Texas 2021 - 87th Regular

Texas House Bill HB3794 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	H.B. No. 3794
	1	+	By: Geren (Senate Sponsor - Hinojosa) H.B. No. 3794
	2	+	(In the Senate - Received from the House May 3, 2021;
	3	+	May 6, 2021, read first time and referred to Committee on Natural
	4	+	Resources & Economic Development; May 11, 2021, reported favorably
	5	+	by the following vote: Yeas 8, Nays 0; May 11, 2021, sent to
	6	+	printer.)
	7	+	Click here to see the committee vote
2	8
3	9
	10	+	A BILL TO BE ENTITLED
4	11		AN ACT
5	12		relating to oil and gas liens.
6	13		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
7	14		SECTION 1. Section 9.109(d), Business & Commerce Code, is
8	15		amended to read as follows:
9	16		(d) This chapter does not apply to:
10	17		(1) a landlord's lien, other than an agricultural
11	18		lien;
12	19		(2) a lien, other than an agricultural lien, given by
13	20		statute or other rule of law for services or materials, but Section
14	21		9.333 applies with respect to priority of the lien;
15	22		(3) an assignment of a claim for wages, salary, or
16	23		other compensation of an employee;
17	24		(4) a sale of accounts, chattel paper, payment
18	25		intangibles, or promissory notes as part of a sale of the business
19	26		out of which they arose;
20	27		(5) an assignment of accounts, chattel paper, payment
21	28		intangibles, or promissory notes that is for the purpose of
22	29		collection only;
23	30		(6) an assignment of a right to payment under a
24	31		contract to an assignee that is also obligated to perform under the
25	32		contract;
26	33		(7) an assignment of a single account, payment
27	34		intangible, or promissory note to an assignee in full or partial
28	35		satisfaction of a preexisting indebtedness;
29	36		(8) a transfer of an interest in or an assignment of a
30	37		claim under a policy of insurance, other than an assignment by or to
31	38		a health care provider of a health-care-insurance receivable and
32	39		any subsequent assignment of the right to payment, but Sections
33	40		9.315 and 9.322 apply with respect to proceeds and priorities in
34	41		proceeds;
35	42		(9) an assignment of a right represented by a
36	43		judgment, other than a judgment taken on a right to payment that was
37	44		collateral;
38	45		(10) a right of recoupment or set-off, but:
39	46		(A) Section 9.340 applies with respect to the
40	47		effectiveness of rights of recoupment or set-off against deposit
41	48		accounts; and
42	49		(B) Section 9.404 applies with respect to
43	50		defenses or claims of an account debtor;
44	51		(11) the creation or transfer of an interest in or lien
45	52		on real property, including a lease or rents, as defined by Section
46	53		64.001, Property Code, the interest of a vendor or vendee in a
47	54		contract for deed to purchase an interest in real property, or the
48	55		interest of an optionor or optionee in an option to purchase an
49	56		interest in real property, except to the extent that provision is
50	57		made for:
51	58		(A) liens on real property in Sections 9.203 and
52	59		9.308;
53	60		(B) fixtures in Section 9.334;
54	61		(C) fixture filings in Sections 9.501, 9.502,
55	62		9.512, 9.516, and 9.519; and
56	63		(D) security agreements covering personal and
57	64		real property in Section 9.604;
58	65		(12) an assignment of a claim arising in tort, other
59	66		than a commercial tort claim, but Sections 9.315 and 9.322 apply
60	67		with respect to proceeds and priorities in proceeds; [or]
61	68		(13) an assignment of a deposit account, other than a
62	69		nonnegotiable certificate of deposit, in a consumer transaction,
63	70		but Sections 9.315 and 9.322 apply with respect to proceeds and
64	71		priorities in proceeds; or
65	72		(14) an oil and gas lien arising under Chapter 67,
66	73		Property Code.
