Texas 2011 - 82nd Regular

Texas House Bill HB1617 Compare Versions

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1	1	82R14208 ATP-D
2	2	By: Deshotel H.B. No. 1617
3	3	Substitute the following for H.B. No. 1617:
4	4	By: Quintanilla C.S.H.B. No. 1617
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to uniform law on secured transactions.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 9.102, Business & Commerce Code, is
12	12	amended by amending Subdivisions (7), (10), (50), and (71) and
13	13	adding Subdivision (68-a) to read as follows:
14	14	(7) "Authenticate" means:
15	15	(A) to sign; or
16	16	(B) [to execute or otherwise adopt a symbol, or
17	17	encrypt or similarly process a record in whole or in part,] with
18	18	[the] present intent [of the authenticating person] to [identify
19	19	the person and] adopt or accept a record, to attach to or logically
20	20	associate with the record an electronic sound, symbol, or process.
21	21	(10) "Certificate of title" means a certificate of
22	22	title with respect to which a statute provides for the security
23	23	interest in question to be indicated on the certificate as a
24	24	condition or result of the security interest's obtaining priority
25	25	over the rights of a lien creditor with respect to the collateral.
26	26	The term includes another record maintained as an alternative to a
27	27	certificate of title by the governmental unit that issues
28	28	certificates of title if a statute permits the security interest in
29	29	question to be indicated on the record as a condition or result of
30	30	the security interest's obtaining priority over the rights of a
31	31	lien creditor with respect to the collateral.
32	32	(50) "Jurisdiction of organization," with respect to a
33	33	registered organization, means the jurisdiction under whose law the
34	34	organization is formed or organized.
35	35	(68-a) "Public organic record" means a record that is
36	36	available to the public for inspection and that is:
37	37	(A) a record consisting of the record initially
38	38	filed with or issued by a state or the United States to form or
39	39	organize an organization and any record filed with or issued by the
40	40	state or the United States that amends or restates the initial
41	41	record;
42	42	(B) an organic record of a business trust
43	43	consisting of the record initially filed with a state and any record
44	44	filed with the state that amends or restates the initial record, if
45	45	a statute of the state governing business trusts requires that the
46	46	record be filed with the state; or
47	47	(C) a record consisting of legislation enacted by
48	48	the legislature of a state or the Congress of the United States that
49	49	forms or organizes an organization, any record amending the
50	50	legislation, and any record filed with or issued by the state or the
51	51	United States that amends or restates the name of the
52	52	organization.
53	53	(71) "Registered organization" means an organization
54	54	formed or organized solely under the law of a single state or the
55	55	United States by the filing of a public organic record with, the
56	56	issuance of a public organic record by, or the enactment of
57	57	legislation by [and as to which] the state or the United States
58	58	[must maintain a public record showing the organization to have
59	59	been organized]. The term includes a business trust that is formed
60	60	or organized under the law of a single state if a statute of the
61	61	state governing business trusts requires that the business trust's
62	62	organic record be filed with the state.
63	63	SECTION 2. Section 9.105, Business & Commerce Code, is
64	64	amended to read as follows:
65	65	Sec. 9.105. CONTROL OF ELECTRONIC CHATTEL PAPER. (a) A
66	66	secured party has control of electronic chattel paper if a system
67	67	employed for evidencing the transfer of interests in the chattel
68	68	paper reliably establishes the secured party as the person to which
69	69	the chattel paper was assigned.
70	70	(b) A system satisfies Subsection (a), and a secured party
71	71	has control of electronic chattel paper, if the record or records
72	72	comprising the chattel paper are created, stored, and assigned in
73	73	such a manner that:
74	74	(1) a single authoritative copy of the record or
75	75	records exists that is unique, identifiable, and, except as
76	76	otherwise provided in Subdivisions (4), (5), and (6), unalterable;
77	77	(2) the authoritative copy identifies the secured
78	78	party as the assignee of the record or records;
79	79	(3) the authoritative copy is communicated to and
80	80	maintained by the secured party or its designated custodian;
81	81	(4) copies or amendments [revisions] that add or
82	82	change an identified assignee of the authoritative copy can be made
83	83	only with the consent [participation] of the secured party;
84	84	(5) each copy of the authoritative copy and any copy of
85	85	a copy is readily identifiable as a copy that is not the
86	86	authoritative copy; and
87	87	(6) any amendment [revision] of the authoritative copy
88	88	is readily identifiable as [an] authorized or unauthorized
89	89	[revision].
