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A BILL TO BE ENTITLED
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AN ACT
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relating to issuance of certain personal property title insurance |
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policies. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter C, Chapter 2751, Insurance Code, is |
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amended by adding Section 2751.105 to read as follows: |
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Sec. 2751.105. RESTRICTION ON ISSUANCE OF CERTAIN POLICIES. |
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A title insurance company may not issue or deliver a personal |
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property title insurance policy providing coverage for equipment or |
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facilities used to produce, generate, transmit, distribute, sell, |
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or furnish energy unless the company issues or delivers to the |
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secured party or other insured a title insurance policy providing |
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coverage for the real property, or interest in real property, on |
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which the equipment or facility is located. |
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SECTION 2. This Act applies only to a personal property |
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title insurance policy that is delivered or issued for delivery on |
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or after January 1, 2014. A policy delivered or issued for delivery |
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before January 1, 2014, is governed by the law as it existed |
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immediately before the effective date of this Act, and that law is |
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continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2013. |