67	74		SECTION 2. Section 9.310(b), Business & Commerce Code, is
68	75		amended to read as follows:
69	76		(b) The filing of a financing statement is not necessary to
70	77		perfect a security interest:
71	78		(1) that is perfected under Section 9.308(d), (e),
72	79		(f), or (g);
73	80		(2) that is perfected under Section 9.309 when it
74	81		attaches;
75	82		(3) in property subject to a statute, regulation, or
76	83		treaty described in Section 9.311(a);
77	84		(4) in goods in possession of a bailee that is
78	85		perfected under Section 9.312(d)(1) or (2);
79	86		(5) in certificated securities, documents, goods, or
80	87		instruments which is perfected without filing, control or
81	88		possession under Section 9.312(e), (f), or (g);
82	89		(6) in collateral in the secured party's possession
83	90		under Section 9.313;
84	91		(7) in a certificated security that is perfected by
85	92		delivery of the security certificate to the secured party under
86	93		Section 9.313;
87	94		(8) in deposit accounts, electronic chattel paper,
88	95		electronic documents, investment property, or letter-of-credit
89	96		rights that is perfected by control under Section 9.314;
90	97		(9) in proceeds that is perfected under Section 9.315;
91	98		or
92	99		(10) that is perfected under Section 9.316[; or
93	100		[(11) in oil or gas production or their proceeds under
94	101		Section 9.343].
95	102		SECTION 3. Section 9.324(b), Business & Commerce Code, is
96	103		amended to read as follows:
97	104		(b) Subject to Subsection (c) and except as otherwise
98	105		provided in Subsection (g), a perfected purchase-money security
99	106		interest in inventory has priority over a conflicting security
100	107		interest in the same inventory, has priority over a conflicting
101	108		security interest in chattel paper or an instrument constituting
102	109		proceeds of the inventory and in proceeds of the chattel paper, if
103	110		so provided in Section 9.330, and, except as otherwise provided in
104	111		Section 9.327, also has priority in identifiable cash proceeds of
105	112		the inventory to the extent the identifiable cash proceeds are
106	113		received on or before the delivery of the inventory to a buyer, if:
107	114		(1) the purchase-money security interest is perfected
108	115		when the debtor receives possession of the inventory;
109	116		(2) [except where excused by Section 9.343 (oil and
110	117		gas production),] the purchase-money secured party sends an
111	118		authenticated notification to the holder of the conflicting
112	119		security interest;
113	120		(3) the holder of the conflicting security interest
114	121		receives any required notification within five years before the
115	122		debtor receives possession of the inventory; and
116	123		(4) the notification states that the person sending
117	124		the notification has or expects to acquire a purchase-money
118	125		security interest in inventory of the debtor and describes the
119	126		inventory.
120	127		SECTION 4. Subtitle B, Title 5, Property Code, is amended by
121	128		adding Chapter 67 to read as follows:
122	129		CHAPTER 67. OIL AND GAS LIENS
123	130		Sec. 67.001. DEFINITIONS. In this chapter:
124	131		(1) "Affiliate" means any person who:
125	132		(A) is controlled, directly or indirectly, by a
126	133		first purchaser; or
127	134		(B) controls, directly or indirectly, a first
128	135		purchaser.
129	136		(2) "Agreement to sell" means an enforceable agreement
130	137		by an interest owner, directly or through a representative, to sell
131	138		oil or gas on or after severance to a first purchaser. The term
132	139		includes an agreement that is express or implied, whether oral or
133	140		written.
134	141		(3) "Control" means the possession, directly or
135	142		indirectly, of the power to direct or cause the direction of the
136	143		management and policies of a person, whether through ownership, by
137	144		contract, or otherwise.
138	145		(4) "First purchaser" means the first person that
139	146		purchases oil or gas from an interest owner, under an agreement to
140	147		sell.
141	148		(5) "Gas" means natural gas, casinghead gas, and all
142	149		constituent parts of natural gas and casinghead gas before and
143	150		after processing but before a first purchaser transfers title,
144	151		possession, or control of the gas to a purchaser.
145	152		(6) "Interest owner" means a person, including a
146	153		transferee interest owner, owning an interest of any kind in oil and
147	154		gas rights before acquisition by a first purchaser.
148	155		(7) "Oil" means oil, condensate, and all constituent
149	156		parts of the oil, before or after processing but before a first
150	157		purchaser transfers title, possession, or control of the oil to a
151	158		purchaser.
152	159		(8) "Oil and gas lien" means the lien described by
153	160		Section 67.002.
154	161		(9) "Oil and gas rights" means any legal or equitable
155	162		right, title, or interest in or to oil or gas from land in this
156	163		state. The term includes:
157	164		(A) oil or gas in place before severance;
158	165		(B) oil or gas production, or the right to
159	166		receive a portion of the proceeds, on severance;
160	167		(C) any interest or estate in, by, through, or
161	168		under an oil and gas lease;
162	169		(D) a right acquired under a pooling order
163	170		relating to:
164	171		(i) ownership of oil or gas;
165	172		(ii) the right to proceeds; or
166	173		(iii) the right to enter into an agreement
167	174		to sell;
168	175		(E) a right to receive consideration under an
169	176		agreement to sell oil or gas; and
170	177		(F) a mortgage lien or security interest in oil
171	178		and gas rights.
