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A BILL TO BE ENTITLED
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AN ACT
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relating to default under a deed of trust or contract lien on |
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certain residential property for the delinquent payment of ad |
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valorem taxes. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 51.0011, Property Code, is amended to |
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read as follows: |
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Sec. 51.0011. DEFAULT ARISING FROM DELINQUENT AD VALOREM |
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TAXES: INSTALLMENT AGREEMENTS AND DEFERRAL OR ABATEMENT OF |
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COLLECTION OF TAXES. [(a)] Notwithstanding any agreement to the |
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contrary: |
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(1) [,] a debtor is not in default under a deed of |
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trust or other contract lien on real property used as the debtor's |
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residence for the delinquent payment of ad valorem taxes if: |
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(A) [(1)] the debtor has entered [gave notice to
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the mortgage servicer of the intent to enter] into an installment |
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agreement with the taxing unit under Section 33.02, Tax Code, for |
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the payment of the taxes [at least 10 days before the date the
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debtor entered into the agreement]; and |
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(B) [(2)] the property is protected from seizure |
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and sale and a suit may not be filed to collect a delinquent tax on |
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the property as provided by Section 33.02(d), Tax Code; and |
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(2) a debtor is not in default under a deed of trust or |
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other contract lien on real property used as the debtor's residence |
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homestead for the delinquent payment of ad valorem taxes if: |
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(A) the debtor has obtained a deferral or |
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abatement of the collection of the ad valorem taxes on the property |
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under Section 33.06, Tax Code; and |
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(B) the deferral or abatement remains in effect. |
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[(b)
A mortgage servicer who receives a notice described by
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Subsection (a)(1) may pay the taxes subject to the installment
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agreement at any time.
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[(c)
A mortgage servicer who receives a notice described by
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Subsection (a)(1) and gives the debtor notice that the mortgage
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servicer intends to accelerate the note securing the deed of trust
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or other contract lien as a result of the delinquency of the taxes
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that are subject to the installment agreement must rescind the
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notice if the debtor enters into the agreement not later than the
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30th day after the date the debtor delivers the notice.] |
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SECTION 2. The change in law made by this Act applies only |
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to a deed of trust or contract lien entered into on or after the |
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effective date of this Act. |
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SECTION 3. This Act takes effect September 1, 2019. |