79R5495 KCR-D
By: Paxton H.B. No. 1234
A BILL TO BE ENTITLED
AN ACT
relating to the appointment of substitute trustees in certain
foreclosures.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 51.0075, Property Code, is amended by
amending Subsection (c) and adding Subsection (d) to read as
follows:
(c) Notwithstanding any agreement to the contrary, a [A]
mortgagee may appoint or may authorize a mortgage servicer to
appoint a [perpetual] substitute trustee or substitute trustees to
succeed to all title, powers, and duties of the original trustee. A
mortgagee or mortgage servicer may make an appointment or
authorization under this subsection by power of attorney, corporate
resolution, or other written instrument. [The power of attorney or
written instrument must be signed by the mortgagee's
representative, acknowledged, and sworn to with a jurat.]
(d) A mortgage servicer may authorize an attorney to appoint
a substitute trustee or substitute trustees on behalf of a
mortgagee under Subsection (c).
SECTION 2. The changes in law made by this Act apply to a
security instrument or other contract executed on or after the
effective date of this Act and to a security instrument or other
contract executed before the date of this Act that does not conflict
with the changes in law made by this Act. A security instrument or
other contract executed before the effective date of this Act that
conflicts with the changes in law made by this Act is governed by
the law in effect at the time the security instrument or other
contract was executed, and the former law is continued in effect for
that purpose.
SECTION 3. This Act takes effect September 1, 2005.