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AN ACT
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relating to uniform law on secured transactions. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 9.102, Business & Commerce Code, is |
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amended by amending Subdivisions (7), (10), (50), and (71) and |
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adding Subdivision (68-a) to read as follows: |
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(7) "Authenticate" means: |
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(A) to sign; or |
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(B) [to execute or otherwise adopt a symbol, or
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encrypt or similarly process a record in whole or in part,] with |
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[the] present intent [of the authenticating person] to [identify
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the person and] adopt or accept a record, to attach to or logically |
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associate with the record an electronic sound, symbol, or process. |
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(10) "Certificate of title" means a certificate of |
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title with respect to which a statute provides for the security |
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interest in question to be indicated on the certificate as a |
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condition or result of the security interest's obtaining priority |
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over the rights of a lien creditor with respect to the collateral. |
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The term includes another record maintained as an alternative to a |
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certificate of title by the governmental unit that issues |
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certificates of title if a statute permits the security interest in |
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question to be indicated on the record as a condition or result of |
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the security interest's obtaining priority over the rights of a |
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lien creditor with respect to the collateral. |
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(50) "Jurisdiction of organization," with respect to a |
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registered organization, means the jurisdiction under whose law the |
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organization is formed or organized. |
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(68-a) "Public organic record" means a record that is |
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available to the public for inspection and that is: |
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(A) a record consisting of the record initially |
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filed with or issued by a state or the United States to form or |
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organize an organization and any record filed with or issued by the |
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state or the United States that amends or restates the initial |
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record; |
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(B) an organic record of a business trust |
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consisting of the record initially filed with a state and any record |
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filed with the state that amends or restates the initial record, if |
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a statute of the state governing business trusts requires that the |
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record be filed with the state; or |
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(C) a record consisting of legislation enacted by |
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the legislature of a state or the Congress of the United States that |
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forms or organizes an organization, any record amending the |
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legislation, and any record filed with or issued by the state or the |
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United States that amends or restates the name of the |
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organization. |
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(71) "Registered organization" means an organization |
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formed or organized solely under the law of a single state or the |
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United States by the filing of a public organic record with, the |
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issuance of a public organic record by, or the enactment of |
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legislation by [and as to which] the state or the United States |
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[must maintain a public record showing the organization to have
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been organized]. The term includes a business trust that is formed |
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or organized under the law of a single state if a statute of the |
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state governing business trusts requires that the business trust's |
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organic record be filed with the state. |
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SECTION 2. Section 9.105, Business & Commerce Code, is |
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amended to read as follows: |
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Sec. 9.105. CONTROL OF ELECTRONIC CHATTEL PAPER. (a) A |
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secured party has control of electronic chattel paper if a system |
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employed for evidencing the transfer of interests in the chattel |
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paper reliably establishes the secured party as the person to which |
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the chattel paper was assigned. |
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(b) A system satisfies Subsection (a), and a secured party |
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has control of electronic chattel paper, if the record or records |
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comprising the chattel paper are created, stored, and assigned in |
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such a manner that: |
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(1) a single authoritative copy of the record or |
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records exists that is unique, identifiable, and, except as |
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otherwise provided in Subdivisions (4), (5), and (6), unalterable; |