90	90	SECTION 3. Section 9.307(f), Business & Commerce Code, is
91	91	amended to read as follows:
92	92	(f) Except as otherwise provided in Subsection (i), a
93	93	registered organization that is organized under the law of the
94	94	United States and a branch or agency of a bank that is not organized
95	95	under the law of the United States or a state are located:
96	96	(1) in the state that the law of the United States
97	97	designates, if the law designates a state of location;
98	98	(2) in the state that the registered organization,
99	99	branch, or agency designates, if the law of the United States
100	100	authorizes the registered organization, branch, or agency to
101	101	designate its state of location, including by designating its main
102	102	office, home office, or other comparable office; or
103	103	(3) in the District of Columbia, if neither
104	104	Subdivision (1) nor Subdivision (2) applies.
105	105	SECTION 4. Section 9.311(a), Business & Commerce Code, is
106	106	amended to read as follows:
107	107	(a) Except as otherwise provided in Subsection (d), the
108	108	filing of a financing statement is not necessary or effective to
109	109	perfect a security interest in property subject to:
110	110	(1) a statute, regulation, or treaty of the United
111	111	States whose requirements for a security interest's obtaining
112	112	priority over the rights of a lien creditor with respect to the
113	113	property preempt Section 9.310(a);
114	114	(2) the following statutes of this state: a
115	115	certificate of title statute of this state or rules adopted under
116	116	the statute to the extent the statute or rules provide for a
117	117	security interest to be indicated on the certificate of title as a
118	118	condition or result of perfection or such alternative to notation
119	119	as may be prescribed by those statutes or rules of this state
120	120	[Chapter 501, Transportation Code, relating to the certificates
121	121	of title for motor vehicles; Subchapter B-1, Chapter 31, Parks and
122	122	Wildlife Code, relating to the certificates of title for vessels
123	123	and outboard motors; Chapter 1201, Occupations Code, relating to
124	124	the documents of title for manufactured homes]; or Chapter 261,
125	125	relating to utility security instruments; or
126	126	(3) a [certificate of title] statute of another
127	127	jurisdiction that provides for a security interest to be indicated
128	128	on a [the] certificate of title as a condition or result of the
129	129	security interest's obtaining priority over the rights of a lien
130	130	creditor with respect to the property.
131	131	SECTION 5. The heading to Section 9.316, Business &
132	132	Commerce Code, is amended to read as follows:
133	133	Sec. 9.316. EFFECT OF [CONTINUING PERFECTION OF SECURITY
134	134	INTEREST FOLLOWING] CHANGE IN GOVERNING LAW.
135	135	SECTION 6. Section 9.316, Business & Commerce Code, is
136	136	amended by adding Subsections (h) and (i) to read as follows:
137	137	(h) The following rules apply to collateral to which a
138	138	security interest attaches within four months after the debtor
139	139	changes its location to another jurisdiction:
140	140	(1) A financing statement filed before the change of
141	141	the debtor's location pursuant to the law of the jurisdiction
142	142	designated in Section 9.301(1) or 9.305(c) is effective to perfect
143	143	a security interest in the collateral if the financing statement
144	144	would have been effective to perfect a security interest in the
145	145	collateral if the debtor had not changed its location.
146	146	(2) If a security interest that is perfected by a
147	147	financing statement that is effective under Subdivision (1) becomes
148	148	perfected under the law of the other jurisdiction before the
149	149	earlier of the time the financing statement would have become
150	150	ineffective under the law of the jurisdiction designated in Section
151	151	9.301(1) or 9.305(c) or the expiration of the four-month period, it
152	152	remains perfected thereafter. If the security interest does not
153	153	become perfected under the law of the other jurisdiction before the
154	154	earlier time or event, it becomes unperfected and is deemed never to
155	155	have been perfected as against a purchaser of the collateral for
156	156	value.
157	157	(i) If a financing statement naming an original debtor is
158	158	filed pursuant to the law of the jurisdiction designated in Section
159	159	9.301(1) or 9.305(c) and the new debtor is located in another
160	160	jurisdiction, the following rules apply:
161	161	(1) The financing statement is effective to perfect a
162	162	security interest in collateral in which the new debtor has or
163	163	acquires rights before or within four months after the new debtor
164	164	becomes bound under Section 9.203(d), if the financing statement
165	165	would have been effective to perfect a security interest in the
166	166	collateral if the collateral had been acquired by the original
167	167	debtor.
