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A BILL TO BE ENTITLED
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AN ACT
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relating to the private disposition of used motor vehicles at |
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certain auto auctions conducted by independent motor vehicle |
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dealers. |
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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. PRIVATE DISPOSITION OF COLLATERAL BY AUTO |
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AUCTION. The sale by a secured party acting under Chapter 9, |
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Business & Commerce Code, of collateral consisting of a used motor |
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vehicle at an auction conducted by an independent motor vehicle |
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dealer constitutes a private disposition under that chapter for all |
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purposes if: |
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(1) neither the debtor nor the secured party is |
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permitted to bid on the vehicle; and |
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(2) there is no advertisement or public notice |
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preceding the sale that specifically describes the collateral other |
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than inclusion of the vehicle in a list of used motor vehicles being |
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offered for sale at the auction that is made available to potential |
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bidders prior to the sale. |
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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 that occurs on or after the effective date of this Act. |
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A sale that occurs before the effective date of this Act is governed |
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by the law applicable to the sale immediately before the effective |
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date of this Act, and that law is continued in effect for that |
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purpose. |
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SECTION 3. This Act takes effect September 1, 2009. |