| Old | New | Differences | |
|---|---|---|---|
| 1 | 1 | 86R6302 BEE-F | |
| 2 | 2 | By: Paxton S.B. No. 2163 | |
| 3 | 3 | ||
| 4 | 4 | ||
| 5 | 5 | A BILL TO BE ENTITLED | |
| 6 | 6 | AN ACT | |
| 7 | 7 | relating to the survival of a mechanic's retainage lien after the | |
| 8 | 8 | foreclosure of a lien securing a construction loan. | |
| 9 | 9 | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | |
| 10 | 10 | SECTION 1. Subchapter F, Chapter 53, Property Code, is | |
| 11 | 11 | amended by adding Section 53.125 to read as follows: | |
| 12 | 12 | Sec. 53.125. SURVIVAL OF RETAINAGE LIEN AFTER CERTAIN | |
| 13 | 13 | FORECLOSURES. (a) A person who purchases property that is sold | |
| 14 | 14 | due to the foreclosure of a lien that secures a financing agreement | |
| 15 | 15 | or loan to pay for the construction or repair of an improvement to | |
| 16 | 16 | real property takes the property subject to an unreleased retainage | |
| 17 | 17 | lien established under Section 53.105. | |
| 18 | 18 | (b) For purposes of this section, "retainage" includes | |
| 19 | 19 | retainage under Subchapter E. | |
| 20 | 20 | SECTION 2. The changes in law made by this Act apply only to | |
| 21 | 21 | a lien related to an original contract entered into on or after the | |
| 22 | 22 | effective date of this Act. A lien related to an original contract | |
| 23 | 23 | entered into before the effective date of this Act is governed by | |
| 24 | 24 | the law applicable to the lien immediately before the effective | |
| 25 | 25 | date of this Act, and that law is continued in effect for that | |
| 26 | 26 | purpose. | |
| 27 | 27 | SECTION 3. This Act takes effect September 1, 2019. |