168	168	(2) A security interest that is perfected by the
169	169	financing statement and that becomes perfected under the law of the
170	170	other jurisdiction before the earlier of the expiration of the
171	171	four-month period or the time the financing statement would have
172	172	become ineffective under the law of the jurisdiction designated in
173	173	Section 9.301(1) or 9.305(c) remains perfected thereafter. A
174	174	security interest that is perfected by the financing statement but
175	175	that does not become perfected under the law of the other
176	176	jurisdiction before the earlier time or event becomes unperfected
177	177	and is deemed never to have been perfected as against a purchaser of
178	178	the collateral for value.
179	179	SECTION 7. Sections 9.317(b) and (d), Business & Commerce
180	180	Code, are amended to read as follows:
181	181	(b) Except as otherwise provided in Subsection (e), a buyer,
182	182	other than a secured party, of tangible chattel paper, tangible
183	183	documents, goods, instruments, or a certificated security
184	184	[certificate] takes free of a security interest or agricultural
185	185	lien if the buyer gives value and receives delivery of the
186	186	collateral without knowledge of the security interest or
187	187	agricultural lien and before it is perfected.
188	188	(d) A licensee of a general intangible or a buyer, other
189	189	than a secured party, of collateral [accounts, electronic chattel
190	190	paper, electronic documents, general intangibles, or investment
191	191	property] other than tangible chattel paper, tangible documents,
192	192	goods, instruments, or a certificated security takes free of a
193	193	security interest if the licensee or buyer gives value without
194	194	knowledge of the security interest and before it is perfected.
195	195	SECTION 8. Section 9.326, Business & Commerce Code, is
196	196	amended to read as follows:
197	197	Sec. 9.326. PRIORITY OF SECURITY INTERESTS CREATED BY NEW
198	198	DEBTOR. (a) Subject to Subsection (b), a security interest that is
199	199	created by a new debtor in collateral in which the new debtor has or
200	200	acquires rights and [that is] perfected by a filed financing
201	201	statement that would be ineffective to perfect the security
202	202	interest but for the application of Section 9.508 or of Sections
203	203	9.508 and 9.316(i)(1) [is effective solely under Section 9.508 in
204	204	collateral in which a new debtor has or acquires rights] is
205	205	subordinate to a security interest in the same collateral that is
206	206	perfected other than by such a filed financing statement [that is
207	207	effective solely under Section 9.508].
208	208	(b) The other provisions of this subchapter determine the
209	209	priority among conflicting security interests in the same
210	210	collateral perfected by filed financing statements described in
211	211	Subsection (a) [that are effective solely under Section 9.508].
212	212	However, if the security agreements to which a new debtor became
213	213	bound as debtor were not entered into by the same original debtor,
214	214	the conflicting security interests rank according to priority in
215	215	time of the new debtor's having become bound.
216	216	SECTION 9. Section 9.406, Business & Commerce Code, is
217	217	amended by amending Subsections (e) and (f) and adding Subsection
218	218	(k) to read as follows:
219	219	(e) Subsection (d) does not apply to the sale of a payment
220	220	intangible or promissory note, other than a sale pursuant to a
221	221	disposition under Section 9.610 or an acceptance of collateral
222	222	under Section 9.620.
223	223	(f) Except as otherwise provided in Sections 2A.303 and
224	224	9.407, and subject to Subsections (h), [and] (i), and (k), a rule of
225	225	law, statute, or regulation that prohibits, restricts, or requires
226	226	the consent of a government, governmental body or official, or
227	227	account debtor to the assignment or transfer of, or creation of a
228	228	security interest in, an account or chattel paper is ineffective to
229	229	the extent that the rule of law, statute, or regulation:
230	230	(1) prohibits, restricts, or requires the consent of
231	231	the government, governmental body or official, or account debtor to
232	232	the assignment or transfer of, or the creation, attachment,
233	233	perfection, or enforcement of a security interest in, the account
234	234	or chattel paper; or
235	235	(2) provides that the assignment or transfer or the
236	236	creation, attachment, perfection, or enforcement of the security
237	237	interest may give rise to a default, breach, right of recoupment,
238	238	claim, defense, termination, right of termination, or remedy under
239	239	the account or chattel paper.
240	240	(k) An assignment under this section is subject to Section
241	241	466.410, Government Code.
242	242	SECTION 10. Section 9.408(b), Business & Commerce Code, is
243	243	amended to read as follows:
244	244	(b) Subsection (a) applies to a security interest in a
245	245	payment intangible or promissory note only if the security interest
246	246	arises out of a sale of the payment intangible or promissory note,
247	247	other than a sale pursuant to a disposition under Section 9.610 or
248	248	an acceptance of collateral under Section 9.620.