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(2) the authoritative copy identifies the secured |
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party as the assignee of the record or records; |
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(3) the authoritative copy is communicated to and |
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maintained by the secured party or its designated custodian; |
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(4) copies or amendments [revisions] that add or |
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change an identified assignee of the authoritative copy can be made |
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only with the consent [participation] of the secured party; |
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(5) each copy of the authoritative copy and any copy of |
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a copy is readily identifiable as a copy that is not the |
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authoritative copy; and |
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(6) any amendment [revision] of the authoritative copy |
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is readily identifiable as [an] authorized or unauthorized |
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[revision]. |
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SECTION 3. Subsection (f), Section 9.307, Business & |
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Commerce Code, is amended to read as follows: |
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(f) Except as otherwise provided in Subsection (i), a |
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registered organization that is organized under the law of the |
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United States and a branch or agency of a bank that is not organized |
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under the law of the United States or a state are located: |
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(1) in the state that the law of the United States |
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designates, if the law designates a state of location; |
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(2) in the state that the registered organization, |
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branch, or agency designates, if the law of the United States |
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authorizes the registered organization, branch, or agency to |
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designate its state of location, including by designating its main |
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office, home office, or other comparable office; or |
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(3) in the District of Columbia, if neither |
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Subdivision (1) nor Subdivision (2) applies. |
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SECTION 4. Subsection (a), Section 9.311, Business & |
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Commerce Code, is amended to read as follows: |
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(a) Except as otherwise provided in Subsection (d), the |
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filing of a financing statement is not necessary or effective to |
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perfect a security interest in property subject to: |
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(1) a statute, regulation, or treaty of the United |
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States whose requirements for a security interest's obtaining |
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priority over the rights of a lien creditor with respect to the |
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property preempt Section 9.310(a); |
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(2) the following statutes of this state: a |
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certificate of title statute of this state or rules adopted under |
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the statute to the extent the statute or rules provide for a |
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security interest to be indicated on the certificate of title as a |
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condition or result of perfection or such alternative to notation |
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as may be prescribed by those statutes or rules of this state |
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[Chapter 501, Transportation Code, relating to the certificates of
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title for motor vehicles; Subchapter B-1, Chapter 31, Parks and
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Wildlife Code, relating to the certificates of title for vessels
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and outboard motors; Chapter 1201, Occupations Code, relating to
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the documents of title for manufactured homes]; or Chapter 261, |
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relating to utility security instruments; or |
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(3) a [certificate of title] statute of another |
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jurisdiction that provides for a security interest to be indicated |
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on a [the] certificate of title as a condition or result of the |
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security interest's obtaining priority over the rights of a lien |
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creditor with respect to the property. |
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SECTION 5. The heading to Section 9.316, Business & |
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Commerce Code, is amended to read as follows: |
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Sec. 9.316. EFFECT OF [CONTINUED PERFECTION OF SECURITY
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INTEREST FOLLOWING] CHANGE IN GOVERNING LAW. |
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SECTION 6. Section 9.316, Business & Commerce Code, is |
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amended by adding Subsections (h) and (i) to read as follows: |
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(h) The following rules apply to collateral to which a |
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security interest attaches within four months after the debtor |
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changes its location to another jurisdiction: |
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(1) A financing statement filed before the change of |
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the debtor's location pursuant to the law of the jurisdiction |
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designated in Section 9.301(1) or 9.305(c) is effective to perfect |
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a security interest in the collateral if the financing statement |
