particular jurisdiction,
that jurisdiction is the bank's jurisdiction.
(4) If none of the preceding subdivisions applies, the
bank's jurisdiction is the jurisdiction in which the office
identified in an account statement as the office serving the
customer's account is located.
(5) If none of the preceding subdivisions applies, the
bank's jurisdiction is the jurisdiction in which the chief
executive office of the bank is located.
SECTION 4. Section 9.309, Business & Commerce Code, is
amended to read as follows:
Sec. 9.309. SECURITY INTEREST PERFECTED UPON ATTACHMENT.
The following security interests are perfected when they attach:
(1) a purchase money security interest in consumer
goods, except as otherwise provided in Section 9.311(b) with
respect to consumer goods that are subject to a statute or treaty
described in Section 9.311(a);
(2) an assignment of accounts or payment intangibles
that does not by itself or in conjunction with other assignments to
the same assignee transfer a significant part of the assignor's
outstanding accounts or payment intangibles;
(3) a sale of a payment intangible;
(4) a sale of a promissory note;
(5) a security interest created by the assignment of a
health-care-insurance receivable to the provider of the health care
goods or services;
(6) a security interest arising under Section 2.401,
2.505, 2.711(c), or 2A.508(e), until the debtor obtains possession
of the collateral;
(7) a security interest of a collecting bank arising
under Section 4.210;
(8) a security interest of an issuer or nominated
person arising under Section 5.118;
(9) a security interest arising in the delivery of a
financial asset under Section 9.206(c);
(10) a security interest in investment property
created by a broker or securities intermediary;
(11) a security interest in a commodity contract or a
commodity account created by a commodity intermediary;
(12) an assignment for the benefit of all the
creditors of the transferor and subsequent transfers by the
assignee thereunder; [and]
(13) a security interest created by an assignment of a
beneficial interest in a decedent's estate; and
(14) a sale by an individual of an account that is a
right to payment of winnings in a lottery or other game of chance.
SECTION 5. Section 9.515(g), Business & Commerce Code, is
amended to read as follows:
(g) A record of a mortgage that is effective as a financing
statement filed as a fixture filing or as a financing statement
covering as-extracted collateral or timber to be cut under Section
9.502(c) remains effective as a financing statement filed as a
fixture filing or as a financing statement covering as-extracted
collateral or timber to be cut until the mortgage is released or
satisfied of record or its effectiveness otherwise terminates as to
the real property.
SECTION 6. The purpose of the amendments to Sections
9.102(a)(5), 9.102(a)(46), and 9.304(b), Business & Commerce Code,
by this Act, is to clarify existing law.
SECTION 7. (a) Except as provided by Subsection (b) of this
section, the change in law made by Section 4 of this Act applies
only to a security interest perfected on or after the effective date
of this Act.
(b) A security interest described by Section 9.309(14),
Business & Commerce Code, as added by this Act, that attached but
was not perfected before the effective date of this Act is perfected
automatically on the effective date of this Act.
(c) A security interest perfected before the effective date
of this Act is governed by the law in effect when the security
interest was perfected, and the former law is continued in effect
for that purpose.
SECTION 8. This Act takes effect September 1, 2003.