Texas House Bill HB4369

Texas 2009 - 81st Regular

• Out of House Committee: 4/16/09

Caption

Relating to the constituting of certain sales of a used motor vehicle as a private disposition for purposes of Chapter 9, Business & Commerce Code.

Impact

The introduction of HB 4369 modifies existing provisions under the Transportation Code with respect to how used motor vehicles are sold at auction. By defining these auctions as private dispositions, the bill streamlines processes for independent motor vehicle dealers and secured parties. It aids in reducing misunderstandings or legal disputes over the classification of such sales, potentially enhancing the fluidity of vehicle transactions within this specific market segment.

Summary

House Bill 4369 aims to clarify the status of certain sales of used motor vehicles at independent auto auctions. Specifically, it establishes that a sale conducted by a secured party of a used motor vehicle at an auction qualifies as a private disposition under Chapter 9 of the Business & Commerce Code, provided that certain conditions are met. This bill is important in delineating the roles and procedures surrounding the sale of collateralized vehicles, offering legal clarity for those involved in such transactions.

Contention

Discussion surrounding HB 4369 may revolve around the implications for both motor vehicle dealers and consumers. Critics could question whether the specifications set forth adequately protect consumer interests or if they favor the secured parties disproportionately. The lack of advertisement or public notice as outlined in the bill raises concerns about transparency in the auction process, leading to discussions about potential impacts on consumer awareness and rights.