249	249	SECTION 11. Section 9.502(c), Business & Commerce Code, is
250	250	amended to read as follows:
251	251	(c) A record of a mortgage is effective, from the date of
252	252	recording, as a financing statement filed as a fixture filing or as
253	253	a financing statement covering as-extracted collateral or timber to
254	254	be cut only if:
255	255	(1) the record indicates the goods or accounts that it
256	256	covers;
257	257	(2) the goods are or are to become fixtures related to
258	258	the real property described in the record or the collateral is
259	259	related to the real property described in the record and is
260	260	as-extracted collateral or timber to be cut;
261	261	(3) the record satisfies the requirements for a
262	262	financing statement in this section, but:
263	263	(A) the record need not indicate [other than an
264	264	indication] that it is to be filed in the real property records; and
265	265	(B) the record sufficiently provides the name of
266	266	a debtor who is an individual if it provides the individual name of
267	267	the debtor or the surname and first personal name of the debtor,
268	268	even if the debtor is an individual to whom Section 9.503(a)(4) or
269	269	(5) applies; and
270	270	(4) the record is duly recorded.
271	271	SECTION 12. Section 9.503, Business & Commerce Code, is
272	272	amended by amending Subsections (a) and (b) and adding Subsections
273	273	(f), (g), and (h) to read as follows:
274	274	(a) A financing statement sufficiently provides the name of
275	275	the debtor:
276	276	(1) except as otherwise provided in Subdivision (3),
277	277	if the debtor is a registered organization or the collateral is held
278	278	in a trust that is a registered organization, only if the financing
279	279	statement provides the name that is stated to be the registered
280	280	organization's name [of the debtor indicated] on the public organic
281	281	record most recently filed with or issued or enacted by [debtor's
282	282	formation documents that are filed of public record in] the
283	283	registered organization's [debtor's] jurisdiction of organization
284	284	[to create the registered organization and] that purports to state,
285	285	amend, or restate the registered organization's [show the debtor to
286	286	have been organized, including any amendments to those documents
287	287	for the express purpose of amending the debtor's] name;
288	288	(2) subject to Subsection (f), if the collateral is
289	289	being administered by the personal representative of a decedent
290	290	[debtor is a decedent's estate], only if the financing statement
291	291	provides, as the name of the debtor, the name of the decedent and,
292	292	in a separate part of the financing statement, indicates that the
293	293	collateral is being administered by a personal representative
294	294	[debtor is an estate];
295	295	(3) if the collateral [debtor] is held in a trust that
296	296	is not a registered organization [or a trustee acting with respect
297	297	to property held in trust], only if the financing statement:
298	298	(A) provides, as the name of the debtor:
299	299	(i) if the organic record of the trust
300	300	specifies a name [the name specified] for the trust, the name so [in
301	301	its organic documents or, if no name is] specified; or
302	302	(ii) if the organic record of the trust does
303	303	not specify a name for the trust, [provides] the name of the settlor
304	304	or testator [and additional information sufficient to distinguish
305	305	the debtor from other trusts having one or more of the same
306	306	settlors]; and
307	307	(B) in a separate part of the financing
308	308	statement:
309	309	(i) if the name is provided in accordance
310	310	with Paragraph (A)(i), indicates [, in the debtor's name or
311	311	otherwise,] that the collateral [debtor] is held in a trust; or
312	312	(ii) if the name is provided in accordance
313	313	with Paragraph (A)(ii), provides additional information sufficient
314	314	to distinguish the trust from other trusts having one or more of the
315	315	same settlors or the same testator and indicates that the
316	316	collateral is held in a trust, unless the additional information so
317	317	indicates [or is a trustee acting with respect to property held in
318	318	trust];
319	319	(4) subject to Subsection (g), if the debtor is an
320	320	individual to whom this state has issued a driver's license that has
321	321	not expired or to whom the agency of this state that issues driver's
322	322	licenses has issued, in lieu of a driver's license, a personal
323	323	identification card that has not expired, only [,] if the financing
324	324	statement provides the [individual's] name of the individual that
325	325	is indicated [shown] on the [individual's] driver's license or
326	326	personal identification card [certificate issued by the
327	327	individual's state of residence];
328	328	(5) if the debtor is an individual to whom Subdivision
329	329	(4) does not apply, only if the financing statement provides any of
330	330	the following:
331	331	(A) the individual name of the debtor;
332	332	(B) the name of the individual that is indicated
333	333	on a consular identification card that has been issued to the
334	334	individual and has not expired; or
335	335	(C) the individual's surname and first personal
336	336	name; and
337	337	(6) [(5)] in other cases:
338	338	(A) if the debtor has a name, only if it [the
339	339	financing statement] provides the [individual or] organizational
340	340	name of the debtor; and
341	341	(B) if the debtor does not have a name, only if it
342	342	[the financing statement] provides the names of the partners,
343	343	members, associates, or other persons comprising the debtor, in a
344	344	manner that each name provided would be sufficient if the person
345	345	named were the debtor.
