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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. Section 209.009, Property Code, is amended to |
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read as follows: |
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Sec. 209.009. FORECLOSURE SALE PROHIBITED IN CERTAIN |
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CIRCUMSTANCES. (a) A property owners' association may not |
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foreclose a property owners' association's assessment lien if the |
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debt securing the lien consists solely of: |
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(1) fines assessed by the association; or |
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(2) attorney's fees incurred by the association solely |
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associated with fines assessed by the association. |
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(b) Unless otherwise provided in writing by the property |
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owner, a payment received by a property owners' association from |
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the owner shall be applied to the owner's debt in the following |
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order of priority: |
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(1) any delinquent assessment; |
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(2) any current assessment; |
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(3) any fines assessed by the association; and |
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(4) any attorney's fees incurred by the association |
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solely associated with fines assessed by 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. |