172	179		(10) "Operator" means a person engaged in the
173	180		severance of oil or gas for that person only, for other persons
174	181		only, or for that person and others.
175	182		(11) "Permitted lien" means a perfected and
176	183		enforceable lien created by statute or rule of a governmental
177	184		agency for storage or transportation charges, including terminal
178	185		charges, tariffs, demurrage, insurance, labor, or other charges,
179	186		owed by a first purchaser in relation to oil or gas originally
180	187		purchased under an agreement to sell. The term does not include a
181	188		lien that is:
182	189		(A) in favor of an affiliate of a first purchaser
183	190		unless the lien is authorized by the statute or rule creating the
184	191		lien; or
185	192		(B) for charges incurred after the 90th day after
186	193		the date the first purchaser delivers the oil or gas for storage or
187	194		transportation.
188	195		(12) "Pooling order" means an order issued by the
189	196		Railroad Commission of Texas that requires the owners of the right
190	197		to drill for oil or gas in a drilling and spacing unit to pool the
191	198		owner's interests for the development of the drilling and spacing
192	199		unit.
193	200		(13) "Proceeds" means, when paid or to be paid in
194	201		consideration of, or as a consequence of, the sale of oil or gas
195	202		under an agreement to sell:
196	203		(A) oil or gas on or after severance;
197	204		(B) inventory of raw, refined, or manufactured
198	205		oil or gas after severance;
199	206		(C) rights to or products of any of the oil or gas
200	207		described by Paragraph (A) or inventory described by Paragraph (B);
201	208		(D) cash proceeds;
202	209		(E) accounts;
203	210		(F) chattel paper;
204	211		(G) instruments;
205	212		(H) documents; or
206	213		(I) payment intangibles with respect to any of
207	214		the preceding.
208	215		(14) "Purchaser" means a person who:
209	216		(A) is not an affiliate of a first purchaser; and
210	217		(B) takes, receives, or purchases oil or gas from
211	218		a first purchaser.
212	219		(15) "Representative" means a person who is
213	220		authorized, expressly or by implication, including an operator or
214	221		an authorized broker, to:
215	222		(A) sell oil or gas on behalf of, or for the
216	223		benefit of, an interest owner under an agreement to sell; or
217	224		(B) receive on behalf of an interest owner the
218	225		consideration under an agreement to sell.
219	226		(16) "Sales price" means the proceeds a first
220	227		purchaser agrees to pay an interest owner or representative under
221	228		an agreement to sell.
222	229		(17) "Security interest" means a security interest
223	230		governed by Chapter 9, Business & Commerce Code.
224	231		(18) "Severance" means the point in time oil or gas is
225	232		possessed at the mouth of the wellbore of an oil and gas well.
226	233		(19) "Transferee interest owner" means a person that
227	234		acquires oil and gas rights from a transferor interest owner.
228	235		(20) "Transferor interest owner" means an interest
229	236		owner that transfers or conveys oil and gas rights, wholly or
230	237		partly.
231	238		Sec. 67.002. OIL AND GAS LIEN. (a) To secure the
232	239		obligations of a first purchaser to pay the sales price, each
233	240		interest owner has an oil and gas lien to the extent of the interest
234	241		owner's interest in oil and gas rights. The oil and gas lien exists
235	242		as part of and incident to the ownership of oil and gas rights.
236	243		(b) An oil and gas lien:
237	244		(1) exists in and attaches to all oil and gas before
238	245		severance;
239	246		(2) continues uninterrupted and without lapse in all
240	247		oil and gas on and after severance; and
241	248		(3) continues uninterrupted and without lapse in and
242	249		to all proceeds from the sale of the oil or gas.
243	250		(c) Except as provided by Subsection (d), an oil and gas
244	251		lien exists until the interest owner or representative first
245	252		entitled to receive the sales price has received the sales price for
246	253		the oil or gas production, but the lien does not continue to attach
247	254		to the production after the production is sold by the first
248	255		purchaser, unless the first subsequent purchaser:
249	256		(1) is an affiliate of the first purchaser; or
250	257		(2) has actual knowledge, not constructive notice or
251	258		inquiry notice, that the first purchaser has not paid the interest
252	259		owner or representative first entitled to receive the sales price.
