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A BILL TO BE ENTITLED
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AN ACT
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relating to prompt action by certain holders of preferred debt and |
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lien claims against secured property of a decedent's estate. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter D, Chapter 355, Estates Code, is |
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amended by adding Section 355.1551 to read as follows: |
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Sec. 355.1551. CLAIM HOLDER DUTY TO POSSESS OR SELL WITHIN |
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REASONABLE TIME. (a) A claim holder of a claim allowed and approved |
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under Section 355.151(a)(2) who elects to take possession or sell |
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the property securing the debt before final maturity in |
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satisfaction of the claim holder's claim must do so within a |
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reasonable time, as determined by the court. |
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(b) If the claim holder fails to take possession or sell |
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secured property within a reasonable time under Subsection (a), on |
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application by the personal representative, the court may require |
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the sale of the property free of the lien and apply the proceeds to |
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the payment of the whole debt. |
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SECTION 2. Section 355.1551, Estates Code, as added by this |
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Act, applies to the administration of the estate of a decedent that |
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is pending or commenced on or after the effective date of this Act. |
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SECTION 3. This Act takes effect September 1, 2015. |