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would have been effective to perfect a security interest in the |
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collateral if the debtor had not changed its location. |
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(2) If a security interest that is perfected by a |
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financing statement that is effective under Subdivision (1) becomes |
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perfected under the law of the other jurisdiction before the |
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earlier of the time the financing statement would have become |
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ineffective under the law of the jurisdiction designated in Section |
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9.301(1) or 9.305(c) or the expiration of the four-month period, it |
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remains perfected thereafter. If the security interest does not |
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become perfected under the law of the other jurisdiction before the |
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earlier time or event, it becomes unperfected and is deemed never to |
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have been perfected as against a purchaser of the collateral for |
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value. |
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(i) If a financing statement naming an original debtor is |
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filed pursuant to the law of the jurisdiction designated in Section |
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9.301(1) or 9.305(c) and the new debtor is located in another |
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jurisdiction, the following rules apply: |
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(1) The financing statement is effective to perfect a |
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security interest in collateral in which the new debtor has or |
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acquires rights before or within four months after the new debtor |
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becomes bound under Section 9.203(d), if the financing statement |
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would have been effective to perfect a security interest in the |
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collateral if the collateral had been acquired by the original |
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debtor. |
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(2) A security interest that is perfected by the |
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financing statement and that becomes perfected under the law of the |
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other jurisdiction before the earlier of the expiration of the |
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four-month period or the time the financing statement would have |
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become ineffective under the law of the jurisdiction designated in |
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Section 9.301(1) or 9.305(c) remains perfected thereafter. A |
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security interest that is perfected by the financing statement but |
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that does not become perfected under the law of the other |
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jurisdiction before the earlier time or event becomes unperfected |
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and is deemed never to have been perfected as against a purchaser of |
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the collateral for value. |
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SECTION 7. Subsections (b) and (d), Section 9.317, Business & |
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Commerce Code, are amended to read as follows: |
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(b) Except as otherwise provided in Subsection (e), a buyer, |
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other than a secured party, of tangible chattel paper, tangible |
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documents, goods, instruments, or a certificated security |
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[certificate] takes free of a security interest or agricultural |
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lien if the buyer gives value and receives delivery of the |
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collateral without knowledge of the security interest or |
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agricultural lien and before it is perfected. |
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(d) A licensee of a general intangible or a buyer, other |
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than a secured party, of collateral [accounts, electronic chattel
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paper, electronic documents, general intangibles, or investment
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property] other than tangible chattel paper, tangible documents, |
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goods, instruments, or a certificated security takes free of a |
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security interest if the licensee or buyer gives value without |
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knowledge of the security interest and before it is perfected. |
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SECTION 8. Section 9.326, Business & Commerce Code, is |
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amended to read as follows: |
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Sec. 9.326. PRIORITY OF SECURITY INTERESTS CREATED BY NEW |
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DEBTOR. (a) Subject to Subsection (b), a security interest that |
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is created by a new debtor in collateral in which the new debtor has |
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or acquires rights and [that is] perfected by a filed financing |
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statement that would be ineffective to perfect the security |
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interest but for the application of Section 9.508 or of Sections |
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9.508 and 9.316(i)(1) [is effective solely under Section 9.508 in
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collateral in which a new debtor has or acquires rights] is |
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subordinate to a security interest in the same collateral that is |
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perfected other than by such a filed financing statement [that is
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effective solely under Section 9.508]. |
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(b) The other provisions of this subchapter determine the |