253	260		(d) As between an interest owner and a representative of an
254	261		interest owner or any person claiming adversely to the interest
255	262		owner or representative, the interest owner's oil and gas lien
256	263		continues uninterrupted and without lapse in proceeds in the
257	264		possession or control of a representative until the interest owner
258	265		on whose behalf the representative acts receives the proceeds in
259	266		full.
260	267		(e) Except as provided by Subsection (f), a first purchaser
261	268		takes free of an oil and gas lien if the first purchaser:
262	269		(1) in good faith, paid the sales price for the oil or
263	270		gas to an interest owner or representative otherwise apparently
264	271		entitled to receive the sales price; and
265	272		(2) is without actual knowledge that the interest
266	273		owner or representative is not entitled to receive the sales price
267	274		paid.
268	275		(f) Notwithstanding Subsection (e), the oil and gas lien
269	276		continues uninterrupted in the proceeds paid to or otherwise due
270	277		the interest owner or representative.
271	278		Sec. 67.003. TRANSFER OF OIL AND GAS RIGHTS. (a) The
272	279		validity of an oil and gas lien is not dependent on possession of
273	280		the oil or gas by an interest owner or representative. An oil and
274	281		gas lien is not void or expired because of a change or transfer of
275	282		the actual or constructive possession of or title to the oil or gas
276	283		from the interest owner or representative to a first purchaser or
277	284		other purchaser.
278	285		(b) On the conveyance or transfer of any oil and gas rights
279	286		by a transferor interest owner, the oil and gas lien vested in the
280	287		transferor interest owner immediately before the conveyance or
281	288		transfer remains with the transferor interest owner to the extent
282	289		of any oil and gas rights retained by the transferor interest owner.
283	290		(c) On the conveyance or transfer of any oil and gas rights
284	291		by a transferor interest owner, the oil and gas lien vested in the
285	292		transferor interest owner immediately before the conveyance or
286	293		transfer is transferred to and attaches automatically to the oil
287	294		and gas rights acquired by the transferee interest owner
288	295		uninterrupted and without lapse and as part of and incident to the
289	296		oil and gas rights that are conveyed or transferred.
290	297		Sec. 67.004. AUTOMATIC PERFECTION OF LIEN. An oil and gas
291	298		lien of an interest owner is perfected automatically without the
292	299		need to file a financing statement or any other type of
293	300		documentation.
294	301		Sec. 67.005. COMMINGLING. (a) If oil or gas in which there
295	302		exists more than one oil and gas lien is commingled with other oil
296	303		or gas in a manner that the identity of the specific oil or gas is
297	304		lost, the oil and gas lien:
298	305		(1) continues without interruption into and attaches
299	306		to any resulting commingled product; and
300	307		(2) is perfected automatically on the date of the oil
301	308		and gas lien's original perfection but only for the volume of the
302	309		commingled product that is equal to the volume of product to which
303	310		the oil and gas lien originally attached.
304	311		(b) If commingling described by Subsection (a) occurs, the
305	312		oil and gas lien in the commingled product has priority over any
306	313		security interest or other lien that is not an oil and gas lien or
307	314		permitted lien, regardless of whether the security interest or
308	315		other lien has been properly perfected.
309	316		(c) If more than one oil and gas lien attaches to the
310	317		commingled product, the oil and gas liens rank equally in the
311	318		proportion that the respective sales prices secured by each oil and
312	319		gas lien bears as a percentage of the total of the sales prices
313	320		secured by all oil and gas liens applicable to the production at the
314	321		time the production was commingled.
315	322		(d) This section is intended to recognize the continuation
316	323		of oil and gas lien rights of an interest owner in the commingled
317	324		product stream only as to a volume of oil or gas proportionate to
318	325		the volume of oil or gas that originated from the interest owner,
319	326		with that volume of the commingled product being considered to have
320	327		maintained a distinct identity as being available for sale or
321	328		transportation under the specific contractual arrangements
322	329		applicable to the production at the time the oil or gas entered the
323	330		commingled product stream.
324	331		Sec. 67.006. RIGHTS OF PURCHASERS. (a) Except as provided
325	332		by Subsection (b), a purchaser takes free of any oil and gas lien
326	333		otherwise applicable to the oil or gas purchased if the purchaser:
327	334		(1) is a buyer in the ordinary course of the first
328	335		purchaser's business under Chapter 9, Business & Commerce Code; or
329	336		(2) has paid all of the consideration due to the first
330	337		purchaser, including by exchange of oil or gas, net-out, or
331	338		set-off, under all applicable enforceable contracts in existence at
332	339		the time of the payment.
