| 1 | 1 | | By: Wentworth S.B. No. 2201 |
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| 2 | 2 | | (In the Senate - Filed March 13, 2009; March 31, 2009, read |
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| 3 | 3 | | first time and referred to Committee on Jurisprudence; |
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| 4 | 4 | | April 14, 2009, reported favorably by the following vote: Yeas 7, |
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| 5 | 5 | | Nays 0; April 14, 2009, sent to printer.) |
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| 6 | 6 | | |
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| 7 | 7 | | |
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| 8 | 8 | | A BILL TO BE ENTITLED |
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| 9 | 9 | | AN ACT |
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| 10 | 10 | | relating to the joinder of a tax lien transferee in a suit to |
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| 11 | 11 | | collect a delinquent ad valorem tax. |
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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. Subsection (i), Section 32.06, Tax Code, is |
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| 14 | 14 | | amended to read as follows: |
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| 15 | 15 | | (i) Except as provided by Section 33.445, a [A] foreclosure |
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| 16 | 16 | | of a tax lien transferred as provided by this section may not be |
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| 17 | 17 | | instituted within one year from the date on which the lien is |
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| 18 | 18 | | recorded in all counties in which the property is located, unless |
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| 19 | 19 | | the contract between the owner of the property and the transferee |
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| 20 | 20 | | provides otherwise. |
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| 21 | 21 | | SECTION 2. Subchapter C, Chapter 33, Tax Code, is amended by |
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| 22 | 22 | | adding Section 33.445 to read as follows: |
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| 23 | 23 | | Sec. 33.445. JOINDER OF TAX LIEN TRANSFEREE. (a) A taxing |
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| 24 | 24 | | unit acting under Section 33.44(a) shall also join each transferee |
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| 25 | 25 | | of a tax lien against the property that may appear of record under |
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| 26 | 26 | | Section 32.06. After the joinder, the transferee of the tax lien |
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| 27 | 27 | | may file its claim and seek foreclosure in the suit for all amounts |
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| 28 | 28 | | owed the transferee that are secured by the transferred tax lien, |
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| 29 | 29 | | regardless of when the original transfer of tax lien was recorded or |
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| 30 | 30 | | whether the original loan secured by the transferred tax lien is |
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| 31 | 31 | | delinquent. In the alternative, the transferee may pay all taxes, |
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| 32 | 32 | | penalties, interest, court costs, and attorney's fees owing to the |
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| 33 | 33 | | taxing unit that filed the foreclosure suit and each other taxing |
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| 34 | 34 | | unit that is joined. |
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| 35 | 35 | | (b) In consideration of the payment by the transferee of |
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| 36 | 36 | | those taxes and charges, each joined taxing unit shall transfer its |
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| 37 | 37 | | tax lien to the transferee in the form and manner provided by |
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| 38 | 38 | | Section 32.06(b) and enter its disclaimer in the suit. |
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| 39 | 39 | | (c) On transfer of all applicable tax liens, the transferee |
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| 40 | 40 | | may seek to foreclose the tax liens in the pending suit or in any |
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| 41 | 41 | | other manner provided by Section 32.06, regardless of when the |
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| 42 | 42 | | original transfer of tax lien was recorded or whether the original |
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| 43 | 43 | | loan secured by the transferred tax lien is delinquent. The |
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| 44 | 44 | | foreclosure may include all amounts owed to the transferee, |
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| 45 | 45 | | including any amount secured by the original transfer of tax lien. |
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| 46 | 46 | | (d) All liens held by a transferee who is joined under this |
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| 47 | 47 | | section but fails to act in the manner provided by this section are |
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| 48 | 48 | | extinguished, and the court's judgment shall reflect the |
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| 49 | 49 | | extinguishment of those liens. |
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| 50 | 50 | | SECTION 3. Section 33.445, Tax Code, as added by this Act, |
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| 51 | 51 | | applies to a suit for foreclosure of an ad valorem tax lien that is |
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| 52 | 52 | | pending on the effective date of this Act or that is brought on or |
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| 53 | 53 | | after the effective date of this Act. |
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| 54 | 54 | | SECTION 4. This Act takes effect September 1, 2009. |
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| 55 | 55 | | * * * * * |
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