81R11817 AJA-F
By: Fraser S.B. No. 1592
A BILL TO BE ENTITLED
AN ACT
relating to assignment of security interests in certain collateral.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 261, Business & Commerce Code, as
effective April 1, 2009, is amended by adding Section 261.012 to
read as follows:
Sec. 261.012. ASSIGNMENT OF SECURITY INTEREST. (a) A
holder of a utility security interest under Section 261.004 may
assign, absolutely or otherwise, the holder's security interest in
personal property subject to this chapter to a person other than the
owner of the property without affecting the interest of the owner or
the validity or perfection of the security interest, but any person
without notice of the assignment is protected in dealing with the
security-interest holder as the holder of record of the security
interest and the security-interest holder remains liable for any
obligations as security-interest holder on the utility security
instrument until the assignee is named as security-interest holder
on the utility security interest. The same rules apply to
subsequent assignees of the original or subsequent assignees.
(b) An assignee may record the assignment of a security
instrument under this chapter by applying to the secretary of state
for the assignee to be named as security-interest holder on the
utility security instrument and notifying the debtor utility of the
assignment. An assignee's failure to make the application or
notify the debtor utility of the assignment does not create a cause
of action against the assignee or the security-interest holder or
affect the validity or perfection of the security interest assigned
to the assignee.
SECTION 2. Section 1201.219, Occupations Code, is amended
by adding Subsections (d) and (e) to read as follows:
(d) A holder of a lien perfected under Subsection (b) may
assign, absolutely or otherwise, the holder's lien on a
manufactured home to a person other than the owner of the
manufactured home without affecting the interest of the owner or
the validity or perfection of the lien, but any person without
notice of the assignment is protected in dealing with the
lienholder as the holder of record of the lien and the lienholder
remains liable for any obligations as lienholder until the assignee
is named as lienholder on the statement of ownership and location.
The same rules apply to subsequent assignees of the original or
subsequent assignees.
(e) An assignee may record the assignment of a lien on a
manufactured home by applying to the department for the assignee to
be named as lienholder on the statement of ownership and location
and notifying the debtor of the assignment. An assignee's failure
to make the application or notify the debtor of the assignment does
not create a cause of action against the assignee or the lienholder
or affect the validity or perfection of the lien assigned to the
assignee.
SECTION 3. Section 31.052, Parks and Wildlife Code, is
amended by amending Subsection (a) and adding Subsections (c) and
(d) to read as follows:
(a) Except as provided by this section and Section
31.050(c), [in Subsection (c) of Section 31.050 of this code] and
except for statutory liens, security interests in a vessel or
outboard motor shall be noted on the certificate of title of the
vessel or outboard motor to which the security interest applies.
(c) A security-interest holder may assign, absolutely or
otherwise, the holder's security interest in the vessel or outboard
motor to a person other than the owner of the vessel or outboard
motor without affecting the interest of the owner or the validity or
perfection of the security interest, but any person without notice
of the assignment is protected in dealing with the
security-interest holder as the holder of record of the security
interest and the security-interest holder remains liable for any
obligations as security-interest holder until the assignee is named
as security-interest holder on the certificate of title. The same
rules apply to subsequent assignees of the original or subsequent
assignees.
(d) An assignee may record the assignment of a security
interest in a vessel or outboard motor under this subchapter by
applying to the department or a county tax assessor-collector for
the assignee to be named as security-interest holder on the
certificate of title and notifying the debtor of the assignment. An
assignee's failure to make the application or notify the debtor of
the assignment does not create a cause of action against the
assignee or the security-interest holder or affect the validity or
perfection of the security interest assigned to the assignee.
SECTION 4. Section 501.114, Transportation Code, is amended
to read as follows:
Sec. 501.114. ASSIGNMENT OF LIEN. (a) A lienholder may
assign, absolutely or otherwise, the holder's lien on a motor
vehicle to a person other than the owner of the motor vehicle
without affecting the interest of the owner or the validity or
perfection of the lien, but any person without notice of the
assignment is protected in dealing with the lienholder as the
holder of record of the lien and the lienholder remains liable for
any obligations as lienholder until the assignee is named as
lienholder on the certificate of title. The same rules apply to
subsequent assignees of the original or subsequent assignees.
(b) An assignee may record the assignment of a lien recorded
under Section 501.113 by:
(1) applying to the county assessor-collector for the
assignee to be named as lienholder on the certificate of title
[assignment of the lien]; and
(2) notifying the debtor of the assignment.
(c) An assignee's [(b) A lienholder's] failure to make an
application under Subsection (b) or notify a debtor of an
assignment does not create a cause of action against the assignee or
the lienholder or affect the validity or perfection of the lien
assigned to the assignee.
(d) [(c)] An application under Subsection (b) [(a)] must
be:
(1) signed by the person to whom the lien is assigned;
and
(2) accompanied by:
(A) the applicable fee;
(B) a copy of the assignment agreement executed
by the parties; and
(C) the certificate of title on which the lien to
be assigned is recorded.
(e) [(d)] On receipt of the completed application and fee,
the department:
(1) may amend the department's records to substitute
the subsequent lienholder for the previous lienholder; and
(2) shall issue a new certificate of title as provided
by Section 501.027.
(f) [(e)] The issuance of a certificate of title under
Subsection (e) [(d)] is recordation of the assignment. The time of
the recordation of a lien assigned under this section is considered
to be the time the lien was recorded under Section 501.113.
SECTION 5. This Act is intended to clarify rather than
change existing law.
SECTION 6. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2009.