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priority among conflicting security interests in the same |
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collateral perfected by filed financing statements described in |
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Subsection (a) [that are effective solely under Section 9.508]. |
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However, if the security agreements to which a new debtor became |
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bound as debtor were not entered into by the same original debtor, |
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the conflicting security interests rank according to priority in |
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time of the new debtor's having become bound. |
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SECTION 9. Section 9.406, Business & Commerce Code, is |
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amended by amending Subsections (e) and (f) and adding Subsection |
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(k) to read as follows: |
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(e) Subsection (d) does not apply to the sale of a payment |
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intangible or promissory note, other than a sale pursuant to a |
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disposition under Section 9.610 or an acceptance of collateral |
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under Section 9.620. |
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(f) Except as otherwise provided in Sections 2A.303 and |
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9.407, and subject to Subsections (h), [and] (i), and (k), a rule of |
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law, statute, or regulation that prohibits, restricts, or requires |
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the consent of a government, governmental body or official, or |
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account debtor to the assignment or transfer of, or creation of a |
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security interest in, an account or chattel paper is ineffective to |
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the extent that the rule of law, statute, or regulation: |
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(1) prohibits, restricts, or requires the consent of |
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the government, governmental body or official, or account debtor to |
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the assignment or transfer of, or the creation, attachment, |
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perfection, or enforcement of a security interest in, the account |
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or chattel paper; or |
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(2) provides that the assignment or transfer or the |
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creation, attachment, perfection, or enforcement of the security |
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interest may give rise to a default, breach, right of recoupment, |
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claim, defense, termination, right of termination, or remedy under |
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the account or chattel paper. |
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(k) An assignment under this section is subject to Section |
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466.410, Government Code, except to the extent that Section |
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466.410(a), Government Code, prohibits the assignment of |
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installment prize payments due within the final two years of the |
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prize payment schedule, in which case this section shall prevail |
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over Section 466.410 solely to the extent necessary to permit such |
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assignment. |
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SECTION 10. Subsection (b), Section 9.408, Business & |
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Commerce Code, is amended to read as follows: |
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(b) Subsection (a) applies to a security interest in a |
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payment intangible or promissory note only if the security interest |
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arises out of a sale of the payment intangible or promissory note, |
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other than a sale pursuant to a disposition under Section 9.610 or |
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an acceptance of collateral under Section 9.620. |
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SECTION 11. Subsection (c), Section 9.502, Business & |
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Commerce Code, is amended to read as follows: |
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(c) A record of a mortgage is effective, from the date of |
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recording, as a financing statement filed as a fixture filing or as |
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a financing statement covering as-extracted collateral or timber to |
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be cut only if: |
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(1) the record indicates the goods or accounts that it |
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covers; |
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(2) the goods are or are to become fixtures related to |
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the real property described in the record or the collateral is |
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related to the real property described in the record and is |
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as-extracted collateral or timber to be cut; |
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(3) the record satisfies the requirements for a |
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financing statement in this section, but: |
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(A) the record need not indicate [other than an
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indication] that it is to be filed in the real property records; and |
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(B) the record sufficiently provides the name of |
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a debtor who is an individual if it provides the individual name of |
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the debtor or the surname and first personal name of the debtor, |
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even if the debtor is an individual to whom Section 9.503(a)(4) or |
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(5) applies; and |
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(4) the record is duly recorded. |
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SECTION 12. Section 9.503, Business & Commerce Code, is |