346	346	(b) A financing statement that provides the name of the
347	347	debtor in accordance with Subsection (a) is not rendered
348	348	ineffective by the absence of:
349	349	(1) a trade name or other name of the debtor; or
350	350	(2) unless required under Subsection (a)(6)(B)
351	351	[(a)(4)(B)], names of partners, members, associates, or other
352	352	persons comprising the debtor.
353	353	(f) The name of the decedent indicated on the order
354	354	appointing the personal representative of the decedent issued by
355	355	the court having jurisdiction over the collateral is sufficient as
356	356	the "name of the decedent" under Subsection (a)(2).
357	357	(g) If this state has issued to an individual more than one
358	358	driver's license or, if none, more than one identification card, of
359	359	a kind described in Subsection (a)(4), the driver's license or
360	360	identification card, as applicable, that was issued most recently
361	361	is the one to which Subsection (a)(4) refers.
362	362	(h) The "name of the settlor or testator" means:
363	363	(1) if the settlor is a registered organization, the
364	364	name of the registered organization indicated on the public organic
365	365	record filed with or issued or enacted by the registered
366	366	organization's jurisdiction of organization; or
367	367	(2) in other cases, the name of the settlor or testator
368	368	indicated in the trust's organic record.
369	369	SECTION 13. Section 9.507(c), Business & Commerce Code, is
370	370	amended to read as follows:
371	371	(c) If the [a debtor so changes its] name that a filed
372	372	financing statement provides for a debtor becomes insufficient as
373	373	the name of the debtor under Section 9.503(a) so that the financing
374	374	statement becomes seriously misleading under Section 9.506:
375	375	(1) the financing statement is effective to perfect a
376	376	security interest in collateral acquired by the debtor before, or
377	377	within four months after, the filed financing statement becomes
378	378	seriously misleading [change]; and
379	379	(2) the financing statement is not effective to
380	380	perfect a security interest in collateral acquired by the debtor
381	381	more than four months after the filed financing statement becomes
382	382	seriously misleading [change], unless an amendment to the financing
383	383	statement that renders the financing statement not seriously
384	384	misleading is filed within four months after that event [the
385	385	change].
386	386	SECTION 14. Section 9.515(f), Business & Commerce Code, is
387	387	amended to read as follows:
388	388	(f) If a debtor is a transmitting utility and a filed
389	389	initial financing statement so indicates, the financing statement
390	390	is effective until a termination statement is filed.
391	391	SECTION 15. Section 9.516(b), Business & Commerce Code, is
392	392	amended to read as follows:
393	393	(b) Filing does not occur with respect to a record that a
394	394	filing office refuses to accept because:
395	395	(1) the record is not communicated by a method or
396	396	medium of communication authorized by the filing office;
397	397	(2) an amount equal to or greater than the applicable
398	398	filing fee is not tendered;
399	399	(3) the filing office is unable to index the record
400	400	because:
401	401	(A) in the case of an initial financing
402	402	statement, the record does not provide a name for the debtor;
403	403	(B) in the case of an amendment or information
404	404	[correction] statement, the record:
405	405	(i) does not identify the initial financing
406	406	statement as required by Section 9.512 or 9.518, as applicable; or
407	407	(ii) identifies an initial financing
408	408	statement whose effectiveness has lapsed under Section 9.515;
409	409	(C) in the case of an initial financing statement
410	410	that provides the name of a debtor identified as an individual or an
411	411	amendment that provides a name of a debtor identified as an
412	412	individual that was not previously provided in the financing
413	413	statement to which the record relates, the record does not identify
414	414	the debtor's surname [last name]; or
415	415	(D) in the case of a record filed or recorded in
416	416	the filing office described in Section 9.501(a)(1), the record does
417	417	not provide the name of the debtor and a sufficient description of
418	418	the real property to which it relates;
419	419	(4) in the case of an initial financing statement or an
420	420	amendment that adds a secured party of record, the record does not
421	421	provide a name and mailing address for the secured party of record;
422	422	(5) in the case of an initial financing statement or an
423	423	amendment that provides a name of a debtor that was not previously
424	424	provided in the financing statement to which the amendment relates,
425	425	the record does not:
426	426	(A) provide a mailing address for the debtor;
427	427	(B) indicate whether the debtor is an individual
428	428	or an organization; or
429	429	(C) if the financing statement indicates that the
430	430	debtor is an organization, provide:
431	431	(i) a type of organization for the debtor;
432	432	(ii) a jurisdiction of organization for the
433	433	debtor; or
434	434	(iii) an organizational identification
435	435	number for the debtor or indicate that the debtor has none;
436	436	(6) in the case of an assignment reflected in an
437	437	initial financing statement under Section 9.514(a) or an amendment
438	438	filed under Section 9.514(b), the record does not provide a name and
439	439	mailing address for the assignee;
440	440	(7) in the case of a continuation statement, the
441	441	record is not filed within the six-month period prescribed by
442	442	Section 9.515(d); or
443	443	(8) the record is not on an industry standard form,
444	444	including a national standard form or a form approved by the
445	445	International Association of Commercial Administrators, adopted by
446	446	rule by the secretary of state.
