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A BILL TO BE ENTITLED
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AN ACT
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relating to the issuance of statements of ownership and location |
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for manufactured homes to certain lienholders without the consent |
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of the owners of those homes. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter E, Chapter 1201, Occupations Code, is |
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amended by adding Section 1201.2077 to read as follows: |
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Sec. 1201.2077. ISSUANCE OF STATEMENT OF OWNERSHIP AND |
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LOCATION TO CERTAIN LIENHOLDERS WITHOUT OWNER'S CONSENT. (a) This |
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section applies only to a manufactured home: |
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(1) that is eligible for conversion from personal |
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property to real property under this subchapter; |
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(2) that, together with the real property to which the |
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home is attached, secures a first lien that is in default and |
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subject to foreclosure; and |
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(3) for which the holder of the first lien and the |
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borrower-owner at the time of the creation of the lien entered into |
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a written agreement to convert the home to real property. |
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(b) A lienholder that seeks to foreclose a first lien on a |
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manufactured home described by Subsection (a) may apply without the |
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consent of the borrower-owner for the issuance of a new statement of |
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ownership and location that reflects an intent to convert the home |
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from personal property to real property. An application under this |
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section must include an affidavit that: |
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(1) contains the election described by Section |
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1201.2055(a); |
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(2) documents the creation of the lien, the terms of |
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the written agreement to convert the home to real property, and the |
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lienholder's entitlement to foreclose the lien; and |
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(3) states that the borrower-owner failed to convert |
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the home to real property as required by the agreement with the |
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lienholder. |
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(c) Not later than the 15th working day after the date of |
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receipt of the completed application and subject to Section |
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1201.2075, the department shall issue a new statement of ownership |
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and location to the lienholder as trustee for the borrower-owner. |
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SECTION 2. 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. |