| 1 | 1 | | 81R17184 JD-D |
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| 2 | 2 | | By: Elkins H.B. No. 4369 |
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| 3 | 3 | | Substitute the following for H.B. No. 4369: |
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| 4 | 4 | | By: Pickett C.S.H.B. No. 4369 |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to the constituting of certain sales of a used motor |
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| 10 | 10 | | vehicle as a private disposition for purposes of Chapter 9, |
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| 11 | 11 | | Business & Commerce Code. |
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| 12 | 12 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 13 | 13 | | SECTION 1. Subchapter B, Chapter 503, Transportation Code, |
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| 14 | 14 | | is amended by adding Section 503.040 to read as follows: |
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| 15 | 15 | | Sec. 503.040. SALES OF CERTAIN USED MOTOR VEHICLES |
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| 16 | 16 | | CONSTITUTE PRIVATE DISPOSITION. (a) This section applies only to |
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| 17 | 17 | | the sale of a used motor vehicle that constitutes collateral by a |
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| 18 | 18 | | secured party acting under Chapter 9, Business & Commerce Code, and |
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| 19 | 19 | | occurs at an auction conducted by an independent motor vehicle |
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| 20 | 20 | | dealer: |
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| 21 | 21 | | (1) at which neither the debtor nor the secured party |
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| 22 | 22 | | is permitted to bid; and |
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| 23 | 23 | | (2) for which there has been no advertisement or |
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| 24 | 24 | | public notice before the sale that specifically describes the |
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| 25 | 25 | | collateral to be sold, other than the inclusion of the motor vehicle |
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| 26 | 26 | | in a list of the vehicles to be offered at the auction made |
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| 27 | 27 | | available to potential bidders at the auction. |
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| 28 | 28 | | (b) The sale of the used motor vehicle constitutes a private |
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| 29 | 29 | | disposition for purposes of Chapter 9, Business & Commerce Code. |
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| 30 | 30 | | SECTION 2. The change in law made by Section 503.040, |
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| 31 | 31 | | Transportation Code, as added by this Act, applies only to a sale of |
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| 32 | 32 | | collateral consisting of a used motor vehicle that occurs on or |
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| 33 | 33 | | after the effective date of this Act. A sale of such collateral |
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| 34 | 34 | | that occurs before the effective date of this Act is governed by the |
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| 35 | 35 | | law applicable to the sale immediately before the effective date of |
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| 36 | 36 | | this Act, and that law is continued in effect for that purpose. |
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| 37 | 37 | | SECTION 3. This Act takes effect September 1, 2009. |
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