447	447	SECTION 16. Section 9.518, Business & Commerce Code, is
448	448	amended to read as follows:
449	449	Sec. 9.518. CLAIM CONCERNING INACCURATE OR WRONGFULLY FILED
450	450	RECORD. (a) Any person named as a debtor or a secured party may
451	451	file an information [a correction] statement with respect to a
452	452	record if the person believes that the record is inaccurate or was
453	453	wrongfully filed.
454	454	(b) An information [A correction] statement must:
455	455	(1) identify the record to which it relates by the file
456	456	number assigned to the initial financing statement to which the
457	457	record relates;
458	458	(2) indicate that it is an information [a correction]
459	459	statement; and
460	460	(3) provide the basis for the person's belief that the
461	461	record is inaccurate and indicate the manner in which the person
462	462	believes the record should be amended to cure any inaccuracy or
463	463	provide the basis for the person's belief that the record was
464	464	wrongfully filed.
465	465	(c) The filing of an information [a correction] statement
466	466	does not affect the effectiveness of an initial financing statement
467	467	or other filed record.
468	468	(d) Filing of an information [a correction] statement is not
469	469	effective as an amendment to a filed financing statement and is not
470	470	sufficient to effect a change in the manner in which the filing
471	471	office has indexed a financing statement or information contained
472	472	in a financing statement.
473	473	SECTION 17. Section 9.607(b), Business & Commerce Code, is
474	474	amended to read as follows:
475	475	(b) If necessary to enable a secured party to exercise under
476	476	Subsection (a)(3) the right of a debtor to enforce a mortgage
477	477	nonjudicially, the secured party may record in the office in which a
478	478	record of the mortgage is recorded:
479	479	(1) a copy of the security agreement that creates or
480	480	provides for a security interest in the obligation secured by the
481	481	mortgage; and
482	482	(2) the secured party's sworn affidavit in recordable
483	483	form stating that:
484	484	(A) a default has occurred with respect to the
485	485	obligation secured by the mortgage; and
486	486	(B) the secured party is entitled to enforce the
487	487	mortgage nonjudicially.
488	488	SECTION 18. Chapter 9, Business & Commerce Code, is amended
489	489	by adding Subchapter H to read as follows:
490	490	SUBCHAPTER H. TRANSITION PROVISIONS FOR 2013 AMENDMENTS
491	491	Sec. 9.801. EFFECTIVE DATE OF AMENDMENTS. (a) In this
492	492	subchapter, "2013 amendments" means the amendments to this chapter
493	493	enacted by the Act of the 82nd Legislature, Regular Session, 2011,
494	494	that enacted this subchapter.
495	495	(b) The 2013 amendments take effect July 1, 2013.
496	496	Sec. 9.802. SAVING CLAUSE. (a) Except as otherwise
497	497	provided in this subchapter, the 2013 amendments apply to a
498	498	transaction or lien within its scope, even if the transaction or
499	499	lien was entered into or created before July 1, 2013.
500	500	(b) The 2013 amendments do not affect an action, case, or
501	501	proceeding commenced before July 1, 2013.
502	502	Sec. 9.803. SECURITY INTEREST PERFECTED BEFORE EFFECTIVE
503	503	DATE. (a) A security interest that is a perfected security interest
504	504	immediately before July 1, 2013, is a perfected security interest
505	505	under this chapter, as amended by the 2013 amendments, if, when the
506	506	2013 amendments take effect, the applicable requirements for
507	507	attachment and perfection under this chapter, as amended by the
508	508	2013 amendments, are satisfied without further action.