333	340		(b) The oil and gas lien continues uninterrupted in the
334	341		proceeds paid to or otherwise due the first purchaser.
335	342		(c) Except as provided by this section, an oil and gas lien
336	343		has priority over the rights of any purchaser.
337	344		Sec. 67.007. PRIORITY IN RELATION TO OTHER LIENS OR
338	345		SECURITY INTERESTS. Except for a permitted lien, an oil and gas
339	346		lien takes priority over any other lien, whether arising by
340	347		contract, law, equity, or otherwise, or any security interest.
341	348		Sec. 67.008. TITLE NOT AFFECTED. This chapter does not
342	349		affect:
343	350		(1) when legal title to oil and gas may pass by
344	351		agreement or operation of law subject to an oil and gas lien;
345	352		(2) the right of a first purchaser to take or receive
346	353		oil and gas under the terms of a division order, provided that the
347	354		division order does not modify, waive, or abrogate in any respect
348	355		the rights of an interest owner under this chapter; or
349	356		(3) subject to Section 67.009, the right of a first
350	357		purchaser to take or receive oil and gas under an agreement to sell.
351	358		Sec. 67.009. WAIVER. (a) Except as provided by Subsection
352	359		(b), an interest owner may not be required, as a condition or term
353	360		of an agreement to sell or otherwise, to:
354	361		(1) waive or release any oil and gas lien or a right
355	362		under this chapter, other than on payment in full of the sales
356	363		price; or
357	364		(2) agree to a provision that would apply the law of
358	365		another state to a right granted under this chapter.
359	366		(b) An interest owner, or representative acting on behalf of
360	367		an interest owner, may waive or release any oil and gas lien or any
361	368		rights under this chapter or agree to apply the law of another state
362	369		to the interest owner's oil and gas rights granted under this
363	370		chapter, if the first purchaser:
364	371		(1) posts a letter of credit in a form and amount
365	372		satisfactory to the interest owner; or
366	373		(2) agrees to prepay or escrow the sales price under an
367	374		agreement to sell with the interest owner and performs all of the
368	375		first purchaser's obligations under the agreement.
369	376		(c) Unless waived or released under Subsection (b), a
370	377		condition or term described by Subsection (a) is void.
371	378		Sec. 67.010. LIMITATION ON FILING ACTION TO ENFORCE LIEN.
372	379		(a) Except as provided by Subsection (b), an action to enforce the
373	380		interest owner's oil and gas lien must be brought not later than the
374	381		first anniversary of the last day of the month after the date
375	382		proceeds from the sale of oil or gas subject to the lien are
376	383		required by law or contract to be paid to the interest owner, but
377	384		only as to the oil or gas sold during that month.
378	385		(b) The commencement of a proceeding by or against any
379	386		person claiming an interest in any property subject to the oil and
380	387		gas lien seeking to adjudicate the person as bankrupt or insolvent,
381	388		or seeking relief of the person's debts under any law relating to
382	389		bankruptcy, insolvency, reorganization, or relief of debtors, or
383	390		seeking the entry of an order for relief or the appointment of a
384	391		receiver, trustee, or other similar official for the person or for
385	392		any substantial part of the person's property shall toll the
386	393		one-year period prescribed by Subsection (a) in which to bring an
387	394		action to enforce the oil and gas lien for an additional period of
388	395		90 days after the earlier of the date:
389	396		(1) the proceeding is dismissed or otherwise finally
390	397		concluded; or
391	398		(2) final relief is obtained from the appropriate
392	399		tribunal authorizing the commencement of the action to enforce the
393	400		oil and gas lien.
394	401		Sec. 67.011. VENUE; JURISDICTION. (a) An action to enforce
395	402		the interest owner's oil and gas lien may be brought in a district
396	403		court or other court of competent jurisdiction in the county in
397	404		which:
398	405		(1) the oil and gas well from which the oil or gas is
399	406		produced is located;
400	407		(2) the unpaid for oil or gas is located; or
401	408		(3) the proceeds for the oil or gas are located.
402	409		(b) An interest owner may join multiple proceedings to
403	410		enforce oil and gas liens involving more than one oil and gas well
404	411		in one county in the same action.