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amended by amending Subsections (a) and (b) and adding Subsections |
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(f), (g), and (h) to read as follows: |
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(a) A financing statement sufficiently provides the name of |
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the debtor: |
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(1) except as otherwise provided in Subdivision (3), |
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if the debtor is a registered organization or the collateral is held |
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in a trust that is a registered organization, only if the financing |
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statement provides the name that is stated to be the registered |
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organization's name [of the debtor indicated] on the public organic |
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record most recently filed with or issued or enacted by [debtor's
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formation documents that are filed of public record in] the |
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registered organization's [debtor's] jurisdiction of organization |
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[to create the registered organization and] that purports to state, |
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amend, or restate the registered organization's [show the debtor to
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have been organized, including any amendments to those documents
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for the express purpose of amending the debtor's] name; |
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(2) subject to Subsection (f), if the collateral is |
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being administered by the personal representative of a decedent |
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[debtor is a decedent's estate], only if the financing statement |
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provides, as the name of the debtor, the name of the decedent and, |
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in a separate part of the financing statement, indicates that the |
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collateral is being administered by a personal representative |
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[debtor is an estate]; |
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(3) if the collateral [debtor] is held in a trust that |
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is not a registered organization [or a trustee acting with respect
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to property held in trust], only if the financing statement: |
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(A) provides, as the name of the debtor: |
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(i) if the organic record of the trust |
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specifies a name [the name specified] for the trust, the name so [in
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its organic documents or, if no name is] specified; or |
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(ii) if the organic record of the trust does |
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not specify a name for the trust, [provides] the name of the settlor |
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or testator [and additional information sufficient to distinguish
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the debtor from other trusts having one or more of the same
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settlors]; and |
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(B) in a separate part of the financing |
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statement: |
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(i) if the name is provided in accordance |
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with Paragraph (A)(i), indicates[, in the debtor's name or
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otherwise,] that the collateral [debtor] is held in a trust; or |
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(ii) if the name is provided in accordance |
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with Paragraph (A)(ii), provides additional information sufficient |
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to distinguish the trust from other trusts having one or more of the |
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same settlors or the same testator and indicates that the |
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collateral is held in a trust, unless the additional information so |
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indicates [or is a trustee acting with respect to property held in
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trust]; |
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(4) subject to Subsection (g), if the debtor is an |
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individual to whom this state has issued a driver's license that has |
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not expired or to whom the agency of this state that issues driver's |
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licenses has issued, in lieu of a driver's license, a personal |
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identification card that has not expired, only[,] if the financing |
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statement provides the [individual's] name of the individual that |
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is indicated [shown] on the [individual's] driver's license or |
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personal identification card [certificate issued by the
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individual's state of residence]; |
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(5) if the debtor is an individual to whom Subdivision |
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(4) does not apply, only if the financing statement provides the |
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individual name of the debtor or the surname and first personal name |
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of the debtor; and |
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(6) [(5)] in other cases: |
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(A) if the debtor has a name, only if it [the
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financing statement] provides the [individual or] organizational |
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name of the debtor; and |
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(B) if the debtor does not have a name, only if it |
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[the financing statement] provides the names of the partners, |
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members, associates, or other persons comprising the debtor, in a |