509	509	(b) Except as otherwise provided in Section 9.805, if,
510	510	immediately before July 1, 2013, a security interest is a perfected
511	511	security interest, but the applicable requirements for perfection
512	512	under this chapter, as amended by the 2013 amendments, are not
513	513	satisfied when the 2013 amendments take effect, the security
514	514	interest remains perfected thereafter only if the applicable
515	515	requirements for perfection under this chapter, as amended by the
516	516	2013 amendments, are satisfied within one year after the 2013
517	517	amendments take effect.
518	518	Sec. 9.804. SECURITY INTEREST UNPERFECTED BEFORE EFFECTIVE
519	519	DATE. A security interest that is an unperfected security interest
520	520	immediately before July 1, 2013, becomes a perfected security
521	521	interest:
522	522	(1) without further action, when the 2013 amendments
523	523	take effect if the applicable requirements for perfection under
524	524	this chapter, as amended by the 2013 amendments, are satisfied
525	525	before or at that time; or
526	526	(2) when the applicable requirements for perfection
527	527	are satisfied if the requirements are satisfied after that time.
528	528	Sec. 9.805. EFFECTIVENESS OF ACTION TAKEN BEFORE EFFECTIVE
529	529	DATE. (a) The filing of a financing statement before the 2013
530	530	amendments take effect is effective to perfect a security interest
531	531	to the extent the filing would satisfy the applicable requirements
532	532	for perfection under this chapter, as amended by the 2013
533	533	amendments.
534	534	(b) The 2013 amendments do not render ineffective an
535	535	effective financing statement that, before July 1, 2013, is filed
536	536	and satisfies the applicable requirements for perfection under the
537	537	law of the jurisdiction governing perfection as provided in this
538	538	chapter as it existed before amendment. However, except as
539	539	otherwise provided in Subsections (c) and (d) and Section 9.806,
540	540	the financing statement ceases to be effective:
541	541	(1) if the financing statement is filed in this state,
542	542	at the time the financing statement would have ceased to be
543	543	effective had the 2013 amendments not taken effect; or
544	544	(2) if the financing statement is filed in another
545	545	jurisdiction, at the earlier of:
546	546	(A) the time the financing statement would have
547	547	ceased to be effective under the law of that jurisdiction; or
548	548	(B) June 30, 2018.
549	549	(c) The filing of a continuation statement after the 2013
550	550	amendments take effect does not continue the effectiveness of the
551	551	financing statement filed before July 1, 2013. However, on the
552	552	timely filing of a continuation statement after the 2013 amendments
553	553	take effect and in accordance with the law of the jurisdiction
554	554	governing perfection as provided in this chapter, as amended by the
555	555	2013 amendments, the effectiveness of a financing statement filed
556	556	in the same office in that jurisdiction before the 2013 amendments
557	557	take effect continues for the period provided by the law of that
558	558	jurisdiction.
559	559	(d) Subsection (b)(2)(B) applies to a financing statement
560	560	that, before July 1, 2013, is filed against a transmitting utility
561	561	and satisfies the applicable requirements for perfection under the
562	562	law of the jurisdiction governing perfection as provided in this
563	563	chapter as it existed before amendment, only to the extent that this
564	564	chapter, as amended by the 2013 amendments, provides that the law of
565	565	a jurisdiction other than the jurisdiction in which the financing
566	566	statement is filed governs perfection of a security interest in
567	567	collateral covered by the financing statement.
568	568	(e) A financing statement that includes a financing
569	569	statement filed before the 2013 amendments take effect and a
570	570	continuation statement filed after the 2013 amendments take effect
571	571	is effective only to the extent that it satisfies the requirements
572	572	of Subchapter E, as amended by the 2013 amendments, for an initial
573	573	financing statement. A financing statement that indicates that the
574	574	debtor is a decedent's estate indicates that the collateral is
575	575	being administered by a personal representative within the meaning
576	576	of Section 9.503(a)(2), as amended by the 2013 amendments. A
577	577	financing statement that indicates that the debtor is a trust or is
578	578	a trustee acting with respect to property held in trust indicates
579	579	that the collateral is held in a trust within the meaning of Section
580	580	9.503(a)(3), as amended by the 2013 amendments.
581	581	Sec. 9.806. WHEN INITIAL FINANCING STATEMENT SUFFICES TO
582	582	CONTINUE EFFECTIVENESS OF FINANCING STATEMENT. (a) The filing of
583	583	an initial financing statement in the office specified in Section
584	584	9.501 continues the effectiveness of a financing statement filed
585	585	before July 1, 2013, if:
586	586	(1) the filing of an initial financing statement in
587	587	that office would be effective to perfect a security interest under
588	588	this chapter, as amended by the 2013 amendments;
589	589	(2) the pre-effective-date financing statement was
590	590	filed in an office in another state; and
591	591	(3) the initial financing statement satisfies
592	592	Subsection (c).
