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A BILL TO BE ENTITLED
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AN ACT
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relating to notice of discharge of a lien on a motor vehicle. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 501.115, Transportation Code, is amended |
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by amending Subsection (a) and adding Subsections (c) and (d) to |
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read as follows: |
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(a) When a debt or claim secured by a lien has been |
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satisfied: |
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(1) [,] the lienholder shall, within a reasonable time |
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not to exceed the maximum time allowed by Section 348.408, Finance |
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Code: |
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(A) [,] execute and deliver to the owner, or the |
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owner's designee, a discharge of the lien on a form prescribed by |
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the department; and |
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(B) notify the department by mail, electronic |
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mail, or facsimile transmission of the discharge of the lien; and |
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(2) the department shall record the notification in |
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the motor vehicle records. |
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(c) The form prescribed by the department under Subsection |
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(a) must include a notice that the owner will not receive a new |
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certificate of title with reference to the lien removed unless the |
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owner applies for a new certificate of title as provided by |
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Subsection (b). |
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(d) A notification recorded in the motor vehicle records |
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under Subsection (a)(2) serves as a discharge of the lien if the |
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form delivered to the owner or owner's designee under Subsection |
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(a)(1)(A) is lost. |
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SECTION 2. This Act takes effect September 1, 2007. |