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COMMITTEE AMENDMENT NO. 1 |
By: Harris |
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On page 1, SECTION 3, Sec. 51.0074, line 58 strike |
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"QUALIFICATIONS' and insert "DUTIES" |
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On page 2, SECTION 3, Sec. 51.0074, line 3 after "(2)" insert |
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"held to the obligations of" |
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A BILL TO BE ENTITLED
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AN ACT
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relating to liens on real property. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 51.0001(8), Property Code, is amended to |
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read as follows: |
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(8) "Trustee" means a person or persons authorized to |
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exercise the power of sale under the terms of a security instrument |
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in accordance with Section 51.0074. |
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SECTION 2. Section 51.002, Property Code, is amended by |
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amending Subsections (b) and (h) and adding Subsection (b-1) to |
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read as follows: |
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(b) Except as provided by Subsection (b-1), notice [Notice] |
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of the sale, which must include a statement of the earliest time at |
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which the sale will begin, must be given at least 21 days before the |
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date of the sale by: |
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(1) posting at the courthouse door of each county in |
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which the property is located a written notice designating the |
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county in which the property will be sold; |
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(2) filing in the office of the county clerk of each |
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county in which the property is located a copy of the notice posted |
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under Subdivision (1); and |
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(3) serving written notice of the sale by certified |
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mail on each debtor who, according to the records of the mortgage |
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servicer of the debt, is obligated to pay the debt. |
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(b-1) If the courthouse or county clerk's office is closed |
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because of inclement weather, natural disaster, or other act of |
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God, a notice required to be posted at the courthouse under |
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Subsection (b)(1) or filed with the county clerk under Subsection |
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(b)(2) may be posted or filed, as appropriate, up to 48 hours after |
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the courthouse or county clerk's office reopens for business, as |
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applicable. |
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(h) For the purposes of Subsection (a), the commissioners |
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court of a county may designate an area other than an area at the |
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courthouse where sales under this section will take place that is in |
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a public place within a reasonable proximity of the county |
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courthouse and in a location as accessible to the public as the |
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courthouse door. The commissioners court shall record that |
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designation in the real property records of the county. A sale may |
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not be held at an area designated under this subsection before the |
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90th day after the date the designation is recorded. The posting of |
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the notice required by Subsection (b)(1) of a sale designated under |
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this subsection to take place at an area other than an area of the |
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courthouse remains at the courthouse door of the appropriate |
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county. |
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SECTION 3. Chapter 51, Property Code, is amended by adding |
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Section 51.0074 to read as follows: |
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Sec. 51.0074. QUALIFICATIONS OF TRUSTEE. (a) One or more |
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persons may be authorized to exercise the power of sale under a |
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security instrument. |
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(b) A trustee may not be: |
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(1) assigned a duty under a security instrument other |
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than to exercise the power of sale in accordance with the terms of |
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the security instrument; or |
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(2) a fiduciary of the mortgagor or mortgagee. |
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SECTION 4. Section 51.0075, Property Code, is amended by |
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adding Subsection (f) to read as follows: |
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(f) The purchase price in a sale held by a trustee or |
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substitute trustee under this section is payable immediately on |
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acceptance of the bid by the trustee or substitute trustee. The |
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trustee or substitute trustee shall disburse the proceeds of the |
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sale as provided by law. |
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SECTION 5. (a) Section 51.002(b-1), Property Code, as added |
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by this Act, applies only to a notice required to be posted or filed |
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on or after the effective date of this Act. A notice required to be |
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posted or filed before the effective date of this Act is governed by |
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the law in effect immediately before that date, and that law is |
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continued in effect for that purpose. |
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(b) Section 51.002(h), Property Code, as amended by this |
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Act, applies only to a designation of an area for sales made on or |
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after the effective date of this Act. A designation made before the |
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effective date of this Act is governed by the law in effect |
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immediately before that date, and that law is continued in effect |
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for that purpose. |
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(c) Section 51.0074, Property Code, as added by this Act, |
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applies only to the designation of a trustee under a security |
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instrument executed on or after the effective date of this Act. The |
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designation of a trustee under a security instrument executed |
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before the effective date of this Act is governed by the law in |
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effect immediately before that date, and that law is continued in |
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effect for that purpose. |
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(d) Section 51.0075(f), Property Code, as added by this Act, |
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applies only to a public sale conducted on or after the effective |
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date of this Act. A public sale conducted before the effective date |
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of this Act is governed by the law in effect immediately before that |
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date, and that law is continued in effect for that purpose. |
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SECTION 6. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2007. |
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