| 1 | 1 | | 81R11567 PMO-D |
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| 2 | 2 | | By: Thibaut H.B. No. 3081 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to priority of payment relating to property owners' |
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| 8 | 8 | | association assessments. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 209.009, Property Code, is amended to |
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| 11 | 11 | | read as follows: |
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| 12 | 12 | | Sec. 209.009. FORECLOSURE SALE PROHIBITED IN CERTAIN |
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| 13 | 13 | | CIRCUMSTANCES. (a) A property owners' association may not |
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| 14 | 14 | | foreclose a property owners' association's assessment lien if the |
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| 15 | 15 | | debt securing the lien consists solely of: |
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| 16 | 16 | | (1) fines assessed by the association; or |
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| 17 | 17 | | (2) attorney's fees incurred by the association solely |
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| 18 | 18 | | associated with fines assessed by the association. |
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| 19 | 19 | | (b) Unless otherwise provided in writing by the property |
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| 20 | 20 | | owner, a payment received by a property owners' association from |
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| 21 | 21 | | the owner shall be applied to the owner's debt in the following |
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| 22 | 22 | | order of priority: |
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| 23 | 23 | | (1) any delinquent assessment; |
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| 24 | 24 | | (2) any current assessment; |
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| 25 | 25 | | (3) any fines assessed by the association; and |
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| 26 | 26 | | (4) any attorney's fees incurred by the association |
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| 27 | 27 | | solely associated with fines assessed by the association. |
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| 28 | 28 | | SECTION 2. This Act applies to a payment received by a |
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| 29 | 29 | | property owners' association on or after the effective date of this |
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| 30 | 30 | | Act. A payment received before the effective date of this Act is |
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| 31 | 31 | | governed by the law in effect when the payment was received, and the |
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| 32 | 32 | | former law is continued in effect for that purpose. |
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| 33 | 33 | | SECTION 3. This Act takes effect September 1, 2009. |
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