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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 Subsection (c) to read as |
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follows: |
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(a) When a debt or claim secured by a lien has been |
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satisfied, the lienholder shall, within a reasonable time not to |
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exceed the maximum time allowed by Section 348.408, Finance |
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Code:[,] |
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(1) execute and deliver to the owner, or the owner's |
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designee, a discharge of the lien on a form prescribed by the |
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department; and |
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(2) notify the department of the discharge of the |
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lien. |
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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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SECTION 2. This Act takes effect September 1, 2007. |