81R17184 JD-D
By: Huffman S.B. No. 1827
Substitute the following for S.B. No. 1827:
By: Pickett C.S.S.B. No. 1827
A BILL TO BE ENTITLED
AN ACT
relating to the constituting of certain sales of a used motor
vehicle as a private disposition for purposes of Chapter 9,
Business & Commerce Code.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 503, Transportation Code,
is amended by adding Section 503.040 to read as follows:
Sec. 503.040. SALES OF CERTAIN USED MOTOR VEHICLES
CONSTITUTE PRIVATE DISPOSITION. (a) This section applies only to
the sale of a used motor vehicle that constitutes collateral by a
secured party acting under Chapter 9, Business & Commerce Code, and
occurs at an auction conducted by an independent motor vehicle
dealer:
(1) at which neither the debtor nor the secured party
is permitted to bid; and
(2) for which there has been no advertisement or
public notice before the sale that specifically describes the
collateral to be sold, other than the inclusion of the motor vehicle
in a list of the vehicles to be offered at the auction made
available to potential bidders at the auction.
(b) The sale of the used motor vehicle constitutes a private
disposition for purposes of Chapter 9, Business & Commerce Code.
SECTION 2. The change in law made by Section 503.040,
Transportation Code, as added by this Act, applies only to a sale of
collateral consisting of a used motor vehicle that occurs on or
after the effective date of this Act. A sale of such collateral
that occurs before the effective date of this Act is governed by the
law applicable to the sale immediately before the effective date of
this Act, and that law is continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2009.