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A BILL TO BE ENTITLED
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AN ACT
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relating to the priority of a lien for funds advanced by the |
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transferee of an ad valorem tax lien. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 32.06(e), Tax Code, is amended to read as |
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follows: |
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(e) A transferee holding a tax lien transferred as provided |
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by this section may not charge a greater rate of interest than 18 |
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percent a year on the funds advanced. Funds advanced are limited |
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to the taxes, penalties, interest, and collection costs paid as |
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shown on the tax receipt, expenses paid to record the lien, plus |
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reasonable closing costs. A transferee assumes the lien priority |
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of the taxing unit for funds advanced to pay taxes, penalties, |
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interest, and collection costs as shown on the tax receipt. The |
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lien priority of funds advanced by a transferee to pay closing |
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costs, fees, and any other expenses incurred by the transferee |
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after the date the lien is transferred is determined by the date the |
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statement attesting to the transfer of the tax lien is recorded |
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under Subsection (d). |
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SECTION 2. The change in law made by this Act applies only |
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to a tax lien transferred under Section 32.06, Tax Code, on or after |
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the effective date of this Act. A tax lien transferred under |
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Section 32.06, Tax Code, before the effective date of this Act is |
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governed by the law in effect on the date the tax lien is |
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transferred, and the former law is continued in effect for that |
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purpose. |
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SECTION 3. This Act takes effect September 1, 2011. |