| 1 | 1 | | 82R12639 PMO-F |
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| 2 | 2 | | By: Orr, Solomons, Garza H.B. No. 366 |
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| 3 | 3 | | Substitute the following for H.B. No. 366: |
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| 4 | 4 | | By: Orr C.S.H.B. No. 366 |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to priority of payment relating to property owners' |
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| 10 | 10 | | association assessments. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Chapter 209, Property Code, is amended by adding |
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| 13 | 13 | | Section 209.0063 to read as follows: |
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| 14 | 14 | | Sec. 209.0063. PRIORITY OF PAYMENTS. Unless otherwise |
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| 15 | 15 | | provided in writing by the property owner at the time payment is |
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| 16 | 16 | | made, a payment received by a property owners' association from the |
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| 17 | 17 | | owner shall be applied to the owner's debt in the following order of |
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| 18 | 18 | | priority: |
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| 19 | 19 | | (1) any delinquent assessment; |
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| 20 | 20 | | (2) any current assessment; |
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| 21 | 21 | | (3) any attorney's fees incurred by the association |
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| 22 | 22 | | associated solely with assessments or any other charge that could |
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| 23 | 23 | | provide the basis for foreclosure; |
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| 24 | 24 | | (4) any fines assessed by the association; |
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| 25 | 25 | | (5) any attorney's fees incurred by the association |
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| 26 | 26 | | that are not subject to Subdivision (3); and |
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| 27 | 27 | | (6) any other amount owed to the association. |
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| 28 | 28 | | SECTION 2. This Act applies to a payment received by a |
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| 29 | 29 | | property owners' association on or after the effective date of this |
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| 30 | 30 | | Act. A payment received before the effective date of this Act is |
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| 31 | 31 | | governed by the law in effect when the payment was received, and the |
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| 32 | 32 | | former law is continued in effect for that purpose. |
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| 33 | 33 | | SECTION 3. This Act takes effect September 1, 2011. |
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