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A BILL TO BE ENTITLED
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AN ACT
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relating to the constituting of certain sales of a used motor |
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vehicle as a private disposition for purposes of Chapter 9, |
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Business & Commerce Code. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 503, Transportation Code, |
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is amended by adding Section 503.040 to read as follows: |
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Sec. 503.040. SALES OF CERTAIN USED MOTOR VEHICLES |
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CONSTITUTE PRIVATE DISPOSITION. (a) This section applies only to |
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the sale of a used motor vehicle that constitutes collateral by a |
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secured party acting under Chapter 9, Business & Commerce Code, and |
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occurs at an auction conducted by an independent motor vehicle |
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dealer: |
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(1) at which neither the debtor nor the secured party |
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is permitted to bid; and |
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(2) for which there has been no advertisement or |
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public notice before the sale that specifically describes the |
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collateral to be sold, other than the inclusion of the motor vehicle |
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in a list of the vehicles to be offered at the auction made |
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available to potential bidders at the auction. |
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(b) The sale of the used motor vehicle constitutes a private |
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disposition for purposes of Chapter 9, Business & Commerce Code. |
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SECTION 2. The change in law made by Section 503.040, |
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Transportation Code, as added by this Act, applies only to a sale of |
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collateral consisting of a used motor vehicle that occurs on or |
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after the effective date of this Act. A sale of such collateral |
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that occurs before the effective date of this Act is governed by the |
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law applicable to the sale immediately before the effective date of |
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this Act, and that law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2009. |