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A BILL TO BE ENTITLED
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AN ACT
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relating to priority of payment relating to property owners' |
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association assessments. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 209, Property Code, is amended by adding |
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Section 209.0063 to read as follows: |
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Sec. 209.0063. PRIORITY OF PAYMENTS. Unless otherwise |
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provided in writing by the property owner at the time payment is |
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made, a payment received by a property owners' association from the |
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owner shall be applied to the owner's debt in the following order of |
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priority: |
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(1) any delinquent assessment; |
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(2) any current assessment; |
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(3) any attorney's fees incurred by the association |
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associated solely with assessments or any other charge that could |
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provide the basis for foreclosure; |
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(4) any fines assessed by the association; |
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(5) any attorney's fees incurred by the association |
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that are not subject to Subdivision (3); and |
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(6) any other amount owed to the association. |
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SECTION 2. This Act applies to a payment received by a |
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property owners' association on or after the effective date of this |
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Act. A payment received before the effective date of this Act is |
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governed by the law in effect when the payment was received, and the |
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former law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2011. |