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manner that each name provided would be sufficient if the person |
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named were the debtor. |
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(b) A financing statement that provides the name of the |
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debtor in accordance with Subsection (a) is not rendered |
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ineffective by the absence of: |
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(1) a trade name or other name of the debtor; or |
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(2) unless required under Subsection (a)(6)(B) |
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[(a)(4)(B)], names of partners, members, associates, or other |
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persons comprising the debtor. |
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(f) The name of the decedent indicated on the order |
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appointing the personal representative of the decedent issued by |
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the court having jurisdiction over the collateral is sufficient as |
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the "name of the decedent" under Subsection (a)(2). |
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(g) If this state has issued to an individual more than one |
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driver's license or, if none, more than one identification card, of |
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a kind described in Subsection (a)(4), the driver's license or |
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identification card, as applicable, that was issued most recently |
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is the one to which Subsection (a)(4) refers. |
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(h) The "name of the settlor or testator" means: |
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(1) if the settlor is a registered organization, the |
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name of the registered organization indicated on the public organic |
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record filed with or issued or enacted by the registered |
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organization's jurisdiction of organization; or |
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(2) in other cases, the name of the settlor or testator |
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indicated in the trust's organic record. |
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SECTION 13. Subsection (c), Section 9.507, Business & |
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Commerce Code, is amended to read as follows: |
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(c) If the [a debtor so changes its] name that a filed |
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financing statement provides for a debtor becomes insufficient as |
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the name of the debtor under Section 9.503(a) so that the financing |
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statement becomes seriously misleading under Section 9.506: |
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(1) the financing statement is effective to perfect a |
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security interest in collateral acquired by the debtor before, or |
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within four months after, the filed financing statement becomes |
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seriously misleading [change]; and |
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(2) the financing statement is not effective to |
|
perfect a security interest in collateral acquired by the debtor |
|
more than four months after the filed financing statement becomes |
|
seriously misleading [change], unless an amendment to the financing |
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statement that renders the financing statement not seriously |
|
misleading is filed within four months after that event [the
|
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change]. |
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SECTION 14. Subsection (f), Section 9.515, Business & |
|
Commerce Code, is amended to read as follows: |
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(f) If a debtor is a transmitting utility and a filed |
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initial financing statement so indicates, the financing statement |
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is effective until a termination statement is filed. |
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SECTION 15. Subsection (b), Section 9.516, Business & |
|
Commerce Code, is amended to read as follows: |
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(b) Filing does not occur with respect to a record that a |
|
filing office refuses to accept because: |
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(1) the record is not communicated by a method or |
|
medium of communication authorized by the filing office; |
|
(2) an amount equal to or greater than the applicable |
|
filing fee is not tendered; |
|
(3) the filing office is unable to index the record |
|
because: |
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(A) in the case of an initial financing |
|
statement, the record does not provide a name for the debtor; |
|
(B) in the case of an amendment or information |
|
[correction] statement, the record: |
|
(i) does not identify the initial financing |
|
statement as required by Section 9.512 or 9.518, as applicable; or |
|
(ii) identifies an initial financing |
|
statement whose effectiveness has lapsed under Section 9.515; |
|
(C) in the case of an initial financing statement |
|
that provides the name of a debtor identified as an individual or an |
|
amendment that provides a name of a debtor identified as an |
|
individual that was not previously provided in the financing |
|
statement to which the record relates, the record does not identify |
|
the debtor's surname [last name]; or |
|
(D) in the case of a record filed or recorded in |
|
the filing office described in Section 9.501(a)(1), the record does |
|
not provide the name of the debtor and a sufficient description of |
|
the real property to which it relates; |
|
(4) in the case of an initial financing statement or an |
|
amendment that adds a secured party of record, the record does not |
|
provide a name and mailing address for the secured party of record; |
|
(5) in the case of an initial financing statement or an |
|
amendment that provides a name of a debtor that was not previously |
|
provided in the financing statement to which the amendment relates, |
|
the record does not: |
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(A) provide a mailing address for the debtor; |
|
(B) indicate whether the debtor is an individual |
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or an organization; or |
|
(C) if the financing statement indicates that the |
|
debtor is an organization, provide: |
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(i) a type of organization for the debtor; |
