| 1 | 1 | | S.B. No. 1827 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | AN ACT |
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| 5 | 5 | | relating to the constituting of certain sales of a used motor |
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| 6 | 6 | | vehicle as a private disposition for purposes of Chapter 9, |
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| 7 | 7 | | Business & Commerce Code. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Subchapter B, Chapter 503, Transportation Code, |
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| 10 | 10 | | is amended by adding Section 503.040 to read as follows: |
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| 11 | 11 | | Sec. 503.040. SALES OF CERTAIN USED MOTOR VEHICLES |
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| 12 | 12 | | CONSTITUTE PRIVATE DISPOSITION. (a) This section applies only to |
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| 13 | 13 | | the sale of a used motor vehicle that constitutes collateral by a |
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| 14 | 14 | | secured party acting under Chapter 9, Business & Commerce Code, and |
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| 15 | 15 | | occurs at an auction conducted by an independent motor vehicle |
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| 16 | 16 | | dealer: |
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| 17 | 17 | | (1) at which neither the debtor nor the secured party |
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| 18 | 18 | | is permitted to bid; and |
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| 19 | 19 | | (2) for which there has been no advertisement or |
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| 20 | 20 | | public notice before the sale that specifically describes the |
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| 21 | 21 | | collateral to be sold, other than the inclusion of the motor vehicle |
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| 22 | 22 | | in a list of the vehicles to be offered at the auction made |
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| 23 | 23 | | available to potential bidders at the auction. |
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| 24 | 24 | | (b) The sale of the used motor vehicle constitutes a private |
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| 25 | 25 | | disposition for purposes of Chapter 9, Business & Commerce Code. |
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| 26 | 26 | | SECTION 2. The change in law made by Section 503.040, |
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| 27 | 27 | | Transportation Code, as added by this Act, applies only to a sale of |
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| 28 | 28 | | collateral consisting of a used motor vehicle that occurs on or |
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| 29 | 29 | | after the effective date of this Act. A sale of such collateral |
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| 30 | 30 | | that occurs before the effective date of this Act is governed by the |
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| 31 | 31 | | law applicable to the sale immediately before the effective date of |
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| 32 | 32 | | this Act, and that 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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| 34 | 34 | | ______________________________ ______________________________ |
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| 35 | 35 | | President of the Senate Speaker of the House |
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| 36 | 36 | | I hereby certify that S.B. No. 1827 passed the Senate on |
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| 37 | 37 | | April 9, 2009, by the following vote: Yeas 31, Nays 0; and that |
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| 38 | 38 | | the Senate concurred in House amendment on May 29, 2009, by the |
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| 39 | 39 | | following vote: Yeas 31, Nays 0. |
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| 40 | 40 | | ______________________________ |
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| 41 | 41 | | Secretary of the Senate |
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| 42 | 42 | | I hereby certify that S.B. No. 1827 passed the House, with |
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| 43 | 43 | | amendment, on May 15, 2009, by the following vote: Yeas 144, |
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| 44 | 44 | | Nays 0, one present not voting. |
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| 45 | 45 | | ______________________________ |
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| 46 | 46 | | Chief Clerk of the House |
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| 47 | 47 | | Approved: |
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| 48 | 48 | | ______________________________ |
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| 49 | 49 | | Date |
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| 50 | 50 | | ______________________________ |
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| 51 | 51 | | Governor |
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