593	593	(b) The filing of an initial financing statement under
594	594	Subsection (a) continues the effectiveness of the
595	595	pre-effective-date financing statement:
596	596	(1) if the initial financing statement is filed before
597	597	July 1, 2013, for the period provided in unamended Section 9.515
598	598	with respect to an initial financing statement; and
599	599	(2) if the initial financing statement is filed after
600	600	the 2013 amendments take effect, for the period provided in Section
601	601	9.515, as amended by the 2013 amendments, with respect to an initial
602	602	financing statement.
603	603	(c) To be effective for purposes of Subsection (a), an
604	604	initial financing statement must:
605	605	(1) satisfy the requirements of Subchapter E, as
606	606	amended by the 2013 amendments, for an initial financing statement;
607	607	(2) identify the pre-effective-date financing
608	608	statement by indicating the office in which the financing statement
609	609	was filed and providing the dates of filing and file numbers, if
610	610	any, of the financing statement and of the most recent continuation
611	611	statement filed with respect to the financing statement; and
612	612	(3) indicate that the pre-effective-date financing
613	613	statement remains effective.
614	614	Sec. 9.807. AMENDMENT OF PRE-EFFECTIVE-DATE FINANCING
615	615	STATEMENT. (a) In this section, "pre-effective-date financing
616	616	statement" means a financing statement filed before July 1, 2013.
617	617	(b) After the 2013 amendments take effect, a person may add
618	618	or delete collateral covered by, continue or terminate the
619	619	effectiveness of, or otherwise amend the information provided in, a
620	620	pre-effective-date financing statement only in accordance with the
621	621	law of the jurisdiction governing perfection as provided in this
622	622	chapter, as amended by the 2013 amendments. However, the
623	623	effectiveness of a pre-effective-date financing statement also may
624	624	be terminated in accordance with the law of the jurisdiction in
625	625	which the financing statement is filed.
626	626	(c) Except as otherwise provided in Subsection (d), if the
627	627	law of this state governs perfection of a security interest, the
628	628	information in a pre-effective-date financing statement may be
629	629	amended after the 2013 amendments take effect only if:
630	630	(1) the pre-effective-date financing statement and an
631	631	amendment are filed in the office specified in Section 9.501;
632	632	(2) an amendment is filed in the office specified in
633	633	Section 9.501 concurrently with, or after the filing in that office
634	634	of, an initial financing statement that satisfies Section 9.806(c);
635	635	or
636	636	(3) an initial financing statement that provides the
637	637	information as amended and satisfies Section 9.806(c) is filed in
638	638	the office specified in Section 9.501.
639	639	(d) If the law of this state governs perfection of a
640	640	security interest, the effectiveness of a pre-effective-date
641	641	financing statement may be continued only under Sections 9.805(c)
642	642	and (e) or Section 9.806.
643	643	(e) Whether or not the law of this state governs perfection
644	644	of a security interest, the effectiveness of a pre-effective-date
645	645	financing statement filed in this state may be terminated after the
646	646	2013 amendments take effect by filing a termination statement in
647	647	the office in which the pre-effective-date financing statement is
648	648	filed, unless an initial financing statement that satisfies Section
649	649	9.806(c) has been filed in the office specified by the law of the
650	650	jurisdiction governing perfection as provided in this chapter, as
651	651	amended by the 2013 amendments, as the office in which to file a
652	652	financing statement.
653	653	Sec. 9.808. PERSON ENTITLED TO FILE INITIAL FINANCING
654	654	STATEMENT OR CONTINUATION STATEMENT. A person may file an initial
655	655	financing statement or a continuation statement under this
656	656	subchapter if:
657	657	(1) the secured party of record authorizes the filing;
658	658	and
659	659	(2) the filing is necessary under this subchapter:
660	660	(A) to continue the effectiveness of a financing
661	661	statement filed before July 1, 2013; or
662	662	(B) to perfect or continue the perfection of a
663	663	security interest.
664	664	Sec. 9.809. PRIORITY. The 2013 amendments determine the
665	665	priority of conflicting claims to collateral. However, if the
666	666	relative priorities of the claims were established before July 1,
667	667	2013, this chapter as it existed before amendment determines
668	668	priority.
669	669	SECTION 19. Chapter 11, Business & Commerce Code, is
670	670	repealed.
671	671	SECTION 20. This Act takes effect July 1, 2013.