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(ii) a jurisdiction of organization for the |
|
debtor; or |
|
(iii) an organizational identification |
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number for the debtor or indicate that the debtor has none; |
|
(6) in the case of an assignment reflected in an |
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initial financing statement under Section 9.514(a) or an amendment |
|
filed under Section 9.514(b), the record does not provide a name and |
|
mailing address for the assignee; |
|
(7) in the case of a continuation statement, the |
|
record is not filed within the six-month period prescribed by |
|
Section 9.515(d); or |
|
(8) the record is not on an industry standard form, |
|
including a national standard form or a form approved by the |
|
International Association of Commercial Administrators, adopted by |
|
rule by the secretary of state. |
|
SECTION 16. Section 9.518, Business & Commerce Code, is |
|
amended to read as follows: |
|
Sec. 9.518. CLAIM CONCERNING INACCURATE OR WRONGFULLY FILED |
|
RECORD. (a) Any person named as a debtor or a secured party may |
|
file an information [a correction] statement with respect to a |
|
record if the person believes that the record is inaccurate or was |
|
wrongfully filed. |
|
(b) An information [A correction] statement must: |
|
(1) identify the record to which it relates by the file |
|
number assigned to the initial financing statement to which the |
|
record relates; |
|
(2) indicate that it is an information [a correction] |
|
statement; and |
|
(3) provide the basis for the person's belief that the |
|
record is inaccurate and indicate the manner in which the person |
|
believes the record should be amended to cure any inaccuracy or |
|
provide the basis for the person's belief that the record was |
|
wrongfully filed. |
|
(c) The filing of an information [a correction] statement |
|
does not affect the effectiveness of an initial financing statement |
|
or other filed record. |
|
(d) Filing of an information [a correction] statement is not |
|
effective as an amendment to a filed financing statement and is not |
|
sufficient to effect a change in the manner in which the filing |
|
office has indexed a financing statement or information contained |
|
in a financing statement. |
|
SECTION 17. Subsection (b), Section 9.607, Business & |
|
Commerce Code, is amended to read as follows: |
|
(b) If necessary to enable a secured party to exercise under |
|
Subsection (a)(3) the right of a debtor to enforce a mortgage |
|
nonjudicially, the secured party may record in the office in which a |
|
record of the mortgage is recorded: |
|
(1) a copy of the security agreement that creates or |
|
provides for a security interest in the obligation secured by the |
|
mortgage; and |
|
(2) the secured party's sworn affidavit in recordable |
|
form stating that: |
|
(A) a default has occurred with respect to the |
|
obligation secured by the mortgage; and |
|
(B) the secured party is entitled to enforce the |
|
mortgage nonjudicially. |
|
SECTION 18. Chapter 9, Business & Commerce Code, is amended |
|
by adding Subchapter H to read as follows: |
|
SUBCHAPTER H. TRANSITION PROVISIONS FOR 2013 AMENDMENTS |
|
Sec. 9.801. EFFECTIVE DATE OF AMENDMENTS. (a) In this |
|
subchapter, "2013 amendments" means the amendments to this chapter |
|
enacted by the Act of the 82nd Legislature, Regular Session, 2011, |
|
that enacted this subchapter. |
|
(b) The 2013 amendments take effect July 1, 2013. |
|
Sec. 9.802. SAVING CLAUSE. (a) Except as otherwise |
|
provided in this subchapter, the 2013 amendments apply to a |
|
transaction or lien within its scope, even if the transaction or |
|
lien was entered into or created before July 1, 2013. |
|
(b) The 2013 amendments do not affect an action, case, or |
|
proceeding commenced before July 1, 2013. |
|
Sec. 9.803. SECURITY INTEREST PERFECTED BEFORE EFFECTIVE |
|
DATE. (a) A security interest that is a perfected security |
|
interest immediately before July 1, 2013, is a perfected security |
|
interest under this chapter, as amended by the 2013 amendments, if, |
|
when the 2013 amendments take effect, the applicable requirements |
|
for attachment and perfection under this chapter, as amended by the |
|
2013 amendments, are satisfied without further action. |
|
(b) Except as otherwise provided in Section 9.805, if, |
|
immediately before July 1, 2013, a security interest is a perfected |
|
security interest, but the applicable requirements for perfection |
|
under this chapter, as amended by the 2013 amendments, are not |
|
satisfied when the 2013 amendments take effect, the security |
|
interest remains perfected thereafter only if the applicable |
|
requirements for perfection under this chapter, as amended by the |
|
2013 amendments, are satisfied within one year after the 2013 |
|
amendments take effect. |
|
Sec. 9.804. SECURITY INTEREST UNPERFECTED BEFORE EFFECTIVE |
|
DATE. A security interest that is an unperfected security interest |
|
immediately before July 1, 2013, becomes a perfected security |
|
interest: |
|
(1) without further action, when the 2013 amendments |
|
take effect if the applicable requirements for perfection under |
|
this chapter, as amended by the 2013 amendments, are satisfied |
|
before or at that time; or |
|
(2) when the applicable requirements for perfection |
|
are satisfied if the requirements are satisfied after that time. |
|
Sec. 9.805. EFFECTIVENESS OF ACTION TAKEN BEFORE EFFECTIVE |
|
DATE. (a) The filing of a financing statement before the 2013 |
|
amendments take effect is effective to perfect a security interest |
|
to the extent the filing would satisfy the applicable requirements |
|
for perfection under this chapter, as amended by the 2013 |
|
amendments. |
|
(b) The 2013 amendments do not render ineffective an |
|
effective financing statement that, before July 1, 2013, is filed |
|
and satisfies the applicable requirements for perfection under the |
|
law of the jurisdiction governing perfection as provided in this |
|
chapter as it existed before amendment. However, except as |
|
otherwise provided in Subsections (c) and (d) and Section 9.806, |
|
the financing statement ceases to be effective: |
|
(1) if the financing statement is filed in this state, |
|
at the time the financing statement would have ceased to be |
|
effective had the 2013 amendments not taken effect; or |
|
(2) if the financing statement is filed in another |
|
jurisdiction, at the earlier of: |
|
(A) the time the financing statement would have |
|
ceased to be effective under the law of that jurisdiction; or |
|
(B) June 30, 2018. |
|
(c) The filing of a continuation statement after the 2013 |
|
amendments take effect does not continue the effectiveness of the |
|
financing statement filed before July 1, 2013. However, on the |
|
timely filing of a continuation statement after the 2013 amendments |
|
take effect and in accordance with the law of the jurisdiction |
|
governing perfection as provided in this chapter, as amended by the |
|
2013 amendments, the effectiveness of a financing statement filed |
|
in the same office in that jurisdiction before the 2013 amendments |
|
take effect continues for the period provided by the law of that |
|
jurisdiction. |
|
(d) Subsection (b)(2)(B) applies to a financing statement |