405	412		(c) In cases involving oil or gas from the same oil and gas
406	413		well or wells:
407	414		(1) any persons claiming oil and gas liens in the oil
408	415		or gas may join in the same action; or
409	416		(2) a district court may consolidate separate actions
410	417		related to the oil or gas.
411	418		Sec. 67.012. PAYMENT DISPUTES. In the case of a payment
412	419		dispute between an operator and another interest owner, a
413	420		good-faith tender of money in satisfaction of a debt or security
414	421		interest by one person operates as a tender of the money to both if
415	422		tender is made:
416	423		(1) to the person who the operator and other interest
417	424		owner jointly directed the first purchaser in writing to pay;
418	425		(2) to a person who otherwise shows the person is
419	426		entitled to the money; or
420	427		(3) to a court of competent jurisdiction in the event
421	428		of litigation or bankruptcy.
422	429		Sec. 67.013. COSTS; ATTORNEY'S FEES. The prevailing party
423	430		in an action brought under this chapter is entitled to court costs
424	431		and reasonable attorney's fees.
425	432		Sec. 67.014. CERTAIN RIGHTS OF OPERATOR NOT IMPAIRED. This
426	433		chapter does not impair an operator's right to be paid, set-off, or
427	434		withhold funds from another interest owner as security for or in
428	435		satisfaction of a debt or security interest.
429	436		Sec. 67.015. INTEREST OWNER RIGHTS CUMULATIVE. The
430	437		provisions of this chapter and the rights granted under this
431	438		chapter are intended to be cumulative with all other rights an
432	439		interest owner may otherwise have at law or in equity, including the
433	440		right of any interest owner to maintain a personal action to recover
434	441		the debt against any person liable for payment of the sales price of
435	442		the oil or gas.
436	443		Sec. 67.016. LIBERAL CONSTRUCTION OF INTEREST OWNER RIGHTS.
437	444		The rights of the interest owner shall be liberally construed to
438	445		give the interest owner the most comprehensive protection to secure
439	446		the receipt by the interest owner of the sales price.
440	447		Sec. 67.017. CONFLICT OF LAWS. To the extent of a conflict
441	448		between the provisions of this chapter and other law, this chapter
442	449		prevails.
443	450		SECTION 5. Sections 9.203(j) and 9.343, Business & Commerce
444	451		Code, are repealed.
445	452		SECTION 6. (a) The changes in law made by this Act do not
446	453		affect the rights of any interest owner that accrued before the
447	454		effective date of this Act to the extent those rights are not in
448	455		conflict with the provisions of Chapter 67, Property Code, as added
449	456		by this Act, and the former law is continued in effect to preserve
450	457		those rights.
451	458		(b) For purposes of Sections 67.005 and 67.007, Property
452	459		Code, as added by this Act, a "permitted lien" includes a mortgage
453	460		lien or security interest in oil or gas that:
454	461		(1) is granted before the effective date of this Act by
455	462		a first purchaser in favor of a person who is not an affiliate of the
456	463		first purchaser; and
457	464		(2) secures payment under a written instrument of
458	465		indebtedness signed by the first purchaser and accepted in writing
459	466		by the payee before the effective date of this Act with a principal
460	467		amount and a fixed maturity stated in the instrument, unless:
461	468		(A) the instrument of indebtedness is modified,
462	469		amended, or restated on or after the effective date of this Act to:
463	470		(i) increase the principal amount that was
464	471		owed before the effective date of this Act; or
465	472		(ii) extend the stated maturity of the debt
466	473		that was in effect before the effective date of this Act; or
467	474		(B) the mortgage lien or security interest is not
468	475		validly perfected with a first priority against the claims of all
469	476		persons under applicable law other than persons holding a statutory
470	477		or regulatory lien for which first priority is granted by statute or
471	478		rule.
472	479		SECTION 7. This Act takes effect September 1, 2021.
473		-	______________________________ ______________________________
474		-	President of the Senate Speaker of the House
475		-	I certify that H.B. No. 3794 was passed by the House on April
476		-	30, 2021, by the following vote: Yeas 140, Nays 1, 2 present, not
477		-	voting.
478		-	______________________________
479		-	Chief Clerk of the House
480		-	I certify that H.B. No. 3794 was passed by the Senate on May
481		-	19, 2021, by the following vote: Yeas 31, Nays 0.
482		-	______________________________
483		-	Secretary of the Senate
484		-	APPROVED: _____________________
485		-	Date
486		-	_____________________
487		-	Governor
	480	+	* * * * *