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A BILL TO BE ENTITLED
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AN ACT
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relating to the liability of certain guarantors under a residential |
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lease. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 92, Property Code, is |
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amended by adding Section 92.021 to read as follows: |
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Sec. 92.021. LIABILITY OF CERTAIN GUARANTORS UNDER LEASE. |
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(a) A person other than a tenant who guarantees a lease is liable |
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only for the original lease term except that a person may specify |
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that the person agrees to guarantee a renewal of the lease as |
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provided by Subsection (b). |
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(b) A person may specify in writing in an original lease |
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that the person will guarantee a renewal of the lease only if the |
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original lease states: |
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(1) the last date, as specified by the guarantor, on |
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which the renewal of the lease will renew the obligation of the |
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guarantor; |
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(2) that the guarantor is liable under a renewal of the |
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lease that occurs on or before that date; and |
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(3) that the guarantor is liable under a renewal of the |
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lease only if the renewal: |
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(A) involves the same parties as the original |
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lease; and |
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(B) does not increase the guarantor's potential |
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financial obligation for rent that existed under the original |
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lease. |
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(c) Subsection (b) does not prohibit a guarantor from |
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voluntarily entering into an agreement at the time of the renewal of |
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a lease, in a separate written document, to guarantee an increased |
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amount of rent. |
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(d) This section does not release a guarantor from the |
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obligations of the guarantor under the terms of the original lease |
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or a valid renewal for costs and damages owed to the lessor that |
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arise after the date specified by the guarantor in the original |
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lease in accordance with Subsection (b), if the costs or damages |
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relate to actions of the tenant before that date or arise as a |
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result of the tenant refusing to vacate the leased premises. |
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SECTION 2. The changes in law made by this Act apply only to |
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a lease agreement that is executed or renewed on or after the |
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effective date of this Act. A lease agreement that is executed or |
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renewed before the effective date of this Act is governed by the law |
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in effect at the time the lease agreement was executed or renewed, |
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and that law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect January 1, 2010. |