|
that, before July 1, 2013, is filed against a transmitting utility |
|
and satisfies the applicable requirements for perfection under the |
|
law of the jurisdiction governing perfection as provided in this |
|
chapter as it existed before amendment, only to the extent that this |
|
chapter, as amended by the 2013 amendments, provides that the law of |
|
a jurisdiction other than the jurisdiction in which the financing |
|
statement is filed governs perfection of a security interest in |
|
collateral covered by the financing statement. |
|
(e) A financing statement that includes a financing |
|
statement filed before the 2013 amendments take effect and a |
|
continuation statement filed after the 2013 amendments take effect |
|
is effective only to the extent that it satisfies the requirements |
|
of Subchapter E, as amended by the 2013 amendments, for an initial |
|
financing statement. A financing statement that indicates that the |
|
debtor is a decedent's estate indicates that the collateral is |
|
being administered by a personal representative within the meaning |
|
of Section 9.503(a)(2), as amended by the 2013 amendments. A |
|
financing statement that indicates that the debtor is a trust or is |
|
a trustee acting with respect to property held in trust indicates |
|
that the collateral is held in a trust within the meaning of Section |
|
9.503(a)(3), as amended by the 2013 amendments. |
|
Sec. 9.806. WHEN INITIAL FINANCING STATEMENT SUFFICES TO |
|
CONTINUE EFFECTIVENESS OF FINANCING STATEMENT. (a) The filing of |
|
an initial financing statement in the office specified in Section |
|
9.501 continues the effectiveness of a financing statement filed |
|
before July 1, 2013, if: |
|
(1) the filing of an initial financing statement in |
|
that office would be effective to perfect a security interest under |
|
this chapter, as amended by the 2013 amendments; |
|
(2) the pre-effective-date financing statement was |
|
filed in an office in another state; and |
|
(3) the initial financing statement satisfies |
|
Subsection (c). |
|
(b) The filing of an initial financing statement under |
|
Subsection (a) continues the effectiveness of the |
|
pre-effective-date financing statement: |
|
(1) if the initial financing statement is filed before |
|
July 1, 2013, for the period provided in unamended Section 9.515 |
|
with respect to an initial financing statement; and |
|
(2) if the initial financing statement is filed after |
|
the 2013 amendments take effect, for the period provided in Section |
|
9.515, as amended by the 2013 amendments, with respect to an initial |
|
financing statement. |
|
(c) To be effective for purposes of Subsection (a), an |
|
initial financing statement must: |
|
(1) satisfy the requirements of Subchapter E, as |
|
amended by the 2013 amendments, for an initial financing statement; |
|
(2) identify the pre-effective-date financing |
|
statement by indicating the office in which the financing statement |
|
was filed and providing the dates of filing and file numbers, if |
|
any, of the financing statement and of the most recent continuation |
|
statement filed with respect to the financing statement; and |
|
(3) indicate that the pre-effective-date financing |
|
statement remains effective. |
|
Sec. 9.807. AMENDMENT OF PRE-EFFECTIVE-DATE FINANCING |
|
STATEMENT. (a) In this section, "pre-effective-date financing |
|
statement" means a financing statement filed before July 1, 2013. |
|
(b) After the 2013 amendments take effect, a person may add |
|
or delete collateral covered by, continue or terminate the |
|
effectiveness of, or otherwise amend the information provided in, a |
|
pre-effective-date financing statement only in accordance with the |
|
law of the jurisdiction governing perfection as provided in this |
|
chapter, as amended by the 2013 amendments. However, the |
|
effectiveness of a pre-effective-date financing statement also may |
|
be terminated in accordance with the law of the jurisdiction in |
|
which the financing statement is filed. |
|
(c) Except as otherwise provided in Subsection (d), if the |
|
law of this state governs perfection of a security interest, the |
|
information in a pre-effective-date financing statement may be |
|
amended after the 2013 amendments take effect only if: |
|
(1) the pre-effective-date financing statement and an |
|
amendment are filed in the office specified in Section 9.501; |
|
(2) an amendment is filed in the office specified in |
|
Section 9.501 concurrently with, or after the filing in that office |
|
of, an initial financing statement that satisfies Section 9.806(c); |
|
or |
|
(3) an initial financing statement that provides the |
|
information as amended and satisfies Section 9.806(c) is filed in |
|
the office specified in Section 9.501. |
|
(d) If the law of this state governs perfection of a |
|
security interest, the effectiveness of a pre-effective-date |
|
financing statement may be continued only under Sections 9.805(c) |
|
and (e) or Section 9.806. |
|
(e) Whether or not the law of this state governs perfection |
|
of a security interest, the effectiveness of a pre-effective-date |
|
financing statement filed in this state may be terminated after the |
|
2013 amendments take effect by filing a termination statement in |
|
the office in which the pre-effective-date financing statement is |
|
filed, unless an initial financing statement that satisfies Section |
|
9.806(c) has been filed in the office specified by the law of the |
|
jurisdiction governing perfection as provided in this chapter, as |
|
amended by the 2013 amendments, as the office in which to file a |
|
financing statement. |
|
Sec. 9.808. PERSON ENTITLED TO FILE INITIAL FINANCING |
|
STATEMENT OR CONTINUATION STATEMENT. A person may file an initial |
|
financing statement or a continuation statement under this |
|
subchapter if: |
|
(1) the secured party of record authorizes the filing; |
|
and |
|
(2) the filing is necessary under this subchapter: |
|
(A) to continue the effectiveness of a financing |
|
statement filed before July 1, 2013; or |
|
(B) to perfect or continue the perfection of a |
|
security interest. |
|
Sec. 9.809. PRIORITY. The 2013 amendments determine the |
|
priority of conflicting claims to collateral. However, if the |
|
relative priorities of the claims were established before July 1, |
|
2013, this chapter as it existed before amendment determines |
|
priority. |
|
SECTION 19. Chapter 11, Business & Commerce Code, is |
|
repealed. |
|
SECTION 20. This Act takes effect July 1, 2013. |
|
|
|
|
|
|
|
|
______________________________ |
______________________________ |
|
President of the Senate |
Speaker of the House |
|
|
I hereby certify that S.B. No. 782 passed the Senate on |
|
April 7, 2011, by the following vote: Yeas 30, Nays 1; and that |
|
the Senate concurred in House amendment on May 5, 2011, by the |
|
following vote: Yeas 31, Nays 0. |
|
|
|
|
______________________________ |
|
Secretary of the Senate |
|
|
I hereby certify that S.B. No. 782 passed the House, with |
|
amendment, on April 20, 2011, by the following vote: Yeas 148, |
|
Nays 0, one present not voting. |
|
|
|
|
______________________________ |
|
Chief Clerk of the House |
|
|
|
|
|
Approved: |
|
|
|
______________________________ |
|
Date |
|
|
|
|
|
______________________________ |
|
Governor |